----

----

| Colorado                                                             | *                                       |
|----------------------------------------------------------------------|-----------------------------------------|
|  (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |

| Yes    | þ | No     | o      |
|--------|--------|--------|--------|
|   |   |   |   |

|                                                                                                                                       |   |                             |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|
|                  Large accelerated filer  o |   | Accelerated filer o              |
|                                                                                                                                       |   |                             |
| Non-accelerated filer  o(Do not check if a smaller reporting company)                                                                 |   | Smaller Reporting Company þ |

----

----

|         |                                                                                                                                                                                                                                  |   | Page   |    |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| PART I-      | FINANCIAL INFORMATION                                                                                                                                                                                                                 |   |   |    |
|         |                                                                                                                                                                                                                                  |   |   |    |
| ITEM 1-      | FINANCIAL STATEMENTS                                                                                                                                                                                                                  |   |   |    |
|         |                                                                                                                                                                                                                                  |   |   |    |
|         | Condensed balance sheets as of June 30, 2011 (unaudited) and December 31, 2010                                                                                                                                                        |   |   |  2 |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
|         | Condensed statements of operations for the six and three months ended June 30, 2011 and June 30, 2010 (unaudited) and for the period January 3, 2006 (date of Commencement as a development stage company) through June 30, 2011 |   |   | 3       |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
|         | Condensed statements of cash flows for the six months ended June 30, 2011  and June 30, 2010 (unaudited) and for the period January 3, 2006 (date of Commencement as a development stage company) through June 30, 2011          |   |   | 4       |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
|         | Notes to financial statements                                                                                                                                                                                                         |   |   | 5       |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 2-      | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                                                                                                           |   |   | 14      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 3-      | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                            |   |   | 16      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 4-      | CONTROLS AND PROCEDURES                                                                                                                                                                                                               |   |   | 16      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| PART II-     | OTHER INFORMATION                                                                                                                                                                                                                     |   |   |    |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 1-      | LEGAL PROCEEDINGS                                                                                                                                                                                                                     |   |   | 17      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 1A-     | RISK FACTORS                                                                                                                                                                                                                          |   |   | 17      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 2-      | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                                                                                                           |   |   | 18      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 3-      | DEFAULT UPON SENIOR SECURITIES                                                                                                                                                                                                        |   |   | 18      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 4-      | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                                                                                                                                   |   |   | 18      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 5-      | OTHER INFORMATION                                                                                                                                                                                                                     |   |   | 18      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| ITEM 6-      | EXHIBITS                                                                                                                                                                                                                              |   |   | 19      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| SIGNATURES   |                                                                                                                                                                                                         |   |   | 20      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| Exhibit 31.1 | Certification Pursuant to Section 302 of the Sarbanes Oxley Act                                                                                                                                                                       |   |   | 21      |   |
|         |                                                                                                                                                                                                                                  |   |   |    |   |
| Exhibit 32.1 | Certification Pursuant to Section 906 of the Sarbanes Oxley Act                                                                                                                                                                       |   |   | 22      |   |

----

|                                           |   | June 30,       |   |   |         |   |
|------------------------------------------------|--------|----------------|--------|--------|--------------|--------|
|                                           |   | 2011(Restated) |   |   | December 31, |   |
|                                           |   | (Unaudited)    |   |   |  2010   |   |
| CURRENT ASSETS:                                |   |           |   |   |         |   |
| Cash in bank                                   |   | $              | 634    |   |         | $      | - |   |
|                                           |   |           |   |   |         |   |   |   |
| Total current assets                           |   |           | 634    |   |         |   | - |   |
|                                           |   |           |   |   |         |   |   |   |
| PROPERTY AND EQUIPMENT, NET                    |   |           | 4,373  |   |         |   | 5,305 |   |
|                                           |   |           |   |   |         |   |   |   |
| Total assets                                   |   | $              | 5,007  |   |         | $      | 5,305 |   |
|                                           |   |           |   |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIENCY |   |
|                                           |   |

| LIABILITIES:                                                                                                                                                                                                           |   |   |            |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|--------|
| Accounts payable                                                                                                                                                                                                       |   | $      | 150,863         |   |   | $      | 120,363 |   |
| Cash overdraft                                                                                                                                                                                                         |   |   | -               |   |   |   | 317 |   |
| Taxes payable                                                                                                                                                                                                          |   |   | 1,500           |   |   |   | - |   |
| Accrued interest payable                                                                                                                                                                                               |   |   | 8,406           |   |   |   | 6,990 |   |
|     Due to-shareholders                                                                                                                                                                                 |   |   | 6,000           |   |   |   | 9,146 |   |
| Loans payable                                                                                                                                                                                                          |   |   | 17,900          |   |   |   | 17,900 |   |
| Convertible debentures, net of debt discount of $5,700 and $0 as of June 30, 2011 and December 31, 2010                                                                                                                |   |   | 42,300          |   |   |   | 10,000 |   |
| Derivative liability                                                                                                                                                                                                   |   |   | 93,000          |   |   |   | - |   |
| Deferred income                                                                                                                                                                                                        |   |   | 17,500          |   |   |   | 17,500 |   |
|                                                                                                                                                                                                                   |   |   |            |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                      |   |   | 337,469         |   |   |   | 182,216 |   |
|                                                                                                                                                                                                                   |   |   |            |   |   |   |   |   |
| STOCKHOLDERS’ DEFICIENCY:                                                                                                                                                                                        |   |   |            |   |   |   |   |   |
| Convertible Preferred Stock Class A, no par value, 100,000 shares  authorized at June 30, 2011 and none authorized at December 31, 2010. None issued and outstanding at June 30, 2011 and December 31, 2010. |   |   |     - |   |   |   |     - |   |
| Convertible Preferred Stock Class B, no par value, 400,000 shares authorized at June 30, 2011 and none authorized at December 31, 2010. None issued and outstanding at June 30, 2011 and December 31, 2010.            |   |   |     - |   |   |   |     - |   |
| Preferred Stock Class C, no par value, 50,000 shares authorized at June 30, 2011 and none authorized at December 31, 2010.None issued and outstanding at June 30, 2011 and December 31, 2010.                          |   |   |   -        |   |   |   |   - |   |
| Common stock, par value $.001 per share; authorized 500,000,000 shares, 169,365,519 issued and outstanding at June 30, 2011 and December 31, 2010.                                                                     |   |   |   169,366  |   |   |   |   169,366 |   |
| Deficit accumulated during the development stage                                                                                                                                                                       |   |   | (501,828        | )      |   |   | (346,277 | ) |
|                                                                                                                                                                                                                   |   |   |            |   |   |   |   |   |
| Total stockholder’s deficiency                                                                                                                                                                                   |   |   | (332,462        | )      |   |   | (176,911 | ) |
|                                                                                                                                                                                                                   |   |   |            |   |   |   |   |   |
| Total liabilities and stockholder’s deficiency                                                                                                                                                                   |   | $      | 5,007           |   |   | $      | 5,305 |   |

----

|                                                 |   |             |        |   |               |   |        |  January 3, 2006    |   |
|------------------------------------------------------|--------|------------------|-------------|--------|--------------------|--------|-------------|--------------------------|--------|
|                                                 |   |             |        |   |               |   |        |  (date of           |   |
|                                                 |   | Six Months Ended |        |   | Three Months Ended |   |        |   commencement |   |
|                                                 |   | June 30,         |        |   |               |   |        | June 30,                 |   |   |   |   |   |  as a |   |
|                                                 |   | 2011             |        |   | June 30,           |   |        | 2011                     |   |   | June 30, |   |   |  development |   |
|                                                 |   | (Restated)       |        |   | 2010               |   |        | (Restated)               |   |   | 2010 |   |   |  stage company) |   |
|                                                 |   | (Unaudited)      |        |   | (Unaudited)        |   |        | (Unaudited)              |   |   | (Unaudited) |   |   |  through June 30, 2011 |   |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |
| REVENUES                                             |   | $                | -           |   |               | $      | -           |                     |   | $ | - |   |   | $ | - |   |   | $ | 7,500 |   |
| COST OF REVENUES                                     |   |             | -           |   |               |   | -           |                     |   |   | - |   |   |   | - |   |   |   | 3,135 |   |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                         |   |             | -           |   |               |   | -           |                     |   |   | - |   |   |   | - |   |   |   | 4,365 |   |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                                  |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Consulting fees                                      |   |             | 30,000      |   |               |   | 30,000      |                     |   |   | 15,000 |   |   |   | 15,000 |   |   |   | 90,000 |   |
| General and administrative                           |   |             | 37,152      |   |               |   | 13,880      |                     |   |   | 35,686 |   |   |   | 4,319 |   |   |   | 292,000 |   |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                             |   |             | 67,152      |   |               |   | 43,880      |                     |   |   | 50,686 |   |   |   | 19,319 |   |   |   | 382,000 |   |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                       |   |             | (67,152     | )      |               |   | (43,880     | )                        |   |   | (50,686 | ) |   |   | (19,319 | ) |   |   | (377,635 | ) |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME AND (EXPENSES):                         |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in fair value of derivative liability         |   |             | 6,000       |   |               |   | -           |                     |   |   | 6,000 |   |   |   | - |   |   |   | 6,000 |   |
| Interest expense                                     |   |             | (94,399     | )      |               |   | (719        | )                        |   |   | (93,790 | ) |   |   | (359 | ) |   |   | (104,093 | ) |
| Loss on negotiated debt settlement                   |   |             | -           |   |               |   | -           |                     |   |   | - |   |   |   | - |   |   |   | (26,100 | ) |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other expenses                                 |   |             | (88,399     | )      |               |   | (719        | )                        |   |   | (87,790 | ) |   |   | (359 | ) |   |   | (124,193 | ) |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                             |   | $                | (155,551    | )      |               | $      | (44,599     | )                        |   | $ | (138,476 | ) |   | $ | (19,678 | ) |   | $ | (501,828 | ) |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share – basic and diluted         |   | $                | (.009       | )      |               | $      | (.003       | )                        |   | $ | (.008 | ) |   | $ | (.001 | ) |   |   |   |   |
|                                                 |   |             |        |   |               |   |        |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding |   |             | 169,365,519 |   |               |   | 169,365,519 |                     |   |   | 169,365,519 |   |   |   | 169,365,519 |   |   |   |   |   |

----

|                                                                        |   |                              |     |   |                    |   |    |  January 3, 2006 |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------|----------|--------|-------------------------|--------|---------|-----------------------|--------|
|                                                                        |   |                              |     |   |                    |   |    |  (date of        |   |
|                                                                        |   |                              |     |   |                    |   |    |  commencement as |   |
|                                                                        |   | Six Months Ended                  |     |   | Six Months Ended        |   |    |  a development   |   |
|                                                                        |   | June 30,2011(Restated)(Unaudited) |     |   | June 30,2010(Unaudited) |   |    |  stage company)  |   |
|                                                                        |   |  through                     |     |
|                                                                        |   |  June 30, 2011               |     |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                       |   |                              |     |   |                    |   |    |                  |   |
| Net Loss                                                                    |   | $                                 | (155,551 | )      |                    | $      | (44,599 | )                     |   | $ | (501,828 | ) |
| Adjustments to reconcile net loss to net cash used by operating activities: |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Depreciation expense                                                        |   |                              | 932      |   |                    |   | 932     |                  |   |   | 8,663 |   |
| Amortization of debt discount                                               |   |                              | 32,300   |   |                    |   | -       |                  |   |   | 32,300 |   |
| Change in fair value of derivative liability                                |   |                              | (6,000   | )      |                    |   | -       |                  |   |   | (6,000 | ) |
| Deferred income                                                             |   |                              | -        |   |                    |   | -       |                  |   |   | 17,500 |   |
| Interest Expense                                                            |   |                              | 61,000   |   |                    |   | -       |                  |   |   | 61,000 |   |
| Stock based compensation                                                    |   |                              | -        |   |                    |   | -       |                  |   |   | 20,000 |   |
| Changes in assets and liabilities:                                          |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Accounts payable                                                            |   |                              | 30,500   |   |                    |   | 31,000  |                  |   |   | 209,838 |   |
| NJ Corporation business tax payable                                         |   |                              | 1,500    |   |                    |   | 1,000   |                  |   |   | 1,500 |   |
| Accrued interest payable                                                    |   |                              | 1,416    |   |                    |   | 719     |                  |   |   | 8,406 |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| NET CASH USED BY OPERATING ACTIVITIES                                       |   |                              | (33,903  | )      |                    |   | (10,948 | )                     |   |   | (148,621 | ) |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                       |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Purchase of property and equipment                                          |   |                              | -        |   |                    |   | -       |                  |   |   | (13,036 | ) |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| NET CASH USED BY INVESTING ACTIVITIES                                       |   |                              | -        |   |                    |   | -       |                  |   |   | (13,036 | ) |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                       |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Cash overdraft                                                              |   |                              | (317     | )      |                    |   | 379     |                  |   |   | - |   |
| Repayment of advances                                                       |   |                              | (3,146   | )      |                    |   | -       |                  |   |   | (3,146 | ) |
| Cash proceeds from advances                                                 |   |                              | -        |   |                    |   | 5,844   |                  |   |   | 9,146 |   |
| Cash proceeds from loans                                                    |   |                              | -        |   |                    |   | -       |                  |   |   | 17,900 |   |
| Cash proceeds from issuance of convertible debentures                       |   |                              | 38,000   |   |                    |   | -       |                  |   |   | 48,000 |   |
| Issuance of common stock for cash                                           |   |                              | -        |   |                    |   | -       |                  |   |   | 90,391 |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                   |   |                              | 34,537   |   |                    |   | 6,223   |                  |   |   | 162,291 |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Increase (decrease) in cash                                                 |   |                              | 634      |   |                    |   | (4,725  | )                     |   |   | 634 |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Cash, beginning of period                                                   |   |                              | -        |   |                    |   | 4,725   |                  |   |   | - |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Cash, end of period                                                         |   | $                                 | 634      |   |                    | $      | -       |                  |   | $ | 634 |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information:                           |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Cash paid for interest                                                      |   | $                                 | -        |   |                    | $      | -       |                  |   | $ | - |   |
|                                                                        |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Non-cash investing and financing activities:                                |   |                              |     |   |                    |   |    |                  |   |   |   |   |
| Debt discount related to convertible debentures                             |   | $                                 | 38,000   |   |                    | $      | -       |                  |   | $ | 38,000 |   |
| Issuance of shares for the settlement of debt                               |   | $                                 | -        |   |                    |   |    |                  |   | $ | 43,125 |   |

----

| Note 1- | NATURE OF BUSINESS AND BASIS OF PRESENTATION: |
|---------|-----------------------------------------------|

| Note 2- | CORRECTION AND RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS: |
|---------|-----------------------------------------------------------------------|

----

| Note 2- | CORRECTION AND RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS: (continued) |
|---------|-----------------------------------------------------------------------------------|

|                                                                                                                                             |   | As of June 30, 2011                     |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|
|                                                                                                                                             |   | As                                      |     |   |   |   |   |   |   |
|                                                                                                                                             |   | Originally                              |     |   |   |   |   |   |   |
|                                                                                                                                             |   | Reported                                |     |   | Correction |   |   | As Restated |   |
|  Balance Sheet                                                                                                                              |   |                                    |     |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |
| Loans payable (1)                                                                                                                                |   | $                                       | 65,900   |   |   | $ | (48,000 | ) |   | $ | 17,900 |   |
| Convertible debentures  (1), (2), (3)                                                                                                  |   | $                                       | -        |   |   | $ | 42,300 |   |   | $ | 42,300 |   |
| Derivative liability (4), (5), (6)                                                                                                               |   | $                                       | -        |   |   | $ | 93,000 |   |   | $ | 93,000 |   |
| Deficit accumulated during the development stage                                                                                                 |   | $                                       | (414,527 | ) |   | $ | (87,301 | ) |   | $ | (501,828 | ) |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| “As Originally Reported” reflects balances reported in the June 30, 2011 Form 10-Q filed on October 5, 2011                          |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| “As Restated” reflects the final restated balances                                                                                   |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| “Correction” reflect changes to the originally reported balances and are described as follows:                                       |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| (1)To record reclassification of $48,000 of loans payable to convertible debentures presented on the balance sheet.                              |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| (2)To record debt discount of $38,000 on the date of note issuance.                                                                              |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| (3)To record amortization of debt discount during the period of $32,300 to interest expense.                                                     |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| (4)To record $6,000 gain for the change in fair value of derivative liability for the period ended.                                              |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| (5)To record initial derivative liability of $99,000 on the date of the note issuance.                                                           |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| (6)To record a charge of $61,000 to interest expense for the excess fair value of the derivative liability exceeding the fair value of the debt. |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   | For the six- months ended June 30, 2011 |     |
|                                                                                                                                             |   | As                                      |     |   |   |   |   |   |   |   |   |
|                                                                                                                                             |   | Originally                              |     |   |   |   |   |   | As |   |
| Statement of Operations                                                                                                                          |   | Reported                                |     |   | Correction |   |   | Restated |   |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Interest Expense (3), (6)                                                                                                                        |   | $                                       | 1,415    |   |   | $ | 92,984 |   |   | $ | 94,399 |   |
| Change in fair value of derivative liability (4)                                                                                                 |   | $                                       | -        |   |   | $ | (6,000 | ) |   | $ | (6,000 | ) |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                                                         |   | $                                       | (68,250  | ) |   | $ | (87,301 | ) |   | $ | (155,551 | ) |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Net Loss per Share                                                                                                                               |   | omitted                                 |     |   | $ | (0.009 | ) |   | $ | (0.009 | ) |
|                                                                                                                                             |   |                                    |     |   |   |   |   |   |   |   |   |   |
| Weighted average shares                                                                                                                          |   | omitted                                 |     |   |   | 169,365,519 |   |   |   | 169,365,519 |   |

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| Note 4- | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: |
|---------|---------------------------------------------|

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| Note 4- | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (continued) |
|---------|---------------------------------------------------------|

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|                                              |   | Quoted Prices in Active Markets for Identical Liabilities(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   | Balance at June 30, 2011 |
|---------------------------------------------------|--------|------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|----------------------------------------------------|--------|-------------------------------|
| Embedded conversion feature – June 30, 2011 |   | $                                                                            | -      |   |                                                   | $      | -      |                                               |   | $                             | 93,000 |   |   $                                        93,000 |

|                                         |   | Embedded Conversion Feature |   |
|----------------------------------------------|--------|-----------------------------|--------|
| Balance January 1, 2011                      |   | $                           | -      |   |
|                                         |   |                        |   |   |
| Included in other income expense             |   |                        |   |   |
| Change in fair value of derivative liability |   |                        | (6,000 | ) |
| Interest expense                             |   |                        | 61,000 |   |
| Included in liabilities (debt discount)      |   |                        | 38,000 |   |
| Included in stockholder's equity             |   |                        | -      |   |
| Transfers in and /or out of Level 3          |   |                        | -      |   |
| Balance June 30, 2011                        |   | $                           | 93,000 |   |

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|                   |   | As of June 30 |        |
|------------------------|--------|---------------|-------------|
|                   |   | 2011          |        |   | 2010 |   |
| Convertible debentures |   |          | 142,010,000 |   |   |   | 20,000,000 |   |

|                                        |   | 2011   |   |
|---------------------------------------------|--------|--------|--------|
| Convertible Debentures                      |   | $      | 48,000 |   |
| Less debt discount                          |   |   | 5,700  |   |
| Convertible Debentures net of debt discount |   | $      | 42,300 |   |

|   | a) | On September 9, 2010 the Company borrowed the sum of $10,000 from an unrelated third party. The convertible debenture is payable on demand and bears interest at the rate of 8% per annum. The loan agreement provides at the option of the note holder to convert their principal balance to 20,000,000 shares of common stock ($0.0005 per share) at any time that the loan remains unpaid. As of June 30, 2011 the $10,000 is payable. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | b) | On April 13, 2011, the Company borrowed the sum of $10,000 from an unrelated third party. The convertible debenture matures on October 13, 2011 and bears interest at the rate of 10% per annum. The loan agreement provides for the right of this individual to convert the loan into shares of common stock at a stated conversion price of the average of the 3 lowest daily trades in the previous 20 days with a 50% discount. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On May 18, 2011, the Company borrowed the sum of $28,000 from an unrelated third party on a non-interest bearing basis and is payable on demand. The loan agreement provides for the right of the holder to convert the outstanding loan into common shares of the Company at any time that the loan remains unpaid, at a conversion price of $0.0003 per share. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ● | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company,                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                        |
| ● | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and directors of the company, and |

| ● | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|         |                                    |
|--------------|-----------------------------------------|
|         | HYBRED INTERNATIONAL, INC.              |
|         |  (Registrant)                      |
|         |                                    |
|         |                                    |
|         |                                    |
| May 16, 2012 |                                    |
|         |   /s/ Gary Kouletas                |
|         | Gary Kouletas                           |
|         | President (Principal Executive Officer) |
|         |                                    |

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