**FORM      10-KSB/A**

**Amendment      no. 2**

| x      | Annual                report pursuant to section 13 or 15(d) of the Securities Exchange                Act of                1934 [*Fee                Required*]                for the fiscal year ended October 31, 2006 or                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ̈ | Transition                report pursuant to section 13 or 15(d) of the Securities Exchange                Act of                1934 [*No                Fee Required*]                for the transition period from _________ to                _________. |

**SUPERCLICK,      INC.**

| **Washington**                                 | **52-2219677**                                         |
|------------------------------------------------|--------------------------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer Identification Number) |
| incorporation                or organization)  |                                                   |

** **

**Registrant’s      telephone number, including area code:**

**(858)      518-1387**

**SECURITIES      REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: **

**SECURITIES      REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: **

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**Documents      incorporated by reference: None**

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**EXPLANATORY      NOTE**

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**SIGNATURES**

| Date:                February 8, 2008 | Superclick,                Inc.        |
|---------------------------------------|----------------------------------------|
|                                  |                                   |
|                                  | By:                /s/ Sandro Natale   |
|                                  | Sandro                Natale           |
|                                  | Chief                Executive Officer |

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| SIGNATURE | TITLE | DATE |
|-----------|-------|------|

| /s/                Sandro Natale |   | Chief                Executive Officer                                  |   |
|----------------------------------|--------|-------------------------------------------------------------------------|--------|
|                             |   | February                8, 2008                                         |   |
| Sandro                Natale     |   |                                                                    |   |
|                             |   |                                                                    |   |
| /s/                Jean Perrotti |   | Chief                Financial Officer and Principle Accounting Officer |   |
|                             |   | February                8, 2008                                         |   |
| Jean                Perrotti     |   |                                                                    |   |

| /s/                Todd M. Pitcher |   | Chairman                and Secretary | February                8, 2008 |
|------------------------------------|--------|---------------------------------------|---------------------------------|
| Todd                M. Pitcher     |   |                                  |                            |
|                               |   |                                  |                            |
| /s/                Sandro Natale   |   | Director                              | February                8, 2008 |
| Sandro                Natale       |   |                                  |                            |
|                               |   |                                  |                            |
| /s/                Paul Gulyas     |   | Director                              | February                8, 2008 |
| Paul                Gulyas         |   |                                  |                            |
|                               |   |                                  |                            |
| /s/                Chirag Patel    |   | Director                              | February                8, 2008 |
| Chirag                Patel        |   |                                  |                            |
|                               |   |                                  |                            |
| /s/                George Vesnaver |   | Director                              | February                8, 2008 |
| George                Vesnaver     |   |                                  |                            |

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**SUPERCLICK,      INC.**

**REPORT      ON AUDIT OF CONSOLIDATED FINANCIAL STATEMENTS**

**YEARS      ENDED OCTOBER 31, 2006 AND 2005**

**Restated**

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|                                                                         | *PAGE*  |
|------------------------------------------------------------------------------|--------------|
|                                                                         |         |
| Report                of Independent Registered Public Accounting Firm       | F-1-2        |
|                                                                         |         |
| FINANCIAL                STATEMENTS                                          |         |
|                                                                         |         |
| Consolidated                Balance Sheet                                    | F-3          |
|                                                                         |         |
| Consolidated                Statements of Operations and Accumulated Deficit | F-4          |
|                                                                         |         |
| Consolidated                Statement of Stockholders’ Equity          | F-5          |
|                                                                         |         |
| Consolidated                Statements of Comprehensive Income (Loss)        | F-6          |
|                                                                         |         |
| Consolidated                Statements of Cash Flows                         | F-7          |
|                                                                         |         |
| Notes                to the Financial Statements                             | F-8-30       |

----

----

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**SUPERCLICK,      INC.**

|                                                                                                                                                     |   |                            |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|
|                                                                                                                            |   | October                31, 2006 |       |
|                                                                                                                                                     |   | (Restated)                      |       |
| ASSETS                                                                                                                                                   |   |                            |       |   |
| CURRENT                ASSETS                                                                                                                            |   |                            |            |   |
|  Cash                                                                                                                                               |   | $                               | 919,920    |   |
|  Accounts                receivable, net (Notes A&B)                                                                                            |   |                            | 470,557    |   |
|  R&D                tax refund receivable                                                                                                       |   |                            | 44,852     |   |
|  Sales                Tax refund receivable                                                                                                         |   |                            | 14,365     |   |
|  Inventory                (Note C)                                                                                                                  |   |                            | 90,471     |   |
|  Prepaid                expenses                                                                                                                    |   |                            | 15,463     |   |
| TOTAL                CURRENT ASSETS                                                                                                                      |   |                            | 1,555,628  |   |
| Fixed                assets, net (Note D)                                                                                                                |   |                            | 251,067    |   |
|                                                                                                                                           |   |                            |            |   |
| TOTAL                ASSETS                                                                                                                              |   | $                               | 1,806,695  |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                                      |   |                            |            |   |
| CURRENT                LIABILITIES                                                                                                                       |   |                            |            |   |
| Accounts                payable (Note E)                                                                                                                 |   | $                               | 741,147    |   |
| Interest                payable (Note F)                                                                                                                 |   |                            | 23,489     |   |
| Accrued                payroll (Note G)                                                                                                                  |   |                            | 130,298    |   |
| Deferred                revenue (Note H)                                                                                                                 |   |                            | 781,547    |   |
| Loans                current portion                                                                                                                     |   |                            | 12,933     |   |
| Notes                payable (Note I)                                                                                                                    |   |                            | 371,000    |   |
| Convertible                debentures, net (Note J)                                                                                                      |   |                            | 2,425,000  |   |
| Debenture                warrants (Note J)                                                                                                               |   |                            | 193        |   |
| TOTAL                CURRENT LIABILITIES                                                                                                                 |   |                            | 4,485,607  |   |
|                                                                                                                                           |   |                            |            |   |
| Loans                noncurrent portion                                                                                                                  |   |                            | 25,905     |   |
| TOTAL                LIABILITIES                                                                                                                         |   |                            | 4,511,512  |   |
| COMMITMENTS                (Note K)                                                                                                                      |   |                            |            |   |
|                                                                                                                                           |   |                            |            |   |
| STOCKHOLDERS'                EQUITY (Note L)                                                                                                             |   |                            |            |   |
| Preferred                      stock, par value $.0001; 20,000,000 shares authorized; 0 issued                      and                      outstanding |   |                            | -          |   |
|                                                                                                                                           |   |                            |            |   |
| Common                stock, par value $.0006, 175,000,000 shares authorized; issued and                outstanding 35,612,756 at October 31, 2006       |   |                            | 21,315     |   |
| Additional                paid-in capital                                                                                                                |   |                            | 5,442,229  |   |
| Accumulated                deficit                                                                                                                       |   |                            | (8,241,404 | ) |
| Accumulated                other comprehensive gain (loss) (Cumulative                translation adjustment)                                            |   |                            | 88,183     |   |
| Treasury                Stock                                                                                                                            |   |                            | (15,140    | ) |
| TOTAL                STOCKHOLDERS' EQUITY                                                                                                                |   |                            | (2,704,817 | ) |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                |   | $                               | 1,806,695  |   |

----

**SUPERCLICK,      INC.**

|                                                                                                                                                                                                                                         |   |                                  |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                                                                                                                                                                                                    |   | Year                Ended October 31, |       |
|                                                                                                                                                                                                                                    |   | 2006                                  |       |                  2005 |   |
|                                                                                                                                                                                                                                         |   |                                  |       |                  (Restated) |   |
|                                                                                                                                                                                                                                    |   |                                  |       |                    |   |
| Revenue                                                                                                                                                                                                                                      |   |                                  |            |   |   |  |   |
| Net                Sales                                                                                                                                                                                                                     |   | $                                     | 2,272,013  |   | $ | 2,408,072 |   |
| Services                                                                                                                                                                                                                                     |   |                                  | 1,674,298  |   |   | 797,624 |   |
| Net                revenue                                                                                                                                                                                                                   |   |                                  | 3,946,311  |   |   | 3,205,696 |   |
| Cost                of goods sold                                                                                                                                                                                                            |   |                                  | 2,282,427  |   |   | 2,395,515 |   |
| Gross                profit                                                                                                                                                                                                                  |   |                                  | 1,663,884  |   |   | 810,181 |   |
|                                                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |
| Costs                and Expenses                                                                                                                                                                                                            |   |                                  |            |   |   |  |   |
| Selling,                general & administrative                                                                                                                                                                                         |   |                                  | 2,418,059  |   |   | 2,605,200 |   |
| Research                & development                                                                                                                                                                                                    |   |                                  | 282,915    |   |   | 151,822 |   |
| Depreciation                & amortization                                                                                                                                                                                               |   |                                  | 75,349     |   |   | 52,841 |   |
| Write-off                of goodwill from acquisition                                                                                                                                                                                        |   |                                  | -          |   |   | 2,575,100 |   |
| Total                costs and expenses                                                                                                                                                                                                      |   |                                  | 2,776,323  |   |   | 5,384,963 |   |
|                                                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |
| (Loss)                from operations                                                                                                                                                                                                        |   |                                  | (1,112,439 | ) |   | (4,574,782 | ) |
|                                                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |
| Other                Income and (Expense)                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |
| Interest                income                                                                                                                                                                                                               |   |                                  | 673        |   |   | - |   |
| Interest                expense                                                                                                                                                                                                              |   |                                  | (266,378   | ) |   | (48,513 | ) |
| Penalty                interest on convertible debentures                                                                                                                                                                                    |   |                                  | (225,000   | ) |   | - |   |
| Loss                on the sale of fixed assets                                                                                                                                                                                              |   |                                  | (20,337    | ) |   | - |   |
| Amortization                of beneficial conversion feature of convertible debentures                                                                                                                                                       |   |                                  | (292,896   | ) |   | (97,632 | ) |
| Amortization                of deferred financing costs                                                                                                                                                                                      |   |                                  | (161,250   | ) |   | (53,750 | ) |
| Amortization                of warrant discount                                                                                                                                                                                              |   |                                  | (514,983   | ) |   | (143,990 | ) |
| Derivative                gain (loss)                                                                                                                                                                                                        |   |                                  | 193,006    |   |   | 465,774 |   |
| Total                other income and (expense)                                                                                                                                                                                              |   |                                  | (1,287,165 | ) |   | 121,889 |   |
| NET                LOSS                                                                                                                                                                                                                      |   |                                  | (2,399,604 | ) |   | (4,452,893 | ) |
|                                                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |
| Net                (loss) per common share basic and diluted                                                                                                                                                                                 |   | $                                     | (0.081     | ) | $ | (0.168 | ) |
| Weighted                average common shares outstanding basic and diluted                                                                                                                                                                  |   |                                  | 29,755,285 |   |   | 26,430,822 |   |
|                                                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |
| The                average shares listed below were not included in the computation                of                diluted losses   per share because to do so would have been                antidilutive for the periods presented: |   |                                       |       |
| Stock                options                                                                                                                                                                                                                 |   |                                  | 1,338,121  |   |   | 1,147,564 |   |
| Warrants                                                                                                                                                                                                                                     |   |                                  | 965,997    |   |   | 3,273,896 |   |
| Convertible                debentures                                                                                                                                                                                                        |   |                                  | 14,055,335 |   |   | 7,661,712 |   |
|                                                                                                                                                                                                                                    |   |                                  |            |   |   |  |   |

----

**SUPERCLICK,      INC. **

|                                                                           |   |                             |   |                          |   |                       |   |                        |       |        |   |    |   |          |     |                           |   |      |   |          |       |
|--------------------------------------------------------------------------------|--------|----------------------------------|--------|-------------------------------|--------|----------------------------|--------|-----------------------------|------------|-------------|--------|---------|--------|---------------|----------|--------------------------------|--------|-----------|--------|---------------|------------|
|                                                                      |   |                             |   |                          |   |                       |   |                        |       |        |   |    |   | Deficit       |     |                           |   |      |   |          |       |
|                                                                      |   |                             |   |                          |   |                       |   |                        |       |        |   |    |   | Accumulated   |     | Accumulated                    |   |      |   |          |       |
|                                                                      |   | Preferred                  Stock |   | Common                  Stock |   | Additional                 |   | during                  the |       | Other       |   |    |   | Total         |     |
|                                                                      |   | Number of                   |   |                          |   | Number                  of |   |                        |       | Subscribed/ |   | Paid-in |   | Developmental |     | Comprehensive                  |   | Treasury  |   | Stockholders' |       |
|                                                                      |   | Shares                           |   | Amount                        |   | Shares                     |   | Amount                      |       | Payable     |   | Capital |   | Stage         |     | Income                  (loss) |   | Stock     |   | Equity        |       |
| BALANCES                  October 31, 2004                                     |   |                             | -      |                          |   | -                          |   |                        | 24,197,002 |        | $      | 14,518  |   | $             | 232,000  |                           | $      | 1,990,268 |   | $             | (1,388,907 | ) | $ | 17,644 |   | $ | - |   | $ | 865,523 |   |
|                                                                      |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   |  |   |   |  |   |
| Shares                  issued during the period:                              |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   |  |   |   |  |   |
| Shares                  issued for cash (range $0.18-$0.60 per share)          |   |                             |        |                          |   |                            |   |                        | 1,266,665  |        |   | 760     |   |          |          |                           |   | 372,240   |   |          |            |   |   |  |   |   |  |   |   | 373,000 |   |
| Shares                  issued for services                                    |   |                             |        |                          |   |                            |   |                        | 102,067    |        |   | 61      |   |          |          |                           |   | 77,164    |   |          |            |   |   |  |   |   |  |   |   | 77,225 |   |
| Shares                  issued for acquisition of Hotel Net, LLC               |   |                             |        |                          |   |                            |   |                        | 2,750,000  |        |   | 1,650   |   |          |          |                           |   | 1,645,850 |   |          |            |   |   |  |   |   |  |   |   |  1,647,500 |   |
| Stock                  options exercised                                       |   |                             |        |                          |   |                            |   |                        | 51,961     |        |   | 31      |   |          |          |                           |   | 25,949    |   |          |            |   |   |  |   |   |  |   |   | 25,980 |   |
| Treasury                  stock received for cashless option exercises    |   |                             |        |                          |   |                            |   |                        | 111,875    |        |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   | (25,981 | ) |   |  (25,981 | ) |
| Treasury                  stock issued for services                            |   |                             |        |                          |   |                            |   |                        | 25,000     |        |   | 15      |   |          |          |                           |   | 8,394     |   |          |            |   |   |  |   |   | 10,841 |   |   | 19,250 |   |
| Reduction                  of treasury stock                                   |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   |  |   |   | - |   |
| issued                  for services                                           |   |                             |        |                          |   |                            |   |                        | (25,000    | )           |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   |  |   |   | - |   |
| Stock                  options granted                                         |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   | 263,566   |   |          |            |   |   |  |   |   |  |   |   | 263,566 |   |
| Subscribed                  stock issued                                       |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          | (232,000 | )                              |   |           |   |          |            |   |   |  |   |   |  |   |   | (232,000 | ) |
| Beneficial                  conversion feature of convertible debentures       |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   | 390,529   |   |          |            |   |   |  |   |   |  |   |   | 390,529 |   |
| Foreign                  Currency Translation Adjustment                       |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   | 48,634 |   |   |  |   |   | 48,634 |   |
| Net                  <loss> profit                                       |   |                             |   |                          |   |                       |   |                        |       |        |   |    |   |          |     |                           |   |      |   |          | (4,452,893 | ) |   |   |   |   |   |   |   | (4,452,893 | ) |
| BALANCES                  October 31, 2005                                     |   | $                                | -      |                          | $      | -                          |   | $                           | 28,479,570 |        | $      | 17,035  |   | $             | -        |                           | $      | 4,773,960 |   | $             | (5,841,800 | ) | $ | 66,278 |   | $ | (15,140 | ) | $ | (999,667 | ) |
|                                                                      |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   |  |   |   |  |   |
| Shares                  issued during the period:                              |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   |  |   |   |  |   |   |  |   |
| Shares                  issued for services                                    |   |                             |        |                          |   |                            |   |                        | 1,355,355  |        |   | 813     |   |          |          |                           |   | 76,687    |   |          |            |   |   |  |   |   |  |   |   | 77,500 |   |
| Shares                  issued for interest payable                            |   |                             |        |                          |   |                            |   |                        | 4,618,993  |        |   | 2,772   |   |          |          |                           |   | 173,648   |   |          |            |   |   |  |   |   |  |   |   | 176,420 |   |
| Shares                  issued for retirement of convertible debentures   |   |                             |   |                          |   |                            |   |                        | 1,158,838  |        |   | 695     |   |          |          |                           |   | 49,305    |   |          |            |   |   |  |   |   |  |   |   | 50,000 |   |
| Stock                  options granted                                         |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   | 368,629   |   |          |            |   |   |  |   |   |  |   |   | 368,629 |   |
| Foreign                  currency translation adjustment                       |   |                             |        |                          |   |                            |   |                        |            |        |   |         |   |          |          |                           |   |           |   |          |            |   |   | 21,905 |   |   |  |   |   | 21,905 |   |
| Net                  <loss> profit                                       |   |                             |   |                          |   |                       |   |                        |       |        |   |    |   |          |     |                           |   |      |   |          | (2,399,604 | ) |   |   |   |   |   |   |   | (2,399,604 | ) |
| Balances                  October 31, 2006                                     |   |                             | -      |                          |   | -                          |   |                        | 35,612,756 |        | $      | 21,315  |   | $             | -        |                           | $      | 5,442,229 |   | $             | (8,241,404 | ) | $ | 88,183 |   | $ | (15,140 | ) | $ | (2,704,817 | ) |

----

**SUPERCLICK,      INC.**

----

|                                                  |   |                             |       |       |   |
|----------------------------------------------------------------------|--------|---------------------------------------|------------|------------|--------|
|                                                  |   | Year                ended October 31, |       |
|                                                  |   | 2006                                  |       | 2005       |   |
|                                                  |   | (Restated)                            |       | (Restated) |   |
|                                                  |   |                             |       |       |   |
|                                                  |   |                             |       |       |   |
| Net                Earnings (Loss)                         |   | $                                     | (2,399,604 | )          | $      | (4,452,893 | ) |
|                                                                 |   |                                  |       |       |   |   |   |
| Other                Comprehensive Income (Loss)           |   |                                  |            |       |   |  |   |
| Foreign                Currency Translation Adjustment     |   |                                  | 21,905     |       |   | 48,634 |   |
|                                                  |   |                                  |            |       |   |  |   |
| Net                Comprehensive (Loss)                    |   | $                                     | (2,377,699 | )          | $      | (4,404,259 | ) |

----

**SUPERCLICK,      INC.**

----

|                                                                                                         |   | Year                  Ended October 31, |       |
|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                                                         |   | 2006                                    |       | 2005 |   |
|                                                                                                         |   | (Restated)                              |       | (Restated) |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                 |   |                                    |            |   |   |  |   |
| Net                  Earnings <loss>                                                                             |   | $                                       | (2,399,604 | ) | $ | (4,452,893 | ) |
| Adjustments                    to reconcile net loss to net                    cash used by operating activities: |   |                                    |            |   |   |  |   |
| Depreciation                                                                                                           |   |                                    | 75,349     |   |   | 52,841 |   |
| Loss                  on the sale of fixed assets                                                                      |   |                                    | 20,337     |   |   | - |   |
| Compensation                  expense on fair market value of options issued                                           |   |                                    | 333,535    |   |   | - |   |
| Compensation                  expense on intrinsic value of options issued                                             |   |                                    | 35,094     |   |   | 263,566 |   |
| Stock                  issued for services                                                                             |   |                                    | 77,500     |   |   | 96,475 |   |
| Amortization                  of beneficial conversion feature                                                         |   |                                    | 292,896    |   |   | 97,632 |   |
| Amortization                  of warrant discount                                                                      |   |                                    | 514,983    |   |   | 143,990 |   |
| Derivative                  gain on warrants issued with debentures                                                    |   |                                    | (193,006   | ) |   | (465,774 | ) |
| Stock                  issued for accrued interest                                                                     |   |                                    | 176,420    |   |   | - |   |
| Impairment                  of goodwill                                                                                |   |                                    | -          |   |   | 2,575,100 |   |
| Penalty                  interest on convertible debenture                                                             |   |                                    | 225,000    |   |   | - |   |
| CHANGES                  IN CURRENT ASSETS AND CURRENT LIABILITIES: (Net of effect of                  acquisition)    |   |                                    |            |   |   |  |   |
| (Increase)                  decrease in current assets:                                                                |   |                                    |            |   |   |  |   |
| Accounts                  receivable                                                                                   |   |                                    | 374,780    |   |   | 430,405 |   |
| Other                  receivables                                                                                     |   |                                    | 124,459    |   |   | (188,532 | ) |
| Prepaid                  expenses                                                                                      |   |                                    | 185,122    |   |   | (13,562 | ) |
| Inventory                                                                                                              |   |                                    | 26,623     |   |   | 295,163 |   |
| Other                  assets                                                                                          |   |                                    | 40,648     |   |   |  |   |
| Increase                  (decrease) in current liabilities:                                                           |   |                                    |            |   |   |  |   |
| Accounts                  payable and accrued expenses                                                                 |   |                                    | (156,336   | ) |   | (349,198 | ) |
| Accrued                  Payroll                                                                                       |   |                                    | 73,020     |   |   | 43,399 |   |
| Accrued                  other                                                                                         |   |                                    | (27,412    | ) |   | 18,692 |   |
| Deferred                  revenue                                                                                      |   |                                    | 632,265    |   |   | (385,919 | ) |
| CASH                  USED FOR OPERATING ACTIVITIES                                                                    |   |                                    | 431,673    |   |   | (1,838,615 | ) |
|                                                                                                         |   |                                    |            |   |   |  |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |                                    |            |   |   |  |   |
| Acquisition                  of furniture and equipment                                                                |   |                                    | (20,476    | ) |   | (180,361 | ) |
| CASH                  USED FOR INVESTING ACTIVITIES                                                                    |   |                                    | (20,476    | ) |   | (180,361 | ) |
|                                                                                                         |   |                                    |            |   |   |  |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |                                    |            |   |   |  |   |
| Sale                  of common stock                                                                                  |   |                                    | -          |   |   | 141,000 |   |
| Capital                  investment repayment                                                                          |   |                                    |            |   |   | (127,600 | ) |
| Payment                  of related party notes payable                                                                |   |                                    | -          |   |   | (299,810 | ) |
| Increase                  in relatedparty notes payable                                                                |   |                                    | 21,000     |   |   |  |   |
| Proceeds                  from convertible debenture                                                                   |   |                                    | -          |   |   | 2,250,000 |   |
| Proceeds                  from loans                                                                                   |   |                                    | -          |   |   | 46,669 |   |
| Repayment                  of loans                                                                                    |   |                                    | (9,040     | ) |   | (722 | ) |
| CASH                  USED FOR FINANCING ACTIVITIES                                                                    |   |                                    | 11,960     |   |   | 2,009,537 |   |
|                                                                                                         |   |                                    |            |   |   |  |   |
| EFFECT                  OF EXCHANGE RATE CHANGES ON CASH                                                               |   |                                    | (675       | ) |   | 31,398 |   |
| NET                  INCREASE (DECREASE) IN CASH                                                                       |   |                                    | 422,482    |   |   | 21,959 |   |
| CASH,                  beginning of period                                                                             |   |                                    | 497,438    |   |   | 475,479 |   |
| CASH,                  end of period                                                                                   |   | $                                       | 919,920    |   | $ | 497,438 |   |
|                                                                                                         |   |                                    |            |   |   |  |   |
| Taxes                  paid                                                                                            |   | $                                       | -          |   | $ | 4,250 |   |
| Interest                  paid                                                                                         |   | $                                       | 10,693     |   | $ | - |   |
| Other                  non-cash investing and financing activities:                                                    |   |                                    |            |   |   |  |   |
| Shares                  issued for services                                                                            |   | $                                       | 77,500     |   | $ | 96,475 |   |
| Shares                  issued for accrued interest                                                                    |   | $                                       | 176,420    |   | $ | - |   |
| Shares                  issued for debt retirement                                                                     |   | $                                       | 50,000     |   | $ | - |   |
| Shares                  issued for acquisition                                                                         |   | $                                       | -          |   | $ | 1,647,500 |   |

----

----

----

----

----

----

----

----

| Furniture                and fixtures:          |   |   | 20 | % |
|-------------------------------------------------|--------|--------|----|---|
| Computer                equipment and software: |   |   | 30 | % |
| Leasehold                improvements           |   |   | 20 | % |
| Fabrication                equipment            |   |   | 20 | % |

----

----

----

----

----

----

----

----

----

----

----

----

| Computer                equipment |   | $ | 90,471 |   |
|-----------------------------------|--------|---|--------|--------|
|                              |   | $ | 90,471 |   |

----

----

| Computer                hardware        |   | $      | 173,995  |   |
|-----------------------------------------|--------|--------|----------|--------|
| Furniture                & fixtures |   |   | 131,636  |   |
| Computer                software        |   |   | 90,083   |   |
| Leasehold                improvements   |   |   | 31,283   |   |
| Fabrication                mold and dye |   |   | 20,264   |   |
|                                    |   |   | 447,261  |   |
| Accumulated                depreciation |   |   | (196,194 | )      |
| Fixed                assets, net        |   | $      | 251,067  |   |

----

----

----

----

----

----

----

----

----

----

| Year                Ended October 31, |   |   |    |
|---------------------------------------|--------|--------|---------|
| 2007                                  |   |   | 55,011  |   |
| 2008                                  |   |   | 52,937  |   |
| 2009                                  |   |   | 48,525  |   |
| 2010                                  |   |   | -       |   |
|                                  |   | $      | 156,473 |   |

----

----

----

----

| WarrantClass |   | Number                ofWarrants |      | ExercisePrice                PerWarrant |   | ExpirationDate                 |   |
|--------------|--------|----------------------------------|-----------|-----------------------------------------|--------|--------------------------------|--------|
|         |   |                             |      |                                    |   |                           |   |
| A            |   |                             | 55,555    |                                    | $      | 0.60                           |   |   | 4/14/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 4/19/07 |   |
| A            |   |                             | 444,444   |                                    | $      | 0.60                           |   |   | 4/19/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 4/23/07 |   |
| A            |   |                             | 200,000   |                                    | $      | 0.60                           |   |   | 4/29/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 4/29/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 5/7/07 |   |
| A            |   |                             | 200,000   |                                    | $      | 0.60                           |   |   | 5/10/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 5/12/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 5/17/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 5/24/07 |   |
| A            |   |                             | 11,000    |                                    | $      | 0.60                           |   |   | 5/24/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 6/2/07 |   |
| A            |   |                             | 100,000   |                                    | $      | 0.60                           |   |   | 6/16/07 |   |
| A            |   |                             | 89,000    |                                    | $      | 0.60                           |   |   | 6/17/07 |   |
| A            |   |                             | 200,000   |                                    | $      | 0.60                           |   |   | 3/30/08 |   |
| Subtotal     |   |                             | 2,099,999 |                                    |   |                           |   |   |   |   |
|         |   |                             |      |                                    |   |                           |   |   |   |   |
| Debenture    |   |                             | 735,370   |                                    |   | >or=to                $0.30 |   |   | 7/31/2010 |   |
| Debenture    |   |                             | 230,627   |                                    |   | >or=to                $0.30 |   |   | 8/17/2010 |   |
| Subtotal     |   |                             | 965,997   |                                    |   |                           |   |   |   |   |
| Total        |   |                             | 3,065,996 |                                    |   |                           |   |   |   |   |

----

----

*The      2004 Incentive Stock Option Plan*

~~Each      option’s strike price is equal to the closing price of the stock on the date of      grant, or $.05. ~~

----

----

|                                              |   | 2005   |      |
|---------------------------------------------------|--------|--------|-----------|
|                                              |   | Shares |      | Weighted AverageExercise  Price |   |
|                                              |   |   |      |   |   |
| Outstanding                at beginning of period |   |   | 1,904,784 |   | $ | 0.52 |   |
| Granted                                           |   |   | 125,000   |   |   | 0.60 |   |
| Forfeited                                         |   |   | (457,428  | ) |   | 0.54 |   |
| Exercised                                         |   |   | (111,875  | ) |   | 0.50 |   |
| Outstanding                at end of year         |   |   | 1,460,481 |   | $ | 0.07 |   |
|                                              |   |   |      |   |   |   |   |
| Options                exerciseable at year end   |   |   | 1,147,564 |   |   |   |   |

|                                              |   | 2006   |       |
|---------------------------------------------------|--------|--------|------------|
|                                              |   | Shares |       | Weighted AverageExercise Price |   |
|                                              |   |   |       |   |   |
| Outstanding                at beginning of period |   |   | 1,460,481  |   | $ | 0.52 |   |
| Granted                                           |   |   | 15,900,000 |   |   | 0.05 |   |
| Forfeited                                         |   |   | (628,333   | ) |   | 0.52 |   |
| Exercised                                         |   |   | -          |   |   | - |   |
| Outstanding                at end of year         |   |   | 16,732,148 |   | $ | 0.07 |   |
|                                              |   |   |       |   |   |   |   |
| Nonvested                options at year end      |   |   | -          |   |   |   |   |
| Options                exerciseable at year end   |   |   | 16,732,148 |   |   |   |   |

----

----

|                        |   |               |   | Options Outstanding                      |   | Options Exercisable                     |       |
|-----------------------------|--------|--------------------|--------|-----------------------------------------------|--------|----------------------------------------------|------------|
| Range ofExercisePrices |   | GrantDateFairValue |   | NumberOutstandingAt October 31,2006 |   | WeightedAverageContracturalLife (years) |       | WeightedAverageExercisePrice |   | NumberOutstanding |   | WeightedAverageExercisePrice |   |
|                        |   |               |   |                                          |   |                                         |       |   |   |   |   |   |   |
| $                           | 0.5000 |               | $      | 0.3900                                        |   |                                         | 664,856    |   |   | - |   | $ | 0.50 |   |   | 664,856 |   | $ | 0.50 |   |
|                        | 0.6500 |               |   | 0.5000                                        |   |                                         | 137,500    |   |   | - |   |   | 0.65 |   |   | 137,500 |   |   | 0.65 |   |
|                        | 0.6000 |               |   | 0.5000                                        |   |                                         | 29,792     |   |   | - |   |   | 0.60 |   |   | 29,792 |   |   | 0.60 |   |
|                        | 0.0500 |               |   | 0.0179                                        |   |                                         | 15,900,000 |   |   | - |   |   | 0.05 |   |   | 15,900,000 |   |   | 0.05 |   |
| Total                       |   |               |   |                                          |   | 16,732,148                                   |       |   | - |   | $ | 0.07 |   |   | 16,732,148 |   | $ | 0.07 |   |

----

----

|                                           |   | Year EndedOctober 31,2006 |       | Year EndedOctober 31, 2005 |   |
|------------------------------------------------|--------|-------------------------------------|------------|-------------------------------------------|--------|
|                                           |   |                                |       |                                      |   |
| Net                loss as reported            |   | $                                   | (2,399,604 | )                                         | $      | (4,452,893 | ) |
| Pro                forma                       |   | $                                   | (2,451,379 | )                                         | $      | (4,629,893 | ) |
| Net                loss per share, as reported |   | $                                   | (0.081     | )                                         | $      | (0.168 | ) |
| Pro                forma                       |   | $                                   | (0.082     | )                                         | $      | (0.175 | ) |

| Cash                used for operating activities |   |   | 206,673    |   |   | (114,032 | )      | $      | (320,705 | )      |
|---------------------------------------------------|--------|--------|------------|--------|--------|----------|--------|--------|----------|--------|
| Cash                used for financing activities |   |   | 11,960     |   |   | 11,960   |   | $      | -        |   |
|                                              |   |   |       |   |   |     |   |   |     |   |
| Earnings                per share                 |   | $      | (0.011     | )      | $      | (0.070   | )      | $      | (0.059   | )      |
|                                              |   |   |       |   |   |     |   |   |     |   |
| WA                Shares o/s 10/31/06             |   |   | 29,755,285 |   |   |     |   |   |     |   |
|  FAS              123r expense               |   |   | 368,629    |   |   |     |   |   |     |   |
| APB              25 Expense                       |   |   | 47,924     |   |   |     |   |   |     |   |
| Increase              in expense                  |   |   | 320,705    |   |   |     |   |   |     |   |

----

----

|                                                                                                     |   | Year                Ended  |       |
|----------------------------------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                                                     |   | October 31, 2006 |       |
|                                                                                                     |   |                       |       |
| Net                loss as reported                                                                      |   | $                          | (2,399,604 | ) |
| Recognized                fair value compensation cost expensed under SFAS 123r                          |   | $                          | (333,535   | ) |
| Recognized                intrinsic value compensation cost expensed under APB 25                        |   | $                          | (35,094    | ) |
| Total                recognized compenstion expense related to this option plan                          |   | $                          | (368,629   | ) |
| Fair                value compensation cost that would have been expensed under SFAS                123r |   | $                          | (400,640   | ) |
| Increase                in compensation expense over APB 25                                              |   | $                          | (32,011    | ) |
| Pro                forma net loss if SFAS 123r been applied to all awards                                |   | $                          | (2,431,615 | ) |
|                                                                                                     |   |                       |       |   |
| Net                loss per share, as reported                                                           |   | $                          | (0.081     | ) |
| Pro                forma net loss per share if SFAS 123r been applied to all                awards       |   | $                          | (0.082     | ) |

*2004      Superclick, Inc. Non-Employee Director's Stock Incentive      Plan*

----

----

----

----

| United                States Corporation Income Taxes  |   |
|-------------------------------------------------------------|--------|
| Year                of Loss                                 |   | Amount |   |   Expiration                Date |   |
| October                31, 2006                             |   | $ | 2,037,748 |   |   | October                31, 2026 |   |
| October                31, 2005                             |   |   | 4,184,331 |   |   | October                31, 2025 |   |
| October                31, 2004                             |   |   | 898,697 |   |   | October                31, 2024 |   |
| October                31, 2003                             |   |   | 53,638 |   |   | October                31, 2023 |   |
| December                31, 2002                            |   |   | 80,395 |   |   | December                31, 2022 |   |
| December                31, 2001                            |   |   | 91,564 |   |   | December                31, 2021 |   |
| December                31, 2000                            |   |   | 88,027 |   |   | December                31, 2020 |   |
| December                31, 1999                            |   |   | 18,936 |   |   | December                31, 2019 |   |
|                                                        |   | $ | 5,415,588 |   |   |  |   |

| Canadian                Income Taxes (Stated in CAD)  |   |
|------------------------------------------------------------|--------|
| Year                of Loss                                |   | Amount |   |                  Expiration Date |   |
| October                31, 2006                            |   | $ | 280,849 |   |   | October                31, 2013 |   |
| October                31, 2005                            |   |   | 481,617 |   |   | October                31, 2012 |   |
| October                31, 2004                            |   |   | 45,462 |   |   | October                31, 2011 |   |
| October                31, 2003                            |   |   | 5,322 |   |   | October                31, 2010 |   |
| October                31, 2002                            |   |   | 350,910 |   |   | October                31, 2009 |   |
| October                31, 2001                            |   |   | 24,879 |   |   | October                31, 2008 |   |
|                                                       |   | $ | 1,189,039 |   |   |   |   |

----

----

| 1.   | We                have reclassified the extraordinary loss-write-off of goodwill from                acquisition in the Statement of Operations for the year ended October                31,                2005 to Costs and Expenses pursuant to SFAS 142, paragraph                43. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | In                the Consolidated Statement of Comprehensive Income we have eliminated                the                derivative gain/(loss) since it is already reflected in the Statement                of                Operations and is not a comprehensive income item. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 3.   | In                the Consolidated Statement of Cash Flows we have reclassified the                penalty                interest on convertible debenture from cash flows from financing                activities to cash flows from operating activities since this is                a noncash                expense. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | We                have revised Footnote N - STOCK INCENTIVE PLAN to include all the                information required by SFAS 123r, paragraphs 64 and 84 (See Note                N                above). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | In                this restatement we are adjusting the 2005 consolidated statement                of                shareholder’s equity additional paid-in-capital by $127,600 from                $4,646,360 at October 31, 2005 to $4,773,960 and increasing the goodwill                impairment loss by $127,600 in the consolidated statement of operations                to                reflect the repayment of Hotel Net LLC (fiscal year 2005 acquisition)                shareholders. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | In                the Consolidated Balance Sheet we have included a $73,700 cumulative                effect adjustment related to fiscal years 2005 $(41,068) and 2004                $(32,632) for Canadian Provincial Research and Development Tax Credits                by                increasing the accumulated deficit and accounts payable (See NOTE                O                above). Pursuant to SFAS 154 and SAB 108, we are not required to                adjust                our previously filed 10-KSB for this cumulative effect adjustment.                However, we have elected to do so given that we are amending the                October                31, 2006 10-KSB for the other items noted above. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

**SUPERCLICK,      INC.**

|                                                                                                                                     |   | (Originally |       |       |   |         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|------------|--------|--------------|--------|
|                                                                                                                                     |   | Reported)   |       | (Restated) |   | (Difference) |   |
| ASSETS                                                                                                                                             |   |        |            |       |   |              |   |   |  |   |
| CURRENT                ASSETS                                                                                                                      |   |        |            |       |   |              |   |   |  |   |
| Cash                                                                                                                                               |   | $           | 919,920    |       | $      | 919,920      |   | $ | - |   |
| Accounts                receivable, net (Notes A&B)                                                                                            |   |        | 470,557    |       |   | 470,557      |   |   | - |   |
| R&D                tax refund receivable                                                                                                       |   |        | 44,852     |       |   | 44,852       |   |   | - |   |
| Sales                Tax refund receivable                                                                                                         |   |        | 14,365     |       |   | 14,365       |   |   | - |   |
| Inventory                (Note C)                                                                                                                  |   |        | 90,471     |       |   | 90,471       |   |   | - |   |
| Prepaid                expenses                                                                                                                    |   |        | 15,463     |       |   | 15,463       |   |   | - |   |
| TOTAL                CURRENT ASSETS                                                                                                                |   |        | 1,555,628  |       |   | 1,555,628    |   |   | - |   |
| Fixed                assets, net (Note D)                                                                                                          |   |        | 251,067    |       |   | 251,067      |   |   | - |   |
|                                                                                                                                               |   |        |       |       |   |         |   |   |   |   |
|                    TOTAL ASSETS                                                                                                          |   | $           | 1,806,695  |       | $      | 1,806,695    |   | $ | - |   |
| LIABILITIES                AND STOCKHOLDERS' EQUITY                                                                                                |   |        |            |       |   |              |   |   |  |   |
| CURRENT                LIABILITIES                                                                                                                 |   |        |            |       |   |              |   |   |  |   |
| Accounts                payable (Note E)                                                                                                           |   | $           | 667,447    |       | $      | 741,147      |   | $ | 73,700 |   |
| Interest                payable (Note F)                                                                                                           |   |        | 23,489     |       |   | 23,489       |   |   | - |   |
| Accrued                payroll (Note G)                                                                                                            |   |        | 130,298    |       |   | 130,298      |   |   | - |   |
| Deferred                revenue (Note H)                                                                                                           |   |        | 781,547    |       |   | 781,547      |   |   | - |   |
| Loans                current portion                                                                                                               |   |        | 12,933     |       |   | 12,933       |   |   | - |   |
| Notes                payable (Note I)                                                                                                              |   |        | 371,000    |       |   | 371,000      |   |   | - |   |
| Convertible                debentures, net (Note J)                                                                                                |   |        | 2,425,000  |       |   | 2,425,000    |   |   | - |   |
| Debenture                warrants (Note J)                                                                                                         |   |        | 193        |       |   | 193          |   |   | - |   |
| TOTAL                CURRENT LIABILITIES                                                                                                           |   |        | 4,411,907  |       |   | 4,485,607    |   |   | 73,700 |   |
|                                                                                                                                     |   |        |            |       |   |              |   |   |  |   |
| Loans                noncurrent portion                                                                                                            |   |        | 25,905     |       |   | 25,905       |   |   | - |   |
| TOTAL                LIABILITIES                                                                                                                   |   |        | 4,437,812  |       |   | 4,511,512    |   |   | 73,700 |   |
| COMMITMENTS                (Note K)                                                                                                                |   |        |            |       |   |              |   |   |  |   |
|                                                                                                                                     |   |        |            |       |   |              |   |   |  |   |
| STOCKHOLDERS'                EQUITY (Note L)                                                                                                       |   |        |            |       |   |              |   |   |  |   |
| Preferred                stock, par value $.0001; 20,000,000                                                                                       |   |        |            |       |   |              |   |   |  |   |
| shares                authorized; 0 issued and outstanding                                                                                         |   |        | -          |       |   | -            |   |   | - |   |
|                                                                                                                                     |   |        |            |       |   |              |   |   |  |   |
| Common                stock, par value $.0006, 175,000,000 shares authorized;                issued and outstanding 35,612,756 at October 31, 2006 |   |        | 21,315     |       |   | 21,315       |   |   | - |   |
| Additional                paid-in capital                                                                                                          |   |        | 5,314,629  |       |   | 5,442,229    |   |   | 127,600 |   |
| Accumulated                deficit                                                                                                                 |   |        | (8,040,104 | )          |   | (8,241,404   | )      |   | (201,300 | ) |
| Accumulated                other comprehensive gain (loss)                                                                                         |   |        |            |       |   |              |   |   |  |   |
| (Cumulative                translation adjustment)                                                                                                 |   |        | 88,183     |       |   | 88,183       |   |   | - |   |
| Treasury                Stock                                                                                                                      |   |        | (15,140    | )          |   | (15,140      | )      |   | - |   |
| TOTAL                STOCKHOLDERS' EQUITY                                                                                                          |   |        | (2,631,117 | )          |   | (2,704,817   | )      |   | (73,700 | ) |
| TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                          |   | $           | 1,806,695  |       | $      | 1,806,695    |   | $ | - |   |

----

----

**SUPERCLICK,      INC.**

----

|                                                                                                                                                          |   | Year                Ended October 31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                                                                                                                          |   | 2005                                  |       | 2005 |   | Difference |   |
|                                                                                                                                                          |   | (Original)Reported)                   |       | (Restated) |   |   |   |
| Revenue                                                                                                                                                       |   |                                  |       |   |   |   |   |   |   |   |
| Net                Sales                                                                                                                                      |   | $                                     | 2,408,072  |   | $ | 2,408,072 |   | $ | - |   |
| Services                                                                                                                                                      |   |                                  | 797,624    |   |   | 797,624 |   |   | - |   |
| Net                revenue                                                                                                                                    |   |                                  | 3,205,696  |   |   | 3,205,696 |   |   | - |   |
| Cost                of goods sold                                                                                                                             |   |                                  | 2,395,515  |   |   | 2,395,515 |   |   | - |   |
| Gross                profit                                                                                                                                   |   |                                  | 810,181    |   |   | 810,181 |   |   | - |   |
|                                                                                                                                                          |   |                                  |       |   |   |   |   |   |   |   |
| Costs                and Expenses                                                                                                                             |   |                                  |       |   |   |   |   |   |   |   |
| Selling,                general & administrative                                                                                                          |   |                                  | 2,564,132  |   |   | 2,605,200 |   |   | 41,068 |   |
| Research                & development                                                                                                                     |   |                                  | 151,822    |   |   | 151,822 |   |   | - |   |
| Depreciation                & amortization                                                                                                                |   |                                  | 52,841     |   |   | 52,841 |   |   | - |   |
| Write-off                of goodwill from acquisition                                                                                                         |   |                                  | -          |   |   | 2,575,100 |   |   | 2,575,100 |   |
| Total                costs and expenses                                                                                                                       |   |                                  | 2,768,795  |   |   | 5,384,963 |   |   | 2,616,168 |   |
|                                                                                                                                                          |   |                                  |       |   |   |   |   |   |   |   |
| (Loss)                from operations                                                                                                                         |   |                                  | (1,958,614 | ) |   | (4,574,782 | ) |   | (2,616,168 | ) |
|                                                                                                                                                          |   |                                  |       |   |   |   |   |   |   |   |
| Other                Income and (Expense)                                                                                                                     |   |                                  |       |   |   |   |   |   |   |   |
| Interest                income                                                                                                                                |   |                                  | -          |   |   | - |   |   | - |   |
| Interest                expense                                                                                                                               |   |                                  | (48,513    | ) |   | (48,513 | ) |   | - |   |
| Penalty                interest on convertible debentures                                                                                                     |   |                                  | -          |   |   | - |   |   | - |   |
| Loss                on the sale of fixed assets                                                                                                               |   |                                  | -          |   |   | - |   |   | - |   |
| Amortization                of beneficial conversion feature of convertible debentures                                                                        |   |                                  | (97,632    | ) |   | (97,632 | ) |   | - |   |
| Amortization                of deferred financing costs                                                                                                       |   |                                  | (53,750    | ) |   | (53,750 | ) |   | - |   |
| Amortization                of warrant discount                                                                                                               |   |                                  | (143,990   | ) |   | (143,990 | ) |   | - |   |
| Derivative                gain (loss)                                                                                                                         |   |                                  | 465,774    |   |   | 465,774 |   |   | - |   |
| Total                other income and (expense)                                                                                                               |   |                                  | 121,889    |   |   | 121,889 |   |   | - |   |
| NET                LOSS BEFORE TAXES AND EXTRAORDINARY ITEM                                                                                                   |   |                                  | (1,836,725 | ) |   | (4,452,893 | ) |   | (2,616,168 | ) |
| Provision                <benefit> for income taxes                                                                                                     |   |                                  | -          |   |   | - |   |   | - |   |
| NET                LOSS BEFORE EXTRAORDINARY ITEM                                                                                                             |   |                                  | (1,836,725 | ) |   | (4,452,893 | ) |   | (2,616,168 | ) |
| Extraordinary                loss-write-off of goodwill from acquisition                                                                                      |   |                                  | (2,447,500 | ) |   | - |   |   | 2,447,500 |   |
| NET                LOSS                                                                                                                                       |   | $                                     | (4,284,225 | ) | $ | (4,452,893 | ) | $ | (168,668 | ) |
|                                                                                                                                                          |   |                                  |       |   |   |   |   |   |   |   |
| Net                (loss) per common share basic and diluted from continuing                operations                                                        |   | $                                     | (0.069     | ) | $ | (0.168 | ) | $ | (0.099 | ) |
| Net                (loss) per common share basic and diluted after extraordinary                items                                                         |   | $                                     | (0.162     | ) | $ | (0.168 | ) | $ | (0.006 | ) |
| Weighted                average common shares outstanding basic and diluted                                                                                   |   |                                  | 26,430,822 |   |   | 26,430,822 |   |   | 26,430,822 |   |
|                                                                                                                                                          |   |                                  |       |   |   |   |   |   |   |   |
| The                average shares listed below were not included in the                                                                                       |   |                                  |       |   |   |   |   |   |   |   |
| computation                of diluted losses per share because to do so would                have been antidilutive for the periods                presented: |   |                                  |       |   |   |   |   |   |   |   |
| Stock                options                                                                                                                                  |   |                                  | 1,147,564  |   |   | 1,147,564 |   |   | - |   |
| Warrants                                                                                                                                                      |   |                                  | 3,273,896  |   |   | 3,273,896 |   |   | - |   |
| Convertible                debentures                                                                                                                         |   |                                  | 7,661,712  |   |   | 7,661,712 |   |   | - |   |

----

----

**SUPERCLICK,      INC.**

----

|                                                                    |   | For                  the Year Ended October 31, 2005 |       | For                  the Year Ended October 31, 2005 |   | For                  the Year Ended October 31, 2005 |   | For                  the Year Ended October 31, 2006 |     | For                  the Year Ended October 31, 2006 |   | For                  the Year Ended October 31, 2006 |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------|-----------------------------------------------------------|--------|-----------------------------------------------------------|--------|-----------------------------------------------------------|----------|-----------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                                    |   | (OriginallyReported)                                      |       | (Restated)                                                |   | (Difference)                                              |   | (OriginallyReported)                                      |     | (Restated)                                                |   | (Difference)                                              |   |
| Common                  Stock:                                          |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                  issued for cash (range $0.18-$0.60 per share)   |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 1,266,665  |                                                      |   | 1,266,665                                                 |   |                                                      | -        |                                                      |   | -                                                         |   |   | - |   |   | - |   |
| Amount                                                                  |   | $                                                         | 760        |                                                      | $      | 760                                                       |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 372,240    |                                                      | $      | 372,240                                                   |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Shares                  issued for services                             |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 102,067    |                                                      |   | 102,067                                                   |   |                                                      | -        |                                                      |   | 1,355,355                                                 |   |   | 1,355,355 |   |   | - |   |
| Amount                                                                  |   | $                                                         | 61         |                                                      | $      | 61                                                        |   | $                                                         | -        |                                                      | $      | 813                                                       |   | $ | 813 |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 77,164     |                                                      | $      | 77,164                                                    |   | $                                                         | -        |                                                      | $      | 76,687                                                    |   | $ | 76,687 |   | $ | - |   |
| Shares                  issued for acquisition of Hotel Net, LLC        |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 2,750,000  |                                                      |   | 2,750,000                                                 |   |                                                      | -        |                                                      |   | -                                                         |   |   | - |   |   | - |   |
| Amount                                                                  |   | $                                                         | 1,650      |                                                      | $      | 1,650                                                     |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 1,645,850  |                                                      | $      | 1,645,850                                                 |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Stock                  options exercised                                |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 51,961     |                                                      |   | 51,961                                                    |   |                                                      | -        |                                                      |   | -                                                         |   |   | - |   |   | - |   |
| Amount                                                                  |   | $                                                         | 31         |                                                      | $      | 31                                                        |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 25,949     |                                                      | $      | 25,949                                                    |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Shares                  issued for interest payable                     |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | -          |                                                      |   | -                                                         |   |                                                      | -        |                                                      |   | 4,618,993                                                 |   |   | 4,618,993 |   |   | - |   |
| Amount                                                                  |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | 2,772                                                     |   | $ | 2,772 |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | 173,648                                                   |   | $ | 173,648 |   | $ | - |   |
| Shares                  issued for retirement of convertible debentures |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | -          |                                                      |   | -                                                         |   |                                                      | -        |                                                      |   | 1,158,838                                                 |   |   | 1,158,838 |   |   | - |   |
| Amount                                                                  |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | 695                                                       |   | $ | 695 |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | 49,305                                                    |   | $ | 49,305 |   | $ | - |   |
| Treasury                  stock received for cashless option exercises  |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 111,875    |                                                      |   | 111,875                                                   |   |                                                      | -        |                                                      |   | -                                                         |   |   | - |   |   | - |   |
| Amount                                                                  |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Treasury                  stock                                         |   | $                                                         | (25,981    | )                                                         | $      | (25,981                                                   | )      | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Treasury                  stock issued for services                     |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 25,000     |                                                      |   | 25,000                                                    |   |                                                      | -        |                                                      |   | -                                                         |   |   | - |   |   | - |   |
| Amount                                                                  |   | $                                                         | 15         |                                                      | $      | 15                                                        |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 8,394      |                                                      | $      | 8,394                                                     |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Treasury                  stock                                         |   | $                                                         | 10,841     |                                                      | $      | 10,841                                                    |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Reduction                  of treasury stock issued for services        |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | (25,000    | )                                                         |   | (25,000                                                   | )      |                                                      | -        |                                                      |   | -                                                         |   |   | - |   |   | - |   |
| Amount                                                                  |   | $                                                         | -          |                                                      |   |                                                      |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | -          |                                                      |   |                                                      |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Treasury                  stock                                         |   | $                                                         | -          |                                                      |   |                                                      |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Stock                  options granted                                  |   | $                                                         | 263,566    |                                                      | $      | 263,566                                                   |   | $                                                         | -        |                                                      | $      | 368,629                                                   |   | $ | 368,629 |   | $ | - |   |
| Subscribed                  stock issued                                |   | $                                                         | (232,000   | )                                                         | $      | (232,000                                                  | )      | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Repayment                  of Hotel Net shareholder investment          |   | $                                                         | (127,600   | )                                                         | $      | -                                                         |   | $                                                         | 127,600  |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Beneficial                  conversion feature of debentures            |   | $                                                         | 390,529    |                                                      | $      | 390,529                                                   |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Foreign                  Currency Translation Adjustment                |   | $                                                         | 48,634     |                                                      | $      | 48,634                                                    |   | $                                                         | -        |                                                      | $      | 21,905                                                    |   | $ | 21,905 |   | $ | - |   |
| Cumulative                  effect adjustment                           |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Net                  <loss> profit                                |   | $                                                         | (4,284,225 | )                                                         | $      | (4,452,893                                                | )      | $                                                         | (168,668 | )                                                         | $      | (2,399,604                                                | )      | $ | (2,399,604 | ) | $ | - |   |
| Prior                  period balances:                                 |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Common                  stock amount                                    |   | $                                                         | 14,518     |                                                      | $      | 14,518                                                    |   | $                                                         | -        |                                                      | $      | 17,035                                                    |   | $ | 17,035 |   | $ | - |   |
| Common                  stock subscribed                                |   | $                                                         | 232,000    |                                                      | $      | 232,000                                                   |   | $                                                         | -        |                                                      | $      | -                                                         |   | $ | - |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 1,990,268  |                                                      | $      | 1,990,268                                                 |   | $                                                         | -        |                                                      | $      | 4,646,360                                                 |   | $ | 4,773,960 |   | $ | 127,600 |   |
| Accumulated                  deficit                                    |   | $                                                         | (1,356,275 | )                                                         | $      | (1,388,907                                                | )      | $                                                         | (32,632  | )                                                         | $      | (5,640,500                                                | )      | $ | (5,841,800 | ) | $ | (201,300 | ) |
| Accumulated                  other comprehensive income (loss)          |   | $                                                         | 17,644     |                                                      | $      | 17,644                                                    |   | $                                                         | -        |                                                      | $      | 66,278                                                    |   | $ | 66,278 |   | $ | - |   |
| Treasury                  stock                                         |   | $                                                         | -          |                                                      | $      | -                                                         |   | $                                                         | -        |                                                      | $      | (15,140                                                   | )      | $ | (15,140 | ) |   |   |   |
| Total                  shareholder's equity                             |   | $                                                         | (925,966   | )                                                         | $      | (999,666                                                  | )      | $                                                         | (73,700  | )                                                         | $      | (2,631,117                                                | )      | $ | (2,704,817 | ) | $ | (73,700 | ) |
|                                                                    |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Total                  common stock                                     |   |                                                      |       |                                                      |   |                                                      |   |                                                      |     |                                                      |   |                                                      |   |   |   |   |   |   |   |
| Shares                                                                  |   |                                                      | 28,479,570 |                                                      |   | 28,479,570                                                |   |                                                      | -        |                                                      |   | 35,612,756                                                |   |   | 35,612,756 |   |   | - |   |
| Amount                                                                  |   | $                                                         | 17,035     |                                                      | $      | 17,035                                                    |   | $                                                         | -        |                                                      | $      | 21,315                                                    |   | $ | 21,315 |   | $ | - |   |
| Additional                  paid in capital                             |   | $                                                         | 4,646,360  |                                                      | $      | 4,773,960                                                 |   | $                                                         | 127,600  |                                                      | $      | 5,314,629                                                 |   | $ | 5,442,229 |   | $ | 127,600 |   |

----

----

----

| Year                ended October 31, 2006 |       | Year                ended October 31, 2005 |   |
|--------------------------------------------|------------|--------------------------------------------|--------|
| (Originally                                |       |                                       |   |   |   | (Originally |   |   |   |   |   |
| Reported)                                  |       | (Restated)                                 |   | (Difference) |   | Reported) |   | (Restated) |   | (Difference) |   |
|                                       |       |                                       |   |   |   |   |   |   |   |   |   |
| $                                          | (2,399,604 | )                                          | $      | (2,399,604 | ) | $ | - |   | $ | (4,284,225 | ) | $ | (4,452,893 | ) | $ | (168,668 | ) |
|                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | 193,006    |                                       |   | - |   |   | (193,006 | ) |   | 465,774 |   |   | - |   |   | (465,774 | ) |
|                                       | 21,905     |                                       |   | 21,905 |   |   | - |   |   | 48,634 |   |   | 48,634 |   |   | - |   |
|                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                          | (2,184,693 | )                                          | $      | (2,377,699 | ) | $ | (193,006 | ) | $ | (3,769,817 | ) | $ | (4,404,259 | ) | $ | (634,442 | ) |

----

----

**SUPERCLICK,      INC.**

----

|                                                               |   | Year                Ended October 31, 2006 |       | Year                Ended October 31, 2005 |   |
|--------------------------------------------------------------------|--------|--------------------------------------------|------------|--------------------------------------------|--------|
|                                                               |   | (Originally                                |       |                                       |   |   |   | (Originally |   |   |   |   |   |
|                                                               |   | Reported)                                  |       | (Restated)                                 |   | (Difference) |   | Reported) |   | (Restated) |   | (Difference) |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:               |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Earnings <loss>                           |   | $                                          | (2,399,604 | )                                          | $      | (2,399,604 | ) | $ | - |   | $ | (4,284,225 | ) | $ | (4,452,893 | ) | $ | (168,668 | ) |
| Adjustments                to reconcile net loss                   |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to                net cash used by operating activities:           |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                       |   |                                       | 75,349     |                                       |   | 75,349 |   |   | - |   |   | 52,841 |   |   | 52,841 |   |   | - |   |
| Loss                on the sale of fixed assets                    |   |                                       | 20,337     |                                       |   | 20,337 |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Compensation                expense on fair market                 |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                of options issued                             |   |                                       | 333,535    |                                       |   | 333,535 |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Compensation                expense on intrinsic                   |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                of options issued                             |   |                                       | 35,094     |                                       |   | 35,094 |   |   | - |   |   | 263,566 |   |   | 263,566 |   |   | - |   |
| Stock                issued for services                           |   |                                       | 77,500     |                                       |   | 77,500 |   |   | - |   |   | 96,475 |   |   | 96,475 |   |   | - |   |
| Amortization                of beneficial conversion feature       |   |                                       | 292,896    |                                       |   | 292,896 |   |   | - |   |   | 97,632 |   |   | 97,632 |   |   | - |   |
| Amortization                of warrant discount                    |   |                                       | 514,983    |                                       |   | 514,983 |   |   | - |   |   | 143,990 |   |   | 143,990 |   |   | - |   |
| Derivative                gain on warrants issued with debentures  |   |                                       | (193,006   | )                                          |   | (193,006 | ) |   | - |   |   | (465,774 | ) |   | (465,774 | ) |   | - |   |
| Stock                issued for accrued interest                   |   |                                       | 176,420    |                                       |   | 176,420 |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Impairment                of goodwill                              |   |                                       | -          |                                       |   | - |   |   | - |   |   | 2,447,500 |   |   | 2,575,100 |   |   | 127,600 |   |
| Penalty                interest on convertible debenture           |   |                                       | -          |                                       |   | 225,000 |   |   | 225,000 |   |   | - |   |   | - |   |   | - |   |
| CHANGES                IN CURRENT ASSETS AND                       |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CURRENT                LIABILITIES: (Net of effect of acquisition) |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Increase)                decrease in current assets:              |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                receivable                                 |   |                                       | 374,780    |                                       |   | 374,780 |   |   | - |   |   | 430,405 |   |   | 430,405 |   |   | - |   |
| Other                receivables                                   |   |                                       | 124,459    |                                       |   | 124,459 |   |   | - |   |   | (188,532 | ) |   | (188,532 | ) |   | - |   |
| Prepaid                expenses                                    |   |                                       | 185,122    |                                       |   | 185,122 |   |   | - |   |   | (13,562 | ) |   | (13,562 | ) |   | - |   |
| Inventory                                                          |   |                                       | 26,623     |                                       |   | 26,623 |   |   | - |   |   | 295,163 |   |   | 295,163 |   |   | - |   |
| Other                assets                                        |   |                                       | 40,648     |                                       |   | 40,648 |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Increase                (decrease) in current liabilities:         |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Accounts                payable and accrued expenses               |   |                                       | (156,336   | )                                          |   | (156,336 | ) |   | - |   |   | (390,266 | ) |   | (349,198 | ) |   | 41,068 |   |
| Accrued                Payroll                                     |   |                                       | 73,020     |                                       |   | 73,020 |   |   | - |   |   | 43,399 |   |   | 43,399 |   |   | - |   |
| Accrued                other                                       |   |                                       | (27,412    | )                                          |   | (27,412 | ) |   | - |   |   | 18,692 |   |   | 18,692 |   |   | - |   |
| Deferred                revenue                                    |   |                                       | 632,265    |                                       |   | 632,265 |   |   | - |   |   | (385,919 | ) |   | (385,919 | ) |   | - |   |
| CASH                USED FOR OPERATING ACTIVITIES                  |   |                                       | 206,673    |                                       |   | 431,673 |   |   | 225,000 |   |   | (1,838,615 | ) |   | (1,838,615 | ) |   | - |   |
|                                                               |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:               |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition                of furniture and equipment              |   |                                       | (20,476    | )                                          |   | (20,476 | ) |   | - |   |   | (180,361 | ) |   | (180,361 | ) |   | - |   |
| CASH                USED FOR INVESTING ACTIVITIES                  |   |                                       | (20,476    | )                                          |   | (20,476 | ) |   | - |   |   | (180,361 | ) |   | (180,361 | ) |   | - |   |
|                                                               |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:               |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale                of common stock                                |   |                                       | -          |                                       |   | - |   |   | - |   |   | 141,000 |   |   | 141,000 |   |   | - |   |
| Capital                investment repayment                        |   |                                       | -          |                                       |   | - |   |   | - |   |   | (127,600 | ) |   | (127,600 | ) |   | - |   |
| Payment                of related party notes payable              |   |                                       | -          |                                       |   | - |   |   | - |   |   | (299,810 | ) |   | (299,810 | ) |   | - |   |
| Increase                in related party notes payable             |   |                                       | 21,000     |                                       |   | 21,000 |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Proceeds                from convertible debenture                 |   |                                       | -          |                                       |   | - |   |   | - |   |   | 2,250,000 |   |   | 2,250,000 |   |   | - |   |
| Proceeds                from loans                                 |   |                                       | -          |                                       |   | - |   |   | - |   |   | 46,669 |   |   | 46,669 |   |   | - |   |
| Repayment                of loans                                  |   |                                       | (9,040     | )                                          |   | (9,040 | ) |   | - |   |   | (722 | ) |   | (722 | ) |   | - |   |
| Penalty                interest on convertible debenture           |   |                                       | 225,000    |                                       |   | - |   |   | (225,000 | ) |   | - |   |   | - |   |   | - |   |
| CASH                USED FOR FINANCING ACTIVITIES                  |   |                                       | 236,960    |                                       |   | 11,960 |   |   | (225,000 | ) |   | 2,009,537 |   |   | 2,009,537 |   |   | - |   |
|                                                               |   |                                       |       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EFFECT                OF EXCHANGE RATE CHANGES ON CASH             |   |                                       | (675       | )                                          |   | (675 | ) |   | - |   |   | 31,398 |   |   | 31,398 |   |   | - |   |
| NET                INCREASE (DECREASE) IN CASH                     |   |                                       | 422,482    |                                       |   | 422,482 |   |   | - |   |   | 21,959 |   |   | 21,959 |   |   | - |   |
| CASH,                beginning of period                           |   |                                       | 497,438    |                                       |   | 497,438 |   |   | - |   |   | 475,479 |   |   | 497,438 |   |   | - |   |
| CASH,                end of period                                 |   | $                                          | 919,920    |                                       | $      | 919,920 |   | $ | - |   | $ | 497,438 |   | $ | 519,397 |   | $ | - |   |

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