UNITED
STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM
10-K  (Mark
One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934  For the
fiscal year ended December 31, 2008  oTRANSITION REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934  For the
transition period from ___________ to ___________ .  Commission File Number: 000-29397  MONTAVO,
INC. (Exact
name of Registrant as specified in its charter)  Delaware

33-0619528(State or other jurisdiction of

(IRS Employerincorporation or organization)

Identification Number)  4957
Lakemont Blvd, Suite 239, Bellevue, Washington 98006 (Address
of principal executive offices)(Zip Code)  Companys telephone number, including area code: (425)
747-5500  Securities registered pursuant to Section 12(b) of the Act:
None.  Securities registered pursuant to Section 12(g) of the Act: Common
Stock, $0.001 par value  Indicate by check
mark if the registrant is a well-known seasoned issuer, as defined in rule 405
of the Securities Act.  Yes oNo  x  Indicate by check
mark if the registrant is not required to file reports pursuant to Section 13 or
15(d) of the Exchange Act.  o  Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  x  No  o  Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained
herein, and will not be contained, to the best of the Registrants knowledge, in
definitive proxy or information statements incorporated by reference in Part II
of this Form 10-K or any amendment to this Form 10-K.  x  Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company.  See the
definitions of large accelerated filer, accelerated filer and smaller
reporting company in Rule 12b-2 of the Exchange Act.  Large accelerated filer
o
Accelerated filer
oNon-accelerated filer
o(Do not check if a
smaller reporting company)
Smaller reporting company
x  Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act)      x
No           o  Yes  The number of shares
outstanding of the Companys $.001 Par Value Common Stock as of April 14, 2009
was 36,953,413. The aggregate number of shares of the voting stock held by
non-affiliates on April 14, 2009 was 19,869,817. The market value of these
shares, computed by reference to the market closing price of $.20 on April 14,
2009 was $3,973,963. For the purposes of the foregoing calculation only, all
directors and executive officers of the registrant have been deemed
affiliates.  DOCUMENTS INCORPORATED BY REFERENCE: None.  TABLE OF
CONTENTS  PART
I 4 ITEM
1. BUSINESS 4 Item
1A. Risk Factors. 5 Item
1B.  Unresolved Staff Comments. 5 Item
2. Properties. 5 Item
3 Legal Proceedings. 5 Item
4. Submission of Matters to a Vote of Security Holders 5  PART
II 5 Item
5. Market for Registrants Common Equity and Related Stockholders Shareholder
Matters and Registrant Purchases of Equity Securities.5 Item
6. Selected Financial Data 6 Item
7. Managements Discussion and Analysis or Plan of Operation. 6 Item
8.   Financial Statements. 9 Item
9.   Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure. 9 Item
9a.Controls & Procedures 9 Item
9B.   Other Information 10  Part
III 10 Item
10.   Directors, Executive Officers and Control Persons. 10 Item
11. Executive Compensation 12 Item
12. Security Ownership Of Certain Beneficial Owners And Management 13 Item
13. Certain Relationships and Related Transactions, and Director
Independence 14 Item
14. Principal Accounting Fees and Services 15  Part
IV 17 Item
15. Exhibits, Financial Statement Schedules. 17  SIGNATURES 18    PART I  ITEM 1. BUSINESS  A) General  Montavo, Inc. (the
Registrant or the Company) was incorporated under the laws of the State of
Delaware on April 20, 1994.  From incorporation until December 13, 2004 the
Registrant had no operating history other than organizational matters.  On
December 13, 2004 the Registrant acquired all of the issued and outstanding
shares of Trans Media Inc., a Wyoming corporation engaged in the production and
distribution of musical compact discs and musical performances. Through Trans
Media, the Registrant engaged in the production and distribution of compact
discs and musical performances targeted to the South Asian immigrant population
in North America, and to date completed the production of eight compact
discs.  In November 2007 the
Registrant engaged in a new line of business, in the mobile communications
industry, with the objective of becoming a mobile enabler and identifying,
deploying and commercializing innovative mobile applications and technologies to
offer targeted brand messaging. On November 6, 2007 Mr. Craig Moody was engaged
to serve as the Registrants chief executive officer.  Mr. Moody is a
former managing partner of Andrew & Associates International, a strategic
and financial consultancy that provides services to media, entertainment and
technology companies in Europe and the United States.  On May 7, 2008 the
Registrant executed the Agreement with the consultancy, a developer of a mobile,
location based services marketing application, and on May 8, 2008 Mr. Brook
Lang, the chief executive officer of the Company, was appointed to serve as the
Registrants chief executive officer following Mr. Moodys resignation.  The Company has
developed technology that allows wireless subscribers to search a proprietary
advertisement delivery system by category of service and location. The content
is delivered to subscribers via mobile handsets, personal navigation devices or
navigation devices installed in vehicles. Subscribers can download and view
advertisements, redeem special incentives and obtain turn-by-turn directions to
the nearest retail location.  The Company expects
that its core revenues will be derived from advertisers, who will be charged
impression views and or monthly fees for inclusion in the Company permission
based database, from impressions, click-through, and redemption fees for the
redemption of incentives, or from fees for the development of national campaigns
for brand advertisers. The Company plans to seek distribution agreements with
advertisement campaign aggregators, including global advertising agencies,
search-engine marketing optimization agencies, membership organizations and
direct marketing organizations. The Company also intends to employ a small team
of account executives that will act as a sales force and seek and solicit
clients among national and regional brand leaders.  There can be no
assurance that the Company will achieve its objectives or succeed in its
business plan.  As of the date of this report, the Company believes that it
will not be able to fund its operations, working capital requirements, and debt
service requirements through fiscal year 2009 through cash flows generated by
operations.In order to continue with
operations, we will need to raise additional funds through a sale of equity
securities, incurring debt or a combination of both.The Company has incurred net losses from
operations and has an accumulated deficit and a working capital deficit as of
December 31, 2008. These conditions raise substantial doubt as to the Companys
ability to continue as a going concern.  The
Companys office is located at 4957 Lakemont Blvd, Suite 239, Bellevue,
Washington 98006.  As of
December 31, 2008, the Company had no employees but was utilizing the services
of independent contractors and consultants.  Item
1A. Risk Factors.  Not
applicable.  Item
1B.  Unresolved Staff Comments.  None.  Item 2.
Properties.  The Company has
offices at 4957 Lakemont Blvd., Suite #239, Bellevue, WA 98006 and has an
engineering facility including a meeting room and server room. This space is
provided at no cost by the chief development officer.  Item 3
Legal Proceedings.  There are no pending
legal proceedings to which the Company is a party or in which any director,
officer or affiliate of the Company, any owner of record or beneficially of more
than 5% of any class of voting securities of the Company, or security holder is
a party adverse to the Company or has a material interest adverse to the
Company. The Companys property is not the subject of any pending legal
proceedings.  Item 4. Submission of
Matters to a Vote of Security Holders  On August 25, 2008,
the Registrant held a special meeting of shareholders pursuant to a proxy
statement that it filed with the Securities and Exchange Commission and had
furnished to holders of record of the outstanding shares of its common stock as
of June 27, 2008. At the meeting, a proposal to amend the Certificate of
Incorporation for the purpose of changing the name to Montavo, Inc.; a proposal
to increase the number of authorized common stock from 20,000,000 to
100,000,000; and a proposal to increase the number of authorized preferred stock
from 1,000,000 to 5,000,000, were approved.  PART
II  Item 5. Market for
Registrants Common Equity and Related Stockholders Shareholder Matters and
Registrant Purchases of Equity Securities.  Market
Information  The Registrants
common stock became eligible for trading on the Over-The-Counter Bulletin Board
on December 19, 2007, having the trading symbol MTVO. As of December 31, 2008,
the Company had 36,473,353 shares issued and outstanding.  The following table
reflects the high and low quarterly bid prices for the fiscal year ended
December 31, 2008, and incorporates a change in the Companys fiscal year end
effected October 8, 2008.  Period
High Bid
Low
BidPeriod from
12/19/07  2/29/08
1.00
0.742nd
Quarter 2008 ended 5/31/08
1.00
.753rd
Quarter 2008 ended 8/31/08
.75
.40Transition
period ended 9/30/08
.75
.504th
Quarter 2008 ended 12/31/08
.87
.31  These quotations may
reflect inter-dealer prices without retail mark-up/mark-down/commissions and may
not reflect actual transactions.  The Company has
authorized 100,000,000 shares of common stock and 5,000,000 share of preferred
stock, par value $.001. As of April 6, 2009, we had approximately 140
stockholders of record.  Dividends  We have never
declared or paid any cash dividends on our common stock nor do we anticipate
paying any in the foreseeable future. Furthermore, we expect to retain any
future earnings to finance our operations and expansion. The payment of cash
dividends in the future will be at the discretion of our Board of Directors and
will depend upon our earnings levels, capital requirements, any restrictive loan
covenants and other factors the Board considers relevant.  Equity
Compensation Plans  In 2005 Montavo
adopted the 2005 Stock Option Plan (the Plan). The Plan provides for the
granting of stock options to employees and consultants for services rendered to
the Company. Options granted under the Plan may be either incentive stock
options or nonqualified stock options. Incentive stock options (ISO) may be
granted only to Company employees (including officers and directors who are also
employees). Nonqualified stock options (NSO) may be granted to employees and
consultants. Montavo reserved 1,000,000 shares of common stock for issuance
under the Plan.  Please see Note 9 to the Companys audited financial
statements found elsewhere in this Report for additional information.  Recent Sales of
Unregistered Securities; Use of Proceeds from Registered Securities  On August 28, 2008,
the Company and Mel Venkateswaran, a former officer and director, executed an
asset sale and assignment agreement (the Agreement).  Pursuant to
the Agreement, the Company purchased certain music and song rights, entitlements
and related property rights (the Acquired Assets) from Mr.
Venkateswaran and, as consideration, delivered a convertible promissory note
dated August 28, 2008 (the Note) in the principal amount of $50,000.
 The Note bears interest at the rate of 5% per annum and matures on the
earlier of (i) August 27, 2009 or (ii) the date on which Mr. Venkateswaran
informs the Company that the Note is due and payable. The principal amount of
the Note and accrued and unpaid interest may be converted, at Mr.
Venkateswarans option, into shares of the Companys common stock at a
conversion price equal to $0.50 per share.  The Note was issued without
registration pursuant to an exemption from the registration requirements of the
Securities Act of 1933 in reliance on Section 4(2) thereof, as transactions by
an issuer not involving a public offering. Mr. Venkateswaran agreed that the
shares issuable upon conversion of the Note would be subject to the standard
restrictions applicable to a private placement of securities under applicable
state and federal securities laws, and an appropriate legend was affixed to the
Note certificate issued to Mr. Venkateswaran. Mr. Venkateswaran received
adequate information about the Registrant or had access, through his
relationship with the Registrant, to such information.  The asset was
recorded at zero value due to impairment.  The note was converted on
November 15, 2008, for 100,000 shares and the accrued interest of $628 was
forgiven.  Purchases of
equity securities by the issuer and affiliated purchasers  We have not
repurchased any shares of our common stock during the fiscal year ended December
31, 2008.  Item 6. Selected Financial Data  Not applicable.  Item 7.
Managements Discussion and Analysis or Plan of Operation.  Forward-Looking
Statements  This Current Report
on Form 10-K contains forward-looking information. Forward-looking information
includes statements relating to future actions, future performance, costs and
expenses, interest rates, outcome of contingencies, financial condition, results
of operations, liquidity, business strategies, cost savings, objectives of
management, and other such matters. The Private Securities Litigation Reform Act
of 1995 provides a "safe harbor" for forward-looking information to encourage
companies to provide prospective information about themselves without fear of
litigation, so long as that information is identified as forward-looking and is
accompanied by meaningful cautionary statements identifying important factors
that could cause actual results to differ materially from those projected in the
information. Forward-looking information may be included in this Current Report
or may be incorporated by reference from other documents filed with the
Securities and Exchange Commission. You can find many of these statements by
looking for words including, for example, "believes," "expects," "anticipates,"
"estimates" or similar expressions in this Current Report or in documents
incorporated by reference in this Current Report. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information or future events.  The forward-looking
statements relating to the Companys operations are based on management's
current expectations, estimates and projections about the Company and the
industry in which it operates. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that we cannot
predict.  In particular, we have based many of these forward-looking
statements on assumptions about future events that may prove to be inaccurate.
Accordingly, the Companys actual results may differ materially from those
contemplated by these forward-looking statements. Any differences could result
from a variety of factors, including, but not limited to the following:  o The Company's
ability to successfully develop, market, and price its products and
services; o The Company's
ability to hire and maintain the personnel necessary to run its operations; o The level of
consumer and advertiser spending for the Company's products and services; o The success of the
Companys marketing and promotion programs in obtaining market acceptance for
its products and services; and o Market conditions
affecting the prices of the Company's products and services.  Overview  The
Company was incorporated under the laws of the State of Delaware on April 20,
1994. From our incorporation and until December 13, 2004, we had no operating
history other than organizational matters.  On December 13, 2004, we
acquired Trans Media Inc. ("Trans Media"), a Wyoming corporation, by acquiring
all of its issued and outstanding shares from its shareholders pursuant to a
Plan of Arrangement and Share Exchange Agreement, dated September 29, 2004,
among our Company, Trans Media, and all the shareholders of Trans Media.
Pursuant to such agreement, the shareholders of Trans Media exchanged all of
their 10,720,000 shares of common stock of Trans Media for 10,720,000 shares of
the Company's common stock, which represented 84.28% of the outstanding shares
of the Company's common stock on a fully diluted basis. As a result of such
share exchange, Trans Media became the wholly owned subsidiary of the Company.
Such transaction was treated as a reverse merger of Trans Media, and Trans Media
is the continuing entity for financial reporting purposes.  Trans
Media was incorporated in the province of British Columbia on July 23, 2001 as
631411 B.C., LTD, and renamed Transworld Media, Inc. on October 28, 2002. It was
reincorporated in Wyoming and renamed Trans Media, Inc. on November 18, 2004.
Since October 2002, Trans Media has been engaged in the production and
distribution of musical CD's and musical performances targeted to the South
Asian immigrants residing in North America.  New
Line of Business - Plan of Operation  The
Company decided to pursue a new, additional line of business in the mobile
communications industry.  While the Company intends to retain its current
business plan and operations in the sale of musical CDs and offering musical
performances, the Company also intends to become a mobile enabler, by developing
innovative applications and technologies that provide access to a
permission-based mobile database which the Company is developing.  In
furtherance of its efforts to enter the mobile communications industry, on May
7, 2008, the Company, its wholly owned subsidiary North Coast Acquisition Corp.,
a Delaware corporation (Acquisition Corp.), and Montavo, Inc., a
privately-held Washington corporation (Montavo), executed an Agreement
(the Merger Agreement). Pursuant to the terms of the Merger Agreement,
on August 28, 2008, Acquisition Corp. was merged with and into Montavo, with
Montavo being the surviving entity as a wholly owned subsidiary of the
Registrant, and all of the issued and outstanding common stock of Montavo was
exchanged for newly-issued, restricted shares of common stock of the Company.
 11,700,000 shares of common stock of North Coast Acquisition Corp. were
issued to the shareholders of Montavo at the closing of the merger. In the event
that North Coast did not consummate a merger or business combination with any
other company within 90 days of the closing of the merger, the stockholders of
Montavo were entitled to receive additional shares of the Companys common
stock, in excess of the 11,700,000 shares issued at closing. No such merger of
business combination occurred. Accordingly, 10,089,512 additional common shares
(Additional Shares) were to be issued to the stockholders of Montavo on or
after November 28, 2008. As a result, the stockholders of Montavo would own, in
the aggregate, sixty percent (60%) of the issued and outstanding share of common
stock of the Company, on a fully diluted basis.  The Additional Shares have
been issued as of the date of this report.    The merger was
accounted for as a reverse merger and recapitalization due to Montavo having
control of the board of directors and control of management at the date of
merger.  Subsequent to the merger, the Company changed its name to Montavo,
Inc.  Montavo,
as a Washington corporation was formed on December 23, 2004, and has developed a
mobile Location Based Services (LBS) marketing solution for wireless carriers,
mobile handsets manufacturers, wireless carrier/device software aggregators,
personal navigation device (PNDs) manufacturers, and vehicle manufacturers.
Montavo has a patent pending filed for its method and distribution system for
location based wireless presentation of electronic coupons technology.
 Montavo has a second patent pending filed for its system and method of
confirming sales revenue and profit in a physical store from mobile
advertisements.  The
following discussion of the financial condition, changes in financial condition
and results of operations of the Company for the fiscal years ended December 31,
2008, and 2007 should be read in conjunction with the financial statements of
the Company and related notes included therein.  LIQUIDITY
AND CAPITAL RESOURCES  On
December 31, 2008 we had $2,406 in cash, as compared to $112 in cash on December
31, 2007.  Total assets on December 31, 2008 amounted to $359,509 as
compared to total assets of $138,078 on December 31, 2007.  The increase in
total assets resulted primarily from investments in our software development,
from $110,588 on December 31, 2007 to $320,140 on December 31, 2008. As of
December 31, 2008, Montavo had negative working capital of $415,878.  Current
liabilities decreased from $703,369 on December 31, 2007 to $418,284 on December
31, 2008.  The drop in current liabilities resulted primarily as a result
of the conversion, on August 29, 2008, of accounts payable, bridge notes and
related interest in the aggregate amount of $864,288 into 1,670,600 shares of
our common stock in connection with the consummation of the transactions
contemplated by the Merger Agreement.  These decreases were offset by an
increase in accounts payable, from $64,422 on December 31, 2007 to $133,209 on
December 31, 2008.  Additional
paid in capital increased from $197,177 on December 31, 2007 to $1,516,364 on
December 31, 2008, as a result of stock issued for cash, services, debt
conversions and stock option and warrant expense.  RESULTS
OF OPERATIONS  We
had no revenues in the years ended December 31, 2008 and 2007.  In the
years ended December 31, 2008 and 2007 we incurred net losses of $843,071 and
$227,096.  From December 23, 2004 (inception) to December 31, 2008 we
incurred a net loss of $1,611,613.  Operating expenses increased from
$194,463 in the year ended December 31, 2007 to $822,925 in the year ended
December 31, 2008, as follows:   2008
2007
IncreaseManagement
fees
$219,923
$142,512
$77,411Consulting
fees
427,249
15,606
411,643Professional
fees
129,605
3,251
126,354Other
operating expenses
46,148
33,094
22,498$822,925
$194,463
$628,462   Interest
expense decreased by $12,487, from $32,633 in the year ended December 31, 2007
to $20,146 in the year ended December 31, 2008, primarily as a result of the
conversion of debt into common stock on August 29, 2008 in connection with the
consummation of the transactions contemplated by the Merger Agreement.  Basic
and diluted net loss per share increased to $0.06 for the year ended December
31, 2008, as compared to $.03 for the year ended December 31, 2007.  Item 8.
  Financial Statements.  Financial statements are audited and included herein beginning
immediately following the signature page of this Form 10K.  Item
9.   Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.  There
were no disagreements with accountants on accounting and financial disclosure
during the relevant period.  Item 9a.
 Controls & Procedures  Evaluation of
Disclosure Controls and Procedures  Disclosure controls
and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by an issuer in the reports
that it files or submits under the Securities Exchange Act of 1934, as amended
(the "Act") is accumulated and communicated to the issuer's management,
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure. It should be noted that the design of any system of
controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of
how remote.  As of the end of the period covered by this Annual Report, we
carried out an evaluation, under the supervision and with the participation of
our Chief Executive Officer and our Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and
procedures.  Based on this evaluation, our CEO and CFO has concluded that
the Companys disclosure controls and procedures are not effective because of
the identification of a material weakness in our internal control over financial
reporting which is identified below, which we view as an integral part of our
disclosure controls and procedures.  Changes in Internal
Controls over Financial Reporting  We have not yet made
any changes in our internal controls over financial reporting that occurred
during the period covered by this report on Form 10-K that has materially
affected, or is reasonably likely to materially affect, our internal
control over financial reporting.  Managements Annual
Report on Internal Control Over Financial Reporting  Our management is
responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Rules 13a-15(f) and
15d-15(f) of the Exchange Act. Our internal control system was designed to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes, in accordance
with generally accepted accounting principles. Because of inherent limitations,
a system of internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate due to
change in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.  Our management
conducted an evaluation of the effectiveness of our internal control over
financial reporting using the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal
ControlIntegrated Framework. Based on its evaluation, our management concluded
that there is a material weakness in our internal control over financial
reporting. A material weakness is a deficiency, or a combination of control
deficiencies, in internal control over financial reporting such that there is a
reasonable possibility that a material misstatement of the Companys annual or
interim financial statements will not be prevented or detected on a timely
basis.  The
material weakness relates to the lack of segregation of duties in financial
reporting, as our financial reporting and all accounting functions are performed
by an external consultant with no oversight by a professional with accounting
expertise.  Our President does not possess accounting expertise and our
company does not have an audit committee.  This weakness is due to the
companys lack of working capital to hire additional staff.  To remedy this
material weakness, we intend to engage another accountant to assist with
financial reporting as soon as our finances will allow.  This annual report
does not include an attestation report of the Companys registered public
accounting firm regarding internal control over financial reporting. 
Managements report was not subject to the attestation by the Companys
registered public accounting firm pursuant to temporary rules of the SEC that
permit the Company to provide only managements report in this annual
report.  The Companys
management carried out an assessment of the effectiveness of the Companys
internal control over financial reporting as of December 31, 2008. The Companys
management based its evaluation on criteria set forth in the framework in
Internal ControlIntegrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on that assessment, management
has concluded that the Companys internal control over financial reporting was
not effective as of December 31, 2008  Item 9B.   Other
Information  None.  Part
III  Item 10.  
Directors, Executive Officers and Control Persons.  Identification of
Directors and Executive Officers of the Company  All directors of the
Registrant hold office until the next annual general meeting of the stockholders
or until their successors are elected and qualified. The Registrants officers
are appointed by our board of directors and hold office until their earlier
death, retirement, resignation or removal. Our directors, executive officers and
other significant employees, their ages, positions held and duration each person
has held that position, are as follows:  Name

Age

Positions and OfficesBrook W. Lang

44

Chief Executive Officer of the Company since May
2008Robert Montesano

32

President and Director of the Registrant since May
2008Brian Conte

48

Chief Development Officer of the Company since May
2008Wong Peck Ling

37

Chief Financial Officer and Director of the
Registrant since January 2004  Brook W. Lang
has served as our chief executive officer since May 8, 2008.  Mr. Lang is a
seasoned executive with over 20 years of experience in sales and marketing,
financial management, operations, and product development capacities in high
tech industries. In several executive, senior executive, sales and business
development, advisory, board and board advisory roles, Mr. Lang has conducted
business domestically in the U.S. and internationally in Europe and Asia
building, company relationships and working with industry, trade and standards
organizations.  In February 2003, Mr. Lang worked with L & S on several
executive projects in the wireless industry, helping launch products and
services to the wireless, content, games, retail, distribution and enterprise
markets. In December of 2004, as part of these projects, Mr. Lang was actively
recruited, together with some of his own intellectual property, to help lead the
Company, a wireless Location Based Services (LBS) mobile application company
focused on the mobile search and advertising market. Mr. Lang works closely with
the technology team to develop and evolve the technologies and is responsible
for marketing, distribution and branding for the Companys applications,
targeting national and regional brand advertisers and small to medium sized
local advertisers. Mr. Lang is also responsible for development of relationships
with mobile software aggregators and global wireless carriers, to offer private
labeled solutions and other mobile marketing solutions.  Mr. Lang holds a
Bachelors degree in Business Administration from the University of
Washington.  Robert
Montesano has served as President since November 6, 2007 and was named
Director on May 8, 2008.  Robert Montesano manages the administration and
assists Mr. Lang in the marketing and distribution efforts.  From 1999 to
2005, Mr. Montesano commenced his sales and marketing career at Sutton West
Realty Group, where he was involved in real estate transactions with various
clients. In 2005, Mr. Montesano commenced working for Superior Product Designs,
Inc., where he set up an initial infrastructure to support sales efforts
worldwide. Robert graduated from York University in Toronto and received a
Bachelor of Business Administration.  Brian Conte
has served as our chief development officer since May 8, 2008.  Mr. Conte
manages the development and technological aspects of Montavos mobile
applications and solutions. He founded Fast Track Development in 1999 and has
over 15 years of entrepreneurial experience and technology expertise. Mr. Conte
was among the early employees of Microsoft, being the 225th employee
hired, and managed the development of Microsoft's first browser in 1985 and
later founded hDC/Express Systems, the first Windows software company. Mr. Conte
ran hDC, later named Express Systems, for 10 years before selling it to WRQ Inc.
in 1996, where he remained as CTO until 1999.  Mr. Conte spearheaded the
development of one of WRQ's most successful products, Express 2000, which
generated more than $10 million in its first year.   In 2002, Mr.
Conte launched a development company with an office in India which currently has
35+ employees, specializing in Microsoft.NET Development for desktop and mobile
platforms.  Mr. Conte designed and developed Fast Tracks Home Automation
product line, which won Electronic Houses 2006 Best Home of the Year award in
its debut year and was featured on the Discovery Channel.  Mr. Conte holds
a BSE in Electrical Engineering and Computer Science from Princeton
University.  Wong Peck Ling
has served as our chief financial officer and a director since January 30, 2004,
and was our chief executive officer from January 30, 2004 until December 13,
2004. From July 1992 to September 1995, Ms. Wong was an external auditor with
Ernst & Young Public Accountants in Kuala Lumpur, Malaysia. In June 1997,
Ms. Wong joined Insinger Brumby Berhad [add full name], a Labuan private
management company, and is presently an executive director. Ms. Wong is a member
of the CPA Australia (CPA) and a Chartered Accountant with the Malaysian
Institute of Accountants. In July 1992, Ms. Wong graduated from Monash
University in Melbourne, Australia with a Bachelor of Economics degree, majoring
in Accounting.  Our officers and
directors have not been affiliated with any business that has filed for
bankruptcy, had a bankruptcy petition filed against it or had a receiver
appointed for it, and have not personally been subject to bankruptcy
proceedings, within the last five years. Our officers and directors have not
been convicted or named in any criminal proceedings (excluding traffic
violations and other minor offenses), or been the subject of any order, judgment
or decree enjoining their business practices, their activity in connection with
the purchase or sale of securities, commodities or other investments, or any
other activities in connection with a violation of Federal or state securities
or commodities laws.  We are not aware of
any proceedings to which any of our officers or directors, or any associate of
any such officers or directors, is a party adverse to the Registrant, the
Company or any of our subsidiaries or has a material interest adverse to us.  There are no
agreements with respect to the election of directors.  The Company has no
audit or compensation committee.   Item 11. Executive
Compensation  Summary
Compensation  The following table
presents certain specific information regarding the compensation of our Chief
Executive Officer and Chief Financial Officer during the last three fiscal
years. Except as set forth below, we have not paid any other executive officer
in excess of $100,000 (including salaries and benefits) during the years ended
December 31, 2007, and 2008..  SUMMARY COMPENSATION TABLEAnnual compensation
Long-term compensationAwards
PayoutsName and
principal
position
Fiscal
Year
Covered
Salary
($)
Bonus
($)
Other
annual
compensa
-tion
($)
Restricted
stock
award(s)
($)
Securities
under-
lying
options/
SARs
(#)
LTIP
payouts
($)
All other
compen-
sation
($)(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)Mel Venka-
teswaran,
CEO(1)
2007
2006
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0Craig Moody, CEO(2)
2008
17,000(2)
0
0
0
0
0
0Wong Peck
Ling,
CFO
2008
2007
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0Robert Montesano, President(3)
2008
0
0
0
0
0
0
0Brook W. Lang, CEO(4)
2008
0
0
0
(value of option)
54,451
0
0Brian Conte(4)
2008
0
0
0
(value of option)
54,451
0
0 (1) Mel Venkateswaran resigned his
position as CEO on November 6, 2007. (2) Craig Moody was appointed CEO on
November 6, 2007 and resigned on May 6, 2008.  See Employment Agreements
below for additional information. (3) Robert Montesano was appointed
President on  November 6, 2007. (4) On May 8, 2008, Brook W. Lang was
appointed CEO and Brian Conte was appointed CDO.  The company has
retained L & S, from which Mr. Lang receives some compensation,  for
management services & expenses.  These management services and expenses
totaled   $219,923 in 2008, $142,512 in 2007.  Grants of Stock
Options and Stock Appreciation Rights  As consideration for
marketing services, the Company issued options to Bob Pinkerton, a member of the
Companys advisory board, to purchase an aggregate of 90,000 (for both 2005 and
2006) shares of the Companys common stock and agreed to pay Mr. Pinkerton
$15,000.  Pursuant to a letter agreement dated May 10, 2008, between the
Company and Mr. Pinkerton, Mr. Pinkerton agreed to the cancellation of the
amount owed in exchange for the issuance of 30,000 shares of the Companys
common stock to Mr. Pinkerton.  As consideration for
advisory services in 2005, the Company issued options to Michael Mortier, a
member of the Companys advisory board, to purchase an aggregate of 100,000
shares of the Companys common stock.  As consideration for
advisory services, on March 31, 2006, the Company issued options to Kenneth
Young, a member of the Companys advisory board, to purchase an aggregate of
150,000 shares of the Companys common stock.  As consideration for
advisory services, on April 13, 2005, the Company issued an option to Doug
Chartier, a member of the Companys advisory board, to purchase 40,000 shares of
the Companys common stock.  As consideration for
advisory services in 2005 and 2006, the Company issued options to Steve Moore, a
member of the Companys advisory board, to purchase an aggregate of 300,000
shares of the Companys common stock.  As consideration for
advisory services in June 22, 2005, the Company issued options to Nathan
McDonald, a member of the Companys advisory board, to purchase an aggregate of
10,000 shares of the Companys common stock.  As consideration for
advisory services in 2006 and 2007, the Company issued options to Jeff Swanson,
a member of the Companys advisory board, to purchase an aggregate of 40,000
shares of the Companys common stock.  As consideration for
advisory services in September 1, 2006, the Company issued options to Marc
Weinberg, a member of the Companys advisory board, to purchase an aggregate of
10,000 shares of the Companys common stock.  As consideration for
advisory services in February 1, 2008, the Company issued options to Don
Stangle, a member of the Companys advisory board, to purchase an aggregate of
25,000 shares of the Companys common stock.  As consideration for
advisory services in February 1, 2008, the Company issued options to Dan Allen,
a member of the Companys advisory board, to purchase an aggregate of 40,000
shares of the Companys common stock.  Employment
Contracts  On November 6, 2007,
the Company entered into an employment agreement with then CEO, Craig Moody.
 The agreement was reported and filed as part of a Current Report on Form
8-K on November 14, 2007, which is incorporated herein by reference.  The
Agreement was subsequently cancelled on May 6, 2008.  Mr. Moody filed a
release of all claims under the Agreement for and in consideration of a payment
of $17,000.  Item 12. Security
Ownership Of Certain Beneficial Owners And Management  There were 36,223,353
shares of Montavo common stock issued and outstanding as of December 31, 2008.
The following table lists, as of December 31, 2008, the number of shares of the
Registrants common stock that are beneficially owned by (i) each person or
entity known to the Registrant to be the beneficial owner of more than 5% of the
outstanding common stock; (ii) each officer and director of the Registrant; and
(iii) all officers and directors as a group. Information relating to beneficial
ownership of common stock by our principal stockholders and management is based
upon information furnished by each person using beneficial ownership concepts
under the rules of the Securities and Exchange Commission. Under these rules, a
person is deemed to be a beneficial owner of a security if that person has or
shares voting power, which includes the power to vote or direct the voting of
the security, or investment power, which includes the power to vote or direct
the voting of the security. The person is also deemed to be a beneficial owner
of any security of which that person has a right to acquire beneficial ownership
within 60 days. Under the Securities and Exchange Commission rules, more than
one person may be deemed to be a beneficial owner of the same securities, and a
person may be deemed to be a beneficial owner of securities as to which he or
she may not have any pecuniary beneficial interest. Except as noted below, each
person has sole voting and investment power.  Unless indicated
otherwise, all addresses below are c/o Montavo, Inc., 4957 Lakemont Blvd. SE,
C-4 Suite #239, Bellevue, WA 98006.  Name of Beneficial Owner

Number of Shares
Owned Beneficially

Percent of
Beneficially Owned
SharesBrook W. Lang

2,001,050

5.5%Robert Montesano

360,000

1.0%Brian Conte

4,321,187

11.9%Wong Peck Ling

1, 612,000

4.5%Stamford Bridge Holdings
Limited (1)

1, 612,000

4.5%Bret Nesland

2,518,786

7.0%Armada Capital LLC(2)

4,658,573

12.9%All directors and executive officers as a group (4
persons)

8,294,237

22.9%  (1)
Stamford Bridge Holdings Limited owns 1, 612,000
shares of our Common Stock. Ms. Wong Peck Ling, our Chief Financial
Officer and a director, is the sole shareholder of Stamford Bridge
Holdings Limited and is deemed to beneficially own the shares owned by
Stamford Bridge Holdings Limited.  (2)
Mr. Bret Nesland is the sole shareholder and
director of Armada Capital LLC and may be deemed to beneficially own any
shares of our Common Stock issued to Armada Capital LLC. Change
in Control. There are no arrangements known to the Company, including any pledge
by any person of securities of the Company, the operation of which may at a
subsequent date result in a change of control of the Company.  Item
13. Certain Relationships and Related Transactions, and Director
Independence  Montavo recorded
management services & expenses totaling $219,923 and $142,512 to an entity
owned by a shareholder  during the years ended December 31, 2008 and 2007,
respectively.  At December 31, 2008 and 2007, $76,358 and $163,746 of these
fees are unpaid.  In addition, Montavo
recorded software development costs totaling $165,469 and $66,871 to a
shareholder for software development services for the years ended December 31,
2008 and 2007, respectively. At December 31, 2008 there have been no payments on
these fees. The amounts are secured by all of the assets of Montavo. The amounts
are convertible into common stock of Montavo if Montavo sells $250,000 or more
of Series A Convertible Preferred Stock in an equity financing. If triggered,
the amounts owed would be converted at the same price per share as the equity
financing. At December 31, 2008 and 2007, $165,469 and $110,588 of these fees
are unpaid.  In 2007, shareholders
made interest bearing loans to Montavo totaling $107,500. The loans were secured
by all of Montavos assets. Interest expense on these loans was calculated at
6%, and $4,727 was charged to interest expense in 2007. Montavo repaid the loans
in full in 2007.  In the years ended
December 31, 2007 and 2008, a shareholder made non-interest bearing advances
that are payable on demand to Montavo totaling $455 and $4,500, respectively.
 As of December 31, 2006, Montavo owed this shareholder $17,536 in
advances.  The $4,500 was repaid prior to December 31, 2008.  Interest
expense on these loans has been imputed at 6%, and $1,147 and $856 was charged
to interest expense and credited to additional paid in capital for the years
ended December 31, 2007 and 2008, respectively.  In the years ended
December 31, 2006 and 2005, a shareholder made interest bearing, unsecured loans
to Montavo totaling $6,000 and $14,000, respectively and had remained
outstanding as of December 31, 2007 and 2008.  Interest expense on these
loans was calculated at 6%, and $1,200 and $600 was charged to interest expense
in the years ended December 31, 2007 and 2008, respectively.  These loans
and the related accrued interest were converted into common stock of Montavo at
$.50 per share at September 2008.  At December 31, 2008
and 2007, shareholder advances totaled $17,491 and $37,510 respectively.  A shareholder
advanced an additional $25,000 to Montavo in September 2008.  These funds
are related to a convertible promissory note with a stated interest rate of 12%.
 The note is convertible at the option of the holder at $.50/share.
 Interest expense of $378 was accrued as of December 31, 2008, relating to
this loan.  Montavo analyzed the convertible note for derivative accounting
consideration under SFAS 133 and EITF 00-19.  Montavo determined the
embedded conversion option in the convertible note met the criteria for
classification in stockholders equity under SFAS 133 and EITF 00-19.
 Therefore, derivative accounting was not applicable.  At December 31, 2008
and 2007, convertible debt totaled $25,000 and $0, respectively.  The Company has
offices at 4957 Lakemont Blvd., Suite #239, Bellevue, WA 98006 and has an
engineering facility, including a meeting room and server room. This space is
provided at no cost by the chief development officer.  Item 14. Principal
Accounting Fees and Services  The following table
presents for each of the last two fiscal years the aggregate fees billed in
connection with the audits of our financial statements and other professional
services rendered by our independent registered public accounting firm Malone
& Bailey, PC, Certified Public Accountants and Consultants.  2008


2007Audit
fees

$
27,935


$
29,520Audit related
fees


12,075



0Tax fees


0



0All other
fees


10,455



0  Audit fees represent
the professional services rendered for the audit of our annual financial
statements and the review of our financial statements included in quarterly
reports, along with services normally provided by the accounting firm in
connection with statutory and regulatory filings or
engagements.  Audit-related fees represent professional services
rendered for assurance and related services by the accounting firm that are
reasonably related to the performance of the audit or review of our financial
statements that are not reported under audit fees.  Tax fees represent
professional services rendered by the accounting firm for tax compliance, tax
advice, and tax planning.  All other fees represent fees billed for
products and services provided by the accounting firm, other than the services
reported for in the other categories.  Policy on
pre-approval of audit and permissible non-audit services  Our Board of
Directors unanimously approved 100% of the fees paid to the principal accountant
for audit-related, tax and other fees. Our Board of Directors pre-approves all
non-audit services to be performed by the auditor. The percentage of hours
expended on the principal accountant's engagement to audit our financial
statements for the most recent fiscal year that were attributed to work
performed by persons other than the principal accountant's full-time, permanent
employees was 0%.  Part
IV  Item 15.
Exhibits, Financial Statement Schedules.  (a)
Financial
Statements and Schedules  The following
financial statements and schedules are filed as part of this report, immediately
following the signature page:  Report of
Independent Registered Public Accounting Firm dated April 14, 2009


F-1Consolidated
Balance Sheets as of December 31, 2008 and 2007


F-2Consolidated
Statements of Expenses for the Years Ended December 31, 2008 and 2007, and
from December 23, 2004 (Inception) to December 31, 2008


F-3Consolidated
Statement of Stockholders Deficit from December 31, 2004 (Inception) to
December 31, 2008


F-4Consolidated
Statements of Cash Flows for the Years Ended December 31, 2008 and 2007,
and from December 23, 2004 (Inception) to December 31, 2008


F-5Notes to
Financial Statements


F-6  EXHIBITS FILED WITH
THIS REPORT  3.1
Certificate of
Incorporation (filed as Exhibit 3.1 to our registration statement on Form
10-SB filed with the SEC on February 8, 2000 (SEC File No. 000-29397) (the
2000 Form 10-SB) and incorporated herein by reference).3.1.1
Certificate of
Amendment (filed as Exhibit 3.1.1 to our Current Report on Form 8K filed
with the SEC on August 29, 2008, and incorporated herein by
reference).  3.2
Bylaws (filed
as Exhibit 3.2 to the 2000 Form 10-SB and incorporated herein by
reference).10.1
Employment
Agreement with Craig Moody (filed as Exhibit 10.3 to our Current Report on
Form 8K filed with the SEC on November 14, 2007, and incorporated herein
by reference).10.2
Mutual Release
Agreement with Craig Moody (filed as Exhibit 10.2 to our Current Report on
Form 8K filed with the SEC on May 9, 2008, and incorporated herein by
reference).10.3
Agreement
between North Coast Partners, Inc. (now Montavo, Inc.) and North Coast
Acquisition Corp. (filed as Exhibit 10.1 to our Current Report on Form 8K
filed with the SEC on May 9, 2008, and incorporated herein by
reference).10.4
Asset Sale and
Assignment Agreement (filed as Exhibit 10.3 to our Current Report on Form
8k filed with the SEC on August 29, 2008, and incorporated herein by
reference).10.5
Convertible
Promissory Note dated August 28, 2008 (filed as Exhibit 10.4 to our
Current Report on Form 8K filed with the SEC on August 29, 2008, and
incorporated herein by reference).31.1
Certification
of Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act*31.2
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act*32.1
Certification
of Principal Executive Officer and Principal Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley*  * Exhibit filed herewith.       SIGNATURES  Pursuant to the
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.        MONTAVO,
INC.April 13,
2009


***/s/ Brook W.
Lang***Brook W. Lang,
Chief Executive OfficerApril 13,
2009


***/s/ Wong Peck Ling***Wong Peck Ling,
Chief Financial Officer  Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.  April 13,
2009
By:
***_/s/
Wong Peck Ling_____________________***Name:
Wong Peck
LingTitle:
Chief Financial
Officer and DirectorApril 13,
2009
By:
***_/s/
Robert Montesano___________________***Name:
Robert
MontesanoTitle:
President,
Director              FINANCIAL STATEMENTS    Report of
Independent Registered Public Accounting Firm dated April 14, 2009


F-1Consolidated
Balance Sheets as of December 31, 2008 and 2007


F-2Consolidated
Statements of Expenses for the Years Ended December 31, 2008 and 2007, and
from December 23, 2004 (Inception) to December 31, 2008


F-3Consolidated
Statement of Stockholders Deficit from December 31, 2004 (Inception) to
December 31, 2008


F-4Consolidated
Statements of Cash Flows for the Years Ended December 31, 2008 and 2007,
and from December 23, 2004 (Inception) to December 31, 2008


F-5Notes to
Financial Statements


F-6       REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  To the Board
of Directors Montavo,
Inc. (A Development
Stage Company) Bellevue,
Washington  We have
audited the accompanying consolidated balance sheets of Montavo, Inc. (Montavo)
as of December 31, 2008 and 2007, and the related consolidated statements of
expenses, cash flows and changes in stockholders deficit for the years then
ended and the period from December 23, 2004 (inception) through December 31,
2008. These consolidated financial statements are the responsibility of
Montavos management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.  We conducted
our audits in accordance with standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement. Montavo is not required
to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Montavos internal control over financial
reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
consolidated financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.  In our
opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the financial position of Montavo, Inc., as of
December 31, 2008 and 2007, and the results of its operations and its cash flows
for the periods then ended and the period from December 23, 2004 (inception)
through December 31, 2008, in conformity with accounting principles generally
accepted in the United States of America.  The
accompanying consolidated financial statements have been prepared assuming that
Montavo will continue as a going concern. As discussed in Note 2 to the
consolidated financial statements, Montavo has suffered recurring losses from
operations which raises substantial doubt about its ability to continue as a
going concern. Managements plans regarding those matters also are described in
Note 2. The consolidated financial statements do not include any adjustments
that might result from the outcome of this uncertainty.    Malone &
Bailey, PC www.malone-bailey.com Houston,
Texas April 14,
2009   MONTAVO, INC.(A Development Stage
Company)CONSOLIDATED BALANCE
SHEETSDecember 31,

December 31,2008

2007ASSETSCurrent assets:Cash
$
                 2,406

$
                     112Long-term assetsSoftware developed for internal use
320,140

110,588Patent pending
36,963

27,378Total assets
$
             359,509

$
              138,078LIABILITIES AND STOCKHOLDERS' DEFICITCurrent liabilities:Accounts payable
$
             133,209

$
                64,422Accounts payable - related party
241,828

274,334Accrued interest
756

29,603Shareholder advances
17,491

37,510Convertible debt - related party
25,000

-Bridge round loans, net of discount of $0 and $0,
respectively
-

297,500Total current liabilities
418,284

703,369Stockholders' deficit:Preferred stock, $.001 par value, 5,000,000 and
1,000,000 shares authorized,none issued and outstanding at December 31, 2008
and 2007, respectively
-

-Common stock, $.001 par value, 100,000,000 and
20,000,000 shares authorized,36,223,353 and 6,074,375 shares issued and
outstanding at December 31, 2008 and 2007, respectively
36,474

6,074Additional paid in capital
1,516,364

197,177Deficit accumulated during the development
stage
(1,611,613)

(768,542)Total stockholders' deficit
(58,775)

(565,291)Total liabilities and stockholders' deficit
$
             359,509

$
              138,078The
accompanying notes are an integral part of these financial
statements.   MONTAVO, INC.(A Development Stage
Company)CONSOLIDATED STATEMENTS OF
EXPENSESDecember 23, 2004Year ended

(Inception) toDecember 31,

December 31,2008

2007

2008Operating expenses

$
          822,925

$
          194,463

$
            1,526,614Net loss from operations
(822,925)

(194,463)

(1,526,614)Interest expense

(20,146)

(32,633)

(84,999)Net loss


$
        (843,071)

$
        (227,096)

$
           (1,611,613)Basic and diluted net loss per share
$
              (0.06)

$
              (0.03)

N/AWeighted average shares outstanding
14,847,714

6,000,000

N/AThe
accompanying notes are an integral part of these financial
statements.   MONTAVO, INC.(A Development Stage Company)CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
DEFICITPeriod from December 23, 2004 (Inception) through December
31, 2008Number of Common Shares Issued
Common Stock at Par Value
Additional Paid-in Capital
Deficit accumulated during the development stage
TotalIssuance of
founder shares for cash December 23, 2004
3,000,000
$
   3,000
$
                 68,061
$
                  -
$
      71,061Balances,
December 31, 2004
3,000,000
3,000
68,061
-
71,061Issuance of
common stock for services July
3,000,000
3,000
68,061

71,061Options and
warrants issued for services in:February



1,730

1,730March



1,551

1,551April



680

680May



237

237June



125

125December



47

47Imputed interest
on shareholder advances


533

533Net loss




(197,609)
(197,609)Balances,
December 31, 2005
6,000,000
6,000
141,025
(197,609)
(50,584)Shares issued
for cash:April

5,000
5
113

118May

15,000
15
340

355August

16,250
16
369

385October

12,500
12
284

296November

8,750
9
199

208December

1,875
2
42

44Options and
warrants issued for services in:February



3,241

3,241March



3,552

3,552April



89

89June



2,211

2,211July



142

142August



49

49September



79

79Vesting of prior
period options and warrants


2,147

2,147Shares issued by
shareholders on behalf of Montavo formodification
of loan terms accounted for as aa
contribution to capital


37,899

37,899Imputed interest
on shareholder advances


1,053

1,053Net loss




(343,837)
(343,837)Balances,
December 31, 2006
6,059,375
6,059
192,834
(541,446)
(342,553)Shares issued
for cash:January

8,750
9
198

207April

6,250
6
142

148Options and
warrants issued for services in:January



710

710Vesting of prior
period options and warrants


2,146

2,146Imputed interest
on shareholder advances


1,147

1,147Net loss




(227,096)
(227,096)Balances,
December 31, 2007
6,074,375
6,074
197,177
(768,542)
(565,291)Shares issued
for services in January
2,000,000
2,000
45,400

47,400Shares issued
for services in September
525,000
525
261,975

262,500Shares issued
for cash:Prior
period adjustment
47,250
47
1,010

1,057March

4,375
4
162

166April

10,000
10
227

237May

20,000
20
454

474June

3,000
3
68

71July

4,000
4
91

95August

3,000
3
68

71November

130,000
130
51,870

52,000December

75,000
76
29,924

30,000Options and
warrants expense


9,231

9,231Shares retained
by North Coast in reverse merger(net
liabilities assumed by Montavo)
13,080,000
13,080
(277,147)

(264,067)Shares issued to
convert North Coast notes payable
1,398,841
1,399
248,918

250,317Shares issued to
convert Montavo notes payable,accrued
interest and accounts payable
1,670,600
1,671
862,617

864,288Shares issued in
excess of liabilities converted(accounted
for as compensation)
169,400
169
84,531

84,700Shares issued
for exercise of options by waivingexercise
price (accounted for as compensation)
1,169,000
1,169
9,023

10,192Shares issued to
meet contractual ownershipobligations
related to merger agreement
10,089,512
10,090
(10,090)

-Imputed interest
on shareholder advances


855

855Net loss




(843,071)
(843,071)Balances,
December 31, 2008
36,473,353
$
  36,474
$
            1,516,364
$
  (1,611,613)
$
     (58,775)      MONTAVO, INC.(A Development Stage
Company)CONSOLIDATED STATEMENTS OF CASH
FLOWSDecember 23, 2004Year ended

(Inception) toDecember 31,

December 31,2008

2007

2008CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
$     (843,071)

$
           (227,096)

$
                   (1,611,613)Adjustments to reconcile net loss to netcash used in operating activities:Amortization of discount on notes payable
-

1,232

1,761Issuance of common stock for services
309,900

-

380,961Shares issued for modification debt terms
-

-

37,899Shares issued in excess of liabilities
converted(accounted for as compensation)
84,700

-

84,700Shares issued for exercise of options by
waivingexercise price (accounted for as
compensation)
10,192

-

10,192Option and warrant expense
9,231

2,856

27,967Imputed interest
855

1,147

3,588Changes in:Accounts payable
(4,017)

27,792

60,405Accounts payable related party
177,568

120,746

341,314Accrued interest
14,986

23,103

44,589Net cash used in operating activities
(239,656)

(50,220)

(618,237)CASH FLOWS FROM INVESTING ACTIVITIESInvestment in patent
(9,585)

(4,210)

(36,963)Net cash used in investing activities
(9,585)

(4,210)

(36,963)CASH FLOWS FROM FINANCING ACTIVITIES:Bank overdraft
-

(5,413)

-Proceeds from sales of common stock
84,171

355

156,993Net shareholder advances
-

(45)

17,491Proceeds from notes payable
167,364

167,145

590,622Payments on notes payables
-

(107,500)

(107,500)Net cash provided by financing activities
251,535

54,542

657,606NET CHANGE  IN CASH AND CASH
EQUIVALENTS
2,294

112

2,406CASH AND CASH EQUIVALENTS, beginning of period
112

-

-CASH AND CASH EQUIVALENTS, end of period
$
          2,406

$
                   112

$
                            2,406Supplemental cash flow disclosures:Cash paid for income taxes
$
                  -

$
                        -

$
                                   -Cash paid for interest
-

-

-Noncash investing and financing activitiesSeller financed software developed for internal
use
209,552

21,174

320,140Shares retained by North Coast in reverse
merger(net liabilities assumed by Montavo)
264,067

-

264,067Shares issued to convert North Coast notes
payable,accrued interest
250,317

-

335,995Shares issued to convert Montavo notes
payable,accured interest and accounts payable
864,288

-

864,288Additional shares issued to Montavo
shareholdersto meet 60% threshold per merger agreement
10,090

-

10,090The
accompanying notes are an integral part of these financial
statements.    MONTAVO, INC.  NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1 
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Organization and Nature of Business Activity  Montavo, Inc. (The Company or Montavo) is a Washington
corporation formed on December 23, 2004 and is developing a mobile Location
Based Services marketing solution for wireless carriers, mobile handsets
manufacturers, wireless carrier and device software aggregators, personal
navigation device manufacturers, and vehicle manufacturers. The Company is a
Development Stage Company, as defined by Statement of Financial Accounting
Standard (SFAS) No.7 Accounting and Reporting by Development Stage
Enterprises. Montavo has a patent pending technology filed for method and
distribution system for location based wireless presentation of electronic
coupons.  Acquisition Corp. was incorporated under the laws of the
State of Delaware on April 20, 1994. From such date until December 13, 2004, the
Company had no operating history other than organizational matters.  On
December 13, 2004, Trans Media Inc. ("Trans Media"), a Wyoming corporation,
became a wholly owned subsidiary of the Company. Such transaction was treated as
a reverse merger of Trans Media.  Trans Media was incorporated in the province of British
Columbia on July 23, 2001 as 631411 B.C., LTD, and renamed Transworld Media,
Inc. on October 28, 2002. It was reincorporated in Wyoming and renamed Trans
Media, Inc. on November 18, 2004. Since October 2002, Trans Media has been
engaged in the production and distribution of musical CD's and musical
performances targeted to the South Asian immigrants residing in North
America.  In August 2008, the Company, Montavo Inc and North Coast
Partners (North Coast) merged, whereby, Acquisition Corp was merged with and
into Montavo and Montavo assumed North Coast's assets and liabilities.
 Montavo exchanged 100% (11,700,000 shares) of Montavo for 11,700,000
shares of North Coast with 13,080,000 shares retained by the North Coast
shareholders.  The merger was deemed to be a reverse merger whereby Montavo
is the accounting acquirer due to Motavos control of the board of directors and
management.  Recapitalization accounting was deemed appropriate due to
North Coast having nominal operations and none of those operations continuing
post merger.  Montavo shareholders obtained an additional 10,089,512 common
shares in November 2008, due to lack of another merger or business combination
giving the Montavo shareholders approximately 60% of the combined company.  This summary of significant accounting policies of
Montavo is presented to assist in understanding the consolidated financial
statements. The consolidated financial statements and notes are representations
of management, who are responsible for their integrity and objectivity. These
accounting policies conform to account principles generally accepted in the
United States of America and have been consistently applied in the preparation
of the consolidated financial statements. The following items comprise the
significant accounting policies of Montavo.  Basis of Accounting  Montavo maintains its accounts on the accrual basis of
accounting in accordance with accounting principles generally accepted in the
United States of America. Accounting principles followed by Montavo and the
methods of applying those principles, which materially affect the determination
of financial position, results of operating and cash flows are summarized
below.  Principles of Consolidation  The consolidated financial statements have been prepared
on the accrual basis of accounting under accounting principles generally
accepted in the United States. All significant inter-company balances and
transactions have been eliminated in consolidation.  Use of Estimates  The preparation of consolidated financial statements in
conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the consolidated financial statements, and the
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.  Cash and Cash Equivalents  Cash and cash equivalents includes cash on hand, cash in
banks and all highly liquid investments with original maturities of three months
or less at the time of purchase.  Software Developed for Internal Use  Software development costs for internal use are
capitalized in accordance with Statement of Position 98-1, Accounting for
the Cost of Computer Software Developed or Obtained for Internal Use and,
once placed in service, amortized using the straight-line method over the
estimated useful life. Montavo is currently developing proprietary Deal-Finder
mobile search and mobile advertising media technology. Montavo has capitalized
costs for internally developed software totaling $320,140 and $110,588 as of
December 31, 2008 and 2007, respectively. A significant portion of the costs
have been incurred through a vendor which is owned 100% by Montavos CDO, Brian
Conte.  See footnote 3 regarding the funds owed to this related-party
vendor.  As of December 31, 2008, the software was still under development
and has not been placed in service and therefore amortization has not yet begun.
 Montavo evaluated the software development costs under Statement of
Financial Accounting Standard (SFAS) No.144 Accounting for the Impairment
or Disposal of Long-Lived Assets and determined that there is no
impairment.  Patents  The cost of patents represents amounts paid to third
parties, including legal costs associated with successfully defending or
obtaining the patents. Amortization will be calculated on a straight-line basis
over the estimated useful life of the related asset. If patent applications are
unsuccessful, cost associated with these patents is expensed immediately.
Montavo has a patent pending technology filed for method and distribution
system for location based wireless presentation of electron coupons. Montavo
has capitalized costs for patent-related legal fees totaling $36,963 and $27,378
as of December 31, 2008 and 2007, respectively. As of December 31, 2008, the
patent is still pending and therefore amortization has not yet begun.  Basic and Diluted Net Loss Per Share  The
Company computes net income (loss) per share in accordance with SFAS No. 128,
"Earnings per Share". SFAS No. 128 requires presentation of both basic
and diluted earnings per share (EPS) on the face of the income statement. Basic
EPS is computed by dividing net income (loss) available to common shareholders
(numerator) by the weighted average number of shares outstanding (denominator)
during the period. Diluted EPS gives effect to all dilutive potential common
shares outstanding during the period using the if-converted method. Diluted EPS
excludes all dilutive potential shares if their effect is anti dilutive. At
December 31, 2008 and 2007, there were 0 and 120,611 potential common shares,
respectively, that were anti-dilutive.  Debt Discounts  Debt discounts are being amortized through periodic
charges to interest expense over the maximum term of the related financial
instrument using the effective interest method. Total amortization of debt
discounts amounted to $-0- and $1,232 during the years ended December 31, 2008
and 2007, respectively.  Income Taxes  Potential benefits of income tax losses are not
recognized in the accounts until realization is more likely than not. The
Company has adopted SFAS No. 109 Accounting for Income Taxes as of its
inception. Pursuant to SFAS No. 109, the Company is required to compute tax
asset benefits for net operating losses carried forward. Potential benefit of
net operating losses have not been recognized in these consolidated financial
statements because the Company cannot be assured it is more likely than not it
will utilize the net operating losses carried forward in future years.    Black-Scholes Valuation Model  Montavo used the Black-Scholes pricing model to determine
the fair values of its options and warrants. The model uses market sourced
inputs such as interest rates, stock prices, and option volatilities, the
selection of which requires managements judgment, and which may impact net
income or loss. Montavo uses a risk free interest rate which is the U.S.
Treasury bill rate for a security with a maturity that approximates the
estimated expected life of the derivative or security. Montavo applies the
simplified method under SAB107 to determine the expected life.  Stock Based Compensation  Montavo records compensation expense associated with
stock options and other forms of equity compensation in accordance with
Statement of Financial Accounting Standards (SFAS) No. 123R, Share-Based
Payments, as interpreted by SEC Staff Accounting Bulletin No. 107.  Stock issued to employees is recorded at the fair value
on the date of grant and recognized as compensation expense over the applicable
requisite service period. Warrants granted to non-employees are recorded at the
estimated fair value of the options granted using the Black-Scholes pricing
model and recognized as general and administrative expense over the applicable
requisite service period.  Recently Issued Accounting Pronouncements  Montavo does not expect the adoption of any recently
issued accounting pronouncements to have a significant impact on their financial
position, results of operations or cash flows.  NOTE 2  GOING CONCERN  As shown in the accompanying consolidated financial
statements, Montavo incurred net losses from operations and has an accumulated
deficit and a working capital deficit as of December 31, 2008 and 2007. These
conditions raise substantial doubt as to Montavos ability to continue as a
going concern. As of the date of this report, Montavo believes that it will not
be able to fund its operations, working capital requirements, and debt service
requirements through fiscal year 2009 through cash flows generated by
operations. The consolidated financial statements do not include any adjustments
that might be necessary if Montavo is unable to continue as a going concern.  NOTE 3  RELATED PARTY TRANSACTIONS  Montavo recorded management fees totaling $219,923 and
$142,512 to a shareholder for his services rendered during the years ended
December 31, 2008 and 2007, respectively.  At December 31, 2008 and 2007,
$76,358 and $163,746 of these fees are unpaid.  In addition, Montavo recorded software development costs
totaling $165,469 and $66,871 to a shareholder for software development services
for the years ended December 31, 2008 and 2007, respectively. At December 31,
2008 there have been no payments on these fees. The amounts are secured by all
of the assets of Montavo. The amounts are convertible into common stock of
Montavo if Montavo sells $250,000 or more of Series A Convertible Preferred
Stock in an equity financing. If triggered, the amounts owed would be converted
at the same price per share as the equity financing. At December 31, 2008 and
2007, $165,469 and $110,588 of these fees are unpaid.  In 2007, shareholders made interest bearing loans to
Montavo totaling $107,500. The loans were secured by all of Montavos assets.
Interest expense on these loans was calculated at 6%, and $4,727 was charged to
interest expense in 2007. Montavo repaid the loans in full in 2007.  In the years ended December 31, 2007 and 2008, a
shareholder made non-interest bearing advances that are payable on demand to
Montavo totaling $455 and $4,500, respectively.  As of December 31, 2006,
Montavo owed this shareholder $17,536 in advances.  The $4,500 was repaid
prior to December 31, 2008.  Interest expense on these loans has been
imputed at 6%, and $1,147 and $856 was charged to interest expense and credited
to additional paid in capital for the years ended December 31, 2007 and 2008,
respectively.  In the years ended December 31, 2006 and 2005, a
shareholder made interest bearing, unsecured loans to Montavo totaling $6,000
and $14,000, respectively and had remained outstanding as of December 31, 2007
and 2008. Interest expense on these loans was calculated at 6%, and $1,200 and
$600 was charged to interest expense in the years ended December 31, 2007 and
2008, respectively. These loans and the related accrued interest were converted
into common stock of Montavo at $.50 per share in September 2008.  At December 31, 2008 and 2007, shareholder advances
totaled $17,491 and $37,510 respectively.  A shareholder advanced an additional $25,000 to Montavo
in September 2008. These funds are related to a convertible promissory note with
a stated interest rate of 12%.  The note is convertible at the option of
the holder at $.50/share.  Interest expense of $378 was accrued as of
December 31, 2008 relating to this loan. Montavo analyzed the convertible note
for derivative accounting consideration under SFAS 133 and EITF 00-19. Montavo
determined the embedded conversion option in the convertible note met the
criteria for classification in stockholders equity under SFAS 133 and EITF
00-19. Therefore, derivative accounting was not applicable.  At December 31, 2008 and 2007, convertible debt totaled
$25,000 and $0, respectively.  Montavo has office space in Bellevue, Washington. This
space is provided at no cost by the chief development officer on a month to
month basis.  NOTE 4  BRIDGE LOANS  At December 31, 2007 Montavo owed various lenders
$297,500 identified on the Balance Sheet as bridge loans. During 2007, Montavo
issued $60,000 of bridge loan notes with 15,000 shares of common stock. The fair
value of the shares totaled $1,406 and has been accounted for as a discount to
the notes. The discounts have amortized over the one year maturity of the loans.
There is no discount remaining on these loans at December 31, 2007.  During the quarter ended March 31, 2008, Montavo issued
$17,500 of bridge loans with 7,000 common shares. The shares have a fair value
of $166, and have been treated as a discount to the bridge loans.  There is
no discount remaining on these loans at December 31, 2008. During the quarter ended June 30,
2008, Montavo issued $100,000 of bridge loans with 40,000 common shares. The
shares have a fair value of $948, and have been treated as a discount to the
bridge loans. There is no discount remaining on these loans at December 31,
2008.  The bridge loans bear interest at 6% per annum and are
convertible into Montavo common stock if Montavo completes an equity financing
of at least $2 million. The conversion would be calculated by dividing the
principal (and accrued interest at the option of Montavo) by 70% of the price
per share of the common shares pursuant to equity financing Montavo evaluated
the instruments under SFAS 133 and EITF 00-19 for derivative accounting and
determined the instruments met equity criteria and therefore were not
derivatives. Montavo also evaluated the instruments under EITFs 98-5 and 00-27
and determined the conversion feature was contingent on a future event and could
not be fully evaluated until the event occurred. If a change in control of
Montavo or a merger occurs, the holder shall receive the greater of 1.5 times
the principal and interest on the note, or the consideration payable if the
number of shares into which the principal and interest would convert, based on a
$10 million pre-money valuation of the Company immediately prior to change of
control or merger. In May 2008, in anticipation of a
merger, the bridge loan investors agreed to convert the bridge loans immediately
prior to the closing of the merger. Each holder will receive two shares of
common stock for every $1.00 of principal and accrued interest.  In
September 2008, Montavo converted all principal and accrued interest due under
the bridge loans into common stock of Montavo at $.50 per share. Interest expense totaled $22,576
and $10,932 for December 31, 2007 and 2008 relating to the bridge loans and were
outstanding prior to the conversion.  NOTE 5  MERGER WITH NORTH COAST
PARTNERS, INC.  On August 28, 2008, Montavo completed its merger with
North Coast Partners, Inc.  Pursuant to the agreement North Coast
Acquisition Corp., a wholly owned subsidiary of North Coast Partners, Inc.
merged into Montavo, with Montavo being the surviving entity as a wholly owned
subsidiary of North Coast. Upon completion of the merger, all of the issued and
outstanding common stock of Montavo was exchanged for the same number of shares
of common stock of North Coast. 11,700,000 shares of common stock of North Coast
were issued to the shareholders of Montavo at the closing of the merger. In the
event that North Coast did not consummate a merger or business combination with
any other company within 90 days of the closing of the merger, the stockholders
of Montavo will be entitled to receive additional shares in excess of the
11,700,000 shares. No such merger or business combination occurred. Accordingly,
10,089,512 additional common shares were issued to the stockholders of Montavo
on November 28, 2008. As a result, the stockholders of Montavo beneficially own,
in the aggregate, sixty percent (60%) of the issued and outstanding shares of
common stock of North Coast, on a fully diluted basis. The merger was accounted
for as a reverse merger and recapitalization due to Montavo having control of
the board of directors and control of management at the date of merger. Hence,
13,080,000 shares are added to the stockholders equity statement to represent
shares held by North Coast shareholders prior to the merger with Montavo.
 Assets and liabilities of North Coast Partners assumed by Montavo at the
time of merger are as follows:  Cash
$
      419Accounts payable
(37,562)Accrued interest
(18,189)Notes payable
(208,735)Net liabilities
assumed
$
  (264,067)  As part of the assets, Montavo
acquired certain intangible assets (music and song rights) of which zero balance
is noted above due to full impairment of the assets. All of the assumed notes payable
and accrued interest was converted to common shares of Montavo Inc. prior to
December 31, 2008. (See note 6)  NOTE 6  NOTES PAYABLE  Montavo assumed $208,735 in notes
payable in connection with the merger with North Coast Partners, Inc. Of this
amount, $70,050 of principal and $15,628 of interest was converted to 700,000
common shares on September 3, 2008 and $50,000 of principal was converted to
100,000 common shares on November 13, 2008 and the accrued interest of $628 was
forgiven. Additional borrowings of $24,864 from the same lender were received
post-merger. On November 15, 2008, $101,549 of principal was converted to
478,841 common shares. The lender forgave accrued interest totaling $2,550 in
connection with the conversion. On December 1, 2008, $12,000 of principal and
$1,090 of interest was converted to 120,000 common shares. At December 31, 2008,
there were no outstanding North Coast Partners, Inc. notes payable. See note 3 and 4 for
related-party debt and bridge loan.  NOTE 7  INCOME TAXES  Montavo incurred net losses since inception and,
therefore, had no tax liability. The net deferred tax asset generated by the
loss carryforward has been fully reserved. The cumulative net operating loss
carryforward is approximately $1,066,000 and $638,000 at December 31, 2008 and
2007, respectively, and will expire in the years 2024 through 2028.  At December 31, 2008 and 2007 the deferred tax assets
consisted of the following:  2008
2007Net operating loss
362,500
$   217,000Less: Valuation allowance
(362,500)
(217,000)Net deferred tax asset
$   -0 -
$
      -0-  NOTE 8  EQUITY  In August 2008, the number of
authorized preferred stock was increased from 1,000,000 to 5,000,000 and common
stock was increased from 20,000,000 to 100,000,000.  Preferred
Stock  There were no shares issued or
outstanding as of December 31, 2008 and 2007.  Common
Stock  In January 2007, 8,750 shares
were issued for $207. In April 2007, 6,250 shares were
issued for $148. In January 2008, 2,000,000 shares
of common stock were issued for services. These shares have a fair value of
$47,400, were non forfeitable and fully vested resulting in immediate
expense. In August 2008, management
determined 47,250 shares of common stock issued with bridge notes for cash in
fiscal 2007 were previously unaccounted for, for a total of $1,057. In August 2008, 13,080,000 shares
were issued in relation to the merger with North Coast (see Note 5). In the nine months ending
September 30, 2008, 44,375 shares were issued with the bridge notes and
accounted for as stock for cash totaling $1,114. In September 2008, 1,670,600
shares of common stock were issued to convert the bridge loans, accrued interest
and accounts payable totaling $864,288.  169,400 additional shares were
issued in excess of the original agreed upon conversion price and current market
prices resulting in stock based compensation expense of $84,700. In September 2008, 1,169,000
common shares were issued for exercise of 1,169,000 options and warrants with an
aggregate exercise price of $10,192.  Montavo waived the exercise price
resulting in stock based compensation expense of $10,192. In September 2008, 525,000 shares
were issued for services.  These shares have a fair value of $262,500, were
non forfeitable and fully vested resulting in immediate expense. In September 2008, $70,050 of
principal and $15,628 of interest related to notes payable of North Coast
Partners, Inc. assumed by Montavo were converted to 700,000 common shares. On November 5, 2008, Montavo
accepted a subscription for 130,000 common shares at $.40 per share for gross
proceeds of $52,000. On November 28, 2008 Montavo
accepted a subscription for 37,500 common shares at $.40 per share for gross
proceeds of $15,000. On December 16, 2008 Montavo
accepted a subscription for 37,500 common shares at $.40 per share for gross
proceeds of $15,000. In November and December 2008,
$163,549 of principal and $1,090 of interest related to notes payable of North
Coast Partners, Inc. assumed by Montavo were converted to 698,841 common shares. On November 28, 2008, the company
issued 10,089,512 common shares required to meet contractual ownership
obligations related to the merger agreement with North Coast Partners, Inc. In
connection with the issuance $9,940 was charged to Paid in Capital.  NOTE 9 - OPTIONS AND WARRANTS  Options  In 2005 Montavo adopted the 2005 Stock Option Plan (the
Plan). The Plan provides for the granting of stock options to employees and
consultants for services rendered to the Company. Options granted under the Plan
may be either incentive stock options or nonqualified stock options. Incentive
stock options (ISO) may be granted only to Company employees (including
officers and directors who are also employees). Nonqualified stock options
(NSO) may be granted to employees and consultants. Montavo reserved 1,000,000
shares of common stock for issuance under the Plan.  Options under the Plan may be granted for periods of up
to ten years. The exercise price shall be as established by the Plan
Administrator, provided that the exercise price for any ISO shall not be less
than the fair market value per share of the Common Stock at the time the option
is granted.  The exercise price of an ISO granted to a 10% shareholder
shall not be less than 110% of the estimated fair value of the shares on the
date of grant and such option is not exercisable more than five years from the
date of the grant. The exercise price of an NSO may be less than, equal to or
greater than the fair market value per share of the Common Stock at the time the
option is granted.  Summary information regarding options is as follows: WeightedAverageOptions

Share PriceOutstanding at
December 31, 2006
710,000

$.01Granted
30,000

$.01Exercised
-

-Forfeited
-

-Outstanding at
December 31, 2007
740,000

$.01Granted
65,000

$.01Exercised
(805,000)

-Forfeited
-

-Outstanding at
December 31, 2008
-

-  Black-scholes was applied to value the options with a
volatily range of 259.21% to 318.08% and a discount rate range of 2.75% - 5.11%
and zero dividends for both years.  Montavo recognized $2,856 in 2007 and
$1,538 in 2008 as option expense.  Prior to December 31, 2008, all options were exercised by
Montavo waiving the exercise price. Accordingly, 805,000 shares of Montavo
common stock were issued and $8,050 was recorded as compensation expense.  There were no options outstanding or exercisable at
December 31, 2008.  Warrants  Montavo granted warrants for services with vesting
ranging from immediately to six months.  Summary information regarding
warrants is as follows: WeightedAverageWarrants

Share PriceOutstanding at
December 31, 2006
39,000

$.01Granted
-

$.01Exercised
-

-Forfeited
-

-Outstanding at
December 31, 2007
39,000

$.01Granted
325,000

$.01Exercised
(364,000)

-Forfeited
-

-Outstanding at
December 31, 2008
-

-  Black-scholes was applied to value the warrants with a
volatily range of 259.21% to 318.08% and a discount rate range of 2.75% - 5.11%
and zero dividends for both years.  Montavo recognized $0 in 2007 and
$7,693 in 2008 as warrant expense.  Prior to December 31, 2008, all warrants were exercised
by Montavo waiving the exercise price. Accordingly, 364,000 shares of Montavo
common stock were issued and $2,142 was recorded as compensation expense. There
were no warrants outstanding or exercisable at December 31, 2008.  NOTE 10  SUBSEQUENT EVENTS  On February 12, 2009, Montavo
accepted a subscription for 45,000 common shares at $.40 per share for gross
proceeds of $18,000. On March 2, 2009, Montavo
accepted a subscription for 300,000 common shares at $.20 per share for gross
proceeds of $60,000. On March 27, 2009, Montavo
accepted a subscription for 35,000 common shares at $.20 per share for gross
proceeds of $7,000. In January and February 2009
additional borrowings totaling $15,015 were received from a North Coast
Partners, Inc. lender. On March 25, 2009, the lender agreed to waive interest
and convert the principal balance of $15,015 at $.20 per share to 75,060 common
shares. On January 26, 2009, Montavo
executed a consulting agreement for broker relations services. Under the terms
of the agreement, the company will pay the consultants $5,000 per month for
three months from the date of execution of the agreement. Montavo further agreed
to issue to the consultants 100,000 warrants with an exercise price of $.80 and
100,000 warrants with an exercise price of $1.00, exercisable for two years. On January 15, 2009, Montavo
executed a database license agreement to become effective April 15, 2009 and
continue until April 15, 2011. In consideration for the grant of the license,
Montavo shall pay the greater of royalties or annual minimum license fees of
$100,000 for year one and $125,000 for year two, or royalties calculated at $.15
per user per month or calculated based on transaction volume. On February 18, 2009, Montavo
executed a six-month consulting agreement for public relations services. Under
the terms of the agreement, the company will pay the consultants $5,000 per
month for six months and issue 150,000 unregistered Montavo common shares. The
contract was terminated after one month and the consultant agreed to return the
150,000 unregistered shares already issued and to accept instead 25,000
unregistered common shares of Montavo for the one month of service provided.