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

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

| Delaware                                                       | 20-2329345                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employee Identification No.) |

| Large accelerated filer o | Accelerated filer o         |
|---------------------------|-----------------------------|
|                      |                        |
| Non-accelerated filer o   | Smaller reporting company x |

----

|         |   | PAGE                                                                                                                    |
|--------------|--------|-------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                    |
| PART I  |   | FINANCIAL INFORMATION                                                                                                   |   | 5 |
|         |   |                                                                                                                    |   |   |
| Item 1.      |   | Consolidated Balance Sheets at March 31, 2011 (unaudited) and December 31, 2010 (audited).                              |   |  6 |
|         |   |                                                                                                                    |   |   |
|         |   | Consolidated Statements of Operations (unaudited) for the three  month periods ended March 31, 2011 and 2010. |   |  7 |
|         |   |                                                                                                                    |   |   |
|         |   | Consolidated Statement of Changes in Shareholders' Equity (unaudited) for the three month period ended March 31, 2011.  |   |  8 |
|         |   |                                                                                                                    |   |   |
|         |   | Consolidated Statements of Cash Flows (unaudited) for the three  month periods ended March 31, 2011 and 2010. |   |  9 |
|         |   |                                                                                                                    |   |   |
|         |   | Notes to Consolidated Financial Statements (unaudited).                                                                 |   |  10 |
|         |   |                                                                                                                    |   |   |
| Item 2.      |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                            |   |  14 |
|         |   |                                                                                                                    |   |   |
| Item 3.      |   | Quantitative and Qualitative Disclosures About Market Risk.                                                             |   |  17 |
|         |   |                                                                                                                    |   |   |
| Item 4.      |   | Controls and Procedures.                                                                                                |   |  17 |
|         |   |                                                                                                                    |   |   |
| PART II |   | OTHER INFORMATION                                                                                                       |   | 18 |
|         |   |                                                                                                                    |   |   |
| Item 1.      |   | Legal Proceedings.                                                                                                      |   | 18 |
|         |   |                                                                                                                    |   |   |
| Item 1A.     |   | Risk Factors.                                                                                                           |   | 18 |
|         |   |                                                                                                                    |   |   |
| Item 2.      |   | Unregistered Sales of Equity Securities and Use of Proceeds.                                                            |   | 18 |
|         |   |                                                                                                                    |   |   |
| Item 3.      |   | Defaults Upon Senior Securities.                                                                                        |   | 18 |
|         |   |                                                                                                                    |   |   |
| Item 4.      |   | (Removed and Reserved).                                                                                                 |   | 18 |

| Item 5. |   | Other Information. |   | 18       |
|---------|--------|--------------------|--------|----------|
|    |   |               |   |     |
| Item 6. |   | Exhibits.          |   |  18 |
|    |   |               |   |     |
|    |   | Signatures         |   |  19 |

----

|   | ·  | we are subject to risks relating to enrollment of students. If we are not able to continue to successfully recruit and retain our students, we will not be able to sustain our revenue growth rate; |
|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we are subject to risks relating to tuition pricing, which could have a material adverse affect on our financial results; |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------|

|   | ·   | our course offerings be no longer current; |
|--------|--------------------|--------------------------------------------|

|   | ·   | our acquisition strategy may have an adverse effect on our ability to manage our business; |
|--------|--------------------|--------------------------------------------------------------------------------------------|

|   | ·   | if we fail to maintain any of our state authorizations, we would lose our ability to operate in that state; |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------|

|   | ·   | if any regulatory audit, investigation or other proceeding finds us not in compliance with the numerous laws and regulations applicable to the postsecondary education industry, we may not be able to successfully challenge such finding and our business could suffer; |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | if regulators do not approve our acquisitions, the acquired schools’ state licenses, accreditation, and ability to participate in Title IV programs (if applicable) may be impaired; |
|--------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | state licenses and accreditation requirements may adversely impact our ability to effect a sale of our company or any of our operating businesses; |
|--------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we are dependent on the continued services of certain key executives; |
|--------|--------------------|-----------------------------------------------------------------------|

|   | ·   | government regulations relating to the Internet could increase our cost of doing business, affect our ability to grow or otherwise have a material adverse effect on our business, financial condition, results of operations and cash flows; |
|--------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | our financial performance depends, in part, on our ability to keep pace with changing market needs and technology; if we fail to keep pace or fail in implementing or adapting to new technologies, our business may be adversely affected; |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we are subject to risks relating to our information technology, system applications and security systems, which could have a material adverse affect on our financial results; |
|--------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | our success depends on attracting and retaining qualified personnel; |
|--------|--------------------|----------------------------------------------------------------------|

|   | ·   | we may not be able to adequately protect our intellectual property, and we may be exposed to infringement claims by third parties; |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we may be subject to infringement and misappropriation claims in the future, which may cause us to incur significant expenses, pay substantial damages and be prevented from providing our services; |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | our limited operating history and the unproven long-term potential of our business model make evaluating our business and prospects difficult; |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we may need additional capital and may not be able to obtain such capital on acceptable terms; |
|--------|--------------------|------------------------------------------------------------------------------------------------|

|   | ·   | we are subject to the risk of being in default under our outstanding secured indebtedness; |
|--------|--------------------|--------------------------------------------------------------------------------------------|

|   | ·   | we are subject to the risk of being in default under our outstanding secured obligations; |
|--------|--------------------|-------------------------------------------------------------------------------------------|

|   | ·   | Our business may be adversely affected by a further economic slowdown in the U.S. or abroad or by an economic recovery in the U.S.; |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we may not be able to sustain our recent growth rate or profitability, and we may not be able to manage future growth effectively; |
|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | insiders have substantial control over us, and they could delay or prevent a change in our corporate control even if our other stockholders wanted it to occur; |
|--------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | there may not be sufficient liquidity in the market for our common stock; |
|--------|--------------------|---------------------------------------------------------------------------|

|   | ·   | the market price of our common stock may be volatile; |
|--------|--------------------|-------------------------------------------------------|

----

|   | ·   | our outstanding options and warrants may adversely affect us in the future and cause substantial dilution to existing shareholders; |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | our common stock may be considered a “penny stock” and may be difficult to sell; |
|--------|--------------------|----------------------------------------------------------------------------------------------|

|   | ·   | the market for penny stocks has experienced numerous frauds and abuses which could adversely impact investors in our stock; and |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our stock. |
|--------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| OAK TREE EDUCATIONAL PARTNERS, INC. AND SUBSIDIARIES                                                                                             |   |           |       |   |              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                                                             |   |           |       |   |              |   |
| Consolidated Balance Sheets                                                                                                                      |   |           |       |   |              |   |
|                                                                                                                                             |   |           |       |   |              |   |
|                                                                                                                                             |   |           |       |   |              |   |
|                                                                                                                                             |   |           |       |   |              |   |
|                                                                                                                                             |   | March 31, 2011 |       |   |              |   |
|                                                                                                                                             |   | (Unaudited)    |       |   | December 31, 2010 |   |
| ASSETS                                                                                                                                           |   |           |       |   |              |   |
| Current Assets                                                                                                                                   |   |           |       |   |              |   |
| Cash                                                                                                                                             |   | $              | 377,512    |   |              | $      | 604,401 |   |
| Accounts receivable, net of allowance for uncollectable accounts of $22,054                                                                      |   |           |       |   |              |
|               as of March 31, 2011 and $16,246 as of December 31, 2010          |   |           | 1,773,766  |   |              |   | 1,539,778 |   |
| Inventory                                                                                                                                        |   |           | 20,670     |   |              |   | 50,762 |   |
| Other current assets                                                                                                                             |   |           | 111,453    |   |              |   | 40,463 |   |
|                                                                                                                                             |   |           | 2,283,401  |   |              |   | 2,235,404 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
| Fixed Assets, net                                                                                                                                |   |           | 242,169    |   |              |   | 237,832 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
| Other Non-Current Assets                                                                                                                         |   |           |       |   |              |   |   |   |
| Intangible assets, net of accumulated amortization of $758,527 as of                                                                             |   |           |       |   |              |
|               March 31, 2011 and $617,661 as of December 31, 2010               |   |           | 5,610,473  |   |              |   | 5,751,339 |   |
| Deferred tax asset                                                                                                                               |   |           | 13,618     |   |              |   | 13,618 |   |
| Financing costs, net of accumulated amortization of $37,049 as of                                                                                |   |           |       |   |              |
|               March 31, 2011 and $9,262 as of December 31, 2010                 |   |           | 518,692    |   |              |   | 546,478 |   |
| Other                                                                                                                                            |   |           | 119,381    |   |              |   | 106,126 |   |
| Goodwill                                                                                                                                         |   |           | 617,506    |   |              |   | 617,506 |   |
|                                                                                                                                             |   |           | 6,879,670  |   |              |   | 7,035,067 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
|                                                                                                                                             |   | $              | 9,405,240  |   |              | $      | 9,508,303 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                             |   |           |       |   |              |   |   |   |
| Current Liabilities                                                                                                                              |   |           |       |   |              |   |   |   |
| Current maturities of notes payable and capital lease obligations                                                                                |   | $              | 449,150    |   |              | $      | 336,823 |   |
| Promissory note payable                                                                                                                          |   |           | 437,501    |   |              |   | 437,501 |   |
| Accounts payable                                                                                                                                 |   |           | 230,533    |   |              |   | 146,047 |   |
| Accrued liabilities                                                                                                                              |   |           | 235,185    |   |              |   | 177,952 |   |
| Income taxes payable                                                                                                                             |   |           | -          |   |              |   | 5,533 |   |
| Deferred revenue                                                                                                                                 |   |           | 1,414,947  |   |              |   | 1,361,528 |   |
|                                                                                                                                             |   |           | 2,767,316  |   |              |   | 2,465,384 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
| Other Liabilities                                                                                                                                |   |           |       |   |              |   |   |   |
| Note payable, net of current portion                                                                                                             |   |           | 1,271,002  |   |              |   | 1,355,531 |   |
| Senior secured note payable, net of current portion and discount                                                                                 |   |           | 2,142,971  |   |              |   | 2,191,201 |   |
| Capital lease obligations, net of current portion                                                                                                |   |           | 7,234      |   |              |   | 11,071 |   |
| Earnout liabilities                                                                                                                              |   |           | 648,705    |   |              |   | 648,705 |   |
|                                                                                                                                             |   |           | 4,069,912  |   |              |   | 4,206,508 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
|                                                                                                                                             |   |           | 6,837,228  |   |              |   | 6,671,892 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
| Commitments and Contingencies                                                                                                                    |   |           |       |   |              |   |   |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
| Shareholders' Equity                                                                                                                             |   |           |       |   |              |   |   |   |
| Preferred stock - 2,000,000 shares authorized, $.0001 par value, 250,000                                                                         |   |           |       |   |              |
|               shares designated as Series A shares issued and outstanding; none |   |           |       |   |              |
|               as of March 31, 2011 and December 31, 2010                        |   |           | -          |   |              |   | - |   |
| Common stock - 50,000,000 shares, $.0001 par value, authorized at                                                                                |   |           |       |   |              |
|               March 31, 2011 and December 31, 2010; issued and outstanding      |   |           |       |   |              |
|               22,938,540 as of March 31, 2011 and December 31, 2010             |   |           | 2,294      |   |              |   | 2,294 |   |
| Additional paid In capital                                                                                                                       |   |           | 5,395,673  |   |              |   | 5,363,510 |   |
| Accumulated deficit                                                                                                                              |   |           | (2,689,146 | )      |              |   | (2,388,784 | ) |
| Shares held in escrow                                                                                                                            |   |           | (119,505   | )      |              |   | (119,505 | ) |
| Notes receivable                                                                                                                                 |   |           | (21,304    | )      |              |   | (21,104 | ) |
|                                                                                                                                             |   |           | 2,568,012  |   |              |   | 2,836,411 |   |
|                                                                                                                                             |   |           |       |   |              |   |   |   |
|                                                                                                                                             |   | $              | 9,405,240  |   |              | $      | 9,508,303 |   |

----

| OAK TREE EDUCATIONAL PARTNERS, INC. AND SUBSIDIARIES |   |           |       |   |           |   |
|------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                                 |   |           |       |   |           |   |
| Consolidated Statements of Operations                |   |           |       |   |           |   |
| (Unaudited)                                          |   |           |       |   |           |   |
|                                                 |   |           |       |   |           |   |
|                                                 |   |           |       |   |           |   |
|                                                 |   |           |       |   |           |   |
|                                                 |   | Three Months   |       |   | Three Months   |   |
|                                                 |   | Ended          |       |   | Ended          |   |
|                                                 |   | March 31, 2011 |       |   | March 31, 2010 |   |
|                                                 |   |           |       |   |           |   |
| Revenue, net                                         |   | $              | 1,442,670  |   |           | $      | 797,764 |   |
|                                                 |   |           |       |   |           |   |   |   |
| Operating Expenses                                   |   |           |       |   |           |   |   |   |
| Cost of revenue                                      |   |           | 571,486    |   |           |   | 311,951 |   |
| Selling and administrative expenses                  |   |           | 803,993    |   |           |   | 395,244 |   |
| Stock based compensation                             |   |           | 32,163     |   |           |   | 86,065 |   |
| Depreciation and amortization                        |   |           | 150,815    |   |           |   | 122,876 |   |
|                                                 |   |           | 1,558,457  |   |           |   | 916,136 |   |
|                                                 |   |           |       |   |           |   |   |   |
| Loss from Operations                                 |   |           | (115,787   | )      |           |   | (118,372 | ) |
|                                                 |   |           |       |   |           |   |   |   |
| Other Income (Expense)                               |   |           |       |   |           |   |   |   |
| Interest income                                      |   |           | 284        |   |           |   | 362 |   |
| Interest expense                                     |   |           | (184,859   | )      |           |   | (31,320 | ) |
|                                                 |   |           | (184,575   | )      |           |   | (30,958 | ) |
|                                                 |   |           |       |   |           |   |   |   |
| Loss Before Income Taxes                             |   |           | (300,362   | )      |           |   | (149,330 | ) |
|                                                 |   |           |       |   |           |   |   |   |
| Income Taxes                                         |   |           | -          |   |           |   | - |   |
|                                                 |   |           |       |   |           |   |   |   |
| Net Loss                                             |   | $              | (300,362   | )      |           | $      | (149,330 | ) |
|                                                 |   |           |       |   |           |   |   |   |
| Net Loss Per Common Share - basic and diluted:       |   | $              | (0.01      | )      |           | $      | (0.02 | ) |
|                                                 |   |           |       |   |           |   |   |   |
| Weighted Average Number of Shares Oustanding -       |   |           |       |   |           |   |   |   |
| basic and diluted                                    |   |           | 22,938,540 |   |           |   | 6,525,981 |   |

----

| OAK TREE EDUCATIONAL PARTNERS, INC. AND SUBSIDIARIES      |   |            |   |         |   |    |   |
|-----------------------------------------------------------|--------|-----------------|--------|--------------|--------|---------|--------|
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated Statement of Changes in Shareholders' Equity |   |            |   |         |   |    |   |   |   |   |
| Three Months Ended March 31, 2011                         |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Unaudited)                                               |
|                                                      |
|                                                      |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   | Additional |   |   |   |   |   |   |   |   |   |   | Total |   |
|                                                      |   | Preferred Stock |   | Common Stock |   | Paid In |   |   | Accumulated |   | Shares Held |   | Notes |   |   | Shareholders' |   |
|                                                      |   | Shares          |   | Amount       |   | Shares  |   |   | Amount |   | Capital |   |   | Deficit |   |   | in Escrow |   | Receivable |   | Equity |   |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2010                               |   |            | -      |         |   | $       | -      |   |   |   | 22,938,540 |   |   | $ | 2,294 |   |   | $ | 5,363,510 |   |   | $ | (2,388,784 | ) |   | $ | (119,505 | ) |   | $ | (21,104 | ) |   | $ | 2,836,411 |   |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation                                  |   |            | -      |         |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | 32,163 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 32,163 |   |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest on notes receivable                              |   |            | -      |         |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (200 | ) |   |   | (200 | ) |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                  |   |            | -      |         |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (300,362 | ) |   |   |   |   |   |   | - |   |   |   | (300,362 | ) |
|                                                      |   |            |   |         |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance - March 31, 2011                                  |   |            | -      |         |   | $       | -      |   |   |   | 22,938,540 |   |   | $ | 2,294 |   |   | $ | 5,395,673 |   |   | $ | (2,689,146 | ) |   | $ | (119,505 | ) |   | $ | (21,304 | ) |   | $ | 2,568,012 |   |

----

| OAK TREE EDUCATIONAL PARTNERS, INC. AND SUBSIDIARIES |   |           |     |   |
|------------------------------------------------------|--------|----------------|----------|--------|
|                                                 |   |           |     |   |   |   |
| Consolidated Statements of Cash Flows                |   |           |     |   |   |   |
| (Unaudited)                                          |   |           |     |   |   |   |
|                                                 |   |           |     |   |   |   |
|                                                 |   |           |     |   |   |   |
|                                                 |   |           |     |   |   |   |
|                                                 |   | Three Months   |     |   | Three Months |   |
|                                                 |   | Ended          |     |   | Ended |   |
|                                                 |   | March 31, 2011 |     |   | March 31, 2010 |   |
|                                                 |   |           |     |   |   |   |
| Cash Flows Used In Operating Activities              |   |           |     |   |   |   |
| Net loss                                             |   | $              | (300,362 | )      |   | $ | (149,330 | ) |
| Adjustments to reconcile net loss to net cash        |   |           |     |   |   |   |   |   |
| provided by (used in) operating activities:          |   |           |     |   |   |   |   |   |
| Depreciation and amortization                        |   |           | 150,815  |   |   |   | 122,876 |   |
| Amortization of debt discount and financing costs    |   |           | 57,369   |   |   |   | - |   |
| Accrued interest income added to note receivable     |   |           | (200     | )      |   |   | (200 | ) |
| Accrued interest expense added to note payable       |   |           | 27,353   |   |   |   | 28,951 |   |
| Stock based compensation                             |   |           | 32,163   |   |   |   | 86,065 |   |
| (Increase) Decrease in:                              |   |           |     |   |   |   |   |   |
| Accounts Receivable                                  |   |           | (233,988 | )      |   |   | (47,732 | ) |
| Inventory                                            |   |           | 30,092   |   |   |   | 33,833 |   |
| Other current assets                                 |   |           | (70,990  | )      |   |   | (38,229 | ) |
| Increase (Decrease) in:                              |   |           |     |   |   |   |   |   |
| Accounts payable                                     |   |           | 84,486   |   |   |   | (16,987 | ) |
| Accrued liabilities                                  |   |           | 57,233   |   |   |   | (6,123 | ) |
| Income taxes payable                                 |   |           | (5,533   | )      |   |   | (22,138 | ) |
| Deferred revenue                                     |   |           | 53,419   |   |   |   | (30,149 | ) |
| Net cash used in operating activities                |   |           | (118,143 | )      |   |   | (39,163 | ) |
|                                                 |   |           |     |   |   |   |   |   |
| Cash Flows Used In Investing Activities              |   |           |     |   |   |   |   |   |
| Purchase of fixed assets                             |   |           | (14,286  | )      |   |   | (3,729 | ) |
| Payments for other assets                            |   |           | (13,255  | )      |   |   | (35 | ) |
| Net cash used in investing activities                |   |           | (27,541  | )      |   |   | (3,764 | ) |
|                                                 |   |           |     |   |   |   |   |   |
| Cash Flows Used In Financing Activities              |   |           |     |   |   |   |   |   |
| Payments of senior debt                              |   |           | (75,000  | )      |   |   | - |   |
| Payments of capital lease obligations                |   |           | (6,205   | )      |   |   | (5,746 | ) |
| Net cash used in financing activities                |   |           | (81,205  | )      |   |   | (5,746 | ) |
|                                                 |   |           |     |   |   |   |   |   |
| Net Decrease In Cash                                 |   |           | (226,889 | )      |   |   | (48,673 | ) |
|                                                 |   |           |     |   |   |   |   |   |
| Cash - beginning of period                           |   |           | 604,401  |   |   |   | 560,497 |   |
|                                                 |   |           |     |   |   |   |   |   |
| Cash - end of period                                 |   | $              | 377,512  |   |   | $ | 511,824 |   |
|                                                 |   |           |     |   |   |   |   |   |
|                                                 |   |           |     |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information     |   |           |     |   |   |   |   |   |
| Cash paid during the period for:                     |   |           |     |   |   |   |   |   |
| Interest                                             |   | $              | 101,007  |   |   | $ | 2,368 |   |
| Income taxes                                         |   | $              | 30,643   |   |   | $ | 14,313 |   |

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|                                      |   | 2011   |    |   | 2010   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Furniture and equipment                   |   | $      | 213,371 |   |   | $      | 199,085 |   |
| Leasehold improvements                    |   |   | 88,986  |   |   |   | 88,986 |   |
|                                      |   |   | 302,357 |   |   |   | 288,071 |   |
| Less:  Accumulated depreciation |   |   | 60,188  |   |   |   | 50,239 |   |
| Fixed assets at net book value            |   | $      | 242,169 |   |   | $      | 237,832 |   |

----

| For the period from April 1      |   |   |      |
|----------------------------------|--------|--------|-----------|
| through December 31, 2011        |   | $      | 858,427   |   |
|                             |   |   |      |   |
| For the years ended December 31, |   |   |      |   |
| 2012                             |   |   | 965,000   |   |
| 2013                             |   |   | 500,000   |   |
|                             |   | $      | 2,323,427 |   |

----

|                                           |   | 2011   |      |   | 2010   |   |
|------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                           |   |   |      |   |   |   |
| Conversion of preferred stock                  |   |   | -         |   |   |   | 12,278,333 |   |
| Exercise of warrants                           |   |   | 895,357   |   |   |   | 930,000 |   |
| Vested stock options                           |   |   | 779,522   |   |   |   | 548,350 |   |
| Nonvested stock options                        |   |   | 2,856,806 |   |   |   | 2,887,978 |   |
| Escrow shares issued in purchase of subsidiary |   |   | 179,641   |   |   |   | 179,641 |   |

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| THREE MONTHS ENDED MARCH 31, 2011 AND 2010 |
|--------------------------------------------|
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |   |   |   | % of |   |   |   |   |   | % of |   |
|                                       |   |   |   |   | Revenue |   |   |   |   |   | Revenue |   |
|                                       |   | 2011 |   |   | 2011 |   |   | 2010 |   |   | 2010 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| NET REVENUE                                |   | $ | 1,442,670 |   |   |   | 100 | % |   | $ | 797,764 |   |   |   | 100 | % |
| COST OF REVENUE                            |   |   | 571,486 |   |   |   | 40 | % |   |   | 311,951 |   |   |   | 39 | % |
| SELLING AND ADMINISTRATIVE EXPENSES        |   |   | 803,993 |   |   |   | 56 | % |   |   | 395,244 |   |   |   | 50 | % |
| STOCK BASED COMPENSATION                   |   |   | 32,163 |   |   |   | 2 | % |   |   | 86,065 |   |   |   | 11 | % |
| DEPRECIATION AND AMORTIZATION              |   |   | 150,815 |   |   |   | 10 | % |   |   | 122,876 |   |   |   | 15 | % |
| TOTAL OPERATING EXPENSES                   |   |   | 1,558,457 |   |   |   | 108 | % |   |   | 916,136 |   |   |   | 115 | % |
| (LOSS) FROM OPERATIONS                     |   |   | (115,787 | ) |   |   | -8 | % |   |   | (118,372 | ) |   |   | -15 | % |
| INTEREST INCOME                            |   |   | 284 |   |   |   | 0 | % |   |   | 362 |   |   |   | 0 | % |
| INTEREST EXPENSE                           |   |   | (184,859 | ) |   |   | -13 | % |   |   | (31,320 | ) |   |   | -4 | % |
| TOTAL OTHER EXPENSE                        |   |   | (184,575 | ) |   |   | -13 | % |   |   | (30,958 | ) |   |   | -4 | % |
| (LOSS) BEFORE INCOME TAXES                 |   |   | (300,362 | ) |   |   | -21 | % |   |   | (149,330 | ) |   |   | -19 | % |
| INCOME TAXES                               |   |   |   |   |   |   | 0 | % |   |   | - |   |   |   | 0 | % |
| NET (LOSS)                                 |   | $ | (300,362 | ) |   |   | -21 | % |   | $ | (149,330 | ) |   |   | -19 | % |

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| Exhibit No. |   | Exhibit Name                                                                                                                                                     |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                             |
| 31.1        |   | Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.           |
|        |   |                                                                                                                                                             |
| 31.2        |   | Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.           |
|        |   |                                                                                                                                                             |
| 32.1        |   | Certification of Chief Executive Officer pursuant to 18 United States Code Section 1350,  as enacted by Section 906 of the Sarbanes-Oxley Act of 2002. |
|        |   |                                                                                                                                                             |
| 32.2        |   | Certification of Chief Financial Officer pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.            |

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|   | OAK TREE EDUCATIONAL PARTNERS, INC. |
|--------|-------------------------------------|
|   |                                |   |
|   | By:                       | /s/ Joseph J. Bianco   |
|   |                                | Joseph J. BiancoChief Executive Officer (PrincipalExecutive Officer) Date: May 16, 2011 |
|   |                                |   |
|   | By:                       | /s/ Kellis Veach   |
|   |                                | Kellis VeachChief Financial Officer (PrincipalFinancial and Accounting Officer) Date: May 16, 2011 |

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