----

----

| NEVADA                                                        | 20-5936198                        |
|---------------------------------------------------------------|-----------------------------------|
|                                                          |                              |
| (State or other jurisdiction of incorporation ororganization) | (IRS Employer Identification No.) |

----

| Contents                                                                                           |   |
|----------------------------------------------------------------------------------------------------|--------|
| Consolidated Balance Sheets                                                                        | 2      |
| Consolidated Statements of Operations                                                              | 3      |
| Consolidated Statements of Cash Flows                                                              | 5      |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation | 8      |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                           | 10     |
| Item 4T. Controls and Procedures                                                                   | 10     |
|                                                                                               |   |
| PART II — OTHER INFORMATION                                                                  | 10     |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                          | 10     |
| Item 5.  Other Information                                                                    | 10     |
| Item 6. Exhibits                                                                                   | 11     |

----

Consolidated Balance Sheets

|                                                           |        |   |         |   |   |   |
|----------------------------------------------------------------|-------------|--------|--------------|--------|--------|--------|
|                                                           | March 31,   |   | December 31, |   |
|                                                           | 2010        |   | 2009         |   |
|                                                           | (Unaudited) |   |         |   |
|                                                           |        |   |         |   |   |   |
| ASSETS                                                         |        |
|                                                           |        |   |         |   |   |   |
| CURRENT ASSETS                                                 |        |   |         |   |   |   |
|                                                           |        |   |         |   |   |   |
| Cash and cash equivalents                                      |        | $      | 4,295        |   |   | $      | 9,453 |   |
|                                                           |        |   |         |   |   |   |   |   |
| Total Current Assets                                           |        |   | 4,295        |   |   |   | 9,453 |   |
|                                                           |        |   |         |   |   |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT, NET                             |        |   | 328,115      |   |   |   | 328,427 |   |
|                                                           |        |   |         |   |   |   |   |   |
| TOTAL ASSETS                                                   |        | $      | 332,410      |   |   | $      | 337,880 |   |
|                                                           |        |   |         |   |   |   |   |   |
|                                                           |        |   |         |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)           |        |
|                                                           |        |   |         |   |   |   |   |   |
| CURRENT LIABILITIES                                            |        |   |         |   |   |   |   |   |
|                                                           |        |   |         |   |   |   |   |   |
| Accounts payable                                               |        | $      | 355,635      |   |   | $      | 350,716 |   |
| Accrued salary                                                 |        |   | 250,000      |   |   |   | 200,000 |   |
| Accounts payable to related parties                            |        |   | 80,300       |   |   |   | 80,535 |   |
| Loan payable                                                   |        |   | 240          |   |   |   | 240 |   |
|                                                           |        |   |         |   |   |   |   |   |
| Total Current Liabilities                                      |        |   | 686,175      |   |   |   | 631,491 |   |
|                                                           |        |   |         |   |   |   |   |   |
| TOTAL LIABILITIES                                              |        |   | 686,175      |   |   |   | 631,491 |   |
|                                                           |        |   |         |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY (DEFICIT)                           |        |   |         |   |   |   |   |   |
|                                                           |        |   |         |   |   |   |   |   |
| Preferred stock - 1,000,000 authorized, $0.001 par value;      |        |   |         |   |   |   |   |   |
| 42,013 and 42,013 issued and outstanding, respectively         |        |   | 42           |   |   |   | 42 |   |
| Common stock - 74,000,000 authorized, $0.001 par value;        |        |   |         |   |   |   |   |   |
| 34,118,159 and 34,118,159 issued and outstanding, respectively |        |   | 34,118       |   |   |   | 34,118 |   |
| Additional paid-in capital                                     |        |   | 2,639,115    |   |   |   | 2,639,115 |   |
|                                                           |        |   |         |   |   |   |   |   |
| Deficit accumulated during the development stage               |        |   | (3,027,040   | )      |   |   | (2,966,886 | ) |
|                                                           |        |   |         |   |   |   |   |   |
| Total Stockholders’ Equity (Deficit)                     |        |   | (353,765     | )      |   |   | (293,611 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS’                      |        |   |         |   |   |   |   |   |
|   EQUITY (DEFICIT)                                   |        | $      | 332,410      |   |   | $      | 337,880 |   |

----

Consolidated Statements of Operations

|                                                   |   |                       |       |   |      |   |       | FromInception   |   |
|--------------------------------------------------------|--------|----------------------------|------------|--------|-----------|--------|------------|-----------------|--------|
|                                                   |   |                       |       |   |      |   |       | on April 302009 |   |
|                                                   |   | For the Three Months Ended |       |   | through   |   |
|                                                   |   | March 31,                  |       |   | March 31, |   |
|                                                   |   | 2010                       |       |   | 2009      |   |       | 2010            |   |
|                                                   |   |                       |       |   |      |   |       |            |   |
| REVENUES                                               |   | $                          | -          |   |      | $      | -          |            |   | $ | - |   |
| COST OF SALES                                          |   |                       | -          |   |      |   | -          |            |   |   | - |   |
| GROSS MARGIN                                           |   |                       | -          |   |      |   | -          |            |   |   | - |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| OPERATING EXPENSES                                     |   |                       |       |   |      |   |       |            |   |   |   |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| Amortization of deferred tax benefit                   |   |                       | -          |   |      |   | -          |            |   |   | 170,800 |   |
| Impairment of intangible assets                        |   |                       | -          |   |      |   | -          |            |   |   | 121,242 |   |
| General and administrative                             |   |                       | 60,045     |   |      |   | 95,233     |            |   |   | 789,595 |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| Total Operating Expenses                               |   |                       | 60,045     |   |      |   | 95,233     |            |   |   | 1,081,637 |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| LOSS FROM OPERATIONS                                   |   |                       | (60,045    | )      |      |   | (95,233    | )               |   |   | (1,081,637 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| OTHER EXPENSE                                          |   |                       |       |   |      |   |       |            |   |   |   |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| Interest expense                                       |   |                       | (109       | )      |      |   | -          |            |   |   | (109 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| LOSS BEFORE TAXES                                      |   |                       | (60,154    | )      |      |   | (95,233    | )               |   |   | (1,081,746 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| Provision for income taxes                             |   |                       | -          |   |      |   | -          |            |   |   | - |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| NET LOSS FROM CONTINUING OPERATIONS                    |   |                       | (60,154    | )      |      |   | (95,233    | )               |   |   | (1,081,746 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| Net income (loss) from discontinued operations         |   |                       | -          |   |      |   | (376,402   | )               |   |   | 309,650 |   |
| Loss on disposal of discontinued operations            |   |                       | -          |   |      |   |       |            |   |   | (1,730,742 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| Loss from discontinued operations, net of income taxes |   |                       | -          |   |      |   | (376,402   | )               |   |   | (1,421,092 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| NET LOSS                                               |   | $                          | (60,154    | )      |      | $      | (471,635   | )               |   | $ | (2,502,838 | ) |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| BASIC LOSS PER SHARE FROM CONTINUING OPERATIONS        |   | $                          | (0.00      | )      |      | $      | (0.00      | )               |   |   |   |   |
| BASIC LOSS PER SHARE FROM DISCONTINUED OPERATIONS      |   |                       | -          |   |      |   | (0.01      | )               |   |   |   |   |
| TOTAL BASIC LOSS PER SHARE                             |   | $                          | (0.00      | )      |      | $      | (0.01      | )               |   |   |   |   |
|                                                   |   |                       |       |   |      |   |       |            |   |   |   |   |
| WEIGHTED AVERAGE NUMBER                                |   |                       |       |   |      |   |       |            |   |   |   |   |
|   OF SHARES OUTSTANDING                      |   |                       | 34,118,159 |   |      |   | 52,538,590 |            |   |   |   |   |

----

|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
|---------------------------------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|---------|---------|--------|--------|-------------|--------|--------|------------|---------|--------|-------------|--------|-----------|--------|--------|--------|----------------|---------|--------|--------|------------------|---------|
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   | Deficit     |   |      |   |   |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   | Accumulated |   |      |   |   |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   | Additional |    |   | During the  |   |      |   |   |
|                                                                                        |   | Preferred Stock |    |   | Common Stock |   |    | Paid-In |   |   | Development |   |   |       |    |
|                                                                                        |   | Shares          |    |   | Amount       |   |    | Shares  |   |   | Amount      |   |   | Capital    |    |   | Stage       |   |      | Total  |   |
| Balance, December 31, 2006                                                                  |   |            | 22,013  |   |         | $      | 22      |    |   |   | 25,917,159  |   |   | $          | 25,917  |   |        | $      | -         |   |   | $      | (33,951        | )       |   | $      | (8,012           | )       |
| Common stock issued for acquisition at $0.08 per     share         |   |            | -       |   |         |   | -       |    |   |   | 22,500,000  |   |   |       | 22,500  |   |        |   | 1,879,439 |   |   |   | -              |    |   |   | 1,901,939        |    |
| Common shares issued for finders fee at $0.001 per share                                    |   |            | -       |   |         |   | -       |    |   |   | 2,525,000   |   |   |       | 2,525   |   |        |   | -         |   |   |   | -              |    |   |   | 2,525            |    |
| Preferred shares issued for acquisition at $0.001 per share                                 |   |            | 20,000  |   |         |   | 20      |    |   |   | -           |   |   |       | -       |   |        |   | -         |   |   |   | -              |    |   |   | 20               |    |
| Common stock issued pursuant to employment stock grants at $0.06 per share                  |   |            | -       |   |         |   | -       |    |   |   | 1,914,000   |   |   |       | 1,914   |   |        |   | 105,487   |   |   |   | -              |    |   |   | 107,401          |    |
| Common shares issued for intangible assets at $0.08 per share                               |   |            | -       |   |         |   | -       |    |   |   | 850,000     |   |   |       | 850     |   |        |   | 70,750    |   |   |   | -              |    |   |   | 71,600           |    |
| Common shares issued for services at $0.45 per      share               |   |            | -       |   |         |   | -       |    |   |   | 50,000      |   |   |       | 50      |   |        |   | 22,450    |   |   |   | -              |    |   |   | 22,500           |    |
| Capital contribution by shareholder                                                         |   |            | -       |   |         |   | -       |    |   |   | -           |   |   |       | -       |   |        |   | 38,250    |   |   |   | -              |    |   |   | 38,250           |    |
| Net loss for the year ended December 31, 2007                                               |   |            | -       |   |         |   |  - |    |   |   |  -     |   |   |       |  - |   |        |   |  -   |   |   |   | (285,341  | )  |   |   | (285,341         | )  |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
| Balance, December 31, 2007                                                                  |   |            | 42,013  |   |         | $      | 42      |    |   |   | 53,756,159  |   |   | $          | 53,756  |   |        | $      | 2,116,376 |   |   | $      | (319,292       | )       |   | $      | 1,850,882        |    |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
| Cancelled share issued pursuant to employee stock grants                                    |   |            | -       |   |         |   | -       |    |   |   | (1,898,000  | )      |   |       | (1,898  | )      |        |   | (105,485  | )      |   |   | -              |    |   |   | (107,383         | )       |
| Common stock issued for cash at $0.38 per share                                             |   |            | -       |   |         |   | -       |    |   |   | 110,000     |   |   |       | 110     |   |        |   | 41,874    |   |   |   | -              |    |   |   | 41,984           |    |
| Option expense pursuant to employee option plan                                             |   |            | -       |   |         |   | -       |    |   |   | -           |   |   |       | -       |   |        |   | 96,750    |   |   |   | -              |    |   |   | 96,750           |    |
| Net loss for the year ended December 31, 2008                                               |   |            |  - |   |         |   |  - |    |   |   |  -     |   |   |       |  - |   |        |   |  -   |   |   |   | (204,910       | )       |   |   | (204,910         | )  |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
| Balance, December 31, 2008                                                                  |   |            | 42,013  |   |         |   | 42      |    |   |   | 51,968,159  |   |   |       | 51,968  |   |        |   | 2,149,515 |   |   |   | (524,202       | )       |   |   | 1,677,323        |    |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
| Option expense pursuant to employee option plan                                             |   |            | -       |   |         |   | -       |    |   |   | -           |   |   |       | -       |   |        |   | 401,250   |   |   |   | -              |    |   |   | 401,250          |    |
| Operational segment sold in exchange for common stock                                       |   |            | -       |   |         |   | -       |    |   |   | (22,500,000 | )      |   |       | (22,500 | )      |        |   | 22,500    |   |   |   | -              |    |   |   | -                |    |
| Common stock issued for purchase of subsidiary at $0.01 per share                           |   |            | -       |   |         |   | -       |    |   |   | 4,050,000   |   |   |       | 4,050   |   |        |   | 36,450    |   |   |   | -              |    |   |   | 40,500           |    |
| Common stock issued for cash at $0.05 per share                                             |   |            | -       |   |         |   | -       |    |   |   | 600,000     |   |   |       | 600     |   |        |   | 29,400    |   |   |   | -              |    |   |   | 30,000           |    |
| Net loss for the year ended December 31, 2009                                               |   |            |  - |   |         |   |  - |    |   |   |  -     |   |   |       |  - |   |        |   |  -   |   |   |   | (2,442,684     | )  |   |   |  (2,442,684 | )  |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
| Balance, December 31, 2009                                                                  |   |            | 42,013  |   |         |   | 42      |    |   |   | 34,118,159  |   |   |       | 34,118  |   |        |   | 2,639,115 |   |   |   | (2,966,886     | )       |   |   | (293,611         | )       |
| Net loss for the three months ended March 31,     2010 (unaudited) |   |            | -       |   |         |   | -       |    |   |   |  -     |   |   |       |  - |   |        |   | -         |   |   |   | (60,154        | )       |   |   | (60,154          | )  |
|                                                                                        |   |            |    |   |         |   |    |    |   |   |        |   |   |       |    |   |        |   |      |   |   |   |           |    |   |   |             |    |
| Balance, March 31, 2010 (unaudited)                                                         |   |            | 42,013  |   |         | $      | 42      |    |   |   | 34,118,159  |   |   | $          | 34,118  |   |        | $      | 2,639,115 |   |   | $      | (3,027,040     | )       |   | $      | (353,765         | )       |

----

Consolidated Statements of Cash Flows

|                                                 |   |                           |    |   |      |   |
|------------------------------------------------------|--------|--------------------------------|---------|--------|-----------|--------|
|                                                 |   | From Inceptionon April 30 2009 |
|                                                 |   | For the Three Months Ended     |    |   | through   |   |
|                                                 |   | March 31,                      |    |   | March 31, |   |
|                                                 |   | 2010                           |    |   | 2009      |   |   | 2010 |   |
| OPERATING ACTIVITIES                                 |   |                           |    |   |      |   |   |   |   |
| Net loss                                             |   | $                              | (60,154 | )      |      | $      | (471,635 | ) |   | $ | (2,502,838 | ) |
| Adjustments to Reconcile Net Loss to Net             |   |                           |    |   |      |   |   |   |   |   |   |   |
| Cash Used by Operating Activities:                   |   |                           |    |   |      |   |   |   |   |   |   |   |
| Depreciation                                         |   |                           | 312     |   |      |   | - |   |   |   | 624 |   |
| Amortization of intangibles                          |   |                           | -       |   |      |   | 698 |   |   |   | 2,803 |   |
| Employee option grants issued                        |   |                           | -       |   |      |   | 32,250 |   |   |   | 46,500 |   |
| Cancellation of employee stock option shares         |   |                           | -       |   |      |   | - |   |   |   | 354,750 |   |
| Impairment of intangible assets                      |   |                           | -       |   |      |   | - |   |   |   | 121,242 |   |
| Deferred tax asset                                   |   |                           | -       |   |      |   | - |   |   |   | 170,800 |   |
| Changes in operating assets and liabilities:         |   |                           |    |   |      |   |   |   |   |   |   |   |
| Accounts payable to related parties                  |   |                           | (235    | )      |      |   | - |   |   |   | 280,300 |   |
| Accounts payable and accrued liabilities             |   |                           | 54,919  |   |      |   | (194,739 | ) |   |   | 38,554 |   |
| Net Cash Used in Continuing Operating Activities     |   |                           | (5,158  | )      |      |   | (633,426 | ) |   |   | (1,487,265 | ) |
| Net Cash Used in Discontinued Operating Activities   |   |                           | -       |   |      |   | 633,326 |   |   |   | 1,678,016 |   |
| Net Cash Used in Operating Activities                |   |                           | (5,158  | )      |      |   | (100 | ) |   |   | 190,751 |   |
|                                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| Purchase of property and equipment                   |   |                           | -       |   |      |   | - |   |   |   | (216,556 | ) |
| Net Cash Used in Continuing Investing Activities     |   |                           | -       |   |      |   | - |   |   |   | (216,556 | ) |
| Net Cash Used in Discontinued Investing Activities   |   |                           | -       |   |      |   | - |   |   |   | - |   |
| Net Cash Used in Investing Activities                |   |                           | -       |   |      |   | - |   |   |   | (216,556 | ) |
|                                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| Proceeds from common stock                           |   |                           | -       |   |      |   | - |   |   |   | 30,000 |   |
| Net Cash Provided by Continuing Financing Activities |   |                           | -       |   |      |   | - |   |   |   | 30,000 |   |
| Net Cash Used in Discontinued Financing Activities   |   |                           | -       |   |      |   | - |   |   |   | - |   |
| Net Cash Used in Financing Activities                |   |                           | -       |   |      |   | - |   |   |   | 30,000 |   |
|                                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| NET DECREASE IN CASH                                 |   |                           | (5,158  | )      |      |   | (100 | ) |   |   | 4,195 |   |
| CASH AT BEGINNING OF PERIOD                          |   |                           | 9,453   |   |      |   | 100 |   |   |   | 100 |   |
| CASH AT END OF PERIOD                                |   | $                              | 4,295   |   |      | $      | - |   |   | $ | 4,295 |   |
|                                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF                          |   |                           |    |   |      |   |   |   |   |   |   |   |
| CASH FLOW INFORMATION                                |   |                           |    |   |      |   |   |   |   |   |   |   |
|                                                 |   |                           |    |   |      |   |   |   |   |   |   |   |
| CASH PAID FOR:                                       |   |                           |    |   |      |   |   |   |   |   |   |   |
| Income taxes paid                                    |   | $                              | -       |   |      | $      | - |   |   | $ | - |   |
| Interest paid                                        |   |                           | -       |   |      |   | - |   |   |   | - |   |
| NON CASH FINANCING ACTIVITIES:                       |   |                           |    |   |      |   |   |   |   |   |   |   |
| Common stock issued for purchase of subsidiary       |   | $                              | -       |   |      | $      | - |   |   | $ | 40,500 |   |
| Common stock cancelled                               |   |                           | -       |   |      |   | - |   |   |   | 20,500 |   |

----

----

----

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

----

|                        |   | Three Months Ended March 31, 2010 |   |   | ThreeMonths Ended March 31,2009 |   |
|-----------------------------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
| Income                      |   |                              | -      |   |                            |   | 1,039,595 |   |
| Cost of Goods Sold          |   |                              | -      |   |                            |   | 353,544 |   |
| Operating expenses          |   |                              | -      |   |                            |   | 376,402 |   |
| Net Operating Income (Loss) |   |                              | -      |   |                            |   | 309,649 |   |
| Loss on disposal of assets  |   |                              | -      |   |                            |   | - |   |
| Tax benefit at 34%          |   |                              | -      |   |                            |   | - |   |
| Net income (loss)           |   |                              | -      |   |                            |   | 309,649 |   |

----

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4T. Controls and Procedures

PART II — OTHER INFORMATION

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Item 5.  Other Information

----

Item 6. Exhibits

|  Exhibit No. |  Document                              |  Location |
|-------------------|---------------------------------------------|----------------|
|  31          |  Rule 13a-41(a)/15d-14(a) Certificates |  Included |
|  32          |  Section 1350 Certifications           |  Included |

| May 15, 2010  | /s/ Fortunato Villamagna                        |   |
|--------------------|-------------------------------------------------|--------|
|               | Fortunato Villamagna, Director & CEO,  |