UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-QSB





(Mark
One)





x
            QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the
quarterly period ended January 31, 2008





OR





o
            TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
  ACT





For the
transition period from ______________to _______________.





Commission
File Number 333-139774





SUNOVIA
ENERGY TECHNOLOGIES, INC.


(Exact
name of small business issuer as specified in its charter)





Nevada
              (State
      or other jurisdiction of incorporation or organization)
            98-0550703
              (I.R.S.
      Employer Identification No.)





6408
Parkland Drive, Suite 104, Sarasota, Fl 34243


(Address
of principal executive offices)




941-751-


6800


(Issuer’s
telephone number)







(Former
name, former address and former fiscal year if changed since last
report)





Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for the 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
o





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes o 
    No x





The
number of shares of the Registrant’s Common Stock outstanding as of March 12,
2008 was 436,384,685.





Transitional
Small Business Disclosure Format (Check one): Yes o     No
x




1


FORM 10-QSB


INDEX





PagePART I: FINANCIAL
      INFORMATION
            4ITEM 1. FINANCIAL
      STATEMENTS
            4Consolidated Balance Sheet
      (Unaudited)
            F-2Consolidated Statements of
      Operations (Unaudited)
            F-3Consolidated Statement of Changes
      in Stockholders’ Equity (Unaudited)
            F-4 -
  F-5Consolidated Statements of Cash Flows
      (Unaudited)
            F-6Notes to Consolidated Financial
      Statements (Unaudited)
            F-7ITEM 2. MANAGEMENT’S DISCUSSION
      AND ANALYSIS OR PLAN OF OPERATION
            6ITEM 3. CONTROLS AND
      PROCEDURES
            12PART II. OTHER
      INFORMATION
            13ITEM 1. LEGAL PROCEEDINGS
            13ITEM 2. UNREGISTERED SALES OF
      EQUITY SECURITIES AND USE OF PROCEEDS
            13ITEM
      3.  DEFAULTS
      UPON SENIOR SECURITIES
            14ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
      SECURITY HOLDERS
            14ITEM 5.  OTHER
INFORMATION
            14ITEM 6. EXHIBITS
            14SIGNATURES
            14




2




Introductory
Note





Caution
Concerning Forward-Looking Statements





This
Report and our other communications and statements may contain “forward-looking
statements,” including statements about our beliefs, plans, objectives, goals,
expectations, estimates, projections and intentions. These statements are
subject to significant risks and uncertainties and are subject to change based
on various factors, many of which are beyond our control. The words “may,”
“could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,”
“intend,” “plan,” “target,” “goal,” and similar expressions are intended to
identify forward-looking statements. All forward-looking statements, by their
nature, are subject to risks and uncertainties. Our actual future results may
differ materially from those set forth in our forward-looking statements.
Forward-looking statements include, but are not limited to, statements
about:





·
            our
      expectations regarding our expenses and revenue;·
            our
      anticipated cash needs and our estimates regarding our capital
      requirements and our needs for additional
  financing;


·
            plans
      for future products, for enhancements of existing products and for
      development of new technologies;·
            our
      anticipated growth strategies;


·
            existing
      and new customer relationships;·
            our
      technology strengths;


·
            our
      intellectual property, third-party intellectual property and claims
      related to infringement thereof;·
            anticipated
      trends and challenges in our business and the markets in which we
      operate;


·
            and
      sources of new revenue.





For
information concerning these factors and related matters, please read our 8-k
Information Statement dated December 6, 2007 and the subsequent information
filed with the Securities and Exchange Commission.  However, other
factors besides those referenced could adversely affect our results, and you
should not consider any such list of factors to be a complete set of all
potential risks or uncertainties. Any forward-looking statements made by us
herein speak as of the date of this Quarterly Report. We do not undertake to
update any forward-looking statement, except as required by law.




3


PART I:
FINANCIAL INFORMATION





ITEM 1.FINANCIAL
STATEMENTS






SUNOVIA
ENERGY TECHNOLOGIES, INC.


(FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)


(A
DEVELOPMENT STAGE COMPANY)











REPORT
ON REVIEWS OF


CONSOLIDATED
FINANCIAL STATEMENTS











FOR
THE THREE AND SIX MONTHS ENDED JANUARY 31, 2008 AND 2007








Bobbitt,
Pittenger & Company, P.A.
 4





SUNOVIA
ENERGY TECHNOLOGIES, INC.


(FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)


(A
DEVELOPMENT STAGE COMPANY)










CONTENTS





UPAGEFINANCIAL
      STATEMENTSREPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
              F-1CONSOLIDATED
      BALANCE SHEETS
              F-2CONSOLIDATED
      STATEMENTS OF OPERATIONS
              F-3CONSOLIDATED
      STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
              F-4
      - F-5CONSOLIDATED
      STATEMENTS OF CASH FLOWS
              F-6NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS
              F-7







5








March 11,
2008
 (except
for Note R, as to which the date is March 17, 2008)
 
 To The
Board of Directors and Stockholders
 Sunovia
Energy Technologies, Inc.
 (Formerly
known as Acadia Resources, Inc.)
 Sarasota
, Florida
 
 UREPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
 
 We have
reviewed the accompanying consolidated balance sheet of Sunovia Energy
Technologies, Inc. (formerly known as Acadia Resources, Inc.), (a development
stage company), as of January 31, 2008 and the related consolidated statements
of operations and cash flows for the three and six months ended January 31, 2008
and 2007, and for the period from inception (November 9, 2005) through January
31, 2008, and the statement of changes in stockholders’ equity for the six
months ended January 31, 2008.  These financial statements are the
responsibility of the Company’s management.
 
 We
conducted our review in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  A review of interim
financial information consists principally of applying analytical procedures and
making inquiries of persons responsible for financial and accounting
matters.  It is substantially less in scope than an audit conducted in
accordance with standards of the Public Company Accounting Oversight Board
(United States), the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.  Accordingly, we
do not express such an opinion.
 
 Based on
our review, we are not aware of any material modifications that should be made
to the accompanying interim financial statements for them to be in conformity
with accounting principles generally accepted in the United States of
America.
 
 We have
previously audited, in accordance with auditing standards of the Public Company
Accounting Oversight Board (United States), the balance sheet of Sun Energy
Solar, Inc. (see note A), (a development stage company), as of July 31, 2007 and
the related statements of operations, stockholders’ equity, and cash flows for
the period from inception (November 9, 2005) through July 31, 2007, and in our
report dated September 19, 2007, we expressed an unqualified opinion on those
financial statements.  In our opinion, the information set forth in
the accompanying balance sheet as of July 31, 2007, is fairly stated, in all
material respects, in relation to the balance sheet from which it has been
derived.





Certified
Public Accountants


Sarasota,
Florida





F-1















January
              
              
              July31,
      2008
              
              
              31,
      2007(Unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
              
              $
              4,254,752
              
              
              $
              3,457,729Prepaid
      expenses
              
              
              46,603
              
              
              
              21,725Inventory
              
              
              102,500
              
              
              
              43,057TOTAL
      CURRENT ASSETS
              
              
              4,403,855
              
              
              
              3,522,511Furniture
      and equipment, net
              
              
              220,780
              
              
              
              172,673Investment
      in EPIR Technologies, Inc.
              
              
              3,780,385
              
              
              
              -Other
      assets
              
              
              53,988
              
              
              
              53,988TOTAL
      ASSETS
              
              $
              8,459,008
              
              
              $
              3,749,172LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable and accrued expenses
              
              $
              233,617
              
              
              $
              895,978Common
      stock redemption
              
              
              815,007
              
              
              
              -Related
      party payables
              
              
              9,000
              
              
              
              9,000TOTAL
      CURRENT LIABILITIES
              
              
              1,057,624
              
              
              
              904,978STOCKHOLDERS'
      EQUITYCommon
      stock, $.001 par value; 1,500,000,000 shares authorized: 429,908,341 and
      264,913,506 at January 31, 2008 and July 31, 2007, respectively, issued
      and outstanding
              
              
              429,909
              
              
              
              13,241Additional
      paid-in capital
              
              
              18,642,001
              
              
              
              8,786,946Deficit
      accumulated during the development stage
              
              
              (11,670,526
              )
              
              
              (5,955,993
              )TOTAL
      STOCKHOLDERS' EQUITY
              
              
              7,401,384
              
              
              
              2,844,194TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
              
              $
              8,459,008
              
              
              $
              3,749,172





See
report of independent registered public accounting firm and
 notes to
consolidated financial statements.
 F-2





SUNOVIA
ENERGY TECHNOLOGIES, INC.


(FORMERLY
KNOWN AS ACADIARESOURCES, INC.)


(A
DEVELOPMENT STAGE COMPANY)


CONSOLIDATED
STATEMENTS OF OPERATIONS




For
      the Three
              Months
      Ended
              January
      31, 2008
            
            
            For
      the Six
              Months
      Ended
              January
      31, 2008
            
            
            For
      the Three
              Months
      Ended
              January
      31, 2007
            
            
            For
      the Six

                Months
      Ended
                January 31,
      2007
            
            
            For
      the Period
              From
      Inception
              (November 9,
      2005)To
              January 31,
      2008(Unaudited)
            
            
            (Unaudited)
            
            
            (Unaudited)
            
            
            (Unaudited)
            
            
            (Unaudited)Revenue:
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -
            
            
            $
            -Expenses:Selling,
      general and administrative
            
            
            1,083,791
            
            
            
            1,896,109
            
            
            
            2,117,377
            
            
            3,084,259
            
            
            7,653,023Research
      and development
            
            
            2,271,875
            
            
            
            3,871,277
            
            
            
            56,014
            
            
            184,792
            
            
            4,303,357Total
      expenses
            
            
            3,355,666
            
            
            
            5,767,386
            
            
            
            2,173,391
            
            
            3,269,051
            
            
            11,956,380Operating
      loss
            
            
            (3,355,666
            )
            
            
            (5,767,386
            )
            
            
            (2,173,391
            )
            
            (3,269,051)
            
            
            (11,956,380)Other
      income:Interest
            
            
            20,509
            
            
            
            52,853
            
            
            
            51,257
            
            
            98,834
            
            
            285,854Total
      other income
            
            
            20,509
            
            
            
            52,853
            
            
            
            51,257
            
            
            98,834
            
            
            285,854Loss
      before income tax benefit
            
            
            (3,335,157
            )
            
            
            (5,714,533
            )
            
            
            (2,122,134
            )
            
            (3,170,217)
            
            
            (11,670,526)Income
      tax benefit
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            -
            
            
            -Net
      loss
            
            $
            (3,335,157
            )
            
            $
            (5,714,533
            )
            
            $
            (2,122,134
            )
            
            $
            (3,170,217)
            
            
            $
            (11,670,526)Loss
      per share:Basic
            
            $
            (0.01
            )
            
            $
            (0.02
            )
            
            $
            (0.01
            )
            
            $
            (0.01)
            
            
            $
            (0.05)Diluted
            
            $
            (0.01
            )
            
            $
            (0.02
            )
            
            $
            (0.01
            )
            
            $
            (0.01)
            
            
            $
            (0.05)Weighted
      average number of common shares outstanding:Basic
            
            
            271,424,959
            
            
            
            270,723,551
            
            
            
            247,520,371
            
            
            241,224,875
            
            
            236,693,619Diluted
            
            
            271,424,959
            
            
            
            270,723,551
            
            
            
            247,520,371
            
            
            241,224,875
            
            
            236,693,619




See
report of independent registered public accounting firm and
 notes to
consolidated financial statements.
 F-3




SUNOVIA
ENERGY TECHNOLOGIES, INC.


(FORMERLY
KNOWN AS ACADIARESOURCES, INC.)


(A
DEVELOPMENT STAGE COMPANY)


CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY




Common
      Stock
            
            
            Additional
              Paid-in
            
            
            AccumulatedShares
            
            
            Amount
            
            
            Capital
            
            
            Deficit
            
            
            TotalBalance
      at inception, November 9, 2005
            
            
            
            
            
            $
            
            
            
            $
            
            
            
            $
            
            
            
            $Capital
      contributed by founders
            
            
            177,525,000
            
            
            
            8,876
            
            
            
            58,985
            
            
            
            
            
            
            
            67,861Shares
      issued in private placement ($.10 per share)
            
            
            44,979,626
            
            
            
            2,249
            
            
            
            4,495,714
            
            
            
            
            
            
            
            4,497,963Stock
      issued for services
              and
      compensation ($0.10 per share)
            
            
            8,500,630
            
            
            
            425
            
            
            
            849,638
            
            
            
            
            
            
            
            850,063Net
      loss
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (1,229,400
            )
            
            
            (1,229,400
            )Balance,
      July 31, 2006
            
            
            231,005,256
            
            
            
            11,550
            
            
            
            5,404,337
            
            
            
            (1,229,400
            )
            
            
            4,186,487Shares
      issued in private placement ($0.10 per share,
              less
      syndication costs)
            
            
            7,950,660
            
            
            
            393
            
            
            
            788,148
            
            
            
            
            
            
            
            788,541Stock
      issued for services
              and
      compensation ($0.10 per share)
            
            
            25,957,590
            
            
            
            1,298
            
            
            
            2,594,461
            
            
            
            
            
            
            
            2,595,759Net
      loss
            
            
            
            
            
            
            
            
            
            
            
            
            
            
            (4,726,593
            )
            
            
            (4,726,593
            )Balance,
      July 31, 2007
            
            
            264,913,506
            
            
            
            13,241
            
            
            
            8,786,946
            
            
            
            (5,955,993
            )
            
            
            2,844,194





See
report of independent registered public accounting firm and
 notes to
consolidated financial statements.
 F-4


SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIARESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
 (CONTINUED)
  Common
      Stock
              
              
              Additional
                Paid-in
              
              AccumulatedShares
              
              
              Amount
              
              
              Capital
              
              Deficit
              
              Total(Unaudited)Common
      stock redemption
                ($0.10
      per share)
              
              
              (37,698,114
              )
              
              
              (2,051
              )
              
              
              (3,763,765
              )
              
              
              
              
              (3,765,816
              )Stock
      issued for services
                and
      compensation (10/31/07) ($0.10 per share)
              
              
              6,550,000
              
              
              
              327
              
              
              
              654,673
              
              
              
              
              
              655,000Reverse
      stock split, 1 for 4 shares and change in par value of
    stock
              
              
              (175,455,294
              )
              
              
              46,793
              
              
              
              (46,793
              )Shares
      exchanged forAcadia
      Resources, Inc.
              
              
              7,350,000
              
              
              
              7,350
              
              
              
              (7,350
              )Stock
      split, 4.5 for 1 share
              
              
              230,422,843
              
              
              
              230,423
              
              
              
              (230,423
              )Shares
      issued in private placement ($0.10 per share)
              
              
              55,677,640
              
              
              
              55,678
              
              
              
              5,512,086
              
              
              
              
              
              5,567,764Stock
      issued for services
                and
      compensation (1/31/08) ($0.10 per share)
              
              
              12,660,833
              
              
              
              12,661
              
              
              
              1,253,422
              
              
              
              
              
              1,266,083Shares
      issued for equity investment in EPIR Technologies, Inc.
              
              
              37,803,852
              
              
              
              37,804
              
              
              
              3,742,581
              
              
              
              
              
              3,780,385Reissuance
      of previously redeemed stock
              
              
              27,683,075
              
              
              
              27,683
              
              
              
              2,740,624
              
              
              
              
              
              2,768,307Net
      loss
              
              
              
              
              
              
              
              
              
              
              
              
              
              (5,714,533)
              
              
              (5,714,533
              )Balance,
      January31, 2008
              
              
              429,908,341
              
              
              $
              429,909
              
              
              $
              18,642,001
              
              $
              (11,670,526)
              
              $
              7,401,384





See
report of independent registered public accounting firm and  notes to
consolidated financial statements.
 F-5


SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIARESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
STATEMENTS OF CASH FLOWS
 
 For
      the Three
                Months
      Ended
                January 31,
      2008
              
              
              For
      the Six
                  Months Ended
                  January 31, 2008
              
              
              For
      the ThreeMonths EndedJanuary 31, 2007
              
              
              For
      the SixMonths EndedJanuary 31, 2007
              
              
              For
      the Period
                    From
      Inception
                    (November
      9, 2005)
                    To
                  January 31, 2008(Unaudited)
              
              
              (Unaudited)
              
              
              (Unaudited)
              
              
              (Unaudited)
              
              
              (Unaudited)CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      loss
              
              $
              (3,335,157
              )
              
              $
              (5,714,533
              )
              
              $
              (2,122,134
              )
              
              $
              (3,170,217
              )
              
              $
              (11,670,526
              )Adjustments
      to reconcile net loss tonet
      cash used in operating activitiesDepreciation
              
              
              10,481
              
              
              
              20,962
              
              
              
              3,630
              
              
              
              5,894
              
              
              
              42,310Stock
      issued for services and compensation
              
              
              1,266,083
              
              
              
              1,921,083
              
              
              
              1,676,562
              
              
              
              2,078,115
              
              
              
              5,366,905Changes
      in operating assets and liabilities:Prepaid
      expenses
              
              
              (28,613
              )
              
              
              (24,878
              )
              
              
              4,978
              
              
              
              34,956
              
              
              
              (46,603
              )Inventory
              
              
              (400
              )
              
              
              (59,443
              )
              
              
              -
              
              
              
              -
              
              
              
              (102,500
              )Interest
      receivable
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              15,797
              
              
              
              -Other
      assets
              
              
              -
              
              
              
              -
              
              
              
              (12,258
              )
              
              
              (24,238
              )
              
              
              (53,988
              )Accounts
      payable and accrued expenses
              
              
              (915,211
              )
              
              
              (662,361
              )
              
              
              131,685
              
              
              
              386,772
              
              
              
              233,617Related
      party payables
              
              
              -
              
              
              
              -
              
              
              
              (10,644
              )
              
              
              (27,234
              )
              
              
              9,000NET
      CASH USED BY OPERATING ACTIVITIES
              
              
              (3,002,817
              )
              
              
              (4,519,170
              )
              
              
              (328,181
              )
              
              
              (700,155
              )
              
              
              (6,221,785
              )CASH
      FLOWS FROM INVESTING ACTIVITIESPurchase
      of furniture and equipment
              
              
              (18,127
              )
              
              
              (69,069
              )
              
              
              (21,936
              )
              
              
              (40,718
              )
              
              
              (263,090
              )NET
      CASH USED BY INVESTING ACTIVITIES
              
              
              (18,127
              )
              
              
              (69,069
              )
              
              
              (21,936
              )
              
              
              (40,718
              )
              
              
              (263,090
              )CASH
      FLOWS FROM FINANCING ACTIVITIESEquity
      contributed by private placement
              
              
              5,567,764
              
              
              
              5,567,764
              
              
              
              721,266
              
              
              
              755,066
              
              
              
              10,854,268Contributed
      capital
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              -
              
              
              
              67,861Common
      stock redemption
              
              
              (17,501
              )
              
              
              (182,502
              )
              
              
              -
              
              
              
              -
              
              
              
              (182,502
              )NET
      CASH PROVIDED BY FINANCING ACTIVITIES
              
              
              5,550,263
              
              
              
              5,385,262
              
              
              
              721,266
              
              
              
              755,066
              
              
              
              10,739,627NET
      INCREASE IN CASH AND CASH EQUIVALENTS
              
              
              2,529,319
              
              
              
              797,023
              
              
              
              371,149
              
              
              
              14,193
              
              
              
              4,254,752CASH
      AND CASH EQUIVALENTS, BEGINNING OF PERIOD
              
              
              1,725,433
              
              
              
              3,457,729
              
              
              
              4,004,024
              
              
              
              4,360,980
              
              
              
              -CASH
      AND CASH EQUIVALENTS, END OF PERIOD
              
              $
              4,254,752
              
              
              $
              4,254,752
              
              
              $
              4,375,173
              
              
              $
              4,375,173
              
              
              $
              4,254,752Cash
      paid for:Interest
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -Income
      taxes
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -Noncash
      operating and financing activities:Stock
      issued for services and
    compensation
              
              $
              1,266,083
              
              
              $
              1,921,083
              
              
              $
              1,676,562
              
              
              $
              2,078,115
              
              
              $
              5,366,905Treasury
      stock redeemed included in payables
              
              $
              438,504
              
              
              $
              3,765,816
              
              
              $
              
              
              
              $
              
              
              
              $
              3,765,816Reissuance
      of previously redeemed stock
              
              $
              2,768,307
              
              
              $
              2,768,307
              
              
              $
              
              
              
              $
              
              
              
              $
              2,768,307Shares
      issued for equity investmentin
      EPIR Technologies, Inc.
              
              $
              3,780,385
              
              
              $
              3,780,385
              
              
              $
              
              
              
              $
              
              
              
              $
              3,780,385




See
report of independent registered public accounting firm and
 notes to
consolidated financial statements.
 F-6


SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
 FOR THE
THREE AND SIX MONTHS ENDED JANUARY 31, 2008 AND 2007, AND FOR THE
 PERIOD
FROM INCEPTION (NOVEMBER 9, 2005) THROUGH JANUARY 31, 2008


NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 Organization,
Nature, and Continuance of Operations
 
 Sunovia
Energy Technologies, Inc. (“the Company”) is a development stage company
incorporated in Nevada.  The Company is developing, designing, and
integrating photovoltaic solar cells into products for incident management,
energy efficient advertising, and low-cost durable solar modules for easy
installation and incremental upgrading of capacity.  The Company is
also developing environmentally responsible, energy efficient lighting products
that are based on the latest and most efficient light emitting diode (LED)
technologies.
 
 On
November 27, 2007, Acadia Resources, Inc. (“Acadia”), Sunovia Solar, Inc., a
wholly owned subsidiary of Acadia (“Sunovia Solar”) and Sun Energy Solar, Inc.
entered into an Agreement and Plan of Merger which closed on November 28,
2007.  Pursuant to the terms of the Merger agreement, Sunovia Solar
merged with and into Sun Energy Solar, which became a wholly-owned subsidiary of
Acadia (the “Merger”).  On December 17, 2007, Acadia changed its name
to Sunovia Energy Technologies, Inc.
 
 Sun
Energy Solar was incorporated under the laws of the State of Delaware on
November 9, 2005.  Sun Energy Solar, Inc. was organized for the
purpose of developing solar related products and technologies.  The
Company was originally named Sologic, Inc.  On April 25, 2006, the
Company completed its name change from Sologic, Inc. to Sun Energy Solar,
Inc.
 
 On
December 21, 2005, the Company acquired the patent rights (patent applied for)
to No. 60/617,263 Titled Substrate with Light Display, applied for on September
2, 2005, from Sparx, Inc., a Florida corporation 100% owned by the Company’s
Chief Executive Officer.  Sparx, Inc. had acquired the patent rights
from company officers who were the original inventors.  As
compensation under this agreement, the Company has granted Sparx, Inc., a
royalty of 4.9% of gross revenues (see Note B).
 
 The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern.  The Company is in the development
stage of business and has experienced negative cash flows from operations to
date and has accumulated losses of $11,670,526.  To date the Company
has funded operations through the issuance of common
stock.  Management’s plan is to continue raising funds through future
equity or debt financings as needed until it achieves profitable
operations.  During the period from inception (November 9, 2005)
through January 31, 2008, the Company completed a private placement of
108,607,926 shares for net proceeds of $10,854,268.  The ability of
the Company to continue its operations as a going concern is dependent on
continuing to raise sufficient new capital to fund its business and development
activities and to fund ongoing losses, if needed, and ultimately on generating
profitable operations.
 
 UAccounting
Method
 
 The
Company recognizes income and expenses on the accrual basis of
accounting.  The accompanying financial statements have been prepared
on the accrual basis of accounting in accordance with accounting principles
generally accepted in the United States.





F-7
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS


NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 Use of
Estimates
 
 The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosures of contingent
assets and liabilities at the date of the financial statements and revenue and
expenses during the reporting period.  Actual results could differ
from those estimates.
 
 Concentrations
 
 Financial
instruments that potentially subject the Company to concentrations of credit
risk consist of cash and cash equivalents.  The Company maintains cash
and cash equivalents in deposit accounts with one financial institution located
in the United States.  Deposit accounts exceed federally insured
limits.  Management does not believe the Company is exposed to
significant risks on such accounts.  Generally, these deposits may be
redeemed upon demand and, therefore, bear minimal interest rate
risk.  At January 31, 2008, the Company had an uninsured cash balance
of approximately $4,261,000.
 
 Royalty
Agreements
 
 The
Company has entered into an agreement that requires the payment of royalties to
Sparx, Inc. (See Note B), a company owned by the Chief Executive Officer and
largest shareholder.  The Company expenses royalties as product costs
during the period in which the related revenues are recorded.  Since
inception no royalties have been expensed under this agreement.
 
 Cash and Cash
Equivalents
 
 For
purposes of the statements of cash flows, the Company considers all highly
liquid investments purchased with an original maturity of three months or less
to be cash equivalents.
 
 Furniture and Equipment,
Net
 
 Furniture
and equipment are recorded at cost.  Maintenance, repairs and other
renewals are charged to expense when incurred.  Major additions are
capitalized, while minor additions, which do not extend the useful life of an
asset, are charged to operations when incurred.  When property and
equipment are sold or otherwise disposed of, the related cost and accumulated
depreciation is removed from the accounts, and any gain or loss is included in
operations.  Depreciation is calculated using the straight-line
method, in amounts sufficient to relate the cost of depreciable assets to
operations over their estimated useful lives, which range from three to seven
years.  Leasehold improvements are amortized using the straight-line
method over the lives of the respective leases or the service lives of the
improvements, whichever is shorter.




F-8
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS





NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 Accounting for Long-Lived
Assets
 
 In
accordance with the provisions of Statement of Financial Accounting Standards
(SFAS) No. 144, “Accounting
for the Impairment or Disposal of Long-Lived Assets”, the Company’s
policy is to evaluate whether there has been a permanent impairment in the value
of long-lived assets, certain intangibles and goodwill.  In evaluating
for possible impairment, the Company uses an estimate of undiscounted cash
flows.  Factors considered in the valuation include current operating
results, trends and anticipated undiscounted future cash flows.  The
Company has not recorded any impairment losses since inception.
 
 Intangible
Assets
 
 In
accordance with SFAS No. 142, “Goodwill and Other Intangible
Assets”, intangible assets with an indefinite useful life are not
amortized. Intangible assets with a finite useful life are amortized using the
straight-line method over the estimated useful life.  All intangible
assets are tested for impairment annually during the fourth quarter of the
fiscal year.  The Company had no intangible assets as of January 31,
2008 and July 31, 2007.
 
 UResearch and
Development
 
 In
accordance with SFAS No. 2, “Accounting for Research and
Development Costs”, Research and Development ("R&D") expenses are
charged to expense when incurred.  R&D is performed internally,
and the Company does not perform R&D for other entities.  The
Company has consulting arrangements which are typically based upon a fee paid
monthly or quarterly.  Samples are purchased that are used in testing,
and are expensed when purchased.  R&D costs also include salaries
and related personnel expenses, direct materials, laboratory supplies, equipment
expenses and administrative expenses that are allocated to R&D based upon
personnel costs.
 
 Revenue
Recognition
 
 In
accordance with SEC Staff Accounting Bulletin 101, “Revenue Recognition”, as
amended by Staff Accounting Bulletin 104, the Company recognizes revenue when
the following conditions have been met: there is persuasive evidence an
arrangement exists which includes a fixed price, there is reasonable assurance
of collection, the services or products have been provided and delivered to the
customer, no additional performance is required, and title and risk of loss has
passed to the customer.  For the six months ended January 31, 2008 and
2007 and for the period from inception (November 9, 2005) through January 31,
2008, no revenue has been recognized.
 
 Products
may be placed on consignment to a limited number of
resellers.  Revenue for these consignment transactions will also be
recognized as noted above.
 
 Shipping and Handling
Costs
 
 Amounts
charged to customers for shipping and handling of the Company’s products is
recorded as product revenue.  The related costs are recorded as cost
of sales.





F-9
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 Advertising
 
 Advertising
costs, including direct response advertising costs, are charged to operations as
incurred. There were no product advertising costs charged to expense for the six
months ended January 31, 2008 and 2007 or for the period from inception
(November 9, 2005) through January 31, 2008.
 
 Stock Based
Compensation
 
 For the
period from inception (November 9, 2005) through July 31, 2006, the Company had
adopted SFAS No. 123, “Accounting for Stock Based
Compensation”.  SFAS No. 123 allowed the Company to adopt a
fair value basis of accounting for stock options and other equity instruments or
to continue to apply the existing accounting required by Accounting Principles
Board (APB) Opinion No. 25, “Accounting for Stock Issued to
Employees”.  The Company has also adopted the disclosure
provisions of SFAS No. 148, “Accounting for Stock Based
Compensation - Transition and Disclosure”.  This pronouncement
requires prominent disclosures in both annual and interim financial statements
about the method of accounting for stock based employee compensation and the
effect of the method used on reporting results.  Effective
August 1, 2006, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 123 (revised 2004), “Share-Based
Payment” (“SFAS 123R”) requiring that compensation cost relating to share-based
payment transactions be recognized in the financial statements.  The
cost is measured at the grant date, based on the calculated fair value of the
award, and is recognized as an expense over the employee’s requisite service
period (generally the vesting period of the equity award).  The
Company adopted SFAS 123R using the modified prospective method and,
accordingly, did not restate prior periods to reflect the fair value method of
recognizing compensation cost.  Under the modified prospective
approach, SFAS 123R applies to new awards and to awards that were outstanding on
August 1, 2006 that are subsequently modified, repurchased or
cancelled.
 
 ULegal Costs Related to Loss
Contingencies
 
 The
Company accrues legal costs expected to be incurred in connection with loss
contingencies as they occur.  As of January 31, 2008 and 2007, there
were no loss contingencies expected.
 
 Income Taxes
(Benefits)
 
 The
Company utilizes the guidance provided by SFAS No. 109, “Accounting for Income
Taxes”.  Deferred tax assets and liabilities are determined
based on the difference between the financial statement and tax basis of assets
and liabilities as measured by the enacted tax rates that are expected to be in
effect when these differences reverse.  Valuation allowances are
provided if necessary to reduce deferred tax assets to the amount expected to be
realized.
 
 The
Company has established a valuation allowance against the deferred tax asset due
to uncertainties in its ability to generate sufficient taxable income in future
periods to make realization of such  assets more likely than
not.  The Company has not recognized an income tax benefit for the
operating losses generated during the six months ended January 31, 2008 and 2007
or for the period from inception (November 9, 2005) through January 31,
2008.


F-10
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 Income Taxes (Benefits)
(Continued)
 
 At
January 31, 2008, the Company had a net operating loss carryforward of
approximately $11,671,000 that may be offset against future taxable income
through 2026.  The amount of the income tax benefit for the six months
ended January 31, 2008 and 2007 and for the period from inception (November 9,
2005) through January 31, 2008, before the valuation allowance was applied,
totaled approximately $2,143,000, $1,189,000 and $4,376,000,
respectively.
 
 Loss Per
Share
 
 Loss per
share is computed using the basic and diluted calculations on the statement of
operations.  Basic loss per share is calculated by dividing net loss
available to common share stockholders by the weighted average number of shares
of common stock outstanding for the period.  Diluted loss per share is
calculated by dividing net loss by the weighted average number of shares of
common stock outstanding for the period, adjusted for the dilutive effect of
common stock equivalents, using the treasury stock method.  The total
number of shares not included in the calculation as the effect is antidilutive
is 500,000,000.  The effects of the stock options are antidilutive at
January 31, 2008 and 2007 and therefore are excluded from the fully diluted
calculation.
 
 Inventory
 
 Inventory
is stated at the lower of cost or market.  Cost is determined by the
first-in, first-out (FIFO) method.
 
 Comprehensive
Income
 
 The
Company has adopted SFAS No. 130, “TReporting Comprehensive
Income”T. The
statement establishes standards for reporting and display of comprehensive
income and its components in a full set of general-purpose financial
statements.  The statement requires all items that are required to be
recognized under accounting standards as components of comprehensive income to
be disclosed in the financial statements.
 
 Comprehensive
income is defined as the change in equity during a period from transactions and
other events from non-owner sources.  The Company has no components of
comprehensive income and, accordingly, net loss is equal to comprehensive loss
for the six months ended January 31, 2008 and 2007 and for the period from
inception (November 9, 2005) through January 31, 2008.
 
 In March
2006, the FASB issued SFAS 156 “Accounting for Servicing of Financial Assets.”
This Statement amends FASB Statement No. 140, “Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities,” with respect
to the accounting for separately recognized servicing assets and servicing
liabilities.  This statement was effective for the first fiscal year
that began after August 1, 2007.  Adoption of this statement has not
had any material effect on the Company’s financial position or results of
operations.




F-11
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 Fair Value of Financial
Instruments
 
 The
Company’s financial instruments, including cash and cash equivalents, accounts
payable and accrued liabilities are carried at cost, which approximates their
fair value, due to the relatively short maturity of these
instruments.
 
 Patent
Costs
 
 The costs
of internally developing, maintaining, or restoring such intangibles that are
not specifically identifiable, have indeterminate lives, or are inherent in a
continuing business are charged to expense when incurred.  Costs
capitalized in association with patents totaled $47,008 for the period from
inception (November 9, 2005) through January 31, 2008.  Patent costs
are included in other assets on the balance sheet.
 
 Options
 
 On
December 21, 2005, options for 500,000,000 shares were issued to the Company’s
Chief Executive Officer for services, exercisable at a price of $.10 (see Note
N).  The stock options have a fifteen year life.
 
 Reclassifications
 
 Certain
amounts for the periods ended January 31, 2007 have been reclassified in the
comparative financial statements to be comparable to the presentation for the
periods ended January 31, 2008.  These reclassifications had no effect
on net loss.
 
 Accounting Changes and Error
Corrections
 
 In May
2005, the Financial Accounting Standards Board ("FASB") issued Statement No.
154, “Accounting Changes and Error Corrections”.  This Statement
replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3,
Reporting Accounting Changes in Interim Financial Statements, and changes the
requirements for the accounting for, and reporting of, a change in accounting
principle.  This Statement applies to all voluntary changes in
accounting principle.  It also applies to changes required by an
accounting pronouncement in the unusual instance that the pronouncement does not
include specific transition provisions.  When a pronouncement includes
specific transition provisions, those provisions should be
followed.
 
 SFAS 154
is effective for accounting changes and corrections of errors made in fiscal
years beginning after December 15, 2005.  Adoption of this Statement
did not have any material impact on the financial statements.


F-12
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE B -
ACQUISITION OF PATENT RIGHTS FROM SPARX, INC.
 
 On
December 21, 2005, the Company acquired certain patent rights (see Note A) from
Sparx, Inc., a Florida corporation 100% owned by the Company’s Chief Executive
Officer and largest shareholder.  As compensation under this
agreement, the Company has granted Sparx, Inc., a royalty of 4.9% of gross
revenues.
 
 The
Company entered into a change of control severance agreement with the Chief
Executive Officer and largest shareholder on December 21, 2005.  If
any person, entity, or group acquires beneficial ownership of 20% or more of the
Company, the Chief Executive Officer is granted voting rights on a number of
common shares that would result in his having a voting majority of shares needed
for any shareholder meeting.
 
 If there
is a change of control of the Company, as defined within the agreement, the
Chief Executive Officer will receive a cash payment equal to the value of his
annual bonus for the performance period that includes the date the change in
control occurred, disregarding any applicable vesting requirements; provided
that such amount will be equal to the product of the target award percentage
under the applicable annual incentive plan or program in effect immediately
prior to the change in control times the base pay, but prorated to base payment
only on the portion of the executive’s service that had elapsed during the
applicable performance period through the change in control.  Such
payments are to be made within five business days after the change in
control.
 
 If the
Company fails to comply with any of the terms of the agreement, any related
legal expenses will be paid by the Company, without respect to whether the Chief
Executive Officer prevails.  Reimbursement for relocation expenses on
a basis consistent with the Company’s practices for senior executives, up to
$50,000, shall be provided to the executive, if the executive is relocated at
the request of the Company within five years of the termination
date.  For a period of twelve months following the termination date,
the Company shall provide the executive with benefits substantially similar to
those that the Chief Executive Officer was entitled to receive immediately prior
to the termination date.
 
 NOTE C -
INCOME TAXES
 
 The
Company's net deferred tax asset as of January 31, 2008 and July 31, 2007 is as
follows:




2008
              
              
              2007Deferred
      tax assetNet
      operating loss carryforward
              
              $
              4,376,447
              
              
              $
              2,235,000Valuation
      allowance
              
              
              (4,376,447
              )
              
              
              ( 2,235,000
              )Net
      deferred tax asset
              
              $
              -
              
              
              $
              -





F-13
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE C -
INCOME TAXES (CONTINUED)
 
 At
January 31, 2008 the Company had a net operating loss carry forward of
approximately $11,671,000 for federal and state income tax
purposes.  The carryforward, if not utilized to offset taxable income,
will begin to expire in 2026.  The change in valuation allowance for
the six months ended January 31, 2008 and 2007 totaled $2,143,000 and
$1,189,000, respectively.
 
 A
reconciliation of provision (benefit) for income taxes to income taxes at
statutory rate is as follows:




For the Six Months
      Ended January 31, 2008
            
            
            For the Six Months
      Ended January 31, 2007
            
            
            For the Period from
      Inception (November 9, 2005) through January 31, 2008Federal income
      tax (benefit) at statutory rate
            
            $
            1,829,000
            
            
            $
            1,015,000
            
            
            $
            3,734,000State taxes
      (benefit)
            
            
            314,000
            
            
            
            174,000
            
            
            
            642,000Valuation
      allowance
            
            
            (2,143,000
            )
            
            
            (1,189,000
            )
            
            
            (4,376,000
            )Provision
      (benefit) for income taxes
            
            $
            -
            
            
            $
            -
            
            
            $
            -




NOTE D -
FURNITURE AND EQUIPMENT, NET





At
January 31, 2008 and July 31, 2007 furniture and equipment consisted of the
following:






January
      31, 2008
              
              
              July
      31, 2007Computer
      equipment
              
              $
              204,963
              
              
              $
              153,638Furniture
      and fixtures
              
              
              31,767
              
              
              
              29,616Leasehold
      improvements
              
              
              26,360
              
              
              
              10,767263,090
              
              
              
              194,021Less:
      accumulated depreciation
              
              
              (42,310
              )
              
              
              (21,348
              )Furniture
      and equipment
              
              $
              220,780
              
              
              $
              172,673




Total
depreciation expense for the six months ended January 31, 2008 and 2007 and for
the period from inception (November 9, 2005) through January 31, 2008 was
$20,962, $5,894 and $42,310, respectively.




F-14
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS











NOTE E -
STOCKHOLDERS' EQUITY





UCommon
Stock





Effective
November 27, 2007 the Company declared a 1 for 4 reverse stock split of the
Company’s common stock.  The reverse stock split resulted in a
decrease of shares outstanding of 175,455,294 shares.  The par value
of the shares was changed on the same date to $.001 per share.





In
November 2007, the Company exchanged 7,350,000 shares of Acadia Resources, Inc.
common stock (See Notes A and P) for the same number of shares in the
Company.





On
December 4, 2007, the Company declared a 4.5 for 1 forward stock split of the
Company’s common stock, effective of record on December 11, 2007.  The
stock split resulted in an additional 230,422,843 shares of the Company’s common
stock being issued.





A summary
of options to purchase shares of common stock as of January 31, 2008 and changes
during the three months ended January 31, 2008 and for the period from inception
(November 9, 2005) through October 31, 2007 is as follows:


Outstanding
      OptionsNumber
      of Shares
              
              
              Exercise
      PriceBalance
      at November 9, 2005 (inception)Granted
      December 20, 2005
              
              
              500,000,000
              
              
              $
              0.10Balance
      at July 31, 2007
              
              
              500,000,000
              
              
              $
              0.10Balance
      at January 31, 2008
              
              
              500,000,000
              
              
              $
              0.10





NOTE F -
RENTAL AND LEASE INFORMATION





Operating
Leases





The
Company leases office space/warehouse facilities in Sarasota, Florida under an
operating lease.  The lease term is for a period of three years and
commenced on October 1, 2006.  The base rent over the term is
approximately $134,000.  The company is responsible for all taxes,
insurance and utility expenses associated with the leased
property.  Rental expense totaled $32,117, $39,917 and $186,810 for
the six months ended January 31, 2008 and 2007 and for the period from inception
(November 9, 2005) through January 31, 2008, respectively.  Prior to
October 2006, the Company leased office space/warehouse facilities in Sarasota,
Florida under an operating lease with a company owned by two of the Company’s
officers and shareholders.  In October 2006, the Company terminated
the lease.




F-15
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS











NOTE G -
INVESTMENT IN EPIR TECHNOLOGIES, INC.





The
Company has entered into a research, development and supply agreement with EPIR
Technologies, Inc. (EPIR) for an exclusive marketing, supply and development
partnership for advanced solar photovoltaic (PV) and encapsulate technologies to
develop advanced light detection devices and II-VI Materials.  The
II-VI materials are uniquely combined to form the semiconductors that are used
in solar PV technologies.  The partnership also provides for the
commercialization of advanced light detection technologies that form a
foundation for accelerating advanced PV development that is aimed at reducing
the overall cost of energy from a solar PV System.   The Company
and EPIR are developing a solar PV encapsulate that eliminates the need for
glass encapsulates that are prevalent in today’s market.





Consideration
for the agreement includes exchanging 37,803,852 shares of the Company’s common
stock for 202,200 (10%) shares of EPIR common stock.





The
agreement calls for the Company to make to EPIR the non-refundable payments set
forth below:




Payment
      Amount
              
              
              
              Payment
      to be received by$            1,700,000
              
              
              
              November
      30, 20071,000,000
              
              
              
              February
      1, 20081,000,000
              
              
              
              April
      1, 20081,000,000
              
              
              
              October
      1, 20081,000,000
              
              
              
              December
      1, 20081,000,000
              
              
              
              March
      1, 20091,000,000
              
              
              
              June
      1, 20091,000,000
              
              
              
              August
      1, 20091,000,000
              
              
              
              October
      1, 20091,000,000
              
              
              
              December
      1, 20091,000,000
              
              
              
              March
      1, 20201,000,000
              
              
              
              June
      1,20101,000,000
              
              
              
              August
      1,20101,000,000
              
              
              
              October
      1,20101,000,000
              
              
              
              December
      1, 2010500,000
              
              
              
              April
      1, 2011500,000
              
              
              
              October
      1, 2011500,000
              
              
              
              April
      1,2012500,000
              
              
              
              October
      1,2012500,000
              
              
              
              April
      1,2013500,000
              
              
              
              October
      1,2013500,000
              
              
              
              April
      1,2014





F-16
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS











NOTE G -
INVESTMENT IN EPIR TECHNOLOGIES, INC. (CONTINUED)


500,000
              
              
              
              October
      1, 2014500,000
              
              
              
              April
      1, 2015500,000
              
              
              
              October
      1,2015500,000
              
              
              
              April
      1, 2016500,000
              
              
              
              October
      1,2016500,000
              
              
              
              April
      1, 2017500,000
              
              
              
              October
      1,2017500,000
              
              
              
              March
      1,2017500,000
              
              
              
              October
      1,2017$          23,700,000





NOTE H –
SEGMENT INFORMATION





During
the year ended July 31, 2007, the Company was organized into operating segments
based on product groupings. Prior to this date, the Company did not have
lighting product. These operating segments have been aggregated into two
reportable business segments: Solar Substrate and Lighting Product. The
reportable segments were determined in accordance with the way that management
of the Company develops and executes the Company’s operations. The accounting
policies of the business segments are the same as the policies described under
Note A.





In
accordance with SFAS No. 131, for purposes of business segment performance
measurement, the Company does not allocate to the business segments items that
are of a nonoperating nature or corporate organizational and functional expenses
of a governance nature. Corporate expenses consist of corporate office expenses
including compensation, benefits, occupancy, depreciation, and other
administrative costs.





Assets of
the Solar Substrate segment consist of cash, capitalized patent costs, and
inventory. Assets of the Lighting Product segment consist of inventory. All
other assets including prepaid expenses, deposits, and fixed assets are
allocated to Corporate and Other.





F-17
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS











NOTE H –
SEGMENT INFORMATION (CONTINUED)




Consolidated
      Operations by Business SegmentFor
      the six months ended January 31, 2008Solar
                Substrate
              
              
              Lighting
      Product
              
              
              Corporate
      and OtherNetsales
              
              $
              -
              
              
              $
              -
              
              
              $
              -Operating
      loss
              
              $
              (4,361,989
              )
              
              $
              (816,787
              )
              
              $
              (514,795
              )Depreciation
      and amortization
              
              $
              -
              
              
              $
              -
              
              
              $
              (20
      ,962
              )Assets
              
              $
              4,347,098
              
              
              $
              10,154
              
              
              $
              4,101,756For
      the six months
      ended January 31, 2007Solar
                Substrate
              
              
              Lighting
      Product
              
              
              Corporate
      and OtherNetsales
              
              $
              -
              
              
              $
              -
              
              
              $
              -Operating
      loss
              
              $
              (2,955,579
              )
              
              $
              -
              
              
              $
              (208,744
              )Depreciation
      and amortization
              
              $
              -
              
              
              $
              -
              
              
              $
              (5,894
              )Assets
              
              $
              4,375,173
              
              
              $
              -
              
              
              $
              101,458For
      the period from inception (November 9, 2005) through January 31,
      2008Solar
                Substrate
              
              
              Lighting
      Product
              
              
              Corporate
      and OtherNetsales
              
              $
              -
              
              
              $
              -
              
              
              $
              -Operating
      loss
              
              $
              (7,435,754
              )
              
              $
              (1,454,183
              )
              
              $
              (2,738,279
              )Depreciation
      and amortization
              
              $
              -
              
              
              $
              -
              
              
              $
              (42,310
              )Assets
              
              $
              4,347,098
              
              
              $
              10,154
              
              
              $
              4,101,756


F-18
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS











NOTE I -
RETIREMENT PLAN





Effective
January 1, 2007, the Company implemented a 401(k) plan, which allows all
eligible employees to contribute a percentage of their salary and receive a safe
harbor matching contribution from the Company which cannot exceed certain
maximum defined limitations.  The retirement expense for the six
months ended January 31, 2008 and 2007, was $7,491 and $1,127,
respectively.  Retirement expense for the period from inception
(November 9, 2005) to January 31, 2008 was $18,509.





NOTE J -
COMMITMENTS AND CONTINGENCIES





In the
normal course of business, the Company is subject to litigation.  The
Company believes that any adverse outcome from potential litigation would not
have a material effect on its financial position or results of
operations.





NOTE K -
RELATED PARTY TRANSACTIONS





Transactions
with related parties during the period from inception (November 9, 2005) to
January 31, 2008, include the acquisition of patent rights discussed in Note B,
the consulting agreements discussed in Note M, the stock options discussed in
Note N, and the lease transaction described in Note F.  In addition to
the office lease described in Note F, the Company rented a condominium from the
Company’s Chief Financial Officer in lieu of using a hotel for consultants and
others when required.  The rent was 15,000 shares of common stock per
month.  The lease terminated July 31, 2007.  Total rent
expense paid or payable in common stock for related party leases for the period
from inception (November 9, 2005) through July 31, 2007 was
$66,703.





NOTE L -
RISKS AND UNCERTAINTIES





Operating
results may be affected by a number of factors.  The Company is
dependent upon a number of major inventory and intellectual property
suppliers.  Presently, the Company does not have formal arrangements
with all of its suppliers, and shortages of key solar components exist in the
industry.  In the future, if the Company is unable to obtain
satisfactory supplier relationships, or a critical supplier had operational
problems, or ceased making material available, operations could be adversely
affected.





NOTE M -
EMPLOYMENTTCONTRACTS AND CONSULTING
AGREEMENTS





The
Company has signed a series of employment contracts with several of its
shareholders and directors, as listed below:




F-19
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE M -
EMPLOYMENTTCONTRACTS AND CONSULTING
AGREEMENTS (CONTINUED)





In June
2006, the Company entered into a one-year employment agreement with its Chief
Executive Officer.  Under the employment agreement, the Chief
Executive Officer receives a base salary of two million shares of common stock
per year.  The employment agreement further provides up to two million
shares of common stock for each year of service beginning June,
2007.  The employment agreement is automatically renewable each year
and is subject to conditional vesting based on the completion of each year of
service and can be renegotiated or terminated by either party with 60 days
notice.  The employment agreement grants the Chief Executive Officer
the same benefits as other executives of the Company, but no cash
remuneration.





In June
2006, the Company entered into an employment agreement with its former Chief
Financial Officer and current Business Development
Representative.  Under the employment agreement, the Chief Financial
Officer receives a base salary of two million shares of common stock per
year.  The employment agreement further provides up to two million
shares of common stock for each year of service beginning June,
2007.  The employment agreement is automatically renewable each year
and is subject to conditional vesting based on the completion of each year of
service and can be renegotiated or terminated by either party with 60 days
notice.  The employment agreement grants the Chief Financial Officer
the same benefits as other executives of the Company, but no cash
remuneration.





In June
2006, the Company entered into a one-year employment agreement with its former
Chief Operating Officer.  Under the employment agreement, the Company
granted the Chief Operating Officer two million shares of common stock initially
and six hundred twenty-five thousand shares for each quarter of
service.  The employment agreement is automatically renewable each
year and is subject to conditional vesting based on the completion of each year
service and can be renegotiated or terminated by either party with 60 days
notice.  The employment agreement granted the Chief Operating Officer
the same benefits as other executives of the Company, but no cash
remuneration.  The Chief Operating Officer resigned in November 2006,
and the Company paid him two million five hundred thousand shares in
settlement.





In July
2006, the Company entered into a one-year employment agreement with the
President.  Under a revised employment agreement the Company granted
the President two million three hundred fifty thousand shares of common stock
initially and five hundred thousand shares for each quarter of
service.  The employment agreement is automatically renewable each
year and is subject to conditional vesting based on the completion of each year
of service and can be renegotiated or terminated by either party with 60 days
notice.  The employment agreement grants the President the same
benefits as other executives and cash remuneration of $150,000 per year and a
one-time payment of $60,000.







F-20
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE M -
EMPLOYMENTCONTRACTS AND CONSULTING
AGREEMENTS (CONTINUED)





Effective
July 2006, the Company entered into an employment agreement with the
Vice-President of Engineering.  Under the employment agreement the
Company granted one million fifty thousand shares initially and three hundred
thousand shares for each quarter of service.  The agreement is
automatically renewable each year and is subject to conditional vesting based on
the completion of each year of service and can be renegotiated or terminated by
either party with 60 days notice.  In January 2007 the employee became
President (see above).





In July
2006, the Company entered into an employment agreement with the Vice-President
of Manufacturing.  Under the employment agreement, the Company granted
one million shares of common stock initially and three hundred thousand shares
for each quarter of service.  The agreement is automatically renewable
each year and is subject to conditional vesting based on the completion of each
year of service and can be renegotiated or terminated by either party with 60
days notice.  The agreement grants the Vice-President of Manufacturing
the same benefits as other executives of the Company and an annual salary of
$100,000 per year.





In May
2006, the Company entered into a one-year employment agreement with its
Secretary, Controller, Chief Accounting Officer, and current Chief Financial
Officer.  Under the employment agreement, the Company granted the
Secretary, Controller, and Chief Accounting Officer one million shares of common
stock for each year of service after his initial year of employment in addition
to his two million founding shares.  The employment agreement is
automatically renewable each year and is subject to conditional vesting based on
the completion of each year of service and can be renegotiated or terminated by
either party with 60 days notice.  The employment agreement grants the
Secretary, Controller, and Chief Accounting Officer the same benefits as other
executives of the Company and an annual salary of $100,000 per
year.





In May
2006, the Company entered into a consulting agreement with an individual who has
worked with the Company in its initial stage.  He has established a
plan for the development of relationships with customers that the Company
considers crucial to its development and long-term success. He had also assisted
the Company in continued efforts to expand research efforts and business
development opportunities.  In consideration for services rendered,
royalties will be paid based on the Company’s monthly market capitalization, as
described in the schedule below.  No level shall be paid twice. If a
level has already been paid, then the consultant shall be entitled to earn the
royalty from any level below that level which has not been previously paid by
the Company.  Per the agreement, a maximum of 166,800,000 shares of
common stock can be issued for those services.





F-21
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE M -
EMPLOYMENTTCONTRACTS AND CONSULTING
AGREEMENTS (CONTINUED)




MarketCapitalization
              Royalty$  
       1 Million
              2,400,000
      shares$ 
      50 Million
              6,000,000
      shares$100
      Million
              7,200,000
      shares$150
      Million
              8,400,000 shares$250
      Million
              12,000,000
      shares$300
      Million
              12,000,000
      shares$400
      Million
              12,000,000
      shares$450
      Million
              12,000,000
      shares$500
      Million
              12,000,000
      shares$550
      Million
              12,000,000
      shares$600
      Million
              16,800,000
      shares$650
      Million
              16,800,000
      shares$700
      Million
              16,800,000
      shares$750
      Million
              20,400,000
      shares




In
January 2007, the Company entered into an agreement with a related entity, a key
principal of which is the Company’s Vice-President of Sales.  Under
the agreement, the Company granted the principal six million shares of common
stock initially and five hundred thousand shares for each quarter of
service.  The agreement is automatically renewable each year and is
subject to conditional vesting based on the completion of each year of service
and can be renegotiated or terminated by either party with 60 days
notice.  The agreement grants the Vice-President of Sales the same
benefits as other executives of the Company and a monthly payment of
$10,000.  The services required under this contract include developing
a marketing and advertising plan, executing an advertising campaign,
administering the Company’s sales programs and selling product, developing
Spanish language programs for the Company, and assisting with media relations.
The agreement was terminated in June 2007.





In July
2007, the Company entered into a two-year agreement with a strategic business
advisor.  The business advisor will scrutinize Company products and
opportunities, and will make recommendations that he feels will be important to
realizing value and furthering efficiencies within the Company.  Under
the agreement, the Company granted the principal one million shares of common
stock initially and one million shares at each of the two contract anniversary
dates.





In August
2007, the Company entered into a ten year agreement with an individual to serve
as a scientific advisor to the Company.  Under the agreement the
Company granted the principal 6,000,000 shares of common stock initially and
1,666,666 shares for each year of service commencing with the completion of the
second year of services and terminating at the completion of the tenth year of
services.




F-22
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS











NOTE M -
EMPLOYMENTTCONTRACTS AND CONSULTING
AGREEMENTS (CONTINUED)





In
December, 2007, the Company entered into a one year consulting agreement with an
individual.  The consultant will render research, product development,
and strategic partnership development advice.  In consideration for
services rendered, the Company will pay the consultant a fee equal to 125,000
shares of restricted common stock every three months.  In addition,
the Company will also provide common stock options to be determined under a new
stock option plan.





NOTE N -
STOCK COMPENSATION





The
Company has recorded expenses, paid in common stock, of $1,345,583, $795,303,
and $5,465,081 for the six months ended January 31, 2008 and 2007, and the
period from inception (November 9, 2005) through January 31, 2008,
respectively.  The shares issued for these periods totaled 19,210,833,
16,765,620, and 53,669,053 for employment contracts, consulting contracts, and
rent agreements, respectively (see Note M and Note K).  For the six
months ended January 31, 2008 salary, consulting, and research and development
expenses paid or accrued for payment in common stock totaled $620,000, $125,583,
and $600,000, respectively.  For the six months ended January 31,
2007, salary and consulting paid or accrued for payment in common stock totaled
$543,750 and $251,553, respectively.  For the period from inception
(November 9, 2005) through January 31, 2008, salary, consulting, rent, and
research and development expenses, paid or accrued for payment in common stock
totaled $2,979,986, $1,818,392, $66,703, and $600,000,
respectively.  Common stock not issued for these expenses as of
January 31, 2008 and July 31, 2007, totaled $98,176, and $673,676
respectively.





The
Company has granted stock options to its Chief Executive Officer.  The
Company measured compensation for these options under APB Opinion No. 25. No
compensation cost has been recognized as the purchase price for the options is
at or above the fair market value of the underlying stock at the date of
grant.  Had compensation expense for these options been determined
consistent with SFAS No. 123, the Company's net loss and net loss per share
would be as follows:




Period
      EndedJuly
      31, 2006Net
      loss, as reported
              
              $
              (1,229,400
              )Net
      loss, proforma
              
              $
              (18,996,986
              )Basic
      income (loss) per share, as reported
              
              $
              (0.01
              )Basic
      income (loss) per share, proforma
              
              $
              (0.03
              )





Because
SFAS No. 123 has not been applied, the resulting pro forma compensation cost may
not be representative of what might occur in future years.  The fair
value is estimated on the date of grant using the Black-Scholes option pricing
model with the following assumptions used: risk-free interest rates of 6%,
expected volatility of 51% and expected lives of 15 years.  No
dividends were assumed in the calculations.





--
 F-23
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE N –
STOCK COMPENSATION (CONTINUED)





The
Company's stock option plan provides for the granting of non-qualified and
incentive stock options to purchase up to 500,000,000 shares of common stock for
a period not to exceed 15 years.  The options are
vested.  Under the plan, the option exercise price equals $.10, which
was the stock's market price on the date of grant.





Stock
option transactions for the period from inception (November 9, 2005) through
January 31, 2008 are summarized as follows:




ExerciseShares
              
              
              PriceAverage Exercise PriceOutstanding,
      November 9, 2005Granted,
      December 20, 2005
              
              
              500,000,000
              
              
              $
              0.10Outstanding
      and exercisable, July 31, 2007
              
              
              500,000,000
              
              
              $
              0.10Outstanding
      and exercisable, January 31, 2008
              
              
              500,000,000
              
              
              $
              0.10
   Information
regarding stock options outstanding as of January 31, 2008 is as
follows:
 Options OutstandingPrice Range
              
              
              Shares
              
              
              Exercise Price
              
              Remaining Life$
              0.10
              
              
              
              500,000,000
              
              
              $
              0.10
              
              13
      yearsOptions
  ExercisablePrice Range
              
              
              Shares
              
              
              Exercise Price
              
              Remaining Life$
              0.10
              
              
              
              500,000,000
              
              
              $
              0.10
              
              13
      years





NOTE O -
RECENT ACCOUNTING PRONOUNCEMENTS





In
December 2005, the FASB issued SFAS No. 153, “Exchanges of Nonmonetary Assets—
an Amendment of APB Opinion No. 29,” or SFAS 153. SFAS 153 amends Accounting
Principles Board Opinion No. 29, “Accounting for Nonmonetary Transactions”
to eliminate the exception for nonmonetary exchanges of similar productive
assets and replaced it with a general exception for exchanges of nonmonetary
assets that do not have commercial substance. SFAS 153 is effective for
nonmonetary assets exchanges occurring in fiscal periods beginning after June
15, 2005. The adoption of SFAS 153 has not had a material effect on the
Company’s financial position or results of operations.





--
 F-24
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE O -
RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)





The
Financial Accounting Standards Board has issued SFAS No. 155 “Accounting for
Certain Hybrid Financial Instruments”, but it has not had any relationship to
the operations of the Company.  Therefore a description and its impact
on the Company’s operations and financial position has not been
disclosed.





In
February 2007, the FASB issued Financial Accounting Standard No. 159 “The Fair Value Option for Financial
Assets and Financial Liabilities”—Including an amendment of FASB Statement No.
115 or FAS 159.  This Statement permits entities to choose to
measure many financial instruments and certain other items at fair
value.  Most of the provisions of this Statement apply only to
entities that elect the fair value option.  The Statement is effective
as of the beginning of an entity’s first fiscal year that begins after November
15, 2007.  Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FASB Statement No. 157, “Fair Value
Measurements”.  The Company has not yet determined what effect,
if any, adoption of this Statement will have on the Company’s financial position
or results of operations.





In
September 2006, the FASB issued Financial Accounting Standard No. 158, “Employers’ Accounting for Defined
Benefit Pension and Other Postretirement Plans”, an amendment of FASB Statement
Nos. 87, 88, 106, and 132(R), or FAS 158.  This Statement
requires an employer that is a business entity and sponsors one or more
single-employer defined benefit plans to:





a.
            Recognize
      the funded status of a benefit plan—measured as the difference between
      plan assets at fair value (with limited exceptions) and the benefit
      obligation—in its statement of financial
  position;





b.
            Recognize,
      as a component of other comprehensive income, net of tax, the gains or
      losses and prior service costs or credits that arise during the period but
      are not recognized as components of net periodic benefit cost pursuant to
      FAS 87, Employers’
      Accounting for Pensions, or FAS 106, Employers’ Accounting for
      Postretirement Benefits Other Than
  Pensions;





c.
            Measure
      defined benefit plan assets and obligations as of the date of the
      employer’s fiscal year-end statement of financial position (with limited
      exceptions); and


d.
              Disclose
      in the notes to financial statements additional information about certain
      effects on net periodic benefit cost for the next fiscal year that arise
      from delayed recognition of the gains or losses, prior service costs or
      credits, and transition assets or
obligations.


An
employer with publicly traded equity securities is required to initially
recognize the funded status of a defined benefit postretirement plan and to
provide the required disclosures as of the end of the fiscal year ending after
December 15, 2006.  This statement has not had a significant effect on
the Company’s financial statements.





--
 F-25
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE O -
RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)





In
September 2006, the FASB issued SFAS No. 157, “Fair Value
Measurements”.  This standard establishes a standard definition for
fair value, establishes a framework under generally accepted accounting
principles for measuring fair value and expands disclosure requirements for fair
value measurements.  This standard is effective for financial
statements issued for fiscal years beginning after November 15,
2007.  Adoption of this statement is not expected to have any material
effect on the Company’s financial position or results of
operations.





In
September 2006, the SEC issued Staff Accounting Bulletin No. 108 (SAB 108),
“Considering the Effects of Prior Year Misstatements when Quantifying
Misstatements in Current Year Financial Statements”.  SAB 108 provides
guidance on the consideration of the effects of prior year unadjusted errors in
quantifying current year misstatements for the purpose of a materiality
assessment.  Adoption of this statement has not had any material
effect on the Company’s financial position or results of
operations.





In June
2006, the FASB issued Interpretation No. 48 (“FIN 48”), “Accounting for
Uncertainty in Income Taxes”, an interpretation of SFAS No. 109. FIN 48
prescribes a comprehensive model for how companies should recognize, measure,
present and disclose uncertain tax positions taken or expected to be taken on a
tax return. Under FIN 48, the Company shall initially recognize tax positions in
the financial statements when it is more likely than not the position will be
sustained upon examination by the tax authorities. The Company shall initially
and subsequently measure such tax positions as the largest amount of tax benefit
that is greater than 50% likely of being realized upon ultimate settlement with
the tax authority assuming full knowledge of the position and all relevant
facts. FIN 48 also revises disclosure requirements to include an annual tabular
roll-forward of unrecognized tax benefits.  Adoption of this statement
has not had any material effect on the Company’s financial position or results
of operations.





NOTE P –
COMMON STOCK REDEMPTION





On
October 31, 2007, the Company redeemed and retired 33,098,075 of outstanding
shares of common stock for $3,309,808. The purchase price was $.10 per share.
During the three months ended January 31, 2008, the Company redeemed and retired
4,600,039 additional shares. The purchase price was $.10 per share. The total
number of reissued redeemed shares during the three months ended January 31,
2008 totaled 27,683,075.





NOTE Q –
REVERSE MERGER





On
November 27, 2007, Acadia Resources, Inc. (“Acadia”), Sunovia Solar, Inc., a
wholly-owned subsidiary of Acadia (“Sunovia Solar”), and the Company, entered
into an Agreement and Plan of Merger (the “Merger Agreement”), which closed on
November 28, 2007. Pursuant to the terms of the Merger Agreement, Sunovia Solar
merged with and into the Company, which became a wholly-owned subsidiary of
Acadia.





In
consideration for the merger, Acadia issued an aggregate of 58,485,098 shares of
common stock to the shareholders of the Company at the closing of the
merger.  On December 17, 2007, Acadia changed its name to Sunovia
Energy Technologies, Inc.





--
 F-26
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE Q –
REVERSE MERGER





On
November 26, 2007, the record holder of 61.24% of the issued and outstanding
common stock of Acadia, entered into a certain Stock Purchase Agreement (the
“Stock Purchase Agreement”) with the Company’s Chief Executive Officer (CEO),
pursuant to which the record holder agreed to sell to the CEO 4,500,000 shares
(the “Shares”) of Acadia’s common stock for a purchase price in the aggregate
amount of $650,000.  The sale represents a change in control in Acadia
and the shares acquired represent 61.24% of the issued and outstanding capital
stock of Acadia calculated on a fully-diluted basis prior to the
merger.





The
unaudited pro forma financial Information reflects financial information, which
gives effect to the execution of the Agreement and Plan of Merger between
Sunovia Solar, Inc., ("Sunovia Solar") (a Delaware corporation), a wholly owned
subsidiary of Acadia Resources, Inc., ("Acadia") (a Delaware corporation), and
the Company. On November 30, 2007, the holders of the Company’s issued and
outstanding capital stock surrendered all of their issued and outstanding
capital stock to Sunovia Solar in exchange for 58,485,098 shares of Acadia’s
common stock.  The Pro Forma Statement included herein reflects the
above transaction, which has been accounted for as a reverse merger
(recapitalization) with the Company being deemed the accounting acquirer and
Acadia being deemed the legal acquirer.  Such financial information
has been prepared from, and should be read in conjunction with, the unaudited
January 31, 2008 financial statements of the Company included herein, as well as
in conjunction with Acadia's audited financial statements filed in its Form
10-KSB filing.





The
accompanying unaudited pro forma consolidated financial statement is presented
to illustrate the effects of the merger and reorganization on the historical
financial position and operating results of the Company and Acadia. The
unaudited pro forma consolidated balance sheet as of January 31, 2008 combines
the respective balance sheets, as adjusted, at that date.





The
unaudited consolidated pro forma information is presented for illustrative
purposes only and is not necessarily indicative of the operating results or
financial position that would have occurred if the merger and reorganization had
been consummated on the indicated dates, nor is it necessarily indicative of
future operating results. The pro forma adjustments are based on information
available at the time of this filing.











F-27
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS




NOTE Q –
REVERSE MERGER (CONTINUED)




(a)
                Acadia
                Resources,
      Inc.
              
              
              (b)
                Sun
      Energy
                Solar,
      Inc.Total
      Assets
              
              $
              14
              
              
              $
              2,112,645Total
      Liabilities
              
              $
              15,102
              
              
              $
              4,302,636Total
      Equity
              
              $
              (15,088
              )
              
              $
              (2,189,991
              )Total
      Liabilities and Equity
              
              $
              14
              
              
              $
              2,112,645Net
      Sales
              
              $
              -
              
              
              $
              -Net
      Loss
              
              $
              -
              
              
              $
              2,379,377




(a)  Based on
Acadia Resources, Inc.'s audited financial statements as of August 31,
2007


(b)  Based on
Sun Energy Solar, Inc.'s October 31, 2007 unaudited financial
statements




NOTE R –
SUBSEQUENT EVENTS




In
February, 2008, a company in which the Company owns a 10% interest, entered into
a research and development agreement with an educational institution. The
educational institution will perform research and development services and
assign intellectual property created during the course of those services to the
company. In consideration for services rendered, the company will pay the
educational institution $2,000,000 in the first year. If the company decides to
extend the agreement to the second year, they will pay an additional $2,000,000.
If the company decides to extend the agreement to year three, they will make a
final payment of $1,000,000.
 
 In May
2006, the Company’s wholly owned subsidiary entered into a consulting agreement
with an individual who had worked with the Company in its initial stage whereby
the individual would develop relationships with customers that the Company
considers crucial to its development and long term success (see Note M). On
March 17, 2008, the Company and the individual  entered into an
amended and restated consulting agreement whereby the individual would provide
the Company with services related to the introduction of the Company to
nationally recognized entities for product distribution opportunities,
introduction to potential sales leads and acting as a liason to various
corporations.  The term of the agreement began on May 22, 2006 and is
effective through May 2009. As compensation for providing such services, the
Company shall issue to the individual (i) an option to purchase an aggregate of
25,000,000 shares of common stock of the Company at an exercise price of $0.005
on a cashless basis for a term of seven years and (ii) an option to purchase an
aggregate of 5,000,000 shares of common stock of the Company at an exercise
price of $0.005 on a cashless basis for a term of seven years, which shall be
issued on January 1, 2009.




F-28


ITEM
2. MANAGEMENT’S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATION





FORWARD
LOOKING STATEMENTS





Management’s
Discussion and Analysis contains “forward-looking” statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as well as historical information. Although we believe
that the expectations reflected in these forward-looking statements are
reasonable, we can give no assurance that the expectations reflected in these
forward-looking statements will prove to be correct. Forward-looking statements
include those that use forward-looking terminology, such as the words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “project,”
“plan,” “will,” “shall,” “should,” and similar expressions, including when used
in the negative. Although we believe that the expectations reflected in these
forward-looking statements are reasonable and achievable, these statements
involve risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Current
shareholders and prospective investors are cautioned that any forward-looking
statements are not guarantees of future performance. Such forward-looking
statements by their nature involve substantial risks and uncertainties, certain
of which are beyond our control, and actual results for future periods could
differ materially from those discussed in this report, depending on a variety of
important factors, among which are our ability to implement our business
strategy, our ability to compete with major established companies, the
acceptance of our products in our target markets, the outcome of litigation, our
ability to attract and retain qualified personnel, our ability to obtain
financing, our ability to continue as a going concern, and other risks described
from time to time in our filings with the Securities and Exchange Commission.
Forward-looking statements contained in this report speak only as of the date of
this report. Future events and actual results could differ materially from the
forward-looking statements. You should read this report completely and with the
understanding that actual future results may be materially different from what
management expects. We will not update forward-looking statements even though
its situation may change in the future.







6


ITEM 2. MANAGEMENT’S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATION (Cont’d)





INTRODUCTION




The
following discussion and analysis summarizes the significant factors affecting:
(i) our consolidated results of operations for the six months and three months
ended January 31, 2008; and (ii) financial liquidity and capital
resources.  This discussion and analysis should be read in conjunction with
our consolidated financial statements and notes included in this Form
10-QSB.





On November 27, 2007, Acadia Resources,
Inc., now known as Sunovia Energy Technologies, Inc. (the “Company”), Sunovia
Solar, Inc., a wholly-owned subsidiary of the Company (“Sunovia Solar”), Sun
Energy Solar, Inc. (“Sun Energy”), and Carl L. Smith, III, Richard Craig Hall
and Rick St. George, (collectively the “Sun Energy Majority Shareholders”),
entered into an Agreement and Plan of Merger (the “Merger Agreement”), which
closed on November 28, 2007.  Pursuant to the terms of the Merger
Agreement, Sun Energy merged with and into Sunovia Solar, which became a
wholly-owned subsidiary of the Company (the “Merger”).  In
consideration for theMerger, the Company issued an aggregate of
263,182,941 shares of common stock to the Sun Energy Majority Shareholders and
the other shareholders of Sun Energy at the closing of the merger.  As
a result of the Merger, we ceased being a shell company as that term is defined
in Rule 12b-2 and, through our newly-acquired subsidiary Sunovia Solar, entered
into the business of engineering, developing, marketing and distributing solar
powered substrate technology. The information presented hereon is
entirely from Sun Energy Solar, Inc., which is the accounting successor in the
merger.





Sun
Energy was incorporated on November 9, 2005 under the laws of the State of
Delaware for the purpose of commercializing solar products. Sun Energy was
originally named Sologic, Inc. On April 25, 2007, the name was changed to Sun
Energy Solar, Inc. On December 21, 2005, Sun Energy acquired the patent rights
(patent applied for) to No. 60/6 17,263 Titled Substrate “with Light
Display”  applied for on September 2, 2005 (provisional was applied in
September 2004), from Sparx, Inc., a Florida corporation,  100% owned
by Carl L. Smith III, its Chief Executive Officer.





MANAGEMENT’S DISCUSSION AND ANALYSIS





As a
result of the Merger, the Company ceased to be a shell company and Sun Energy
became a holding company for Sunovia.    Pursuant to the
terms of the Merger Agreement, Sun Energy merged with and into Sunovia Solar,
which became a wholly-owned subsidiary of the Company (the “Merger”). Because
Sun Energy’s operations are the only significant operations of the Company, this
discussion and analysis focuses on the business results of Sun
Energy.





The
following discussion highlights the principal factors that have affected our
financial condition and results of operations as well as our liquidity and
capital resources for the periods described. This discussion contains
forward-looking statements. Please see "Forward-Looking Statements" for a
discussion of the assumptions associated with these forward-looking
statements.




Overview




Our core
business implements and integrates the strategic marketing, conceptual
architecture, patenting, engineering, design, manufacturing, and supply chain
logistics of energy-efficient proprietary products that leverage the convergence
of emerging technologies in the area of solar, micro-battery, chip-scale
electronics, micro electro-mechanical systems, light emitting diodes (“LED”),
printable electronic inks, global positioning systems (“GPS”), and wireless
communication technologies An example of our of product development is Solar
Stickers, a solar adhesive technology that integrates flex circuitry,
photovoltaics, microbatteries, light emitting diodes (LEDs), and radio frequency
identification to form a patents pending printable solar lighted substrate that
is illuminated from within.





As a
development stage company, we have had a limited operating history that can
serve as the basis to evaluate our business. There are many factors, that could
have a material adverse effect on our business and operating results. You should
read the following information in conjunction with our financial statements and
related notes contained elsewhere in this report. You should consider the risks
and difficulties frequently encountered by early-stage companies, in new and
rapidly evolving markets, such as the solar market. Our limited operating
history provides only a limited historical basis to assess the impact that
critical accounting policies may have on our business and our financial
performance.




For the
fiscal period from inception (November 9, 2005) to January 31, 2008, the Company
had a net loss of $11,670,526.




To date,
our company has evolved into two divisions: Solar Products and Solid State
Lighting.




7




Solar
Division




Our
product development plan is being conducted in phases, which are as
follows:






·
            Core
      technology


·
            Solar
      cell improvement and research ·
            Manufacturing
      implementation ·
            Battery
      development ·
            Integration
      into fabric ·
            Legal
      (patent, safety testing)




Work on
phases is concurrent in part, and some product is planned to be introduced to
the market before completion of the various phases of product
development.




We have
developed a  menu of product features such as substrates of various
thickness and power, developing a method of connecting several substrates
together in an integrated fashion, adding sensors to the core product, adding
Radio Frequency (“RF”), “E-Ink” Display Technology, a digital low-power sign,
Radio Frequency Identification (“RFID”), Bluetooth and long range communication
technologies to the core product, encapsulation, adding sensors and applying
adhesion technology to the core product. Concurrently with the core product
development phase, we are exploring ways to improve solar cells, particularly
thin film, integration of the core product into fabric, designing a
manufacturing plan, and ultimately designing specialized batteries that best
meet our needs in the event the marketplace does not offer something that meets
specifications of products that we intend to offer.










On
January 24, 2008, the Company and EPIR Technologies, Inc. (“EPIR”) entered into
an Amended and Restated Research, Development and Supply Agreement (the “EPIR
Agreement”) pursuant to which the Company has become the exclusive supplier of
certain (i) EPIR products that are to be funded by the Company and developed by
EPIR including one or more versions of photovoltaic solar cells or solar cell
encapsulate technologies (the “EPIR Products”) and (ii) certain other products
including infrared sensors and biosensors (the “EPIR Independent Products”),
which right is contingent upon certain annual sales goals.





In
accordance with the EPIR Agreement, EPIR is required to:





·
            use
      commercially reasonable efforts to develop the EPIR Products using all
      available new technology that will be identified and defined by a
      technology development board;·
            use
      commercially reasonable efforts to supply EPIR Products and EPIR
      Independent Products in quantities that are consistent with the Company’s
      forecasted demand under this
Agreement;


·
            support
      the Company’s efforts in the marketing and promotion of the Company’s
      products;·
            refer
      any and all inquires for purchase of the EPIR Products or other products
      sold by the Company that incorporate the EPIR Products (the “Sunovia-EPIR
      Products”) received from third parties to the Company;
  and


·
            inform
      the Company of any inquiries received by EPIR from third parties who or
      are interested in engaging EPIR to develop photovoltaic solar cells and
      related technologies.




8




In
accordance with the EPIR Agreement, the Company is required to:





·
            provide
      the required cash payments to EPIR as set forth in the EPIR
      Agreement;


·
            develop
      distribution channels for the Sunovia-EPIR
  Products;


·
            integrate,
      promote, market and sell the EPIR Products, EPIR Independent Products and
      the Sunovia-EPIR Products; and·
            inform
      EPIR of any inquiries received by the Company from third parties who or
      are interested in engaging the Company and EPIR in connection with
      the development or use of photovoltaic solar cells and related
      technologies.





Unless terminated sooner, the term of
the EPIR Agreement is through January 2018.




In
addition to the above transaction, EPIR and the Company entered into a Stock
Purchase Agreement pursuant to which EPIR purchase 37,803,852 shares of common
stock of the Company (the “January 2008 Shares”) representing 10% of the issued
and outstanding of the Company in consideration for the Company purchasing
202,200 shares of common stock of EPIR representing 10% of the issued and
outstanding of EPIR.




Solid State Lighting
Division




During
the development of the engineering plan for our core business, we became aware
of the market potential for low energy lighting such as LED-based lighting (we
use the term Solid State lighting because one advantage of this type of lighting
is its ability to turn on instantaneously as opposed to compact fluorescent
lights that need time to warm up, particularly as they age). Evidence of market
demand, for example, was found in legislation proposed to the congress mandating
that the U.S. Government transition from incandescent lights to low energy
lighting.




The
principle type of low energy lighting currently in the market place is compact
fluorescents (CFLs). Solid State Lighting is a newer technology than CFL
technology and lasts significantly longer, does not contain mercury, uses
somewhat less energy and is showing continued improvement each year in
performance. Realizing that we had existing expertise in this area, we began
testing to see if we could develop a light that overcomes the heat problem,
which was one of the hurdles that have prevented this type of lighting from a
successful deployment in the marketplace. Our engineers did successfully build
prototypes that significantly reduce the heat generated by the LEDs and we have
begun to approach potential customers from leads from our sales and marketing
consultants to determine potential interest in our products.




Our
initial plan of operation for the Solid State Lighting Division is to obtain
orders from customers on a custom build basis. Our engineers will then modify
our existing core designs to the different specifications of the customers.
Based on order flow and information we obtain from the marketplace regarding
overall customer demand, we believe there will be several common lights we can
carry in stock, and we plan to consider carrying inventory and supplying
customers from inventory as well.




Plan of
Operation




We
presently have 12 employees and 14 consultants. We intend to hire up to 12
additional employees during the next twelve months, particularly in the area of
sales. We believe that the additional sales and marketing people will be
necessary to communicate with potential customers of our solid state lighting
and provide the necessary support in terms of customer service, credit and
billing and accounting. While we will have other roles such as fulfillment,
manufacturing and shipping, we plan to outsource these functions. None of our
employees are covered by a collective bargaining agreement. We consider our
relations with our employees to be good.




9




Our plan
of operation for the next twelve months is:




1.
            The
      costs associated with the development of our solar substrate products
      during the next twelve months are estimated to
  be:




Core
      Technology
            
            $
            1,000,000Solar
      Cell Improvement and Research
            
            $
            2,000,000Manufacturing
      Implementation
            
            $
            150,000Legal
      (patent, safety testing)
            
            $
            100,000




2.
            Assuming
      we receive continued favorable results from our basic core technology
      work, we will commence introducing product into the marketplace. We
      anticipate spending $100,000 in engineering costs towards this and to fund
      initial product orders from deposits from customers and cash on hand, and
      we may finance additional costs from the sale of our common stock and
      debt, although as of the filing of this report we do not have any specific
      financing arranged.




3.
            In
      addition to these costs, we anticipate spending $600,000 on administrative
      costs, including the costs associated with complying with reporting
      obligations. We plan to pay these expenses from our current cash on
      hand.




4.
            In
      summary, we anticipate the following expenses over the next twelve months:
      (a) $25,000 to develop our Internet websites; (b) up to
      $1,000,000 in sales and marketing to promote our brand name;
      (c) $1,200,000 for our research and development program;
      (d) $40,000 to secure the distribution of our products into an
      established retail outlet within the United States, including an
      integrated inventory management/manufacturing/sales computer system;
      (e) $100,000 for an investor relations program; and (f) up to
      approximately $5.5 million for general working capital, including product
      development, inventory, and general and administrative
      expenses.




5.
            We
      plan to finance our operations for the next twelve months with the
      proceeds from the offerings we have completed, sales of solid state lights
      and through raising capital, although the terms of which and likelihood we
      cannot state for certain at this
time.




Cash
Flows and Working Capital


To date,
we have financed our operations primarily through equity contributions by our
shareholders. As of January 31, 2008, we had $4,254,752 in cash and cash
equivalents. Our current liabilities as of January 31, 2008 were
$1,057,624.





Operating
Activities


Net cash
used in operating activities for the six month and three month periods ended
January 31, 2008 amounted to $4,519,170 and $3,002,817 as compared to $700,155
and $328,181 for the six month and three month period  ending January
31, 2007. Net cash used by operating activities was mainly a result of a net
loss of $5,714,533, $3,335,157 for the six month and three month period ending
January 31, 2008 and $3,170,217 and $2,122,134 for the same periods respectively
which included non-cash share-based compensation of $1,921,083 and $1,266,083
and $2,078,105 and $1,676,502 for the same periods, respectively.





Investing
Activities


Net cash
used in investing for the six month and three month period ending January 31,
2008 was $69,069 and $18,127 as compared to $40,718 and $21,936 for the six
month and three month periods ending January 31, 2007, due primarily to our
purchase of software for product development purposes for the six and three
month period ended January 31, 2008, where as the amounts in the previous period
were more for office equipment.





Financing
Activities


Our net
cash raised in financing activities for the six month and three month periods
ending January 31, 2008 was $5,385,262 and $5,550,263 as compared to $755,066
and $700,155 for the six months and quarter ending January 31, 2007. In both
periods, we were in the process of completing a private placement for ten cents
a share.





Cash
Requirements


As of
March 12, 2008, we had $4,581,634 in cash. However, we presently anticipate
spending approximately $5,750,000 over the next twelve months on operations,
$2,000,000 on research and development and $250,000 on capital equipment. Of
that amount, $2.75 million is forecasted to be spent on the Solid State lighting
division, the majority of which we expected to be funded in part by future sales
with all remaining amounts from capital that we plan to raise. Management
believes that any revenue growth that may occur will require additional working
capital as it will probably need to provide credit terms to customers due to the
price increase our product has in comparison to incandescent  and
compact fluorescent lights our potential customers may be currently using. If
the sales do not materialize, we would have to curtail  what we spend
on this program unless we were to raise additional capital. Furthermore,
management believes there are a number of opportunities available in the fields
of solar, ultra-low power, and solid state lighting, and other areas. To take
advantage of these opportunities the Company will need to raise capital and/or
incur debt. There is no assurance that such capital can be raised or
if  such capital can be raised on terms that are not highly dilutive
to our current shareholders. If we are not successful in raising capital we will
have to limit our plans accordingly, and we may not be able to take full
advantage of opportunities we believe exist.





Going
Concern


With our
present cash and cash equivalents management expects to be able to continue some
of our operations for at least the next twelve months. However, we have suffered
losses from operations. The continuation of our company is dependent upon our
company attaining and maintaining profitable operations and raising additional
capital as needed. In this regard we have raised additional capital through the
equity offerings noted above. We may, however, require additional cash due to
changing business conditions or other future developments, including any
investments or acquisitions we may decide to pursue. If our existing cash is
insufficient to meet our requirements, we may seek to sell additional equity
securities, debt securities or borrow from lending institutions. We cannot
assure you that financing will be available in the amounts we need or on terms
acceptable to us, if at all. The issuance of additional equity securities,
including convertible debt securities, by us could result in a significant
dilution in the equity interests of our current stockholders. The incurrence of
debt would divert cash for working capital and capital expenditures to service
debt obligations and could result in operating and financial covenants that
restrict our operations and our ability to pay dividends to our shareholders. If
we are unable to obtain additional equity or debt financing as required, our
business operations and prospects may suffer. In such event, we will be forced
to scale down or perhaps even cease our operations.




10




Results
of Operations





Six
months and quarter ended January 31, 2008 compared to Six months and quarter
ending January 31, 2007, along with inception to date information from the
period from November 9, 2005 to January 31, 2008 and Expected amounts for the
next twelve months








Revenues


We
currently do not have revenues. We expect to sell to customers of all types
based on market response. Management anticipates our customers will originally
be comprised of state and local governments, agencies of the US Federal
Government, and commercial facilities committed to “going green”.





Expenses


General and
Administrative Expenses





During
the six months and quarter ended January 31, 2008, our selling, general and
administrative (“SG&A”) expenses decreased. For the Six month period ending
January 31, 2008, selling, general and administrative expenses decreased
$1,178,150 (38%) to $1,896, 109.  Likewise, for the three month period
ending January 31, selling, general and administrative expenses decreased
$1,033,586 (48.8%) to $1,083,791. This decrease was primarily the result of
lower personnel and personnel-related expenses, associated with the large number
of upfront payments made during the six months and quarter ended January 31,
2007 from the hiring of management and administrative that was necessary to
initiate the company’s product development and operations.





Research
and Development Expenses


Research
and development expenses in the past primarily consist of labor costs, material
costs and facilities. We had maintained an in-house research depart that
principally has surveyed the current research field for designing an overall
program and made optical improvements for the lens of our Solid State Lighting
and Solar programs. However, during the six month period ending January 31,
2008, the Company entered into a research contract with EPIR Technologies, Inc.
which most of research will be predominately outsourced for the next couple of
years. We expense our research and development costs as incurred. Research and
Development expenses were $3,871,277 and $2,271,875) for the six month and three
month periods ending January 31, 2008 and 2007 (see “Overview” for a more
complete description of the Company’s plans in this area). Research and
Development was $184,782 and $56,014 and for the six months and quarter ended
January 31, 2007(which predominately consisted of $20,000 of share-based
compensation, salaries of $68,205, and consultant costs of
$30,000).




We utilize certain accounting policies
and procedures to manage changes that occur in our business environment that may
affect accounting estimates made in preparation of our financial statements.
These estimates relate primarily to our allowance for doubtful accounts
receivable and the recognition and measurement of potential impairment on
long-lived and intangible assets. Our strategy for managing doubtful accounts
includes stringent, centralized credit policies and collection procedures for
all customer accounts. We utilize a credit risk rating system in order to
measure the quality of individual credit transactions. We strive to identify
potential problem receivables early, take appropriate collection actions, and
maintain adequate reserve levels. Management reviews its long-lived and
intangible assets for impairment whenever changes in circumstances or other
events indicate potential impairment. Management has determined that the
allowance for doubtful accounts and impairment losses are adequate at January
31, 2008.




Off-Balance
Sheet Arrangements





We do not
currently have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that are material to our
stockholders.





11




ITEM 3. CONTROLS AND
PROCEDURES





As of the
end of the period covered by this report, our Chief Executive Officer and our
Chief Financial Officer (the “Officers”) conducted an evaluation of the
effectiveness of our disclosure controls and procedures (as defined in Rule
13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act")). Based upon this evaluation, the Officers concluded that
our disclosure controls and procedures are effective to ensure that information
required to be disclosed by us in the reports that we file or submit under the
Exchange Act are recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules and forms
and our disclosure controls and procedures are also effective for the purpose of
ensuring that material information required to be in this report is made known
to management and others, as appropriate, to allow timely decisions regarding
required disclosures.





In
addition, no change in our internal control over financial reporting occurred
during the fiscal six months and quarter ended January 31, 2008 that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.









12


PART
II: OTHER
INFORMATION




ITEM 1. LEGAL PROCEEDINGS





None.





ITEM
2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS




On
November 27, 2007, we issued an aggregate of 263,182,941(post split)shares to the former
shareholders of Sun Energy Solar, Inc., pursuant to a merger agreement between
the Company and Sun Energy Solar, Inc. as more fully described in Item 2,
Introduction.





On December 17, 2007, we issued a 4.5
for 1 stock dividend to all shareholders of the
Company.





On January 24, 2008 theCompany
entered into a Stock Purchase Agreement with EPIR Technologies, Inc. (see
“Management’s Discussion and Analysis” whereby EPIR purchase 37,803,852 shares
of common stock of the Company.





In
January, 2008, we issued 55,677,640 common shares to investors in our private
placement at $.10 per share.





In
January, 2008, we issued 12,660,833 shares to employees and consultants for
services at $.10 per share.





In
January, 2008, we issued 27,683,075 shares to employees and consultants at $.10
per share in settlement of past service obligations.





In March,
2008, we issued 6,476,344 common shares to investors in our private placement at
$.10 per share.





All of
the above offerings and sales were deemed to be exempt under Rule 506 of
Regulation D and Section 4(2) of the Securities Act of 1933, as amended. No
advertising or general solicitation was employed in offering the securities. The
offerings and sales were made to a limited number of persons, all of whom were
accredited investors, business associates of the Company or executive officers of the
Company, and transfer was restricted by the Company in accordance with the
requirements of the Securities Act of 1933. In addition to representations by
the above-referenced persons, we have made independent determinations that all
of the above-referenced persons were accredited or sophisticated investors, and
that they were capable of analyzing the merits and risks of their investment,
and that they understood the speculative nature of their investment.
Furthermore, all of the above-referenced persons were provided with access to
our Securities and Exchange Commission filings.




13





ITEM
3.  DEFAULTS
UPON SENIOR SECURITIES





None





ITEM 4 - SUBMISSION OF
MATTERS TO A VOTE OF SECURITY HOLDERS





None




ITEM
5.  OTHER
INFORMATION





None.





ITEM
6.
EXHIBITS





Exhibit
      No.
            Description
      of Exhibit10.12
            Addendum
      to employment contract between the Company and Bob Fugerer, dated January
      25, 200710.13
            Amended
      and Restated  Research, Development and Supply Agreement, dated
      January 24, 2008, between EPIR Technologies, Inc. Sunovia Energy
      Technologies, Inc, dated January 24, 2008 (1)10.14
            Stock
      Purchase Agreement between EPIR Technologies, Inc. and Sunovia Energy
      Technologies, Inc., dated January 24, 2008 (1)10.15
            Ammended
      and Restated Consulting Agreement between Sunovia Energy Technologies,
      Inc. and Fernando Cuza dated March 17, 200831.1
            Certification
      of Chief Executive Officer and Chief Financial Officer Pursuant to
      Securities Exchange Act Rule 13a-14(a)/15d-14(a)32.1
            Certification
      of Chief Executive Officer and Chief Financial Officer Pursuant to
      Securities Exchange Act Rule 13a-14(b) and 18 U.S.C. Section
      1350





(1)
            Incorporated
      by reference to the Form 8-K filed with the Securities and Exchange
      Commission on January 30, 2008.










SIGNATURES





In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.





SUNOVIA
ENERGY TECHNOLOGIES, INC.




Signature
              
              Title
              
              Date/s/
      Carl L. Smith, III
              
              Chief
      Executive Officer and Chairman of Board of
              
              March
      17, 2008Carl
      L. Smith, III
              
              Directors/s/
      Matthew Veal
              
              Secretary,
      Chief Financial Officer, Treasurer, and
              
              March
      17, 2008Matthew
      Veal
              
              Principal
      Accounting Officer