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 April 30, 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 June 12,
2008 was 478,921,849.





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










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-6-F-7Notes to Consolidated Financial
      Statements (Unaudited)
            F-8ITEM 2. MANAGEMENT’S DISCUSSION
      AND ANALYSIS OR PLAN OF OPERATION
            5ITEM 3. CONTROLS AND
      PROCEDURES
            10PART II. OTHER INFORMATION
            11Item
      1.  LEGAL PROCEEDINGS
            11ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
      AND USE OF PROCEEDS
            11Item
      3. Defaults Upon Senior Securities
            12ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
      SECURITY HOLDERS
            12Item
      5.  Other Information
            12ITEM 6. EXHIBITS
            12SIGNATURES
            13





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 NINE MONTHS ENDED APRIL 30, 2008 AND 2007












Bobbitt,
Pittenger & Company, P.A.
 4





SUNOVIA
ENERGY TECHNOLOGIES, INC.


(FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)


(A
DEVELOPMENT STAGE COMPANY)







CONTENTS




PAGEFINANCIAL
      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-6-F--7NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS
              F-8


5










June 11,
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 April 30, 2008 and the related consolidated statements of
operations and cash flows for the three and nine months ended April 30, 2008 and
2007, and for the period from inception (November 9, 2005) through April 30,
2008, and the statement of changes in stockholders’ equity for the nine months
ended April 30, 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





SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
BALANCE SHEETS
 April
      30,
                
                
                July
      31,2008
                
                
                2007(Unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
                
                $
                2,640,191
                
                
                $
                3,457,729Accounts
      receivable
                
                
                5,600
                
                
                
                -Prepaid
      expenses
                
                
                31,603
                
                
                
                21,725Inventory
                
                
                101,850
                
                
                
                43,057TOTAL
      CURRENT ASSETS
                
                
                2,779,244
                
                
                
                3,522,511Furniture
      and equipment, net
                
                
                249,684
                
                
                
                172,673Investment
      in EPIR Technologies, Inc.
                
                
                3,780,385
                
                
                
                -Other
      assets
                
                
                53,988
                
                
                
                53,988TOTAL
      ASSETS
                
                $
                6,863,301
                
                
                $
                3,749,172LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable and accrued expenses
                
                $
                316,214
                
                
                $
                895,978Common
      stock redemption
                
                
                775,007
                
                
                
                -Related
      party payable
                
                
                9,000
                
                
                
                9,000TOTAL
      CURRENT LIABILITIES
                
                
                1,100,221
                
                
                
                904,978STOCKHOLDERS'
      EQUITYCommon
      stock, $.001 par value; 1,500,000,000 sharesauthorized:
      445,094,233 and 264,913,506 at April 30, 2008 and July 31, 2007,
      respectively, issued and outstanding
                
                
                445,095
                
                
                
                13,241Additional
      paid-in capital
                
                
                29,330,798
                
                
                
                8,786,946Deficit
      accumulated during the development stage
                
                
                (24,012,813
                )
                
                
                (5,955,993
                )TOTAL
      STOCKHOLDERS' EQUITY
                
                
                5,763,080
                
                
                
                2,844,194TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
                
                $
                6,863,301
                
                
                $
                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 ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
STATEMENTS OF OPERATIONS
 For
      the PeriodFrom
      InceptionFor
      the Three
                
                
                For
      the Nine
                
                
                For
      the Three
                
                
                For
      the Nine
                
                
                (November
      9, 2005)Months
      Ended
                
                
                Months
      Ended
                
                
                Months
      Ended
                
                
                Months
      Ended
                
                
                ToApril 30, 2008
                
                
                April 30, 2008
                
                
                April 30, 2007
                
                
                April 30, 2007
                
                
                April 30, 2008(Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)Revenue:
                
                $
                5,600
                
                
                $
                5,600
                
                
                $
                -
                
                
                $
                -
                
                
                $
                5,600Expenses:Selling,
      general and administrative
                
                
                10,325,796
                
                
                
                12,221,905
                
                
                
                752,336
                
                
                
                3,837,684
                
                
                
                17,973,819Research
      and development
                
                
                2,033,127
                
                
                
                5,904,404
                
                
                
                79,038
                
                
                
                262,741
                
                
                
                6,336,484Total
      expenses
                
                
                12,358,923
                
                
                
                18,126,309
                
                
                
                831,374
                
                
                
                4,100,425
                
                
                
                24,310,303Operating
      loss
                
                
                (12,353,323
                )
                
                
                (18,120,709
                )
                
                
                (831,374
                )
                
                
                (4,100,425
                )
                
                
                (24,304,703
                )Other
      income:Interest
                
                
                11,036
                
                
                
                63,889
                
                
                
                46,270
                
                
                
                145,104
                
                
                
                291,890Total
      other income
                
                
                11,036
                
                
                
                63,889
                
                
                
                46,270
                
                
                
                145,104
                
                
                
                291,890Loss
      before income tax benefit
                
                
                (12,342,287
                )
                
                
                (18,056,820
                )
                
                
                (785,104
                )
                
                
                (3,955,321
                )
                
                
                (24,012,813
                )Income
      tax benefit
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -Net
      loss
                
                $
                (12,342,287
                )
                
                $
                (18,056,820
                )
                
                $
                (785,104
                )
                
                $
                (3,955,321
                )
                
                $
                (24,012,813
                )Loss
      per share:Basic
                
                $
                (0.03
                )
                
                $
                (0.06
                )
                
                $
                (0.00
                )
                
                $
                (0.02
                )
                
                $
                (0.09
                )Diluted
                
                $
                (0.03
                )
                
                $
                (0.06
                )
                
                $
                (0.00
                )
                
                $
                (0.02
                )
                
                $
                (0.09
                )Weighted
      average number of commonshares
      outstanding:Basic
                
                
                435,875,023
                
                
                
                324,970,372
                
                
                
                259,725,089
                
                
                
                247,257,964
                
                
                
                265,071,847Diluted
                
                
                435,875,023
                
                
                
                324,970,372
                
                
                
                259,725,089
                
                
                
                247,257,964
                
                
                
                265,071,847
 See
report of independent registered public accounting firm and
 notes to
consolidated financial statements.
 F-3
  SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN  AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
 AdditionalCommon Stock
                  
                  
                  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($0.10
      per share)
                  
                  
                  44,979,626
                  
                  
                  
                  2,249
                  
                  
                  
                  4,495,714
                  
                  
                  
                  -
                  
                  
                  
                  4,497,963Stock
      issued for servicesand
      compensation
                  
                  
                  8,500,630
                  
                  
                  
                  425
                  
                  
                  
                  849,638
                  
                  
                  
                  -
                  
                  
                  
                  850,063($0.10
      per share)Net
      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 servicesand
      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 ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
 (CONTINUED)
 AdditionalCommon Stock
                
                
                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 servicesand
      compensation
                  ($0.10
      per share)
                
                
                19,210,833
                
                
                
                12,988
                
                
                
                1,908,095
                
                
                
                -
                
                
                
                1,921,083Reverse
      stock split, 1 for 4 sharesand
      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)less
      syndication costs)
                
                
                66,172,384
                
                
                
                66,173
                
                
                
                6,545,956
                
                
                
                -
                
                
                
                6,612,129Stock
      issued for servicesand
      compensation (4/30/08)($0.73
      per share)
                
                
                4,691,148
                
                
                
                4,691
                
                
                
                3,419,847
                
                
                
                -
                
                
                
                3,424,538Shares
      issued in equity investmentin
      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
                
                
                
                -
                
                
                
                2,768,307Stock
      options granted for services
                
                
                -
                
                
                
                -
                
                
                
                6,235,080
                
                
                
                -
                
                
                
                6,235,080Net
      loss
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                (18,056,820
                )
                
                
                (18,056,820
                )Balance,
      April 30, 2008
                
                
                445,094,233
                
                
                $
                445,095
                
                
                $
                29,330,798
                
                
                $
                (24,012,813
                )
                
                $
                5,763,080





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





SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 CONSOLIDATED
STATEMENTS OF CASH FLOWS
  For
      the PeriodFrom
      InceptionFor
      the Three
                
                
                For
      the Nine
                
                
                For
      the Three
                
                
                For
      the Nine
                
                
                (November
      9, 2005)Months
      Ended
                
                
                Months
      Ended
                
                
                Months
      Ended
                
                
                Months
      Ended
                
                
                ToApril 30, 2008
                
                
                April 30, 2008
                
                
                April 30, 2007
                
                
                April 30, 2007
                
                
                April 30, 2008(Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      loss
                
                $
                (12,342,287
                )
                
                $
                (18,056,820
                )
                
                $
                (785,104
                )
                
                $
                (3,955,321
                )
                
                $
                (24,012,813
                )Adjustments
      to reconcile net loss tonet
      cash used by operating activitiesDepreciation
                
                
                10,962
                
                
                
                31,924
                
                
                
                5,654
                
                
                
                11,549
                
                
                
                53,272Stock
      based services and compensation
                
                
                9,659,618
                
                
                
                11,580,701
                
                
                
                230,000
                
                
                
                2,308,115
                
                
                
                15,026,523Changes
      in operating assets and liabilities:Accounts
      receivable
                
                
                (5,600
                )
                
                
                (5,600
                )
                
                
                -
                
                
                
                -
                
                
                
                (5,600
                )Prepaid
      expenses
                
                
                15,000
                
                
                
                (9,878
                )
                
                
                4,978
                
                
                
                39,934
                
                
                
                (31,603
                )Inventory
                
                
                650
                
                
                
                (58,793
                )
                
                
                -
                
                
                
                -
                
                
                
                (101,850
                )Interest
      receivable
                
                
                -
                
                
                
                -
                
                
                
                896
                
                
                
                16,693
                
                
                
                -Other
      assets
                
                
                -
                
                
                
                -
                
                
                
                (29,750
                )
                
                
                (53,988
                )
                
                
                (53,988
                )Accounts
      payable and accrued expenses
                
                
                82,598
                
                
                
                (579,765
                )
                
                
                139,993
                
                
                
                523,724
                
                
                
                316,213Related
      party payables
                
                
                -
                
                
                
                -
                
                
                
                3,193
                
                
                
                (21,000
                )
                
                
                9,000NET
      CASH USED BY OPERATING ACTIVITIES
                
                
                (2,579,059
                )
                
                
                (7,098,231
                )
                
                
                (430,140
                )
                
                
                (1,130,294
                )
                
                
                (8,800,846
                )CASH
      FLOWS FROM INVESTING ACTIVITIESPurchase
      of furniture and equipment
                
                
                (39,866
                )
                
                
                (108,936
                )
                
                
                (15,182
                )
                
                
                (55,901
                )
                
                
                (302,957
                )NET
      CASH USED BY INVESTING ACTIVITIES
                
                
                (39,866
                )
                
                
                (108,936
                )
                
                
                (15,182
                )
                
                
                (55,901
                )
                
                
                (302,957
                )CASH
      FLOWS FROM FINANCING ACTIVITIESEquity
      contributed by private placement
                
                
                1,044,364
                
                
                
                6,612,129
                
                
                
                33,475
                
                
                
                788,541
                
                
                
                11,898,633Contributed
      capital
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                -
                
                
                
                67,861Common
      stock redemption
                
                
                (40,000
                )
                
                
                (222,500
                )
                
                
                -
                
                
                
                -
                
                
                
                (222,500
                )NET
      CASH PROVIDED BY FINANCING ACTIVITIES
                
                
                1,004,364
                
                
                
                6,389,629
                
                
                
                33,475
                
                
                
                788,541
                
                
                
                11,743,994NET
      INCREASE IN CASH AND CASH EQUIVALENTS
                
                
                (1,614,561
                )
                
                
                (817,538
                )
                
                
                (411,847
                )
                
                
                (397,654
                )
                
                
                2,640,191CASH
      AND CASH EQUIVALENTS, BEGINNING OF PERIOD
                
                
                4,254,752
                
                
                
                3,457,729
                
                
                
                4,375,173
                
                
                
                4,360,980
                
                
                
                -CASH
      AND CASH EQUIVALENTS, END OF PERIOD
                
                $
                2,640,191
                
                
                $
                2,640,191
                
                
                $
                3,963,326
                
                
                $
                3,963,326
                
                
                $
                2,640,191Cash
      paid for:Interest
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -Income
      taxes
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -
                
                
                $
                -
 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)
 CONSOLIDATED
STATEMENTS OF CASH FLOWS (CONTINUED)
  For
      the PeriodFrom
      InceptionFor
      the Three
                
                
                For
      the Nine
                
                
                For
      the Three
                
                
                For
      the Nine
                
                
                (November
      9, 2005)Months
      Ended
                
                
                Months
      Ended
                
                
                Months
      Ended
                
                
                Months
      Ended
                
                
                ToApril 30, 2008
                
                
                April 30, 2008
                
                
                April 30, 2007
                
                
                April 30, 2007
                
                
                April 30, 2008(Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)
                
                
                (Unaudited)Noncash
      operating and financing activities:Stock
      based services and compensation
                
                $
                9,659,618
                
                
                $
                11,580,701
                
                
                $
                230,000
                
                
                $
                2,308,115
                
                
                $
                15,026,523Treasury
      stock redeemed included in payables
                
                $
                -
                
                
                $
                3,765,816
                
                
                $
                -
                
                
                $
                -
                
                
                $
                3,765,816Reissuance
      of previously redeemed stock
                
                $
                -
                
                
                $
                2,768,307
                
                
                $
                -
                
                
                $
                -
                
                
                $
                2,768,307Shares
      issued for equity investmentin
      EPIR Technologies, Inc.
                
                $
                -
                
                
                $
                3,780,385
                
                
                $
                -
                
                
                $
                -
                
                
                $
                3,780,385




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





F-7
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
 FOR THE
THREE AND NINE MONTHS ENDED APRIL 30, 2008 AND 2007, AND FOR THE PERIOD FROM
INCEPTION (NOVEMBER 9, 2005) THROUGH APRIL 30, 2008




NOTE A -
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





UOrganization,
Nature, and Continuance of OperationsUT





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 $24,012,813.  To date the Company
has funded operations through the issuance of common stock and common stock
options.  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 April 30, 2008, the Company completed a private placement of 119,102,670
shares for net proceeds of $11,898,633.  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-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)





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 April 30, 2008, the Company had an uninsured cash balance of
approximately $2,605,000.





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 stockholder.  The Company expenses royalties as product costs
during the period in which the related revenues are recorded.





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-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)





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 April 30,
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.





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-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)





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
nine months ended April 30, 2008 and 2007 or for the period from inception
(November 9, 2005) through April 30, 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 April 30, 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 nine months ended April 30, 2008 and 2007
or for the period from inception (November 9, 2005) through April 30,
2008.





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)





Income Taxes (Benefits)
(Continued)





At April
30, 2008, the Company had a net operating loss carryforward of approximately
$24,013,000 that may be offset against future taxable income through
2026.  The amount of the income tax benefit for the nine months ended
April 30, 2008 and 2007 and for the period from inception (November 9, 2005)
through April 30, 2008, before the valuation allowance was applied, totaled
approximately $6,771,000, $1,490,000 and $9,005,000, 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 525,100,000 at April 30, 2008.  The effects of the stock options
are antidilutive at April 30, 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 nine months ended April 30, 2008 and 2007 and for the period from
inception (November 9, 2005) through April 30, 2008.





Transfer of Financial
Assets





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-12
 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 April 30, 2008.  Patent costs are
included in other assets on the balance sheet.





Stock
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
O).  The stock options have a fifteen year life.  On
December 6, 2007, options for 100,000 shares were issued to a consultant to the
Company for services, exercisable at a price of $.10 (see Note O). The total
consulting expense related to these options totaled $20,080. On March 17, 2008,
options for 25,000,000 shares were issued to another consultant to the Company
for services, exercisable at a price of $.005 (see Note O). The total consulting
expense related to these options totaled $6,215,000.





Reclassifications





Certain
amounts for the periods ended April 30, 2007 have been reclassified in the
comparative financial statements to be comparable to the presentation for the
periods ended April 30, 2008.  These reclassifications had no effect
on net loss as previously reported.





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-13
 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 stockholder.  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 stockholder 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 stockholder 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 April 30, 2008 and July 31, 2007 is as
follows:




2008
              
              
              2007Deferred
      tax assetNet
      operating loss carryforward
              
              $
              9,005,000
              
              
              $
              2,235,000Valuation
      allowance
              
              
              (9,005,000
              )
              
              
              ( 2,235,000
              )Net
      deferred tax asset
              
              $
              -
              
              
              $
              -





F-14
 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 April
30, 2008 the Company had a net operating loss carry forward of approximately
$24,013,000 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 nine months ended
April 30, 2008 and 2007 totaled approximately $6,771,000 and $1,490,000,
respectively.





A
reconciliation of (provision) benefit for income taxes to income taxes at
statutory rate is as follows:




For
      the
              
              
              For
      thePeriod
      from
              
              
              Period
      fromInception
              
              
              InceptionFor
      the Nine
              
              
              For
      the Nine
              
              
              (November
      9,
              
              
              (November
      9,Months
      Ended
              
              
              Months
      Ended
              
              
              2005)
      through
              
              
              2005)
      throughApril 30, 2008
              
              
              April 30, 2007
              
              
              April 30, 2008
              
              
              October 31, 2006Federal
      income (tax) benefitat
      statutory rate
              
              $
              5,778,000
              
              
              $
              1,272,000
              
              
              $
              7,684,000
              
              
              $
              14,734,000State
      (taxes) benefit
              
              
              993,000
              
              
              
              218,000
              
              
              
              1,321,000
              
              
              
              2,532,000Valuation
      allowance
              
              
              (6,771,000
              )
              
              
              (1,490,000
              )
              
              
              (9,005,000
              )
              
              
              (17,266,000
              )(Provision)
      benefit for income taxes
              
              $
              -
              
              
              $
              -
              
              
              $
              -
              
              
              $
              -




NOTE D -
FURNITURE AND EQUIPMENT, NET





At April
30, 2008 and July 31, 2007 furniture and equipment consisted of the
following:




April 30, 2008
              
              
              July 31, 2007Computer
      equipment
              
              $
              244,829
              
              
              $
              153,638Furniture
      and fixtures
              
              
              31,767
              
              
              
              29,616Leasehold
      improvements
              
              
              26,360
              
              
              
              10,767302,956
              
              
              
              194,021Less:
      accumulated depreciation
              
              
              (53,272
              )
              
              
              (21,348
              )Furniture
      and equipment
              
              $
              249,684
              
              
              $
              172,673


Total
depreciation expense for the nine months ended April 30, 2008 and 2007 and for
the period from inception (November 9, 2005) through April 30, 2008 was $31,924,
$11,549 and $53,272, respectively.








F-15
 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.





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 $49,876, $46,380 and $121,232 for
the nine months ended April 30, 2008 and 2007 and for the period from inception
(November 9, 2005) through April 30, 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 stockholders.  In October 2006, the Company terminated
the lease.





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





The
investment in EPIR is accounted for under the cost method of accounting because
the Company does not exercise significant influence over EPIR’s operations.
Under the cost method of accounting, investments are carried at cost and are
only adjusted for other-than-temporary declines in fair value and distributions
of earnings.


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)





Payments
as shown in the following schedule through April 1, 2008 have been made by the
Company.





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, 2014500,000
              
              
              
              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





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





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 in 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.




Consolidated
      Operations by Business SegmentFor the nine months
      ended April 30, 2008Solar
              Substrate
            
            
            Lighting
              Product
            
            
            Corporate
              and
      OtherNet
      sales
            
            $
            -
            
            
            $
            5,600
            
            
            $
            -Operating
      loss
            
            $
            (11,290,231
            )
            
            $
            (5,565,563
            )
            
            $
            (1,264,915
            )Depreciation
      and amortization
            
            $
            -
            
            
            $
            -
            
            
            $
            (31,924
            )Assets
            
            $
            2,732,537
            
            
            $
            15,104
            
            
            $
            4,115,660




For the nine months
      ended April 30, 2007Solar
                Substrate
              
              
              Lighting
                Product
              
              
              Corporate
                and
      OtherNet
      sales
              
              $
              -
              
              
              $
              -
              
              
              $
              -Operating
      loss
              
              $
              (3,692,343
              )
              
              $
              -
              
              
              $
              (408,082
              )Depreciation
      and amortization
              
              $
              -
              
              
              $
              -
              
              
              $
              (11,549
              )Assets
              
              $
              3,963,326
              
              
              $
              -
              
              
              $
              134,862




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


NOTE H –
SEGMENT INFORMATION (CONTINUED)




For the period from
      inception (November 9, 2005) through April 30, 2008Solar
                Substrate
              
              
              Lighting
                Product
              
              
              Corporate
                and
      OtherNet
      sales
              
              $
              -
              
              
              $
              5,600
              
              
              $
              -Operating
      loss
              
              $
              (14,613,346
              )
              
              $
              (6,202,959
              )
              
              $
              (3,488,398
              )Depreciation
      and amortization
              
              $
              -
              
              
              $
              -
              
              
              $
              (53,272
              )Assets
              
              $
              2,732,537
              
              
              $
              15,104
              
              
              $
              4,115,660


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 nine
months ended April 30, 2008 and 2007, was $12,534 and $1,127,
respectively.  Retirement expense for the period from inception
(November 9, 2005) to April 30, 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
April 30, 2008, include the acquisition of patent rights discussed in Note B,
the consulting agreements discussed in Note M, the stock options discussed in
Note O, 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.


F-19
 SUNOVIA
ENERGY TECHNOLOGIES, INC.
 (FORMERLY
KNOWN AS ACADIA RESOURCES, INC.)
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
 
 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
stockholders and directors, as listed below:





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 May 2008, the Company entered into a new contract with its Chief Executive
Officer that reduces compensation to employee benefits and no other amount of
any kind.





In June
2006, the Company entered into an employment agreement with its Co-founder 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
Co-founder the same benefits as other executives of the Company, but no cash
remuneration. In May 2008, the Company entered into a new contract with its
Co-founder and Business Development Representative that reduces compensation to
employee benefits and no other amount of any kind.





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. In May 2008, the Company entered into a new
contract with its President that eliminated all equity compensation but retained
all other terms.


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)





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
2008, the Company entered into a new contract with its Chief Financial Officer
for the same terms except for a provision to receive 498,060 stock options to
purchase common stock at $0.62 per share provided that the Company meets its
goals.





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. 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 (see Note O) 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.





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.





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.


F-21
 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)





In
February, 2008, an entity which the Company has informally agreed to finance,
entered into a research and development agreement with an educational
institution in exchange for the assignment of the certain patent rights the
entity is obtaining. The educational institution will perform research and
development services and assign intellectual property created during the course
of those services to the entity, who in turn will assign such rights to the
Company. The Company has agreed to pay on behalf of the entity, $2,000,000 to
the educational institution in the first year. If an agreement is made to extend
the agreement to the second year, the Company will pay an additional $2,000,000.
If a decision is made to extend the agreement to the third year, the Company
will make a final payment of $1,000,000.




NOTE N -
STOCK COMPENSATION





The
Company has recorded expenses, paid in common stock, of $4,775,121, $2,308,115,
and $8,879,619 for the nine months ended April 30, 2008 and 2007, and the period
from inception (November 9, 2005) through April 30, 2008,
respectively.  The shares issued for these periods totaled 23,901,981,
23,081,150, and 58,360,201 for employment contracts, consulting contracts, and
rent agreements, respectively (see Note M and Note K).  For the nine
months ended April 30, 2008 salary, consulting, and research and development
expenses paid or accrued for payment in common stock totaled $2,215,204,
$1,959,917, and $600,000, respectively.  For the nine months ended
April 30, 2007, salary and consulting expenses paid or accrued for payment in
common stock totaled $773,750 and $1,537,000, respectively.  For the
period from inception (November 9, 2005) through April 30, 2008 salary,
consulting, rent, and research and development expenses paid or accrued for
payment in common stock totaled $4,560,190, $3,652,726, $66,703, and $600,000,
respectively.  Common stock not issued for these expenses as of April
30, 2008 and July 31, 2007, totaled $88,176 and $658,676,
respectively.





NOTE O –
STOCK OPTION PLANS





The
Company has granted stock options to its Chief Executive Officer under a stock
option agreement dated December 20, 2005.  The 2005 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.




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


NOTE O –
STOCK OPTION PLANS (CONTINUED)





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 had 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.





In April
2008, the Company’s Board of Directors approved the 2008 Incentive Stock Plan
which authorizes, up to a maximum of 30,000,000 shares, the granting of awards
to key employees, directors, and consultants in the form of options to purchase
the Company’s common stock or restricted stock. The Company’s Board of Directors
determines the number of shares, the term, the frequency and date, the type, the
exercise periods, any performance criteria pursuant to which awards may be
granted and the restrictions and other terms and conditions of each grant of
restricted shares in accordance with the terms of the plan. The Company measures
compensation for these options under SFAS 123R.  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).





On
December 6, 2007, options for 100,000 shares were issued to a consultant to the
Company for services, exercisable at a price of $.10. The total consulting
expense related to these options totaled $20,080. On March 17, 2008, options for
25,000,000 shares were issued to another consultant to the Company for services,
exercisable at a price of $.005. The total consulting expense related to these
options totaled $6,215,000.





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 130% and expected lives of 2-7 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 O –
STOCK OPTION PLANS (CONTINUED)





Stock
option transactions for the period from inception (November 9, 2005) through
April 30, 2008 are summarized as follows:


Shares
              
              
              Exercise
                PriceAverage Exercise
      PriceOutstanding,
      November 9, 2005Granted,
      December 20, 2005
              
              
              500,000,000
              
              
              $
              0.10Outstanding
      and exercisable, July 31, 2007
              
              
              500,000,000
              
              
              $
              0.10Granted,
      December 6, 2007
              
              
              100,000
              
              
              $
              0.10Granted,
      March 17, 2008
              
              
              25,000,000
              
              
              $
              0.005Outstanding
      and exercisable, April 30, 2008
              
              
              525,100,000





Information
regarding stock options outstanding as of April 30, 2008 is as
follows:





Options
      OutstandingPrice Range
            
            
            Shares
            
            
            Exercise Price
            
            Remaining
      Life$
            0.10
            
            
            
            500,000,000
            
            
            $
            0.10
            
            13
      years$
            0.10
            
            
            
            100,000
            
            
            $
            0.10
            
            2
      years$
            0.005
            
            
            
            25,000,000
            
            
            $
            0.005
            
            7
      years




Options
      ExercisablePrice Range
              
              
              Shares
              
              
              Exercise Price
              
              Remaining
      Life$
              0.10
              
              
              
              500,000,000
              
              
              $
              0.10
              
              13
      years$
              0.10
              
              
              
              100,000
              
              
              $
              0.10
              
              2
      years$
              0.005
              
              
              
              25,000,000
              
              
              $
              0.005
              
              7
      years


The
weighted average life and exercise price of the stock options outstanding and
exercisable as of April 30, 2008 is 12.71 and $.0955, respectively.





NOTE P -
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 P -
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
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 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.





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


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





NOTE P -
RECENT ACCOUNTING PRONOUNCEMENTS (CONTINUED)





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 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.





In
December 2007, the FASB issued SFAS No. 160, Non-controlling Interests in
Consolidated Financial Statements, an amendment of ARB No. 51, which
changes the accounting and reporting for minority interests. Minority interests
will be re-characterized as non-controlling interests and will be reported as a
component of equity separate from the parent’s equity, and purchases or sales of
equity interests that do not result in a change in control will be accounted for
as equity transactions. In addition, net income attributable to the
non-controlling interest will be included in consolidated net income on the face
of the income statement and, upon a loss of control, the interest sold, as well
as any interest retained, will be recorded at fair value with any gain or loss
recognized in earnings. 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 March
2008, the FASB issued Statement of Financial Accounting Standards (“SFAS”)
No. 161, Disclosures about Derivative Instruments and Hedging Activities,
an amendment of FASB Statement No. 133, which requires additional
disclosures about (a)
how and why an entity uses derivative instruments, (b) how derivative
instruments and related hedged items are accounted for under Statement 133 and
its related interpretations, and (c) how derivative instruments and related
hedged items affect an entity’s financial position, financial performance, and
cash flows. 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.


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








NOTE Q –
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. There were
no additional shares redeemed for the three months ended April 30, 2008. The
number of reissued redeemed shares during the nine months ended April 30, 2008
totaled 27,683,075.





NOTE R –
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 stockholders of the Company at the closing of the
merger.  On December 17, 2007, Acadia changed its name to Sunovia
Energy Technologies, Inc.





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
April 30, 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 April 30, 2008 combines the
respective balance sheets, as adjusted, at that date.


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




NOTE R –
REVERSE MERGER (CONTINUED)





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.




(a)
              
              
              (b)Acadia
              
              
              Sunovia
      EnergyResources, Inc.
              
              
              Technologies, Inc.Total
      Assets
              
              $
              14
              
              
              $
              6,863,301Total
      Liabilities
              
              $
              15,102
              
              
              $
              1,100,221Total
      Equity
              
              $
              (15,088
              )
              
              $
              5,763,080Total
      Liabilities and Equity
              
              $
              14
              
              
              $
              6,863,301Net
      Sales
              
              $
              -
              
              
              $
              5,600Net
      Loss
              
              $
              -
              
              
              $
              (24,012,813
              )
  (a)
      Based on Acadia Resources, Inc.'s audited financial statements as of
      August 31, 2007(b)
      Based on Sunovia Energy Technologies, Inc.'s April 30, 2008 unaudited
      financial statements




NOTE S –
SUBSEQUENT EVENTS





Effective
May 1, 2008, the Company entered into employment agreements with 12 employees
which provides for 4,880,600 stock options to be issued under the Company’s 2008
Incentive Stock Plan (see Note O).  The options have an exercise price
of $0.62.




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.





5




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 nine months and three months
ended April 30, 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 the Merger, 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.




6




Overview




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





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 April 30, 2008, the Company
had a net loss of $24,012,813. However, we have successfully developed
technologies in the solid state lighting area that have generated over $4.0
million in sales orders in May and June 2008, and as a result we expect to no
longer be a development stage company in the coming months ahead..




Solar
Division





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.





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.





7





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).




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 we believe it is showing continued improvement each
year in performance. 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 approach is to obtain orders from customers for specialized lights,
which we can design for a particular customer but also sell to other customers
as well, such as street lights. Our engineers will then modify our existing core
designs to the different specifications of new orders tha t we received. We have
identified several customers and types of lights which we plan to pursue to add
to the street lights and loading dock lights we have already built from our
initial technology design. 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 13 employees and 14 consultants. 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.





Cash
Flows and Working Capital


To date,
we have financed our operations primarily through equity contributions by our
shareholders. As of April 30, 2008, we had $2,640,191 in cash and cash
equivalents. Our current liabilities as of April 30, 2008 were
$1,100,221.





Operating
Activities


Net cash
used in operating activities for the nine month and three month period ended
April 30, 2008 amounted to $7,098,231 and $2,579,059  as compared to
$1,130,294 and $430,140 for the nine month and three month
period  ending April 30, 2007. Net cash used by operating activities
was mainly a result of a net loss of $18,056,820 and $12,342,287 for the nine
month and three month period ending April 30, 2008 and $3,955,321 and $785,104
for the same periods ending April 30, 2007, respectively which included non-cash
share-based compensation of $11,580,701 and $9,659,618 and $2,308,115 and
$230,000 for the same periods, respectively.





Investing
Activities


Net cash
used in investing for the nine month and three month period ending April 30,
2008 was $108,396 and $39,866 as compared to $55,901 and $15,182 for the nine
month and three month periods ending April 30, 2007, due primarily to our
purchase of software for product development purposes for the nine and three
month period ended April 30, 2008, where as the amounts in the previous period
were more for office equipment.




8





Financing
Activities


Our net
cash raised in financing activities for the nine month and three month periods
ending April 30, 2008 was $6,389,629 and $1,004,364 as compared to $788,541 and
$33,475 for the nine months and quarter ending April 30, 2007. In both periods,
we were in the process of completing a private placement for ten cents a
share.





Cash
Requirements


As of
June 12, 2008, we had $5,525,838 in cash. However, we presently anticipate
spending approximately $ 3.6 million over the next twelve months on operations,
$4.0 million on research and development and $250,000 on capital equipment. Of
that amount, $3.5 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. To date, we have
received purchase orders from customers totaling $4.6 million. In turn, we have
issued purchase orders to suppliers for $3.0 million to fulfill the orders we
have received (we expect to issue additional orders for additional parts and
labor that are estimated to $600 thousand). Payment from customers and to
vendors is typically on a 90-day basis, however there is a production time lag
of usually 30 days. To finance these operations and 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.  Further, there is no assurance that we be successful in
collecting amounts owed in connection with these purchase orders.





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.





Results
of Operations





Nine
months and quarter ended April 30, 2008 compared to Nine months and quarter
ending April 30, 2007, along with Inception to Date Information from the period
from November 9, 2005 to April 30, 2008 and Expected Amounts for the
Next  Twelve Months




Revenues


We
currently have some nominal early stage revenues. We sell to customers of all
types based on market response. Our initial customers are local governments and
commercial facilities who see the benefits of our lighting product in terms of
costs savings both for energy and for the reduction in labor for replacing light
bulbs that our solid state lights provide to customers, as well as customers who
are committed to “going green”.





Expenses


General and
Administrative Expenses





During
the nine and three  months and quarter ended April 30, 2008, our
selling, general and administrative (“SG&A”) expenses increased. For the
Nine month period ending April 30, 2008, SG&A expenses increased $8,384,221
to $12,221,905 when compared to $3,837,684 for the nine months ended April 30,
2007.  Likewise, for the three month period ending April 30, 2007,
SG&A expenses increased $9,573,460 to $10,325,796 when compared to $752,336
for the nine months ended April 30, 2007. This increase was primarily the result
of non-cash share-based compensation of $11,580,701 and $9,659,618 and
$2,308,115 and $230,000 for the nine months and quarter ended April 30, 2008 and
2007, respectively, related to the hiring of management and other personnel that
were 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 department 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 nine month period ending April 30, 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 $5,904,404 and $2,033,137 for the nine month and three
month periods ending April 30, 2008 (see “Overview” for a more complete
description of the Company’s plans in this area). Research and Development was
$262,741 and $79,038 and for the nine months and quarter ended April 30, 2007.
In 2008, all research was outsourced to EPIR Technologies, inc. (see above) and
Dongkuk University in Seoul, South Korea.







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 April 30,
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.





9




ITEM 3. CONTROLS AND
PROCEDURES





As required by Rule 13a-15 under the Securities Exchange Act of
1934, as of April 30, 2008, the end of the period covered by this report, our
management, which is responsible for establishing and maintaining adequate
internal control over financial reporting, concluded its evaluation of the
effectiveness of the design and operation of our disclosure controls and
procedures. Disclosure controls and procedures are designed to reasonably assure
that information required to be disclosed in our reports filed under the
Securities Exchange Act of 1934, such as this report, is recorded, processed,
summarized and reported within the time periods prescribed by SEC rules and
regulations, and to reasonably assure that such information is accumulated and
communicated to our management, including our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required
disclosure.





Our
management, including our Chief Executive Officer and Chief Financial Officer,
does not expect that our disclosure controls and internal controls will prevent
all errors and all fraud. A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within us have been detected. These inherent limitations include the
realities that judgments in decision-making can be faulty, and that breakdowns
can occur because of a simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more
people, or by management or board override of the control. The design of any
system of controls also is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions;
over time, controls may become inadequate because of changes in conditions, or
the degree of compliance with the policies or procedures may deteriorate.
Because of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be detected. The
Certifications appearing immediately following the signatures section of this
report are Certifications of our Chief Executive Officer and Chief Financial
Officer. The Certifications are required in accordance with Section 302 of the
Sarbanes-Oxley Act of 2002 (the Section 302 Certifications). This Item of this
report is the information concerning the evaluation referred to in the Section
302 Certifications and this information should be read in conjunction with the
Section 302 Certifications for a more complete understanding of the topics
presented.




We
carried out an evaluation, under the supervision and with the participation of
our management, including our principal executive officer and our principal
financial officer, of the effectiveness of the design and operation of our
disclosure controls and procedures as of the end of the period covered by this
report. Based upon the evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures are
effective at the reasonable assurance level for timely gathering, analyzing and
disclosing the information we are required to disclose in our reports filed
under the Securities Exchange Act of 1934. Our management, which includes our
Chief Executive Officer and Chief Financial Officer, concluded that our
disclosure controls and procedures are effective to (i) give reasonable
assurance that the information required to be disclosed by us in reports that we
file under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms, and (ii) ensure that information required
to be disclosed in the reports that we file or submit under the Securities
Exchange Act of 1934 is accumulated and communicated to our management,
including our Chief Executive Officer and Chief Financial Officer, to allow
timely decisions regarding required disclosure.





There
have been no changes in our internal control over financial reporting during our
last fiscal quarter that have materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.





10




PART
II: OTHER
INFORMATION




ITEM 1. LEGAL PROCEEDINGS





None.





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





In
February, March and April, 2008, we issued an aggregate of 10,494,744 common
shares to investors in connection with sale of shares of common stock to various
accredited investors  at $.10 per share.





In
February, March and April, 2008, we issued 4,691,148 shares to employees and
consultants for services at $.73 per share.





In May
and June, 2008, we issued an aggregate of 33,827,616 common shares to investors
in connection with sale of shares of common stock to various accredited
investors 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.




11




ITEM 3.  DEFAULTS UPON SENIOR
SECURITIES





None





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





None




ITEM 5.  OTHER
INFORMATION





In
February, 2008, the
Company informally agreed to finance an entity in which the Company has
agreed in principal to acquire.  The entity has entered into a
research and development agreement with an educational institution in
consideration of the assignment of certain patent rights held by the educational
institution. The educational institution will perform research and
development services and assign intellectual property created during the course
of those services to the entity, who
in turn will assign such rights to the Company. The Company has agreed to
pay on behalf of the entity, $2,000,000 to the educational institution in the
first year. If an agreement is made to extend the agreement to the second year,
the Company will pay an additional $2,000,000. If a decision is made to extend
the agreement to the third year, the Company will make a final payment of
$1,000,000.




ITEM
6.
EXHIBITS




Exhibit
      No.
              Description
      of Exhibit3.1
              Certificate
      of Change (2)3.2
              Agreement
      and Plan of Merger between Acadia Resources, Inc.  and Sunovia
      Solar, Inc. (3)3.3
              Certificate
      of Merger between Sun Energy Solar, Inc. and Sunovia Solar, Inc.
      (3)3.4
              Certificate
      of Merger between Acadia Resources, Inc. And Sunovia Energy Technologies,
      Inc. (3)3.5
              Articles
      of Incorporation (6)3.6
              Bylaws
      (6)4.1
              Form
      of Subscription Agreement (5)10.1
              Royalty
      Agreement between Sun Energy Solar, assigned to the Registrant and Sparx,
      Inc., dated December 20, 2005 (3)10.2
              Stock
      Option Agreement between Sun Energy Solar, assigned to the Registrant and
      Carl Smith, dated December 20, 2005 (3)10.3
              Change
      of Control Severance Agreement between Sun Energy Solar, assigned to the
      Registrant and Carl Smith, dated December 21, 2005 (3)10.4
              Modification
      to Stock Option Agreement between Sun Energy Solar, assigned to the
      Registrant and Carl Smith relating to Charitable Pledge by Executive,
      dated June 29, 2006 (3)10.5
              Employment
      Contract between Sun Energy Solar, Inc. (now known as Sunovia Solar, Inc.)
      and Bob Fugerer, dated July 10, 2006, and addendum (3)10.6
              Executive
      Employment Contract between Sun Energy Solar, Inc. (now known as Sunovia
      Solar, Inc.) and Matthew Veal, dated May 29, 2006 and addendum
      (3)10.7
              Consulting
      Agreement between Sun Energy Solar, Inc. (to be assigned to Sunovia Energy
      Technologies, Inc.)  and Ken Juster dated July 16, 2007
      (3)10.8
              Consulting
      Agreement between Sun Energy Solar, Inc. (now known as Sunovia Solar,
      Inc.) and Don Sipes dated July 18, 2007 (3)10.9
              Consulting
      Agreement between Sun Energy Solar, Inc. (now known as Sunovia Solar,
      Inc.) and Don Sipes dated July 18, 2007 (3)10.10
              Agreement
      between Sun Energy Solar, Inc. (now known as Sunovia Solar, Inc.) and EPIR
      Technologies dated November 1, 2007 (3)10.11
              Addendum
      to employment contract between the Company and Bob Fugerer, dated January
      25, 2007 (4)10.12
              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)10.13
              Stock
      Purchase Agreement between EPIR Technologies, Inc. and Sunovia Energy
      Technologies, Inc., dated January 24, 2008 (1)10.14
              Amended
      and Restated Consulting Agreement between Sunovia Energy Technologies,
      Inc. and Fernando Cuza dated March 17, 2008 (4)10.15
              Consulting
      Agreement between the Company and Pacific Coast Capital Advisors, Inc.
      dated
      June 10, 200810.16
              Employment
      Agreement between the Company  and Robert Fugerer, dated May 1,
      200810.17
              Employment
      Agreement between the Company  and Carl Smith, dated May 1,
      200810.18
              Employment
      Agreement between the Company  and Matthew Veal, dated May 1,
      200810.19
              Sunovia
      Energy Technologies, Inc. 2008 Incentive Stock Plan date April 30,
      200810.20
              Employment
      Agreement between the Company  and Craig Hall, dated May 1,
      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.


(2)
Incorporated by reference to the Form 8-K filed with the Securities and Exchange
Commission on December 14, 2007.


(3)
Incorporated by reference to the Form 10QSB filed with the Securities Exchange
Commission on December 21, 2007


(4)
Incorporated by reference to the Form 10QSB filed with the Securities Exchange
Commission on March 17, 2008


(5)
Incorporated by reference to the Form 8K Current Report filed with the
Securities and Exchange Commission on January 16, 2008.


(6)
Incorporated by reference to the Form SB-2 Registration Statement filed with the
Securities and Exchange Commission on January 1, 2007




12




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 Directors (Principal Executive
      Officer)
              June 16,
      2008Carl
      L. Smith, III/s/ Matthew
      Veal
              Secretary, Chief
      Financial Officer, Treasurer, and Principal Accounting
    Officer
              June 16,
      2008Matthew
      Veal