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| UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
|--------------------------------------------------|

| Washington, D.C. |
|------------------|

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

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| Contents                                                                  |                |
|---------------------------------------------------------------------------|---------------------|
| Consolidated Balance Sheets                                               | 2    |
| Consolidated Statements of Operations                                     | 3                   |
|  Consolidated Statements of Stockholders' Equity                     | 4                   |
| Consolidated Statements of Cash Flows                                     | 5                   |
| Item 2. Management’s Discussion and                                 |                |
| Analysis of Financial Condition and Results of Operation                  | 10                  |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk  | 12                  |
| Item 4T. Controls and Procedures                                          | 12                  |
|                                                                      |                |
| PART II — OTHER INFORMATION                                         | 12                  |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds | 12                  |
| Item 5.  Other Information                                           | 13                  |
| Item 6. Exhibits                                                          | 14                  |

----

| ASSETS                                                                                        |        |
|-----------------------------------------------------------------------------------------------|-------------|
|                                                                                          |        |   |   |   |   |   |
|                                                                                          | June 30,    |   | December 31, |   |
|                                                                                          | 2010        |   | 2009 |   |
|                                                                                          | (Unaudited) |   |   |   |
| CURRENT ASSETS                                                                                |        |   |   |   |   |   |
|                                                                                          |        |   |   |   |   |   |
| Cash and cash equivalents                                                                     |        | $ | 212 |   |   | $ | 9,453 |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| Total Current Assets                                                                          |        |   | 212 |   |   |   | 9,453 |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT, NET                                                            |        |   | 328,013 |   |   |   | 328,427 |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                  |        | $ | 328,225 |   |   | $ | 337,880 |   |
|                                                                                          |        |   |   |   |   |   |   |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                |        |
|                                                                                          |        |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                           |        |   |   |   |   |   |   |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| Accounts payable                                                                              |        | $ | 123,199 |   |   | $ | 350,716 |   |
| Accrued salary                                                                                |        |   | - |   |   |   | 200,000 |   |
| Accounts payable to related parties                                                           |        |   | 99,666 |   |   |   | 80,535 |   |
| Loan payable                                                                                  |        |   | 240 |   |   |   | 240 |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                     |        |   | 223,105 |   |   |   | 631,491 |   |
|                                                                                          |        |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                             |        |   | 223,105 |   |   |   | 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                                                                    |        |   | 3,137,547 |   |   |   | 2,639,115 |   |
| Deficit accumulated during the development stage                                              |        |   | (3,066,587 | ) |   |   | (2,966,886 | ) |
|                                                                                          |        |   |   |   |   |   |   |   |
| Total Stockholders' Equity (Deficit)                                                          |        |   | 105,120 |   |   |   | (293,611 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS'                                                           |        |   |   |   |   |   |   |   |
|   EQUITY (DEFICIT)                                                                  |        | $ | 328,225 |   |   | $ | 337,880 |   |

----

|                                           |   |                       |       |   |                     |   |       |     |   |   |       |   |   | From Inception    |       |
|------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|------------|----------|--------|--------|------------|--------|--------|-------------------|------------|
|                                           |   |                       |       |   |                     |   |       |     |   |   |       |   |   | on April 30, 2009 |       |
|                                           |   | For the Three Months Ended |       |   | For the Six Months Ended |   |       | through  |   |
|                                           |   | June 30,                   |       |   | June 30,                 |   |       | June 30, |   |
|                                           |   | 2010                       |       |   | 2009                     |   |       | 2010     |   |   | 2009       |   |   | 2010              |       |
| REVENUES                                       |   | $                          | -          |   |                     | $      | -          |     |   | $      | -          |   |   | $                 | -          |   |   | $ | - |   |
| COST OF SALES                                  |   |                       | -          |   |                     |   | -          |     |   |   | -          |   |   |              | -          |   |   |   | - |   |
| GROSS MARGIN                                   |   |                       | -          |   |                     |   | -          |     |   |   | -          |   |   |              | -          |   |   |   | - |   |
| OPERATING EXPENSES                             |   |                       |       |   |                     |   |       |     |   |   |       |   |   |              |       |   |   |   |   |   |
| Amortization of deferred tax benefit           |   |                       | -          |   |                     |   | -          |     |   |   | -          |   |   |              | -          |   |   |   | 170,800 |   |
| Impairment of intangible assets                |   |                       | -          |   |                     |   | -          |     |   |   | -          |   |   |              | -          |   |   |   | 121,242 |   |
| Salaries and wages                             |   |                       | 33,224     |   |                     |   | -          |     |   |   | 83,333     |   |   |              | -          |   |   |   | 283,224 |   |
| General and administrative                     |   |                       | 6,214      |   |                     |   | 39,596     |     |   |   | 16,259     |   |   |              | 84,828     |   |   |   | 545,918 |   |
| Total Operating Expenses                       |   |                       | 39,438     |   |                     |   | 39,596     |     |   |   | 99,592     |   |   |              | 84,828     |   |   |   | 1,121,184 |   |
| LOSS FROM OPERATIONS                           |   |                       | (39,438    | )      |                     |   | (39,596    | )        |   |   | (99,592    | )      |   |              | (84,828    | ) |   |   | (1,121,184 | ) |
| OTHER EXPENSE                                  |   |                       |       |   |                     |   |       |     |   |   |       |   |   |              |       |   |   |   |   |   |
| Interest expense                               |   |                       | (109       | )      |                     |   | -          |     |   |   | (109       | )      |   |              | -          |   |   |   | (109 | ) |
| LOSS BEFORE TAXES                              |   |                       | (39,547    | )      |                     |   | (39,596    | )        |   |   | (99,701    | )      |   |              | (84,828    | ) |   |   | (1,121,293 | ) |
| Provision for income taxes                     |   |                       | -          |   |                     |   | (86,700    | )        |   |   | -          |   |   |              | (170,800   | ) |   |   | - |   |
| NET LOSS FROM CONTINUING OPERATIONS            |   |                       | (39,547    | )      |                     |   | (126,296   | )        |   |   | (99,701    | )      |   |              | (255,628   | ) |   |   | (1,121,293 | ) |
| Net income (loss) from discontinued operations |   |                       | -          |   |                     |   | (33,950    | )        |   |   | -          |   |   |              | 225,698    |   |   |   | 309,650 |   |
| Loss on disposal of discontinued operations    |   |                       | -          |   |                     |   | (1,730,742 | )        |   |   | -          |   |   |              | (1,730,742 | ) |   |   | (1,730,742 | ) |
| Loss from discontinued operations,             |   |                       |       |   |                     |   |       |     |   |   |       |   |   |              |       |   |   |   |   |   |
| net of income taxes                            |   |                       | -          |   |                     |   | (1,764,692 | )        |   |   | -          |   |   |              | (1,505,044 | ) |   |   | (1,421,092 | ) |
| NET LOSS                                       |   | $                          | (39,547    | )      |                     | $      | (1,890,988 | )        |   | $      | (99,701    | )      |   | $                 | (1,760,672 | ) |   | $ | (2,542,385 | ) |
| BASIC LOSS PER SHARE                           |   | $                          | (0.00      | )      |                     | $      | (0.00      | )        |   | $      | (0.00      | )      |   | $                 | (0.01      | ) |   |   |   |   |
| FROM CONTINUING OPERATIONS                     |   |                       |       |   |                     |   |       |     |   |   |       |   |   |              |       |   |   |   |   |   |
| BASIC LOSS PER SHARE                           |   |                       | -          |   |                     |   | (0.04      | )        |   |   | -          |   |   |              | (0.03      | ) |   |   |   |   |
|  FROM DISCONTINUED OPERATIONS             |   |                       |       |   |                     |   |       |     |   |   |       |   |   |              |       |   |   |   |   |   |
| TOTAL BASIC LOSS PER SHARE                     |   | $                          | (0.00      | )      |                     | $      | (0.05      | )        |   | $      | (0.00      | )      |   | $                 | (0.04      | ) |   |   |   |   |
| WEIGHTED AVERAGE NUMBER                        |   |                       |       |   |                     |   |       |     |   |   |       |   |   |              |       |   |   |   |   |   |
|   OF SHARES OUTSTANDING              |   |                       | 34,118,159 |   |                     |   | 40,718,159 |     |   |   | 34,118,159 |   |   |              | 44,468,159 |   |   |   |   |   |

----

|                                       |   |                  |   |   |               |   |   |    |   |   |       |   |   |       |   |   | Deficit                |   |      |   |   |
|--------------------------------------------|--------|-----------------------|--------|--------|--------------------|--------|--------|---------|--------|--------|------------|--------|--------|------------|--------|--------|------------------------|--------|-----------|--------|--------|
|                                       |   |                  |   |   |               |   |   |    |   |   |       |   |   | Additional |   |   | Accumulated            |   |      |   |   |
|                                       |   |  Preferred Stock |   |   |  Common Stock |   |   | Paid-In |   |   | During the |   |   |       |   |
|                                       |   | Shares                |   |   | Amount             |   |   | Shares  |   |   | Amount     |   |   | Capital    |   |   | Development 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 |   |

----

|                                 |   |                  |   |   |               |   |   |    |   |   |        |   |   |       |    |   | Deficit                |   |      |   |   |
|--------------------------------------|--------|-----------------------|--------|--------|--------------------|--------|--------|---------|--------|--------|-------------|--------|--------|------------|---------|--------|------------------------|--------|-----------|--------|--------|
|                                 |   |                  |   |   |               |   |   |    |   |   |        |   |   | Additional |    |   | Accumulated            |   |      |   |   |
|                                 |   |  Preferred Stock |   |   |  Common Stock |   |   | Paid-In |   |   | During the  |   |   |       |    |
|                                 |   | Shares                |   |   | Amount             |   |   | Shares  |   |   | Amount      |   |   | Capital    |    |   | Development Stage |   |      | Total  |   |
| 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 | ) |
|                                 |   |                  |   |   |               |   |   |    |   |   |        |   |   |       |    |   |                   |   |      |   |   |   |   |   |   |   |   |   |
| Contributed capital (unaudited)      |   |                  | -      |   |               |   | -      |    |   |   | -           |   |   |       | -       |   |                   |   | 498,432   |   |   |   | - |   |   |   | 498,432 |   |
| Net loss for the six months ended    |   |                  |   |   |               |   |   |    |   |   |        |   |   |       |    |   |                   |   |      |   |   |   |   |   |   |   |   |   |
| June 30, 2010 (unaudited)            |   |                  | -      |   |               |   | -      |    |   |   | -           |   |   |       | -       |   |                   |   | -         |   |   |   | (99,701 | ) |   |   | (99,701 | ) |
|                                 |   |                  |   |   |               |   |   |    |   |   |        |   |   |       |    |   |                   |   |      |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2010 (unaudited)   |   |                  | 42,013 |   |               | $      | 42     |    |   |   | 34,118,159  |   |   | $          | 34,118  |   |                   | $      | 3,137,547 |   |   | $ | (3,066,587 | ) |   | $ | 105,120 |   |

----

|                                               |   |                     |    |   |     |   |       | From Inception   |   |
|----------------------------------------------------|--------|--------------------------|---------|--------|----------|--------|------------|------------------|--------|
|                                               |   |                     |    |   |     |   |       | on April 30 2009 |   |
|                                               |   | For the Six Months Ended |    |   | through  |   |
|                                               |   | June 30,                 |    |   | June 30, |   |
|                                               |   | 2010                     |    |   | 2009     |   |       | 2010             |   |
| OPERATING ACTIVITIES                               |   |                     |    |   |     |   |       |             |   |
| Net loss                                           |   | $                        | (99,701 | )      |     | $      | (1,760,672 | )                |   | $ | (2,542,385 | ) |
| Adjustments to Reconcile Net Loss to Net           |   |                     |    |   |     |   |       |             |   |   |   |   |
| Cash Used by Operating Activities:                 |   |                     |    |   |     |   |       |             |   |   |   |   |
| Depreciation                                       |   |                     | 3,740   |   |     |   | -          |             |   |   | 4,052 |   |
| Amortization of intangibles                        |   |                     | -       |   |     |   | 10,356     |             |   |   | 2,803 |   |
| Employee option grants issued                      |   |                     | -       |   |     |   | 66,200     |             |   |   | 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                |   |                     | 19,131  |   |     |   | 40,000     |             |   |   | 299,666 |   |
| Accounts payable and accrued liabilities           |   |                     | 70,915  |   |     |   | 20,360     |             |   |   | 54,550 |   |
|                                               |   |                     |    |   |     |   |       |             |   |   |   |   |
| Net Cash Used in Continuing Operating Activities   |   |                     | (5,915  | )      |     |   | (1,623,756 | )                |   |   | (1,488,022 | ) |
| Net Cash Used in Discontinued Operating Activities |   |                     | -       |   |     |   | 1,623,756  |             |   |   | 1,678,016 |   |
| Net Cash Used in Operating Activities              |   |                     | (5,915  | )      |     |   | -          |             |   |   | 189,994 |   |
|                                               |   |                     |    |   |     |   |       |             |   |   |   |   |
| INVESTING ACTIVITIES                               |   |                     |    |   |     |   |       |             |   |   |   |   |
| Purchase of property and equipment                 |   |                     | (3,326  | )      |     |   | -          |             |   |   | (216,556 | ) |
|                                               |   |                     |    |   |     |   |       |             |   |   |   |   |
| Net Cash Used in Continuing Investing Activities   |   |                     | (3,326  | )      |     |   | -          |             |   |   | (216,556 | ) |
| Net Cash Used in Discontinued Investing Activities |   |                     | -       |   |     |   | -          |             |   |   | - |   |
| Net Cash Used in Investing Activities              |   |                     | (3,326  | )      |     |   | -          |             |   |   | (216,556 | ) |
|                                               |   |                     |    |   |     |   |       |             |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                    |   |                     | (9,241  | )      |     |   | -          |             |   |   | (26,562 | ) |
| CASH AT BEGINNING OF PERIOD                        |   |                     | 9,453   |   |     |   | -          |             |   |   | 100 |   |
| CASH AT END OF PERIOD                              |   | $                        | 212     |   |     | $      | -          |             |   | $ | (26,462 | ) |
|                                               |   |                     |    |   |     |   |       |             |   |   |   |   |
| 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 |   |
| Contributed capital from forgiveness               |   |                     |    |   |     |   |       |             |   |   |   |   |
|    of debt of a related party       |   |                     | 498,432 |   |     |   | -          |             |   |   | 20,500 |   |

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|                        |   | Six Months Ended June 30, 2010 |   | Six Months Ended June 30, 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 |   |

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