| COLORADO                                      | 47-0883144                                |
|-----------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of          | (I.R.S.      Employer Identification No.) |
| incorporation      or organization)           |                                      |
|                                          |                                      |
|                                          |                                      |
| 16200 WCR 18E,      Loveland, Colorado        | 80537                                     |
| (Address      of principal executive offices) | (Zip      code)                           |

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|         |                                                                                     | Page   |
|--------------|------------------------------------------------------------------------------------------|--------|
|         |                                                                                     |   |
| Part      I  |                                                                                     |
|         | Item      1.  Financial Statements                                             | 3      |
|         | Item      2.  Management's Discussion and Analysis or Plan of      Operation   | 7      |
|         | Item      3.  Controls and Procedures                                          | 18     |
|         |                                                                                     |   |
| Part      II |                                                                                     |
|         | Item      1.  Legal Proceedings                                                | 18     |
|         | Item      2.  Unregistered Sales of Equity Securities and Use of      Proceeds | 18     |
|         | Item      3.  Defaults Upon Senior Securities                                  | 18     |
|         | Item      4.  Submission of Matters to a Vote of Security      Holders         | 18     |
|         | Item      5.  Other Information                                                | 18     |
|         | Item      6.  Exhibits                                                         | 19     |
|         |                                                                                     |   |
| Signatures   | 19                                                                                       |

----

|                                                           |   | February      29, |     |   | August      31, |   |
|----------------------------------------------------------------|--------|-------------------|----------|--------|-----------------|--------|
|                                                           |   | 2008              |     |   | 2007            |   |
|                                                           |   | (Unaudited)       |     |   |            |   |
| Assets                                                         |   |              |     |   |
|                                                           |   |              |     |   |            |   |
| Current      Assets:                                           |   |              |     |   |            |   |
| Cash                                                           |   | $                 | 58,031   |   |            | $      | 23,358 |   |
| Prepaid      asset                                             |   |              | 205      |   |            |   | — |   |
|                                                           |   |              |     |   |            |   |   |   |
| Total      current assets                                      |   |              | 58,236   |   |            |   | 23,358 |   |
|                                                           |   |              |     |   |            |   |   |   |
| Property      and equipment, net                               |   |              | 36,552   |   |            |   | 36,315 |   |
|                                                           |   |              |     |   |            |   |   |   |
| Total      assets                                              |   | $                 | 94,788   |   |            | $      | 59,673 |   |
|                                                           |   |              |     |   |            |   |   |   |
|                                                           |   |              |     |   |            |   |   |   |
| Liabilities      and Shareholders’ Equity                |   |              |     |   |            |
| Current      liabilities:                                      |   |              |     |   |            |   |   |   |
| Accrued      interest payable, related party                   |   | $                 | 5,758    |   |            | $      | 4,726 |   |
| Accounts      payable                                          |   |              | —  |   |            |   | 1,741 |   |
| Loans      payable to related party                            |   |              | 34,400   |   |            |   | 34,400 |   |
|                                                           |   |              |     |   |            |   |   |   |
| Total      current liabilities                                 |   |              | 40,158   |   |            |   | 40,867 |   |
|                                                           |   |              |     |   |            |   |   |   |
| Shareholders’      equity:                               |   |              |     |   |            |   |   |   |
| Common      stock, no par value; 20,000,000 shares authorized, |   |              |     |   |            |   |   |   |
| 3,389,000      shares issued and outstanding                   |   |              | 205,250  |   |            |   | 145,500 |   |
| Additional      paid-in capital                                |   |              | 14,136   |   |            |   | 11,461 |   |
| Accumulated      other comprehensive gain                      |   |              | 712      |   |            |   | 417 |   |
| Accumulated      deficit                                       |   |              | (500     | )      |            |   | (500 | ) |
| Deficit      accumulated during development stage              |   |              | (164,968 | )      |            |   | (138,072 | ) |
| Total      shareholder’s equity                          |   |              | 54,630   |   |            |   | 18,806 |   |
|                                                           |   |              |     |   |            |   |   |   |
| Total      liabilities and shareholders' equity                |   | $                 | 94,788   |   |            | $      | 59,673 |   |

----

|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |
|---------------------------------------------------|--------|---------------------------------|-----------|--------|-------------------------------|--------|-----------|-------------------|--------|--------|-------------------|--------|--------|-------------------|-----------|
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   | March      1,     |      |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   | 2005              |      |
|                                              |   |                            |      |   |                          |   |      | (Inception)       |   |
|                                              |   | For      the Three Months Ended |      |   | For      the Six Months Ended |   |      | Through           |   |
|                                              |   | February      29,               |      |   | February      28,             |   |      | February      29, |   |   | February      28, |   |   | February      29, |      |
|                                              |   | 2008                            |      |   | 2007                          |   |      | 2008              |   |   | 2007              |   |   | 2008              |      |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |
| Revenue                                           |   | $                               | —   |   |                          | $      | —   |              |   | $      | —           |   |   | $                 | —   |   |   | $ | — |   |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Operating      expenses:                          |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Professional      fees                            |   |                            | 2,353     |   |                          |   | 5,919     |              |   |   | 8,273             |   |   |              | 9,487     |   |   |   | 30,177 |   |
| Contributed      services, related party (Note 3) |   |                            | 1,375     |   |                          |   | —   |              |   |   | 2,675             |   |   |              | —   |   |   |   | 12,071 |   |
| General      and administrative                   |   |                            | 6,893     |   |                          |   | 9,038     |              |   |   | 14,916            |   |   |              | 12,477    |   |   |   | 116,962 |   |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Total      operating expenses                     |   |                            | 10,621    |   |                          |   | 14,957    |              |   |   | 25,864            |   |   |              | 21,964    |   |   |   | 159,210 |   |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Loss      from operations                         |   |                            | (10,621   | )      |                          |   | (14,957   | )                 |   |   | (25,864           | )      |   |              | (21,964   | ) |   |   | (159,210 | ) |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Other      Income (Expense)                       |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Interest      expense                             |   |                            | (516      | )      |                          |   | (529      | )                 |   |   | (1,032            | )      |   |              | (1,032    | ) |   |   | (5,758 | ) |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Total      other expenses                         |   |                            | (516      | )      |                          |   | (529      | )                 |   |   | (1,032            | )      |   |              | (1,032    | ) |   |   | (5,758 | ) |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Net      loss                                     |   |                            | (11,137   | )      |                          |   | (15,486   | )                 |   |   | (26,896           | )      |   |              | (22,996   | ) |   |   | (164,968 | ) |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Other      Comprehensive Income (Loss)            |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Gain      on foreign currency exchange            |   |                            | 28        |   |                          |   | —   |              |   |   | 295               |   |   |              | —   |   |   |   | 712 |   |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Total      Comprehensive Loss                     |   | $                               | (11,109   | )      |                          | $      | (15,486   | )                 |   | $      | (26,601           | )      |   | $                 | (22,996   | ) |   | $ | (164,256 | ) |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Basic      and diluted loss per share             |   | $                               | (0.00     | )      |                          | $      | (0.00     | )                 |   | $      | (0.01             | )      |   | $                 | (0.01     | ) |   |   |   |   |
|                                              |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| Basic      and diluted weighted average           |   |                            |      |   |                          |   |      |              |   |   |              |   |   |              |      |   |   |   |   |   |
| common      shares outstanding                    |   |                            | 3,389,000 |   |                          |   | 3,150,000 |              |   |   | 3,297,383         |   |   |              | 3,150,000 |   |   |   |   |   |

----

|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            | Additional                      |   | Other                           |   |        |   | During |   |   |   |
|-----------------------------------------------------|-----------------------------------------|-----------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|---------------------------------|--------|---------------------------------|--------|-------------|--------|--------|--------|--------|--------|
|                                                |                                    |                  |                            |                            |                            |                            |                            | Common      Stock               |                            | Paid-in                         |                            | Comprehensive                   |   | Accumulated                     |   | Development |   |   |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            | Shares                          |                            | Amount                          |                            | Capital                         |   | Gain                            |   | Deficit     |   | Stage  |   |   |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Balance      at March 1, 2005 (inception)           | 100,000                            | $                     | 500                        | $                               | 100                        | $                               | —     | $                               | (500)                           | $                               | —     |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Common      stock issued in exchange for a          |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | Sailing      vessel at $0.034 per share | 1,150,000        |                            | 39,000                     |                            | —     |                            | —     |                            | —     |                            | —     |   |                            |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Net      loss, period ended August 31, 2005         | —             |                  | —     |                            | —     |                            | —     |                            | —     |                            | (18,677)                        |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Balance      at August 31, 2005                     | 1,250,000                          |                  | 39,500                     |                            | 100                        |                            | —     |                            | (500)                           |                            | (18,677)                        |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Common      stock issued for services               |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | at      $0.04 per share                 | 700,000          |                            | 28,000                     |                            | —     |                            | —     |                            | —     |                            | —     |   |                            |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Common      stock issued for services to a          |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | related      party at $0.04 per share   | 700,000          |                            | 28,000                     |                            | —     |                            | —     |                            | —     |                            | —     |   |                            |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Common      stock issued for cash                   |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | at      $0.10 per share                 | 500,000          |                            | 50,000                     |                            | —     |                            | —     |                            | —     |                            | —     |   |                            |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Contributed      capital                            | —             |                  | —     |                            | 1,965                      |                            | —     |                            | —     |                            | —     |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Net      loss, year ended August 31, 2006           | —             |                  | —     |                            | —     |                            | —     |                            | —     |                            | (70,441)                        |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Balance      at August 31, 2006                     | 3,150,000                          |                  | 145,500                    |                            | 2,065                      |                            | —     |                            | (500)                           |                            | (89,118)                        |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Contributed      capital                            | —             |                  | —     |                            | 925                        |                            | —     |                            | —     |                            | —     |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Office      space contributed by an officer         | —             |                  | —     |                            | 1,200                      |                            | —     |                            | —     |                            | —     |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Services      contributed by an officer             | —             |                  | —     |                            | 7,271                      |                            | —     |                            | —     |                            | —     |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Foreign      currency exchange gain                 | —             |                  | —     |                            | —     |                            | 417                        |                            | —     |                            | —     |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Net      loss, year ended August 31, 2007           | —             |                  | —     |                            | —     |                            | —     |                            | —     |                            | (48,954)                        |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Balance      at August 31, 2007                     | 3,150,000                          |                  | 145,500                    |                            | 11,461                     |                            | 417                        |                            | (500)                           |                            | (138,072)                       |                            |   |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Common      stock issued for cash                   |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | at      $0.25 per share (unaudited)     | 239,000          |                            | 59,750                     |                            | —     |                            | —     |                            | —     |                            | —     |   |                            |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Office      space contributed by an officer         |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | (unaudited)                             |                  |                            | —     |                            | —     |                            | 600                        |                            | —     |                            | —     |   | —     |   |        |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Services      contributed by an officer (unaudited) | —             |                  | —     |                            | 2,075                      |                            | —     |                            | —     |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Foreign      currency exchange gain (unaudited)     | —             |                  | —     |                            | —     |                            | 295                        |                            | —     |                            |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Net      loss, quarter ended February 29, 2008      |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |
|                                                | (unaudited)                             |                  |                            | —     |                            | —     |                            | —     |                            | —     |                            | —     |   | (26,896)                        |   |        |   |
|                                                |                                    |                  |                            |                            |                            |                            |                            |                            |                            |                            |                            |                            |   |                            |   |        |   |   |   |   |   |
| Balance      at February 29, 2008 (unaudited)       | 3,389,000                          | $                     | 205,250                    | $                               | 14,136                     | $                               | 712                        | $                               | (500)                           | $                               | (164,968)                       |                            |   |                            |

----

|                                                   |   |                          |    |   |              |   |    |              |   |
|--------------------------------------------------------|--------|-------------------------------|---------|--------|-------------------|--------|---------|-------------------|--------|
|                                                   |   |                          |    |   |              |   |    | March      1,     |   |
|                                                   |   |                          |    |   |              |   |    | 2005              |   |
|                                                   |   |                          |    |   | (Inception)       |   |
|                                                   |   | For      the Six Months Ended |    |   | Through           |   |
|                                                   |   | February      29,             |    |   | February      28, |   |    | February      29, |   |
|                                                   |   | 2008                          |    |   | 2007              |   |    | 2008              |   |
| Cash      flows from operating activities:             |   |                          |    |   |              |   |    |              |   |
| Net      loss                                          |   | $                             | (26,896 | )      |              | $      | (22,996 | )                 |   | $ | (164,968 | ) |
| Adjustments      to reconcile net loss to net cash     |   |                          |    |   |              |   |    |              |   |   |   |   |
| used      by operating activities:                     |   |                          |    |   |              |   |    |              |   |   |   |   |
| Depreciation      expense                              |   |                          | 3,401   |   |              |   | 3,210   |              |   |   | 18,914 |   |
| Contributed      capital to fund expenses              |   |                          | 2,675   |   |              |   | 6,150   |              |   |   | 14,036 |   |
| Common      stock issued for services                  |   |                          | — |   |              |   | — |              |   |   | 56,000 |   |
| Changes      in operating assets and liabilities:      |   |                          |    |   |              |   |    |              |   |   |   |   |
| (Increase)      decrease in prepaid services           |   |                          | (205    | )      |              |   | 500     |              |   |   | (205 | ) |
| Increase      (decrease) in accounts payable           |   |                          |    |   |              |   |    |              |   |   |   |   |
| and      accrued liabilities                           |   |                          | (414    | )      |              |   | 3,125   |              |   |   | 6,470 |   |
| Net      cash used in                                  |   |                          |    |   |              |   |    |              |   |   |   |   |
| operating      activities                              |   |                          | (21,439 | )      |              |   | (10,011 | )                 |   |   | (69,753 | ) |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| Cash      flows from investing activities:             |   |                          |    |   |              |   |    |              |   |   |   |   |
| Cash      paid for fixed assets                        |   |                          | (3,638  | )      |              |   | — |              |   |   | (16,466 | ) |
| Net      cash used in                                  |   |                          |    |   |              |   |    |              |   |   |   |   |
| investing      activities                              |   |                          | (3,638  | )      |              |   | — |              |   |   | (16,466 | ) |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| Cash      flows from financing activities:             |   |                          |    |   |              |   |    |              |   |   |   |   |
| Common      stock issued for cash                      |   |                          | 59,750  |   |              |   | — |              |   |   | 109,750 |   |
| Proceeds      from related party loans                 |   |                          | — |   |              |   | 2,400   |              |   |   | 34,400 |   |
| Net      cash provided by                              |   |                          |    |   |              |   |    |              |   |   |   |   |
| financing      activities                              |   |                          | 59,750  |   |              |   | 2,400   |              |   |   | 144,150 |   |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| Net      change in cash                                |   |                          | 34,673  |   |              |   | (7,611  | )                 |   |   | 57,931 |   |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| Cash,      beginning of period                         |   |                          | 23,358  |   |              |   | 48,874  |              |   |   | 100 |   |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| Cash,      end of period                               |   | $                             | 58,031  |   |              | $      | 41,263  |              |   | $ | 58,031 |   |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| Supplemental      disclosure of cash flow information: |   |                          |    |   |              |   |    |              |   |   |   |   |
| Cash      paid during the period for:                  |   |                          |    |   |              |   |    |              |   |   |   |   |
| Income      taxes                                      |   | $                             | — |   |              | $      | — |              |   | $ | — |   |
| Interest                                               |   | $                             | — |   |              | $      | — |              |   | $ | — |   |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
|                                                   |   |                          |    |   |              |   |    |              |   |   |   |   |
| NON      CASH FINANCING ACTIVITIES:                    |   |                          |    |   |              |   |    |              |   |   |   |   |
| Common      stock issued for services                  |   | $                             | — |   |              | $      | — |              |   | $ | 56,000 |   |

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tax returns, as well as all open tax years in thesejurisdictions.  The Company has identified its federal tax return and itsstate tax return in Colorado as “major” tax jurisdictions, asdefined.  No prior periods are yet subject to examination as the initialreturns for the Company have not yet been 
filed. The Company believes that its income tax filing positions and deductions will besustained on audit and does not anticipate any adjustments that will result in amaterial adverse effect on the Company’s financial condition, results ofoperations, or cash flow.  Therefore, no reserves for uncertain income taxpositions have been recorded pursuant to FIN 48.  In addition, the Companydid not record a cumulative effect adjustment related to the adoption of FIN48.

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| ·  | Marine      Environment and Safety at Sea |
|--------------|-------------------------------------------|
| ·  | Life      Rafts and Ditch Bags            |

| ·  | Medical      Preparedness and First Aid   |
|--------------|-------------------------------------------|
| ·  | Features      of Offshore Capable Vessels |

| ·  | Rigging      and Deck Gear                   |
|--------------|----------------------------------------------|
| ·  | Tools,      Mechanical and Electrical Skills |

| ·  | Sails,      Ropework and Sewing |
|--------------|---------------------------------|
| ·  | Sail      Handling              |

| ·  | 12      Volt Electrical Systems                    |
|--------------|----------------------------------------------------|
| ·  | Boat      Electronics, Instruments, Radio andRadar |

| ·  | Auxillary      Diesel Maintenance and Repair |
|--------------|----------------------------------------------|
| ·  | Heavy      Weather Seamanship                |

| ·  | Weather,      Pilot Charts and Navigation |
|--------------|-------------------------------------------|
| ·  | Passagemaking                             |

| ·  | Boat      Maintenance, Provisioning and Waste Disposal |
|--------------|--------------------------------------------------------|
| ·  | Ships      Papers, Zarpes and Permits                  |

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|  Vessel      Name                    |  Six      String                                            |
|-------------------------------------------|------------------------------------------------------------------|
|  Hailing      Port                   |  Loveland,      Colorado                                    |
|  Make/Model                          |  Jason      35 Cutter                                       |
|  Type                                |  Aft      cockpit, cutter rigged sailing vessel             |
|  Navigation      Limits              |  Suitable      for recreational costal and offshore service |
|  Current      Fair Market Value |  $43,000      to $47,000                                    |
|  Replacement      Value as Equipped  |  $320,000                                                   |
|  Model      Year                     |  Hull      constructed 1982 with launch date in 1986        |
|  Builder                             |  Custom      Yacht Builders, Ontario, Canada                |
|  HIN      Number                     |  Canadian      Issued: 0781B3401                            |
|  Official      Number                |  Federal      Documentation 1092461                         |
|  Aux.      Propulsion                |  Faryman      R30M 24HP naturally aspired                   |
|  Hull/Deck      Color                |  White                                                      |
|  LOA                                 |  34      feet 6 inches                                      |
|  LWL                                 |  27      feet 4 inches                                      |
|  Beam                                |  11      feet 2 inches                                      |
|  Draft                               |  5      feet                                                |
|  Displacement                   |  16,800      pounds dry weight                              |
|  Sail      Area                      |  634      square feet                                       |

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| Staff                                                                                                                                                                                                                                        |   | $      | 4,000 |  (1) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------|-----------|
| Fuel      and      Phone                                                                                                                                                                                                                                                                  |   |   | 300   |      |
| Provisions      and      Supplies                                                                                                                                                                                                            |   |   | 900   |      |
| Travel      and      Lodging                                                                                                                                                                                                                                                         |   |   | 1,500 |      |
| Note      Interest                                                                                                             |   |   | 450   |      |
| Home      Office      Rent                                                                                                                                                                                                                                                                     |   |   | 300   |      |
| Bookkeeper                                                                                                                                                                            |   |   | 200   |      |
| Total                                                                                                                                                                                                                                        |   | $      | 7,600 |      |

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| Staff                                                                                                                                                                                                                                              |   | $      | 4,000  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Fuel      and      Phone                                                                                                                                                                                                                                                                        |   |   | 500    |   |
| Provisions      and Supplies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 2,700  |   |
| Travel      and      Lodging                                                                                                                                                                                                             |   |   | 500    |   |
| Note      Interest                                                                                                              |   |   | 500    |   |
| Home      Office      Rent                                                                                                                                                                                                                                                                           |   |   | 300    |   |
| Bookkeeper                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 250    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |
| Total                                                                                                                                                                                                                                              |   | $      | 8,750  |   |

| One-time      costs for Form SB-2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 11,500 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| One-time      Printing and      Postage                                                                                                                                                                                                                        |   |   | 1,000  |   |
| Total      One-Time Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 12,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |
| Annual      Audit, Form 10-K, Form      10Qs                                                                                                                                                                                                                                                                          |   |   | 12,500 |   |
| Annual      Transfer      agent                                                                                                                       |   |   | 2,500  |   |
| Annual      legal                                                                                                                                                                                       |   |   | 5,000  |   |
| Total      Annual Public Company Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 20,000 |   |

| Quarterly      Revenue from Training Voyages           |   |   |    |
|--------------------------------------------------------|--------|--------|---------|
| $1,750      per student X 2 students X 6 voyages  |   | $      | 21,000  |   |
| Quarterly      Operating Expense                       |   |   | 8,750   |   |
| Quarterly      Public Company Expense                  |   |   | 5,000   |   |
| Quarterly      Marketing Expense                  |   |   | 750     |   |
| Less      Total Quarterly Expenses                |   |   | -14,500 |   |
| Estimated      Quarterly Cash Flow                     |   | $      | 6,500   |   |

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| 31.1:    | Certification      of Principal Executive and Financial Officer |
|-------------------------|-----------------------------------------------------------------|
| 32.1:    | Section      1350 Certification                                 |

|                | ROSEWIND      CORPORATION                        (Registrant) |                                 |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                |                                                                                                                                                    |                                 |   |
| April      14, 2008 | By:                                                                                                                                                     | /s/  James B.      Wiegand |   |
|                |                                                                                                                                                    | James      B. Wiegand                |   |
|                |                                                                                                                                                    | President                            |   |
|                |                                                                                                                                                    |                                 |   |

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