**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
  
  **FORM
        10-KSB**
 
 **x**
              **ANNUAL
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT
                  OF
                  1934 FOR FISCAL YEAR ENDED DECEMBER 31,
                  2006**
 
 **o**
              **TRANSITION
                  REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934**
  **Commission
        file number 000- 27243**
  
 **CYIOS
        CORPORATION**
 **(Exact
        name of registrant as specified in its charter)**
   **Nevada**
              
              **03-7392107****(State
                  or other jurisdiction of incorporation or
                  organization)**
              
              **(I.R.S.
                  Employer Identification
                  No.)**
  **1300
        Pennsylvania Ave, Suite 700 Washington DC 20004**
 **(Address
        of principal executive offices) (Zip Code)**
  **(703)
        294-9933**
 **(Issuer's
        telephone number, including area code)**
 
  Securities
        registered under Section 12(b) of the Exchange Act: None
 
 Securities
        registered under Section 12(g) of the Exchange Act: COMMON STOCK, $0.001
        PAR
        VALUE
  (Title
        of
        Class)
  Check
        whether the issuer (1) filed all reports required to be filed by Section13
        or
        15(d) of the Exchange Act during the past 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
 
 Check
        if
        there is no disclosure of delinquent filers in response to Item 405 of
        Regulation S-B contained in this form, and no disclosure will be contained,
        to
        the best of registrant's knowledge, in definitive proxy or information
        statements incorporated by reference in Part III of this Form 10-KSB or any
        amendment to this Form 10-KSB. o
 
 Indicate
        by check mark whether the registrant is a shell company YES o NO x
  TRANSITIONAL
        SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE) YES o NO x
 
 CYIOS
        Corporation’s Revenue for the most recent fiscal year ended December 31, 2006
        was $1,709,907
 
 On
        December 31, 2006, the aggregate market value of the voting stock of CYIOS
        Corporation (consisting of common stock, $0.001 par value) held by
        non-affiliates of the Registrant (3,402,531 shares) was approximately
        $850,632.75 based on the closing price for such common stock ($0.25) on said
        date as reported by the OTC Bulletin Board.
 
 As
        of
        December 31, 2006, there were 23,356,210 outstanding
        common shares of CYIOS Corporation common stock.
 
 
  **Table
        of Contents**
  FORWARD
                  LOOKING STATEMENTS
              3Part
                  I
              3ITEM
                  1. DESCRIPTION OF BUSINESS
              3ITEM
                  2. Description of Property
              6ITEM
                  3. LEGAL PROCEEDINGS
              6ITEM
                  4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
                  HOLDERS
              6PART
                  II
              7ITEM
                  5. Market for Common Equity & related Stockholder
                  matters
              7ITEM
                  6. MANAGEMENT'S DISCUSSION AND ANALYSIS
              7ITEM
                  7. FINANCIAL STATEMENTS.
              8INDEPENDENT
                  AUDITOR’S REPORT
              8Consolidated
                  Balance Sheet
              9Consolidated
                  Statement of Operations
              10Consolidated
                  Statement of Cash Flow
              11Consolidated
                  Statement of Stockholders'
                  Equity
              12NOTES
                  to consolidated financial
                  statements
              13NOTE
                  A—SUMMARY OF SIGNIFICANT ACCOUNTING
                  POLICIES
              13NOTE
                  B—SUPPLEMENTAL CASH FLOW INFORMATION
              17NOTE
                  C—FINANCING FACILITY
              17NOTE
                  D—INCOME TAXES
              17NOTE
                  D—INCOME TAXES (CONT’D)
              18NOTE
                  E—GOING CONCERN
              19NOTE
                  F—CONCENTRATION
              19NOTE
                  G—SEGMENT REPORTING
              19NOTE
                  H—EQUITY
              20NOTE
                  K—PENSION PLAN
              20NOTE
                  L—COMMITMENTS/LEASES
              20NOTE
                  M—SHAREHOLDER LOANS
              20NOTE
                  N—ACCOUNTS PAYABLE
              21NOTE
                  O—LINE OF CREDIT
              21NOTE
                  L—TAXES PAYABLE AND PAYROLL TAXES
                  PAYABLE
              21NOTE
                  M—SUBSEQUENT EVENTS
              22ITEM
                  8. Changes in and disagreements with accountants and on
                  accounting and financial disclosure
              22Item
                  8A. CONTROLS AND PROCEDURES
              23Item
                  8B OTHER INFORMATION - none
              23PART
                  III
              24ITEM
                  9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
                  PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE
                  ACT
              24ITEM
                  10. EXECUTIVE COMPENSATION
              25ITEM
                  11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                  MANAGEMENT
              26ITEM
                  12. CERTAIN RELATIONSHIPS AND RELATED
                  TRANSACTIONS
              26ITEM
                  13. EXHIBITS
              27ITEM
                  14. PRINCIPAL ACCOUNTANT FEES AND
                  SERVICES
              27SIGNATURE
              27
  2
 *Table
            of Contents*
  **FORWARD
        LOOKING STATEMENTS**
  In
        addition to historical information, this Report contains forward-looking
        statements. Such forward-looking statements are generally accompanied by
        words
        such as "intends," "projects," "assumes," "believes," "anticipates," "plans,"
        and similar terms that convey the uncertainty of future events or outcomes.
        The
        forward-looking statements contained herein are subject to certain risks
        and
        uncertainties that could cause actual results to differ materially from those
        reflected in the forward-looking statements. Factors that might cause such
        a
        difference include, but are not limited to, those discussed in ITEM 6 of
        this
        Report, the section entitled "MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
        OF
        OPERATION." Readers are cautioned not to place undue reliance on these
        forward-looking statements, which reflect management's analysis only as of
        the
        date hereof and are in all cases subject to the Company's ability to cure
        its
        current liquidity problems. There is no assurance that the Company will be
        able
        to generate sufficient revenues from its current business activities to
        meet day-to-day operation liabilities or to pursue the business objectives
        discussed herein.
 
 The
        forward-looking statements contained in this Report also may be impacted
        by
        future economic conditions. Any adverse effect on general economic conditions
        and consumer confidence may adversely affect the business of the Company.
  CYIOS
        Corporation undertakes no obligation to publicly revise these forward-looking
        statements to reflect events or circumstances that arise after the date hereof.
        Factors that could cause actual results or conditions to differ from those
        anticipated by these and other forward-looking statements include those
        more fully described in the "Risk Factors" section and elsewhere in this
        report.
        In addition, readers should carefully review the risk factors described in
        other
        documents the Company files from time to time with the Securities and Exchange
        Commission.
  **Part
        I**
  **ITEM
        1.** **DESCRIPTION
        OF BUSINESS**
  CORPORATE
        HISTORY
 
 Corporate
        History prior to Jan 1, 2005 can be found in the company’s previous 10KSB
        amended filing on June 3, 2005 with the Securities and Exchange
        Commission.
 
 The
        company had filed a 14C and has obtained written consent from the majority
        of
        the stockholders as of April 7, 2005, approving (i) a reverse split of the
        Company’s common stock at a ratio of 1:30 (the "Reverse Split"), and (ii) an
        amendment to the Company's Articles of Incorporation changing the name of
        the
        Company to "China Print Inc." The Board of Directors of the Company unanimously
        approved the Name Change on March 31, 2005 and the Reverse Split on April
        1,
        2005.
  In
        June
        of 2005, management of WorldTeq Group International, then called China Print,
        Inc. was informed by council that Harbin Yinhai decided not to complete the
        merger transaction because the company was then listed on the pink sheets
        and
        not the OTC-BB as the original agreement had called for. Management decided
        to
        keep the name China Print, Inc. while searching for a new merger acquisition
        candidate.
 
 On
        September 19, 2005, China Print, Inc. (“CHPR”) entered into an agreement with
        CYIOS Corporation, a District of Columbia corporation and Timothy Carnahan,
        whereby CHPR would acquire 100% of the issued and outstanding capital stock
        of
        CYIOS in exchange for 19,135,000 common shares of stock in CHPR.
 
 On
        September 27, 2005 the Corporation’s board of directors approved a resolution
        calling on the stockholders of the Corporation to authorize the board of
        directors to change the Corporation’s name to CYIOS Corporation. On September
        27, 2005, the holders of a majority of the outstanding shares of the
        Corporation’s common stock entitled to vote thereon executed a written consent
        in accordance with Nevada law to adopt the amendment to the Corporation’s
        articles of incorporation.
  3
 *Table
            of Contents*
  BUSINESS
        OVERVIEW
 
 CYIOS
        Corporation, a Nevada corporation (“CYIOS”) is a holding company made up of two
        operating subsidiaries: CYIOS Corporation and CKO Corporation. CYIOS
        Corporation, which bares the same name as the parent company, is an Information
        Technology (IT) Systems Integrator currently supporting the Department of
        Defense (DoD) community. CKO is the product arm of CYIOS that offers CKO,
        an
        online office management tool for project and knowledge management (KM),
        collaboration, scheduling and reporting. Currently CYIOS, the holding company,
        still owns WorldTeq Corporation which was
        inherited by current management during the acquisition by China Print, Inc.
        Management has decided to close WorldTeq Corporation sometime by the end
        2007.
        WTC is a dormant entity which has ceased operating in October of 2005.
        Aero-Financial has agreed to assume $611K of the WorldTeq Corporation debt
        per
        the merger and the 8-K filed September, 2005.
 
 Additional
        information on CYIOS DC, the subsidiary:
 
 CYIOS
        Corporation is recognized as a premier IT solutions provider for the DoD.
        Established in 1994 CYIOS has worked closely with the United States military
        as
        a small business contractor providing innovative and comprehensive solutions
        for
        the Army’s General Officers and other high-level agencies. CYIOS DC wins its
        business through bidding against other companies for federal and state
        government contracts. These bids may be done independently or through teaming
        arrangements with other contractors.
 
 Timothy
        Carnahan, president and CEO of CYIOS, has over 13 years of executive and
        technical experience with the highest levels of the U.S. government. When
        supporting the General Officer Management Office, Mr. Carnahan designed and
        implemented the first knowledge management system for the Army, America’s Army
        Online, which became the core for Army Knowledge Online (AKO), the portal
        that
        supports over 1.8 million soldiers and civilians worldwide. AKO has become
        the
        KM paradigm for the Department of Defense (“DoD”) as it has been an acclaimed
        success in its worldwide support of the Army. The DoD will increase its KM
        spending from $387 million in FY 2005 to $524 million in FY 2010, representing
        a
        growing market for CYIOS, where KM is the company’s core competency in both
        product and service support.
 
 With
        KM
        as a major focal point for CYIOS, the term and market need further explanation.
        KM is the name of a concept in which an enterprise consciously and comprehensively gathers, organizes, shares, and analyzes
        its information in terms
        of resources, documents, and people skills. In early 1998, it was believed
        that
        few enterprises actually had a comprehensive knowledge management
        practice (by any
        name) in operation. Advances in technology and the way we access and share
        information have changed that; it has been proven that successful organizations
        have some kind of knowledge management framework in place. Knowledge Management
        involves data mining and some method or operation to share information among
        users.
 
 CYIOS
        uses its expertise in KM, performance-based contracting, enterprise management,
        and web-based application development to bid on U.S. Government contracts.
        Historically the company has focused on supporting the U.S. Army, but under
        its
        new growth strategy it is beginning to look at bids from other DoD agencies
        as
        well as all U.S. Government agencies. The first and most important part of
        the
        company’s growth strategy is its recent bid with the Department of Homeland
        Security (DHS).
 
 Additional
        information on CKO Incorporated:
 
 CKO
        Corporation launched its CKO product the third week of November 2005. CKO
        is a
        robust and user-friendly knowledge management solution created by the same
        experts who created the original AKO product. The solution has been created
        for
        both the government and commercial market. The company operates the site
        http://ckoapp.cyios.com where customers can sign up for a free 30-day
        trial.
 
 CKO
        is a
        secure, web-based virtual office that uses an array of tools to give any
        organization the ability to manage and retain knowledge, collaborate data
        and
        ideas, and securely store and share information, all for the purpose of making
        an organization more efficient and therefore more successful. Using the features of CKO,
        users can manage their entire organization online. Employees access the
        organization via a virtual CKO from any computer with an Internet connection
        and
        web browser. The result: connected, organized and effective business practices.
  4
 *Table
            of Contents*
  The
        tools
        of our full online office suite include Email, Document and File management,
        Calendar, Tasks, Meetings, Contacts, Project Management, Reporting, and
        Timesheet Management. The power of managing knowledge and collaboration is
        unleashed when all of these individual components are shared and used within
        an
        entire organization, a division, or a project team. CKO removes the dependency
        of working from an organization's office, which frees employees to access
        their
        email, documents, projects, contacts, and reports from any geographic location
        at anytime. Operational costs are also reduced as CKO helps small businesses
        eliminate the burdensome expenses of owning and maintaining servers, associated
        software, and an internal or outsourced IT staff.
 
 RECENT
        DEVELOPMENTS
 
 In
        April
        of 2006, CYIOS received certification as a Microsoft Small Business Specialist.
        Not only does this help the company become more valuable as it reaffirms
        the
        company as an expert in its areas of specialty, but also it will help increase
        business, especially in the commercial sector as Microsoft offers very
        aggressive sales assistance programs to its small business specialist partners.
        Recently this has become more significant as the company works with Microsoft
        on
        its recent efforts to convert its product, CKO, to work on MS Mobile 5.0/6.0
        software for mobile phone PDA’s.
 
 In
        May of
        2006, CYIOS was awarded a $400k, 1 year follow-on contract at the Headquarters
        Department of the Army Information Management Support Center (IMCEN). The
        program, End-User Workstation Survey and Post Installation Quality Assurance,
        makes CYIOS responsible for the inventory assets of over 10,000 Headquarters,
        Department of the Army customer desktop devices in the preparation for upgrade
        or replacement; conduct post-installation quality assurance surveys to gauge
        customer satisfaction; and provide technical support and training to end
        users
        for desktop-related issues after an upgrade or replacement.
  In
        June
        of 2006, CYIOS was awarded a contract to perform work for the U.S. Army's
        Senior
        Leadership Development (SLD) under operational control of the Chief of Staff,
        Army (CSA). The contract is valued at up to $1 million with over $300,000
        invoiced by the date of this filing. CYIOS designed and now supports the
        General
        Officer Management Office (GOMO) Knowledge Management system. The CSA approved,
        and the Secretary of the Army endorsed, the realignment of GOMO to include
        Colonels Division, Officer Personnel Management Directorate, U.S. Army Human
        Resources Command (HRC) to form the Army Senior Leader Development Office
        (SLD).
        CYIOS has been recognized for delivering quality work, outstanding customer
        service, and ingenuity; and this initiative is to expand its efforts to build
        a
        knowledge management system for the Colonel's Branch of SLD.
  In
        July
        of 2006, CYIOS received a score of 94/100 from the Dun & Bradstreet Open
        Ratings Past Performance Evaluation. CYIOS scored over 90% in every performance
        category, including reliability, cost, order accuracy, delivery/timeliness,
        quality, business relations, personnel, customer support and
        responsiveness.
 
 In
        September of 2006 CYIOS Corporation entered into an agreement to set up and
        own
        25% of a joint venture called CLNS LLC. The company retained InterPlan Systems
        to co-write a proposal for a multi-billion dollar, multi- award contract
        with a
        large Federal Agency for this new entity. This joint-venture includes three
        other small business DoD contractors. This unique arrangement was created
        to
        allow a better chance of winning the contract as the past performance from
        all
        four company’s combined offered a very solid proposal. Awards are expected
        August or September 2007.
 
 In
        January of 2007 CYIOS started off the new year with signing a subcontract
        providing Change Management services worth $225,000 a year. The work is being
        performed for DHS and is part of a subcontract with one of the top 10 government
        contractors.
 
 In
        February of 2007 CYIOS once again used the services of InterPlan Systems
        to
        co-write a proposal for a U.S. Navy agency. This is a large multi-award contract
        with award decisions expected by the end of the second quarter of
        2007.
 
 In
        March
        of 2007 CYIOS was awarded a new one-year task order by the Department of
        Defense, U.S. Army for $330,000. This task order was awarded on Tuesday,
        March
        28, 2007. The company has the opportunity to get this task order renewed
        two
        more times, which would ultimately put the total value at approximately $1
        million over three years.
  5
 *Table
            of Contents*
  2006
        EMPLOYEES
  As
        of
        December 31, 2006 there 22 full time employees in CYIOS Corporation and its
        subsidiaries in the following capacities:
 
 3.75
        full
        time employees in Executive Management and administration staff;
        and
 
 1.25
        full
        time in product development and technical operations; and
 
 17
        full
        time employees that are on service contracts on either prime or subcontracted
        contracts with the United States Government. These employees include but
        are not
        limited to:
 
 Quality
                  Assurance Specialist
              
              Senior
                  Software DeveloperProject
                  Manager
              
              Database
                  AdministratorPrincipal
                  Engineer
              
              Internet
                  DeveloperSenior
                  Systems Engineer
              
              Software
                  DeveloperLAN/WAN
                  Engineer
              
              Application
                  Testing Engineer IIIComputer
                  Analyst
              
              Application
                  Testing Engineer IISystems
                  Administrator
              
              Application
                  Testing Engineer IBusiness
                  Analyst III
              
              Technical
                  Writer / EditorBusiness
                  Analyst II
              
              Document
                  PublisherBusiness
                  Analyst I
 
 There
        are
        no collective bargaining agreements in effect. We believe the relationships
        with
        our employees are excellent.
  **ITEM
        2. Description of Property**
  Real
        Estate: CYIOS Corporation does not have any ownership on physical property.
        Headquarters is located at leased space at The Ronald Reagan Building, 1300
        Pennsylvania Ave, Suite 700 Washington DC 20004.
 
 INTELLECTUAL
        PROPERTY
 
 The
        Company’s subsidiary CKO Incorporate is the sole owner of 100% of the
        intellectual property rights of its online software, CKO. CKO is copyright
        protected and the company is currently considering the feasibility of patenting
        certain currently confidential processes used within CKO.
  **ITEM
        3.** **LEGAL
        PROCEEDINGS**
  During
        2006 CYIOS Corporation was involved in a trademark infringement with XO
        Communications; it has been resolved in an equitable manner. None of its
        subsidiaries were involved in any lawsuits or litigation.
  **ITEM
        4.** **SUBMISSION
        OF MATTERS TO A VOTE OF SECURITY HOLDERS**
  No
        matters were submitted during the fourth quarter of the fiscal year covered
        by
        this Report to a vote of security holders, through the solicitation of proxies
        or otherwise. The annual shareholder meeting has been postponed to a date
        in the
        near future.
  6
 *Table
            of Contents*
  **PART
        II**
  **ITEM
        5.** **Market
        for Common Equity & related Stockholder matters**
  The
        company trades on the Over the Counter Bulletin Board market
 
 The
        closing price of our common stock on the OTC was $0.25 as of December 31,
        2005.
  We
        have
        not declared any cash dividends on the common stock. We intend to retain
        future
        earnings, if any, for use in our business and do not anticipate paying regular
        cash dividends on the common stock.
  Approximately
        3,500,000 shares of common stock issued to stockholders are available for
        resale
        under Rule 144, subject to notice, volume and manner of sale restrictions
        under
        that rule As of December 31, 2006, the Company had approximately 23,356,210
        shares issued and outstanding of the common stock. As of December 31, 2006,
        we
        had approximately 150 holders of our common stock. The number of record holders
        was determined from the records of our transfer agent and does not include
        beneficial owners of common stock whose shares are held in the names of various
        security brokers, dealers, and registered clearing agencies. The transfer
        agent
        for the Company is Corporate Stock Transfer, Inc. at 3200 Cherry Creek Drive
        South, Suite 430, Denver, Colorado 80209.
 
 RECENT
        SALE OF UNREGISTERED SECURITIES:
 There
        were $0.00 sales made of restricted and unregistered common stock during
        the
        year ended December 31, 2006.
 
 OPTIONS
        AND WARRANTS: There were 1,872,300 options or warrants issued during the
        year
        ended December 31, 2006.
  **ITEM
        6.** **MANAGEMENT'S
        DISCUSSION AND ANALYSIS**
  The
        following discussion and analysis of the financial condition and results
        of
        operations should be read in conjunction with the financial statements, related
        notes, and other detailed information included elsewhere in this Form 10-KSB.
        Certain information contained below and elsewhere in this Form 10-KSB, including
        information regarding our plans and strategy for our business, are
        forward-looking statements. See "Note Regarding Forward-Looking
        Statements."
 
 MANAGEMENTS
        DISCUSSION AND ANALYSIS
 
 The
        total
        sales for CYIOS’ two active subsidiaries CYIOS the subsidiary and CKO Inc, is
        explained in detail below, total 2006 was $1,709,907 compared to 2005 that
        was
        $2,298,802.
 
 The
        sales
        for CYIOS subsidiary for the year ending December 31, 2006 is 1,709,907
        decreased $63,895 from the equivalent period in 2005 which was $1,773,802.
        The
        sales for CKO Inc subsidiary decreased from $0 in 2006 from the equivalent
        period in 2005 which was $525,000; however, $525,000 was never collected.
        CKO
        has no revenue coming in at this time. CYIOS was awarded a contract that
        only
        has been active for part of the year in 2006. This is important to note that
        as
        we reduced our overhead due to the award and had more revenue coming into
        4QTR
        in 2006. Our net loss for the year ending December 31, 2006 was $889,357
        or
        $0.004 per share, compared to $271,573 for the equivalent period in 2005
        or
        $0.001 per share. The $889,357 net loss is primarily due to our third
        subsidiary, WorldTeq Corporation.
 
 In
        addition to the WorldTeq debt, the loss in 2006 was primarily due to the
        company’s investment in the development of the company’s product CKO and costs
        incurred from the acquisition. During
        2006 management made the decision to expand its operations by attempting
        to
        increase its business with the DoD and the rest of the Federal Government.
        In
        order to achieve this goal the company must actively bid on request for
        proposals by the different departments and their agencies. The company has
        and
        continues to invest all of its earnings into additional personnel to help
        achieve this goal. The current financial result of this is a net operating
        loss
        which should be re-cooped in future revenues and profits driven by awards.
        While
        this type of investment can be fruitful, the company must exude patience,
        because the cycle of an award of a government contract can be as long as
        12 to
        18 months. It should be also noted that CYIOS, by using the benefits of its
        own
        product CKO, can expand its contract business more then three-fold without
        having to add any additional overhead expenditures. The costs of running
        a new
        contract would only include that of compensation for the contracted
        personnel.
 
 Cost
        of
        sales for the year ended December 31, 2006 increased from the equivalent
        period
        in 2005 from 145,693 to 432,360. This increase is due to the 2005 merger.
        Selling, general and administrative expenses for the period ending December
        31,
        2006 decreased from the equivalent period in 2005, $252,987 and $536,490
        respectively. This is also due to the 2005 merger.
  7
 *Table
            of Contents*
  **ITEM** **7.** **FINANCIAL
        STATEMENTS.**
  **INDEPENDENT
        AUDITOR’S REPORT**
  To
        the
        Board of Directors and Stockholders
 CYIOS
        Corporation (FKA China Print, Inc.), Inc. and Subsidiaries
 
 I
        have
        audited the accompanying consolidated balance sheets of CYIOS Corporation
        (FKA
        China Print, Inc.) and Subsidiaries as of December 31, 2006, and the related
        consolidated statements of operations, stockholders’ deficit and comprehensive
        income, and cash flows for the years ended December 31, 2006 and 2005. These
        financial statements are the responsibility of the company’s management. My
        responsibility is to express an opinion on these financial statements based
        on
        my audits.
 
 I
        conducted my audits in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        I plan
        and perform the audit to obtain reasonable assurance about whether the financial
        statements are free of material misstatement. An audit includes examining,
        on a
        test basis, evidence supporting the amounts and disclosures in the 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. I believe that my audits provide a reasonable
        basis for my opinion.
 
 In
        my
        opinion, the financial statements referred to above present fairly, in all
        material respects, the financial position of CYIOS Corporation (FKA China
        Print,
        Inc.) and Subsidiaries as of December 31, 2006, and the results of its
        operations and its cash flows for the years ended December 31, 2006 and 2005
        in
        conformity with accounting principles generally accepted in the United States
        of
        America.
 
 The
        accompanying financial statements have been prepared assuming the Company
        will
        continue as a going concern. The Company has recurring losses and has yet
        to
        generate an internal cash flow that raises substantial doubt about its ability
        to continue as a going concern. Management’s plans in regard to these matters
        are described in Note E. The financial statements do not include any adjustments
        that might result from the outcome of this uncertainty.
 
 
 Traci
        J.
        Anderson, CPA
 Huntersville,
        NC
 April
        13,
        2007
  8
 *Table
            of Contents*
 
 CYIOS
                  Corporation and Subsidiaries**Consolidated
                  Balance Sheet**December
                  31, 2006ASSETSCurrent
                  Assets:Cash
              
              $
              25,305Accounts
                  Receivable (Note A)
              
              
              60,647Other
                  Current Assets
              
              
              19,913Total
                  Current Assets
              
              
              105,865Property
                  and Equipment:Property
                  and Equipment
              
              
              873,528Accumulated
                  Depreciation
              
              
              (873,528
              )Total
                  Furniture and Equipment
              
              
              -TOTAL
                  ASSETS
              
              $
              105,865LIABILITIES
                  AND STOCKHOLDERS' DEFICITCurrent
                  Liabilities:Line
                  of Credit (Note O)
              
              $
              100,979Shareholder
                  Loan Payable (Note M)
              
              
              49,707Interest
                  Payable (Note M)
              
              
              4,971Taxes
                  Payable (Note L)
              
              
              13,629Payroll
                  Taxes Payable (Note L)
              
              
              46,779Accounts
                  Payable (Note N)
              
              
              407,891Total
                  Liabilities
              
              
              623,956Stockholders'
                  DeficitConvertible
                    Preferred Stock ($.001 par value; 5,000,000 authorized;911,553
                    issued and outstanding)
              
              
              911Common
                    Stock ($.001 par value; 100,000,000 authorized;26,872,741 issued
                    and outstanding)
              
              
              26,872Paid
                  in Capital
              
              
              23,620,225Retained
                  Deficit
              
              
              (24,166,099
              )Total
                  Stockholders' Deficit
              
              
              (518,091
              )Total
                  Liabilities and Stockholders' Deficit
              
              $
              105,865
 
 The
        accompanying notes are an integral part of these consolidated financial
        statements.
  9
 *Table
            of Contents*
 
 CYIOSCorporationand Subsidiaries**Consolidated
                  Statement of Operations**For
                  the years ended December 31, 2006 and 20052006
              
              2005SALES
                  AND COST OF SALESSales
              
              $
              1,709,907
              
              $
              2,298,802Cost
                  of Sales
              
              
              432,360
              
              
              145,693Gross
                  Profit
              
              
              1,277,547
              
              
              2,153,109EXPENSESSelling,
                  general and administrative
              
              
              252,987
              
              
              536,490Payroll
                  Expense
              
              
              1,177,309
              
              
              1,580,320Professional
                  Fees
              
              
              124,629
              
              
              74,586Bad
                  Debt Expense (Note A)
              
              
              618,756
              
              
              -Loss
                  on Worthless Stock
              
              
              5,400
              
              
              -Interest
              
              
              20,515
              
              
              26,215Depreciation
                  and amortization
              
              
              48,904
              
              
              207,071TOTAL
                  EXPENSES
              
              
              2,248,490
              
              
              2,424,682Net
                  Loss from Operations
              
              
              (970,943
              )
              
              (271,573
              )OTHER
                  COMPREHENSIVE INCOMEForgiveness
                  of Debt
              
              
              81,586
              
              
              -Net
                  Loss
              
              $
              (889,357
              )
              $
              (271,573
              )Net
                  (loss) per share--basic and fully diluted
              
              
              (0.04
              )
              
              (0.01
              )Weighted
                  average shares outstanding
              
              
              21,792,830
              
              
              21,567,910
  The
        accompanying notes are an integral part of these consolidated financial
        statements.
  10
 *Table
            of Contents*
 
 CYIOSCorporationand Subsidiaries/**Consolidated
                Statement of Cash Flow**2006
              
              2005CASH
                  FLOWS FROM OPERATING ACTIVITIES:Net
                  loss
              
              
              (889,367
              )
              
              (271,573
              )Adjustments
                    to reconcile net loss to net cash provided by (used in)operating
                    activities:Depreciation
              
              
              48,903
              
              
              170,529Amortization
              
              
              -
              
              
              36,542(Increase)/Decrease
                  in Accounts Receivable
              
              
              567,822
              
              
              (592,554
              )(Increase)/Decrease
                  in Other Assets
              
              
              9,164
              
              
              (28,229
              )Increase/(Decrease)
                  in Payroll Taxes Payable
              
              
              (141,458
              )
              
              188,237Increase/(Decrease)
                  In Taxes Payable
              
              
              -
              
              
              13,629Increase/(Decrease)
                  in Interest Payable
              
              
              (13,669
              )
              
              (51,798
              )Increase/(Decrease)
                  in Accounts Payable
              
              
              17,474
              
              
              50,698NET
                  CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
              
              
              (401,131
              )
              
              (484,519
              )CASH
                  FLOWS FROM INVESTMENT ACTIVITIES:Increase
                  in fixed assets as a result of merger
              
              
              -
              
              
              (71,821
              )NET
                  CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES
              
              
              -
              
              
              (71,821
              )CASH
                  FLOWS FROM FINANCING ACTIVITIES:Proceeds
                  from issuance of common stock
              
              
              452,000
              
              
              629,022Reduction
                  in Shareholder Receivable
              
              
              -
              
              
              (58,500
              )Principal
                  Reductions on Shareholder Loan Payable
              
              
              (137,698
              )
              
              -Increase/(Decrease)
                  in borrowings on Line of Credit
              
              
              62,277
              
              
              35,675NET
                  CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES
              
              
              376,579
              
              
              606,197NET
                    INCREASE IN CASH ANDCASH EQUIVALENTS
              
              
              (24,552
              )
              
              49,857CASH
                  AND CASH EQUIVALENTS:Beginning
                  of Period
              
              
              49,857
              
              
              -End
                  of Period
              
              
              25,305
              
              
              49,857
  The
        accompanying notes are an integral part of these consolidated financial
        statements.
  11
 *Table
            of Contents*
 CYIOS
                    Corporation, Inc. and Subsidiaries**Consolidated
                    Statement of Stockholders' Equity**For
                    the years ended December 31, 2006 and 2005Common
                  Shares
                  (000's)
                
                Common
                  Stock
                  $
                
                Preferred
                  Shares
                  (000's)
                
                Preferred
                  Stock
                  $
                
                Additional
                  Paid-in
                  Capital
                
                Retained
                  DeficitBalances,
                    January 1, 2005
                
                
                1,290,206
                
                $
                1,290
                
                
                911,553
                
                
                911
                
                $
                22,564,785
                
                $
                (23,005,159
                )Issuance
                    of shares
                
                
                20,277,704
                
                
                20,278
                
                
                -
                
                
                -
                
                
                608,744
                
                
                -Net
                    Income (loss) for the year
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                (271,573
                )Balances,
                    December 31, 2005
                
                
                21,567,910
                
                $
                21,568
                
                
                911,553
                
                $
                911
                
                $
                23,173,529
                
                $
                (23,276,732
                )Issuance
                    of shares
                
                
                5,304,831
                
                
                5,304
                
                
                -
                
                
                -
                
                
                446,696
                
                
                -Net
                    Income (loss) for the year
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                -
                
                
                (889,367
                )Balances,
                    December 31, 2006
                
                
                26,872,741
                
                $
                26,872
                
                
                911,553
                
                $
                911
                
                $
                23,620,225
                
                $
                (24,166,099
                )
  The
        accompanying notes are an integral part of these consolidated financial
        statements.
  12
 *Table
            of Contents*
  **NOTES
        to consolidatedfinancial statements**
  **NOTEA—SUMMARY
        OF SIGNIFICANT ACCOUNTING POLICIES**
  Business
        Activity— China Print, Inc. formerly known as WorldTeq Group International, Inc.
        merged on September 19, 2005 with CYIOS Corporation of Washington DC. During
        the
        merger the company’s former CEO notified the public of his resignation and the
        assignment of a new CEO, CFO, and president, Mr. Timothy Carnahan. After
        the
        merger, China Print, Inc. changed its name to CYIOS. The consolidated financial
        statements of CYIOS Corporation (The Company), formerly China Print, Inc.
        includes its subsidiary by the same name CYIOS Corporation, in addition to
        CKO,
        Inc. and WorldTeq Corporation. The Company, through its subsidiary CYIOS
        Corporation does business as a leading systems integrator and Knowledge
        Management Solutions provider supporting the United States Army. The company
        contracts its services for single and multiple year awards to different US
        Army
        and US Government agencies. CKO Incorporated owns a custom designed online
        office management. The company launched this product in November of 2005
        to the
        general public and commercial businesses. WorldTeq Corporation in the last
        three
        years has engaged primarily in the long distance service business and during
        2006 it had no operating activity.
 
 Cash
        and
        Cash Equivalents—For purposes of the Consolidated Statement of Cash Flows, the
        Company considers liquid investments with an original maturity of three months
        or less to be cash equivalents.
 
 Management’s
        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 and disclosures of contingent
        assets
        and liabilities at the date of consolidated financial statements and the
        reported amounts of revenues and expenses during the reporting period. Actual
        results could differ from those estimates.
 
 Revenue
        Recognition— The Company recognizes revenue when persuasive evidence of an
        arrangement exists, services have been rendered or goods delivered, the contract
        price is fixed or determinable, and it is reasonably assured to be collectible.
        The Company follows SOP 81-1 Accounting for Performance of Construction-Type
        and
        Certain Production-Type Contracts, as it applies to time-and-material contracts.
        Revenue on time-and-materials contracts is recognized based on the hours
        actually incurred at the negotiated contract billing rates, plus the cost
        of any
        allowable material costs and out-of-pocket expenses. Revenue on fixed-price
        contracts pursuant to which a client pays the Company a specified amount
        to
        provide only a particular service for a stated time period, or so-called
        fee-for-service arrangement, is recognized as amounts become billable, assuming
        all other criteria for revenue recognition are met. The Company recognizes
        revenue from government contracts.
  13
 *Table
            of Contents*
  NOTE
        A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’)
 
 Comprehensive
        Income (Loss)—The Company adopted Financial Accounting Standards Board Statement
        of Financial Accounting Standards (SFAS) No. 130, “Reporting Comprehensive
        Income”, which establishes standards for the reporting and display of
        comprehensive income and its components in the consolidated financial
        statements. There were no items of comprehensive income (loss) applicable
        to the
        Company during the periods covered in the consolidated financial
        statements.
 
 Advertising
        Costs—Advertising costs are expensed as incurred. For the year ended December
        31, 2006, the company incurred $15,029.
 
 Net
        Loss
        per Common Share—Statement of Financial Accounting Standard (SFAS) No. 128
        requires dual presentation of basic and diluted earnings per share (EPS)
        with a
        reconciliation of the numerator and denominator of the EPS computations.
        Basic
        earnings per share amounts are based on the weighted average shares of common
        stock outstanding. If applicable, diluted earnings per share would assume
        the
        conversion, exercise or issuance of all potential common stock instruments
        such
        as options, warrants and convertible securities, unless the effect is to
        reduce
        a loss or increase earnings per share. Accordingly, this presentation has
        been
        adopted for the period presented. There were no adjustments required to net
        loss
        for the period presented in the computation of diluted earnings per
        share.
 
 Income
        Taxes—Income taxes are provided in accordance with Statement of Financial
        Accounting Standards (SFAS) No. 109, “Accounting for Income Taxes.” A deferred
        tax asset or liability is recorded for all temporary differences between
        financial and tax reporting and net operating loss-carry forwards.
 
 Deferred
        tax assets are reduced by a valuation allowance when, in the opinion of
        management, it is more likely than not that, and some portion or the entire
        deferred tax asset will not be realized. Deferred tax assets and liabilities
        are
        adjusted for the effect of changes in tax laws and rates on the date of
        enactment.
 
 Fair
        Value of Financial Instruments—The carrying amounts reported in the consolidated
        balance sheet for cash, accounts receivable and payable approximate fair
        value
        based on the short-term maturity of these instruments.
 
 Accounts
        Receivable—Accounts deemed uncollectible are written off in the year they become
        uncollectible. During 2006, the following amounts by subsidiary were deemed
        uncollectible and written off as bad debts:
 
 CKO
              
              $
              525,000WTC
              
              
              93,756$
              618,756
  Outstanding
        Accounts Receivable as of December 31, 2006 was $60,647 (CYIOS
        Subsidiary).
  14
 *Table
            of Contents*
  NOTE
        A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’)
 
 Impairment
        of Long-Lived Assets—The Company evaluated the recoverability of its property
        and equipment, and other assets in accordance with Statements of Financial
        Accounting Standards (SFAS) No. 121, “Accounting for the Impairment of
        Long-Lived Assets to be Disposed of” which requires recognition of impairment of
        long-lived assets in the event the net book value of such assets exceeds
        the
        estimated future undiscounted cash flows attributable to such assets or the
        business to which such intangible assets relate.
 
 Property
        and Equipment—Property and equipment is stated at cost. Depreciation is provided
        by the straight-line method over the estimated economic life of the property
        and
        equipment remaining from five to seven years. All of the Company’s assets were
        fully depreciated during 2006. Depreciation expense for 2006 was
        $48,904.
 
 Recent
        Accounting Pronouncements—In May 2005, the Financial Accounting Standards Board
        issued Statement of Financial Accounting Standards (SFAS) No. 154 “Accounting
        Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB
        Statement No. 3.” This Statement replaces APB Opinion No. 20, “Accounting
        Changes”, and FASB Statement No. 3, “Reporting Accounting Changes in Interim
        Financial Statements” and changes the requirements for the accounting for and
        reporting of a change in accounting principle. This Statement applies to
        all
        voluntary changes in accounting principle.  It also applies to changes
        required by an accounting pronouncement in the unusual instance that the
        pronouncement does not include specific transition provision. When a
        pronouncement includes specific transition provisions, those provisions should
        be followed. The Company has no transactions that would be subject to SFAS
        154.
 
 In
        February 2006, the Financial Accounting Standards Board (FASB) issued Statement
        of Financial Accounting Standards (SFAS) No. 155, Accounting for Certain
        Hybrid
        Instruments-an amendment of FASB Statements No. 133 and 140. SFAS 155 allows
        financial instruments that have embedded derivatives to be accounted for
        as a
        whole if the holder elects to account for the whole instrument on a fair
        value
        basis. SFAS 155 eliminates the need to bifurcate the derivative from its
        host,
        as previously required under Statement of Financial Accounting Standards
        No.
        133, Accounting for Derivative Instruments and Hedge Accounting. SFAS 155
        also
        amends SFAS 133 by establishing a requirement to evaluate interests in
        securitized financial assets to determine whether they are free standing
        derivatives or whether they contain embedded derivatives that require
        bifurcation. SFAS 155 is effective for all hybrid financial instruments acquired
        or issued by the Company on or after January 1, 2007. The Company does not
        anticipate any material impact to its financial condition or results of
        operations as a result of the adoption of SFAS 155.
  15
 *Table
            of Contents*
  NOTE
        A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’)
 
 Recent
        Accounting Pronouncement (cont’)
 
 In
        March
        2006, the Financial Accounting Standards Board issued Statement of Financial
        Accounting Standards (SFAS) No. 156, “Accounting for Servicing of Financial
        Assets”. SFAS 156 addresses the accounting for recognized servicing assets and
        servicing liabilities related to certain transfers of the servicer’s financial
        assets and for acquisitions or assumptions of obligations to service financial
        assets that do not relate to the financial assets of the servicer and its
        related parties. SFAS 156 requires that all recognized servicing assets and
        servicing liabilities are initially measured at fair value, and subsequently
        measured at either fair value or by applying an amortization method for each
        class of recognized servicing assets and servicing liabilities. SFAS 156
        is
        effective in fiscal years beginning after September 15, 2006. The adoption
        of
        SFAS 156 is not expected to have a material impact on our consolidated financial
        statements.
 
 In
        June
        2006, the FASB issued FIN 48, “Accounting for Uncertainty in Income Taxes—an
        interpretation of FASB No. 109. This Interpretation clarifies the accounting
        for
        uncertainty in income taxes recognized in an enterprise’s financial statements
        in accordance with FASB No. 109, “Accounting for Income Taxes”. This
        interpretation prescribes recognition of threshold and measurement attribute
        for
        the financial statement recognition and measurement of a tax position taken
        or
        expected to be taken in a tax return. This interpretation also provides guidance
        on derecognition, classification, interest and penalties, accounting in interim
        periods, disclosure, and transition. This interpretation is effective for
        fiscal
        years beginning after December 15, 2006. Earlier application is permitted
        if the
        entity has not yet issued interim or annual financial statements for that
        fiscal
        year. The adoption of this standard is not expected to have a material effect
        on
        the Company’s results of operations or financial position.
 
 In
        September 2006, the FASB issued Statement No. 157, “Fair Value Measurements”.
        This Statement defines fair value, establishes a framework for measuring
        fair
        value in generally accepted accounting principles (GAAP), and expands
        disclosures about fair value measurements. This statement applies under other
        accounting pronouncements that require or permit fair value measurements,
        the
        Board having previously concluded in those accounting pronouncements that
        fair
        value is the relevant measurement attribute. Accordingly, SFAS No. 157 does
        not
        require any new fair value measurements. However, for some entities, the
        application of SFAS No. 157 will change current practice. This Statement
        is
        effective for fiscal years beginning after November 15, 2007, and all interim
        periods within those fiscal years. Earlier application is permitted if the
        entity has not yet issued interim or annual financial statements for that
        fiscal
        year. Early adoption of this standard is not expected to have a material
        effect
        on the Company’s results of operations or its financial position, but the
        Company is evaluating the Statement to determine what impact, if any, it
        will
        have on the Company.
  16
 *Table
            of Contents*
  NOTE
        A—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’)
 Recent
        Accounting Pronouncement (cont’)
 
 In
        September 2006, the FASB issued Statement of Financial Accounting Standards
        No.
        158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement
        Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R)” (“SFAS 158”).
        This statement requires balance sheet recognition of the funded status, which
        is
        the difference between the fair value of plan assets and the benefit obligation,
        of pension and postretirement benefit plans as a net asset or liability,
        with an
        offsetting adjustment to accumulate other comprehensive income in shareholders’
equity. In addition, the measurement date, the date at which plan assets
        and the
        benefit obligation are measured, is required to be the company’s fiscal year
        end. The Company currently Company is currently evaluating the Statement
        to
        determine what impact, if any, it will have on the Company.
  **NOTEB—SUPPLEMENTAL
        CASH FLOW INFORMATION**
  Supplemental
        disclosures of cash flow information for the years ended December 31, 2006
        and
        2005 is summarized as follows:
 Cash
        paid
        during the years for interest and income taxes:
 2006
              
              2005Income
                  Tax
              
              $
              -
              
              $
              -Interest
              
              $
              20,515
              
              $
              26,215
  **NOTEC—FINANCING
        FACILITY**
  During
        the year ended December 31, 2003 the Company entered into an accounts receivable
        financing facility for a maximum of $500,000 with an unrelated third party.
        Collateral for the facility is a first security interest in all corporate
        assets
        and a personal guarantee of the Company’s shareholder. The Company pays a 2% fee
        for each advance and interest accrues on all advances at a floating rate,
        at the
        prime rate published in the Wall Street Journal plus 2% (7.25% at December
        31,
        2006). The Company is advanced 90% of Prime government contract invoices
        and 85%
        of subcontract, credit worthy, commercial accounts. The advances are used
        for
        general corporate working capital. Residual, or holdback amounts, less fees
        and
        interest, are remitted to the Company when payments are received from the
        government. Substantially all of the Company’s revenue stream and accounts
        receivables are factored through this facility.
  **NOTED—INCOME
        TAXES**
  Due
        to
        the operating loss and the inability to recognize an income tax benefit there
        from, there is no provision for current or deferred federal or state income
        taxes for the year ended December 31, 2006.
 
 Deferred
        income taxes reflect the net tax effects of temporary differences between
        the
        carrying amounts of assets and liabilities for financial reporting purposes
        and
        the amount used for federal and state income tax purposes.
  17
 *Table
            of Contents*
  The
        Company’s total deferred tax asset, calculated using federal and state effective
        tax rates, as of December 31, 2006 is as follows:
 
 Total
                  Deferred Tax Asset
              
              $
              2,664,591Valuation
                  Allowance
              
              
              (2,664,591
              )Net
                  Deferred Tax Asset
              
              $
              -
 
 The
        reconciliation of income taxes computed at the federal statutory income tax
        rate
        to total income taxes for the year ended December 31, 2006 is as
        follows:
 
 2006
              
              2005Income
                  tax computed at the federal statutory rate
              
              
              34
              %
              
              34
              %State
                  income tax, net of federal tax benefit
              
              
              4
              %
              
              4
              %Total
              
              
              38
              %
              
              38
              %Valuation
                  allowance
              
              
              -38
              %
              
              -38
              %Total
                  deferred tax asset
              
              
              0
              %
              
              0
              %
 
 Because
        of the Company’s lack of earnings history, the deferred tax asset has been fully
        offset by a valuation allowance. The valuation allowance increased (decreased)
        by $339,540 and $103,197 in 2006 and 2005, respectively. No tax benefits
        have
        been recorded for the nondeductible (tax) expenses (including stock for
        services) totaling $17,210,808.
  **NOTED—INCOME
        TAXES (CONT’D)**
  As
        of
        December 31, 2006, the Company had federal and state net operating loss carry
        forwards as follows:
 Amount
              
              Expiration$
              354,164
              
              2017478,371
              
              20182,028,880
              
              2019713,564
              
              2020971,296
              
              2021432,497
              
              2022298,634
              
              2023516,946
              
              2024271,572
              
              2025893,526
              
              2026$
              6,959,450
  18
 *Table
            of Contents*
  **NOTE
        E—GOING CONCERN**
  As
        shown
        in the accompanying financial statements, the Company has recurring losses
        from
        operations to date. During 2006, the Company had a net loss of $893,526,
        a net
        deficiency of $24,170,258 and a net working capital deficit of $522,260.
 
 Management
        believes that its actions presently being taken to raise equity capital,
        seek
        strategic relationships and alliances, and build its marketing efforts to
        generate positive cash flow provide the means for the Company to continue
        as a
        going concern. The financial statements do not include any adjustments that
        might result from the outcome of this uncertainty.
  **NOTEF—CONCENTRATION**
  The
        Company is either a prime or sub contractor on contracts with the Titan
        Corporation, Information Management Support Center (IMCEN) and GOMO/SLD.
        Loss of
        these contracts could have a material effect upon the Company’s financial
        condition and results of operations.
  **NOTE
        G—SEGMENT REPORTING**
  The
        Company has six reportable segments—WTC, DTC, WTEQ, CKO, China Print, and
        CYIOS.
 
 Net
                  Sales by SegmentWTC
              
              DTC
              
              WTEQ
              
              CKO
              
              China
                  Print
              
              CYIOS
              
              TotalsSales,
                  net
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              1,709,907
              
              $
              1,709,907Cost
                  of Sales
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              432,360
              
              
              432,360Gross
                  Profit
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              1,277,547
              
              $
              1,277,547
 
 
 Profit/(Loss)
                  by SegmentWTC
              
              DTC
              
              WTEQ
              
              CKO
              
              China
                  Print
              
              CYIOS
              
              TotalsNet
                  (Loss)
              
              $
              (75
              )
              $
              -
              
              $
              -
              
              $
              (541,279
              )
              $
              (11,453
              )
              $
              (336,719
              )
              $
              (889,526
              )
  19
 *Table
            of Contents*
  The
        accounting policies used for segment reporting are the same as those described
        in Note A “Summary of Significant Accounting Policies”;
  **NOTE
        H—EQUITY**
  During
        2005, the Company issued 20,277,704 common shares for cash and as a result
        of
        the acquisition of CYIOS Corporation. No warrants were granted or exercised
        during 2005.
 
 During
        2006, the Company issued 0 common shares for cash. 1,872,300 options/warrants
        were granted or exercised during 2006.
  **NOTE
        K—PENSION PLAN**
  The
        Company has a 401(k) plan which is administered by a third-party administrator.
        Individuals who have been employed for one month and reached the age of 21
        years
        are eligible to participate. Employees may contribute up to the legal amount
        allowed by law. The Company matches one-half of the employee’s contribution up
        to a maximum of 4% of the employee’s wages. Employees are vested in the
        Company’s contribution 25% a year and are fully vested after four years. The
        Company’s contributions for the year ended December 31, 2006 was
        $17,203.
  **NOTE
        L—COMMITMENTS/LEASES**
  The
        Company entered into a lease agreement on July 8, 2005 for an office space.
        In
        October of 2006, the lease was renewed for 12 months and expires September
        30,
        2007. Monthly fees are $1,040.00. The Company’s estimated future yearly minimum
        lease obligations are as follows:
  For
        the
        year ending December 31, 2007  $12,480.00
 
 Total
        rent expense for 2006 was $26,771.00.
  **NOTEM—SHAREHOLDER
        LOANS**
  The
        Company has a Note Payable with one of its officers and major shareholders.
        The
        note is payable on demand and bears no interest. The Company calculated imputed
        interest on this note using a rate of 15%. The effects of these notes are
        included in the consolidated financial statements therein. The outstanding
        balance as of December 31, 2006 is $49,707. Accrued interest for the year
        on
        this outstanding note was $4,971.
  20
 *Table
            of Contents*
  **NOTEN—ACCOUNTS
        PAYABLE**
  The
        breakdown of Accounts Payable is as follows categorized by
        subsidiary:
  WTC
              
              $
              370,348WTEQ
              
              
              17,068CYIOS
              
              
              20,475$
              407,891
  **NOTE
        O—LINE OF CREDIT**
  Two
        of
        the Company’s subsidiaries have lines of credit with Bank of America. The line
        of credit for CKO is 11.75% interest and the line of credit for China Print,
        Inc. is 14.25%. The outstanding balances of the line of credit by Subsidiary
        as
        of December 31, 2006 are as follows:
 
 CKO
              
              $
              45,929China
                  Print
              
              
              55,050$
              100,979
 
  **NOTE
        P** **—TAXES
        PAYABLE AND PAYROLL TAXES PAYABLE**
  As
        of
        December 31, 2006, the Company’s subsidiary WTC owed $13,629 in income taxes to
        the IRS.
 
 As
        of
        December 31, 2006, the Company’s subsidiaries owed the following in payroll
        taxes:
 
 WTC
              
              $
              27,373
              *DTC
              
              
              2,205
              *WTEQ
              
              
              9,368
              *CYIOS
              
              
              7,833$
              46,779
 
 *The
        Company is in negotiations with the IRS to satisfy these debts which were
        incurred prior to the merger in 2005.
  21
 *Table
            of Contents*
  **NOTE
        Q** **—** **Other
        Information**
  As
        of
        December 31, 2005, CYIOS Corporation had entered into an agreement with the
        IRS
        to pay off the 2003 payroll liabilities as soon as the IRS had finished
        abating penalties from previous years.  Once the final abatements were
        in and applied to the 2nd and 3rd quarters of 2003, CYIOS agreed to
        pay the difference of what was owed.  As of March 22, 2006, CYIOS
        Corporation paid the remaining payroll liabilities for 2003.  Our payroll
        liabilities are now zero for 2003.  CYIOS Corporation has filed all payroll
        reports with the IRS in a timely manner and has had no late payroll payments
        since the 4th quarter 2003. Payment of the aforementioned tax liability will
        reduce the outstanding amount by $149,291.79.
  **ITEM8.
        C** **hanges
        in and disagreements with accountants and on accounting and financial
        disclosure**
  On
        September 14, 2005, China Print, Inc. (“CHPR”) finalized its change of auditors.
        On or about June 9, 2005, CHPR contacted the accounting firm of Traci J.
        Anderson, CPA, to review the unaudited financial statements included in its
        Form
        10-QSB for the quarter ended March 31, 2005, on the assumption that an auditor
        other than the auditor of record could review interim quarterly financial
        statements. At that point, CHPR was still using its then-current auditors,
        Malone & Bailey, PC, to conduct its annual audits. Traci J. Anderson
        conducted the review of the financial statements in the Form 10-QSB for the
        quarter ended March 31, 2005, which was filed on June 15, 2005. Ms. Anderson
        also reviewed the financial statements in the Form 10-QSB for the quarter
        ended
        June 30, 2005, which was filed on or about August 23, 2005. Malone & Bailey,
        PC did not review the financial statements in the Forms 10-QSB for the quarters
        ended March 31, 2005 or June 30, 2005.
 
 On
        or
        about June 28, 2005, Malone & Bailey communicated with CHPR management its
        concern that it had been dismissed as auditors, and on June 29, 2005, management
        sent Malone & Bailey a letter saying they had not been dismissed. However,
        based on the fact that CHPR had been using Ms. Anderson’s firm to review the
        interim unaudited financial statements, management decided to formally dismiss
        Malone & Bailey as its auditor of record, and to engage Traci J. Anderson as
        its new auditor, both actions to be effective September 14, 2005. Malone
&
Bailey, PC has been authorized to respond fully to the inquiries of CHPR’s
        successor accountant concerning the subject matter of these events.
 
 Except
        for an expression of substantial doubt about our ability to continue as a
        going
        concern, Malone & Bailey’s reports on our financial statements for the
        fiscal years ended December 31, 2004 and December 31, 2003, did not contain
        an
        adverse opinion or a disclaimer of opinion, and was not qualified or modified
        as
        to uncertainty, audit scope or accounting principles.
 
 For
        the
        fiscal years ended December 31, 2004 and December 31, 2003, and up to the
        events
        reported herein, there were no disagreements between Malone & Bailey and us
        on any matter of accounting principles or practices, financial statement
        disclosure, or auditing scope or procedure which, if not resolved to Malone
        & Bailey’s satisfaction, would have caused them to make reference to the
        subject matter of the disagreement in connection with their report.
 
 Pursuant
        to Item 304(a)(3) of Regulation S-B, the disclosures in the Form 8-K were
        provided to the former auditors, Malone & Bailey, via email and fax
        transmission on September 14, 2005, and they were requested to furnish a
        letter
        stating whether they had any disagreement with the statements made in this
        Form
        8-K, within sufficient time that their letter could be filed with the SEC
        within
        10 days of this Form 8-K’s filing.
 
 We
        did
        not discuss with Traci J. Anderson, CPA any questions regarding the application
        of accounting principles to a specific completed or contemplated transaction,
        or
        the type of audit opinion that might be rendered, either before we contacted
        her
        on June 9 to review our unaudited quarterly financial statements or before
        we
        formally engaged her as our auditor on September 14, 2005.
  22
 *Table
            of Contents*
  **Item8A. CONTROLS AND PROCEDURES**
  DISCLOSURE
        CONTROLS AND PROCEDURES. The Company maintains disclosure controls and
        procedures that are designed to ensure that information required to be disclosed
        in our Securities Exchange Act of 1934 reports is recorded, processed,
        summarized and reported within the time periods specified in the SEC's rules
        and
        forms, and that such information is accumulated and communicated to our
        management, including our Chief Executive Officer, as appropriate, to allow
        timely decisions regarding required disclosure. As of the end of the period
        covered by this report, December 31, 2006, we completed an evaluation, under
        the
        supervision and with the participation of our management, consisting of our
        Chief Executive Officer, of the effectiveness of the design and operation
        of our
        disclosure controls and procedures pursuant to Securities Exchange Act of
        1934
        Rules 13a-14(C) and 15d-14c). Based upon the foregoing, our Chief Executive
        Officer concluded that our disclosure controls and procedures are effective
        in
        connection with the filing of this annual report on Form 10-KSB for the fiscal
        year ended December 31, 2006.
  CHANGES
        IN INTERNAL CONTROLS. There were no significant changes in our internal controls
        over financial reporting during the fiscal year ended December 31, 2006 that
        have materially affected or are reasonably likely to materially affect, our
        internal controls over financial reporting.
  **Item8B
        OTHER INFORMATION - none**
  23
 *Table
            of Contents*
  **PART
        III**
  **ITEM9.** **DIRECTORS,
        EXECUTIVE OFFICERS** **,
        PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE
        ACT**
  DIRECTORS,
        EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
 The
        following table sets forth information regarding the executive officers and
        directors of the Company as of March 31, 2006.
  Name
              
              Age
              
              Position
              
              SinceTimothy
                  W. Carnahan
              
              39
              
              President,
                  Treasurer and Chairman of the Board of Directors
              
              September
                  2005Jeffrey
                  Lieberman
              
              39
              
              Secretary
                  and Director
              
              September
                  2005
 
 TIMOTHY
        CARNAHAN - Mr. Carnahan serves as President and Chief Executive Officer as
        well
        as Chairman of the Board. Mr. Carnahan is the President and Founder of our
        operating subsidiary, CYIOS Corporation, a Washington DC based firm, founded
        in
        1994 (“CYIOS DC”) and has served in that capacity since 1994. CYIOS DC is a
        defense contractor offering services and products that reduce the time frame
        for
        achieving mission-critical goals. With the Department of Defense being CYIOS
        DC's major customer, Mr. Carnahan has some level of security clearance at
        the
        Department of Defense. CYIOS built the Army Knowledge Online (AKO) to facilitate
        greater knowledge transfer amongst Army personnel. Mr. Carnahan attended
        Old
        Dominion University in Norfolk, VA from 1985 to 1989. He graduated with a
        Bachelors degree in Computer Science.
 
 JEFF
        LIEBERMAN - Mr. Lieberman serves as our Director of Sales and Operations,
        Director and Secretary. He has been employed by the Company in various
        capacities since its inception in 1997. He graduated from the University
        of
        Maryland in 1991 with a Bachelor of Science Degree in Personnel Management
        and
        Labor Relations. After completion of his degree he studied for and passed
        his
        Series 6, 63, and series 7 tests to become a fully licensed stockbroker and
        financial planner. After a short internship with a small firm he accepted
        a
        position in 1991 with Robinson & Lukens, a conservative brokerage house
        located in Washington D.C. There he worked very closely with many retired
        clients with a structured focus on income and money preservation investment
        strategies.
 
 FAMILY
        RELATIONSHIPS
 
 No
        family
        relationships exist between the directors and the officers.
 
 CODE
        OF
        ETHICS
 
 On
        March
        31, 2003, the Board of Directors of the Company adopted a written Code of
        Ethics
        designed to deter wrongdoing and promote honest and ethical conduct, full,
        fair
        and accurate disclosure, compliance with laws, prompt internal reporting
        and
        accountability to adherence to the Code of Ethics. This Code of Ethics has
        been
        filed with the Securities and Exchange Commission as an Exhibit to its Form
        10-KSB for the fiscal year ending December 31, 2003.
  24
 *Table
            of Contents*
  **ITEM10.** **EXECUTIVE
        COMPENSATION**
  (a)
        GENERAL. No salary or regular compensation is paid to our directors. Pursuant
        to
        our By-laws, directors are eligible to be reimbursed for their actual out
        of
        pocket expenses incurred in attending Board of Directors meetings and other
        director functions, as well as fixed fees and other compensation to be
        determined by the Board of Directors. No such compensation or expense
        reimbursements have been requested by the directors or paid to date. Salary
        amounts paid and stock options granted to our executive officers are detailed
        in
        subsection (b) below.
 
 (b)
        SUMMARY COMPENSATION TABLE. The following table sets forth certain summary
        information concerning the compensation paid to the Chief Executive Officer
        and
        certain executive officers for the fiscal years ended December 31,
        2005
 
 SUMMARY
        COMPENSATION TABLE
 
 Annual
                  Compensation
              
              Long
                  Term CompensationName
                  and Principal Position
              
              Year
              
              Salary
                  ($)
              
              Bonus
                  ($)
              
              Other
                  Annual Compensation ($)
              
              RestrictedStock
                  Award(s) ($)
              
              Securities
                  UnderlyingOptions
                  (#)
              
              LTIP
                  Payouts ($)
              
              Other
                  ($)Timothy
                  Carnahan
              
              2005
              
              
              
              
              
              
              
              
              
              
              N/ACEO,
                  President,Treasurer
                  and Chairman of the Board
              
              
              
              
              142,000
              
              
              
              
              
              
              
              N/AJeffrey
                  Lieberman,
              
              2005
              
              60,000Secretary
                  andDirector
              
              
              
              
              
              
              
              
              
              
              
              
              
              N/A
  (c)
        LONG
        TERM INCENTIVE PLAN AWARDS. No long-term incentive plans have been
        awarded.
 
 (d)
        COMPENSATION OF DIRECTORS. No salary or regular compensation is paid to our
        directors. Our directors are entitled to reimbursement of out of pocket expenses
        incurred in connection with their duties as directors. To date, no such expenses
        have been requested or paid.
 
 (e)
        EMPLOYMENT CONTRACTS AND TERMINATION OF EMPLOYMENT. - None
  (f)
        REPORT ON REPRICING OF OPTIONS/SARs. None. PAST OPTIONS/SARS-ALL
        EXPIRED
  The
        Company intends to maintain insurance against all liability incurred by its
        officers and directors in defense of any actions to which they may be made
        parties by reason of their positions as officers and directors and is in
        the
        process of obtaining this insurance.
 
 Nevada
        law authorizes a Nevada corporation to indemnify its officers and directors
        against claims or liabilities arising out of such person's conduct as officers
        or directors if they acted in good faith and in a manner they reasonably
        believed to be in or not opposed to the best interests of the Company. The
        Articles of Incorporation provide for indemnification of the directors and
        officers of the Company. In addition, the Bylaws of the Company provide for
        indemnification of the directors, officers, employees, or agents of the Company.
        In general, these provisions provide for indemnification in instances when
        such
        persons acted in good faith and in a manner they reasonably believed to be
        in or
        not opposed to the best interests of the Company.
  25
 *Table
            of Contents*
  **ITEM
        11. SECURITY OWNERSHIP OF** **CERTAIN
        BENEFICIAL OWNERS AND MANAGEMENT**
  The
        following table sets forth certain information regarding the ownership of
        CYIOS
        Corporation's common stock as of December 31, 2005, by each shareholder known
        by
        us to be the beneficial owner of more than 5% of CYIOS Corporation's common
        stock, each director and all executive officers and directors as a group.
        Unless
        otherwise indicated by footnote, each of the shareholders named in the table
        has
        sole voting and investment power with respect to the shares of common stock
        beneficially owned.
 
 TITLE
                  OF CLASS
              
              NAME
                  AND ADDRESS
              
              Number
                  of
              
              %
                  OFCommon
              
              Timothy
                  Carnahan
              
              15,645,000
              
              67%1300
                  Pennsylvania Ave Suite 700 NWWashington
                  DC 20007Common
              
              Jeffrey
                  Lieberman
              
              1,289,000
              
              5%1300
                  Pennsylvania Ave Suite 700 NWWashington
                  DC 20007
  Notes:
 (1)
        Mr.
        Carnahan is our CEO and Chairman, and has sole voting authority for all of
        these
        shares.
  **ITEM
        12. CERTAIN RELATIONSHIPS** **AND
        RELATED TRANSACTIONS**
  (a)
        The
        following transactions have been undertaken within the last three years with
        related parties. In May 2003, WorldTeq sold its Networld subsidiary to an
        entity
        owned by Bruce Bertman for $1. WorldTeq recorded the sale as a credit to
        additional paid in-capital for the net liabilities totaling approximately
        $435,000.
 
 In
        September 2003, the board of directors approved the conversion of $100,000
        of
        notes payable to Bruce Bertman into 5,353,511 shares of common stock. The
        number
        of shares issued was determined based on the formula outlined in Bruce Bertman's
        Secured Convertible Promissory Note. The Note allowed Mr. Bertman to convert
        at
        the lower of either $.10 per share or the average closing bid price of WTEQ
        common stock for the prior 20-day period. The average closing bid was $0.018714
        per share for the period ended August 18, 2003 when Mr. Bertman
        converted.
  26
 *Table
            of Contents*
  On
        September 19, 2005, the Company entered into an agreement with CYIOS
        Corporation, a District of Columbia corporation (“CYIOS DC”) and our current
        director and Chief Executive Officer Timothy Carnahan, whereby we would acquire
        100% of the issued and outstanding capital stock of CYIOS DC in exchange
        for
        19,135,000 common shares of stock of our Company, then named China Print,
        Inc.
  **ITEM
        13. EXHIBITS** ****
  List
        of
        Exhibits
 
 Certification
        of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act
        of
        2002
 
 Certification
        of the Company’s Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
        as
 adopted
        pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  **ITEM14.
        PRINCIPAL ACCOUNTANT FEES AND SERVICES**
  AUDIT
        FEES. Total annual audit fees billed for professional services rendered by
        Malone and Bailey PLLC during 2005 Malone & Bailey’s fees only included
        reviews of Q1 and Q2 for a total of $6,000. The company then changed auditors
        and the 3rd Quarter review and complete Audit for the fiscal year ending
        December 31, 2005 was done by Traci Anderson, CPA for a total of $17,000
        and
        continued to have Traci Anderson review Q1, Q2 and Q3 of 2006 for approximately
        $4,500.
 
 ALL
        OTHER
        FEES:
 Paul
        Beeks, is the internal CPA for CYIOS Corporation and fees for internal
        accounting amounted to approximately 6000.00 for year of 2006.
  **SIGNATURE**
  In
        accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
        this report to be signed on its behalf by the undersigned, thereunto
        duly
 authorized.
 
 CYIOS
        Corporation
 
 /s/
        Timothy W. Carnahan
 Timothy
        W. Carnahan
 Chief
        Executive Officer,
 President,
        Treasurer and Chairman of the Board
 
 In
        accordance with the Exchange Act, this report has been signed below by the
        following persons on behalf of the registrant and in the capacities and on
        the
        dates indicated.
  /s/
        Timothy W. Carnahan
 Timothy
        W. Carnahan
 Chief
        Financial Officer,
 President,
        Treasurer and Chairman of the Board
 
 /s/
        Jeffrey M. Lieberman
 Jeffrey
        M. Lieberman
 Secretary
        and Director
  
 Dated:
        April 17, 2007
  27