| Delaware                                       |   | 13-3367421                         |
|------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                or organization)  |   | Identification                No.) |

| 7700                Irvine Center Drive, Suite 870, Irvine, California | 92608                                                                                                                                                    |
|------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (Address                of principal executive offices)                |                                      (Zip code) |

----

----

**Kaire      Holdings Incorporated**

**and      Subsidiaries**

**Consolidated      Financial Statements**

**for      the Three and Nine Months Ended**

**September      30, 2007**

----

**Kaire      Holdings Incorporated**

**and      Subsidiaries**

**Consolidated      Financial Statements**

**For      the Three and Nine Months Ended**

**September      30, 2007**

**C  O  N  T  E  N  T  S**

| Consolidated                Balance Sheets                | 1                          |
|-----------------------------------------------------------|----------------------------|
|                                                      |                       |
| Consolidated                Statements of Operations      | 2                          |
|                                                      |                       |
| Consolidated                Statements of Cash Flows      | 3                          |
|                                                      |                       |
| Notes                to Consolidated Financial Statements | 4–                29 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Consolidated            Balance            Sheets**

**As            of September 30, 2007, and December 31,            2006**

|                                                             |                                                             |                                                              |                                                          |                                                            | September                30, 2007 |            | December                31, 2006 |
|------------------------------------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------|-----------------|----------------------------------|
| Current                Assets                                    | (unaudited)                                                      |                                                              | (audited)                                                     |
|                                                             | Cash                                                             |                                                              | $                                                             |  1,263,211                                                 |                              | $               | 589,995                          |
|                                                             | Temporary                investments                             |                                                              | 251,382                                                       |                                                            |                              | 223,972         |
|                                                             | Accounts                receivable (net of reserve for doubtful  |                                                              |                                                          |                                                            |                              |            |
|                                                             |                                                             | accounts                of $0 and $0, respectively)               |                                                          |  3,512,798                                                 |                              |            | 3,776,843                        |
|                                                             | Inventories                                                      |                                                              | 548,859                                                       |                                                            |                              | -               |
|                                                             | Debt                issuance costs                               |                                                              | -                                                             |                                                            |                              | 6,906           |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             | Total                Current Assets                               |                                                          |  5,576,250                                                 |                              |            | 4,597,716                        |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
| Property,                plant and equipment, net of accumulated |                                                             |                                                              |                                                          |                                                            |                              |
|                                                             | depreciation                of $25,499 and $22,457, respectively |                                                              | 12,505                                                        |                                                            |                              |  15,547    |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
| Other                Assets                                      |                                                             |                                                              |                                                          |                                                            |                              |
|                                                             | Deposits                                                         |                                                              |  6,496                                                   |                                                            |                              | 6,496           |
|                                                             | Deferred                Tax Asset                                |                                                              | 160,605                                                       |                                                            |                              | 160,605         |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             | Total                Other Assets                                 |                                                          | 167,101                                                         |                              |            | 167,101                          |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             |                                                              |                                                          | Total                Assets                                     | $                                 |  5,755,856 |                             | $ | 4,780,364 |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
| Liabilities                and Stockholders’ Equity        |                                                             |                                                              |                                                          |                                                            |                              |
|                                                             | Current                Liabilities                               |                                                              |                                                          |                                                            |                              |            |
|                                                             |                                                             | Accounts                payable and accrued expenses              | $                                                             |  3,450,871                                                 |                              | $               | 2,886,185                        |
|                                                             |                                                             | Management                fees payable                            |                                                          | 308,250                                                         |                              |            | 347,566                          |
|                                                             |                                                             | Income                taxes payable                               |                                                          | -                                                               |                              |            | 163,843                          |
|                                                             |                                                             | Advances                from shareholders                         |                                                          | 146,766                                                         |                              |            |  99,266                     |
|                                                             |                                                             | Related                party advances                             |                                                          |  6,021                                                     |                              |            | 6,021                            |
|                                                             |                                                             | Loans                payable                                      |                                                          | 200,000                                                         |                              |            | -                                |
|                                                             |                                                             | Convertible                debt                                   |                                                          |  2,119,029                                                 |                              |            | 1,946,939                        |
|                                                             |                                                             | Derivative                liability                               |                                                          | 929,439                                                         |                              |            | 1,700,412                        |
|                                                             |                                                             | Warrant                liability                                  |                                                          | 120,415                                                         |                              |            | 137,458                          |
|                                                             |                                                             | Accrued                interest - convertible                     |                                                          | 472,594                                                         |                              |            | 472,594                          |
|                                                             |                                                             | Liabilities                of discontinued operations (Sespe)     |                                                          | 237,558                                                         |                              |            | 324,240                          |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             |                                                              | Total                Current Liabilities                      |                                                            |  7,990,943                   |            |                             | 8,084,524 |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             | Stockholders’                Equity                        |                                                              |                                                          |                                                            |                              |            |
|                                                             |                                                             | Common                stock: $0.001 par value, 900,000,000 shares |                                                          |                                                            |                              |            |                             |
|                                                             |                                                             |                                                              | authorized,                900,000,000 issued and outstanding |                                                            | 900,000                           |            |                             | 900,000 |
|                                                             |                                                             | Additional                paid-in capital                         |                                                          | -                                                               |                              |            | -                                |
|                                                             |                                                             | Accumulated                other comprehensive income             |                                                          | 109,620                                                         |                              |            |  82,210                     |
|                                                             |                                                             | Retained                earnings                                  |                                                          | (3,244,707)                                                     |                              |            | (4,286,370)                      |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             |                                                              | Total                Stockholders’ Equity               |                                                            | (2,235,087)                       |            |                             | (3,304,160) |
|                                                             |                                                             |                                                              |                                                          |                                                            |                              |            |                             |   |   |
|                                                             |                                                             |                                                              |                                                          | Total                Liabilities and Stockholders’ Equity | $                                 |  5,755,856 |                             | $ | 4,780,364 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Consolidated            Statements of            Operations**

**For            the Three and Nine Months Ended September 30, 2007 and            2006**

|                                                                         |                                                            |                                                    |                                                     |                                       | Three                Months Ended September 30, |           | Nine                Months Ended September 30, |
|------------------------------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------------|--------------------------------------------|-------------------------------------------------|----------------|------------------------------------------------|
|                                                                         |                                                            |                                                    |                                                     |                                       | 2007                                            |           | 2006                                           |   | 2007 |   | 2006 |
|                                                                         |                                                            |                                                    |                                                     |                                       | (unaudited)                                     |           | (unaudited)                                    |   | (unaudited) |   | (unaudited) |
| Revenues                                                                     | $                                                               |  5,226,199                                         |                                                     | $                                          |  4,547,008                                 |           | $                                              | 13,613,106 |   | $ | 10,154,218 |
| Cost                of goods sold                                            |                                                            | (4,647,654)                                             |                                                     |                                       | (4,023,138)                                     |           |                                           |  (11,968,225) |   |   | (8,815,258) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         | Gross                Profit                                     |                                                    | 578,545                                                  |                                       |                                            | 523,870        |                                           |   |  1,644,881 |   |   |  1,338,960 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Operating                Expenses                                            |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |
|                                                                         | Administrative                expenses                          |                                                    | 270,120                                                  |                                       |                                            | 174,563        |                                           |   | 716,935 |   |   | 842,248 |
|                                                                         | Rent                                                            |                                                    |                                                     | 24,944                                     |                                            |           | 18,910                                         |   |   | 63,052 |   |   | 56,152 |
|                                                                         | Salaries                and wages                               |                                                    | 97,644                                                   |                                       |                                            | 123,916        |                                           |   | 349,783 |   |   | 407,561 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            | Total                Operating Expenses                 |                                                     | 392,708                                    |                                            |           | 317,389                                        |   |   |  1,129,770 |   |   |  1,305,961 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            |                                                    | Income                from Operations                    |                                       | 185,837                                         |           |                                           | 206,481 |   |   | 515,111 |   |   | 32,999 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Other                Income/(Expenses)                                       |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |
|                                                                         | Debt                issuance costs                              |                                                    | -                                                        |                                       |                                            | (5,459)        |                                           |   | (6,906) |   |   |  (31,964) |
|                                                                         | Interest                income                                  |                                                    |  5,932                                              |                                       |                                            |  2,793    |                                           |   | 16,207 |   |   |  8,345 |
|                                                                         | Other                income                                     |                                                    | -                                                        |                                       |                                            | -              |                                           |   | - |   |   | 21,298 |
|                                                                         | Interest                expense                                 |                                                    | -                                                        |                                       |                                            |  (41,032) |                                           |   | - |   |   | (123,402) |
|                                                                         | Other                expense                                    |                                                    | -                                                        |                                       |                                            | -              |                                           |   | - |   |   | (192) |
|                                                                         | Change                in valuation of warrant liability         |                                                    |  (12,592)                                           |                                       |                                            | 65,635         |                                           |   | 17,043 |   |   | 221,928 |
|                                                                         | Change                in valuation of derivative liability      |                                                    | 45,821                                                   |                                       |                                            |  (29,051) |                                           |   | 770,973 |   |   |  (75,042) |
|                                                                         | Accretion                of convertible debt                    |                                                    |  (21,020)                                           |                                       |                                            | (112,356)      |                                           |   | (172,090) |   |   | (363,899) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            | Total                Other Income/(Expenses)            |                                                     | 18,141                                     |                                            |           | (119,470)                                      |   |   | 625,227 |   |   | (342,928) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            |                                                    | Pre-tax                Income from Continuing Operations |                                       | 203,978                                         |           |                                           | 87,011 |   |   |  1,140,338 |   |   | (309,929) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Income                tax expense                                            |                                                            |  (83,500)                                          |                                                     |                                       |  (14,667)                                  |           |                                           | (138,357) |   |   |  (14,667) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            |                                                    | Net                Income from Continuing Operations     |                                       | 120,478                                         |           |                                           | 72,344 |   |   |  1,001,981 |   |   | (324,596) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Income/(Loss)                on Discontinued Operations                      |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |
|                                                                         | Loss                on discontinued operations (Classic Care)   |                                                    | -                                                        |                                       |                                            | -              |                                           |   | (1,600) |   |   | - |
|                                                                         | Income/(loss)                on discontinued operations (Sespe) |                                                    | -                                                        |                                       |                                            | (105,408)      |                                           |   | 41,284 |   |   | (239,337) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            | Income/(Loss)                on Discontinued Operations |                                                     | -                                          |                                            |           | (105,408)                                      |   |   | 39,684 |   |   | (239,337) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            |                                                    | Net                Income / (Loss)                       |                                       | 120,478                                         |           |                                           |  (33,064) |   |   |  1,041,665 |   |   | (563,933) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Other                Comprehensive Income/(Loss)                             |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |
|                                                                         | Unrealized                gain/(loss) on investments            |                                                    |  (23,065)                                           |                                       |                                            | -              |                                           |   | 27,410 |   |   | 17,465 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
|                                                                         |                                                            |                                                    |                                                     | Comprehensive                Income/(Loss) | $                                               | 97,413         |                                           | $ |  (33,064) |   | $ |  1,069,075 |   | $ | (546,468) |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Earnings                per weighted average share of common stock - basic   |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |
|                                                                         | From                continuing operations                       |                                                    | 0.00                                                     |                                       |                                            | 0.00           |                                           |   | 0.00 |   |   | 0.00 |
|                                                                         | From                discontinued operations                     |                                                    | 0.00                                                     |                                       |                                            | 0.00           |                                           |   | 0.00 |   |   | 0.00 |
|                                                                         |                                                            | Total                earnings per share – basic   | $                                                        | 0.00                                       |                                            | $              | 0.00                                           |   | $ | 0.00 |   | $ | 0.00 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Earnings                per weighted average share of common stock - diluted |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |
|                                                                         | From                continuing operations                       |                                                    | 0.00                                                     |                                       |                                            | 0.00           |                                           |   | 0.00 |   |   | 0.00 |
|                                                                         | From                discontinued operations                     |                                                    | 0.00                                                     |                                       |                                            | 0.00           |                                           |   | 0.00 |   |   | 0.00 |
|                                                                         |                                                            | Total                earnings per share - diluted       | $                                                        | 0.00                                       |                                            | $              | 0.00                                           |   | $ | 0.00 |   | $ | 0.00 |
|                                                                         |                                                            |                                                    |                                                     |                                       |                                            |           |                                           |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding - basic                   |                                                            | 900,000,000                                             |                                                     |                                       | 900,000,000                                     |           |                                           | 900,000,000 |   |   | 900,000,000 |
| Weighted                average shares outstanding - diluted                 |                                                            | 900,000,000                                             |                                                     |                                       | 900,000,000                                     |           |                                           | 900,000,000 |   |   | 900,000,000 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Consolidated            Statements of Cash            Flows**

**For            the Nine Months Ending September 30, 2007 and            2006**

|                                                                  |                                                              |                                                                        |                                                                          |                                                               |  2007    |          |  2006        |
|-----------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------|--------------------------------------------------------------------|---------------|---------------|-------------------|
| Increase                (decrease) in cash and cash equivalents:      | (unaudited)                                                       |                                                                        | (unaudited)                                                                   |
|                                                                  | Net                income/(loss)                                  | $                                                                           | 1,041,665                                                                     |                                                               | $             | (563,933)     |
|                                                                  | Adjustments                to reconcile net loss to net cash used |                                                                        |                                                                          |                                                               |          |          |
|                                                                  |                                                              | in                operating activities:                                     |                                                                          |                                                               |          |          |              |
|                                                                  |                                                              |                                                                        | Depreciation                expense                                           |                                                               | 3,042         |          |              | 3,882 |
|                                                                  |                                                              |                                                                        | Accretion                of convertible debt discount                         |                                                               |  172,090 |          |              |  363,899 |
|                                                                  |                                                              |                                                                        | (Gain)/loss                from change in derivative liability                |                                                               | (770,973)     |          |              | 75,042 |
|                                                                  |                                                              |                                                                        | Gain                from change in warrant liability                          |                                                               | (17,043)      |          |              | (221,928) |
|                                                                  |                                                              |                                                                        | Non-cash                interest associated with derivative liabilities       |                                                               | -             |          |              | 14,977 |
|                                                                  |                                                              |                                                                        | Consulting                expense related to warrants granted                 |                                                               | -             |          |              |  222,606 |
|                                                                  |                                                              |                                                                        | Common                stock issued for professional services and compensation |                                                               | -             |          |              |  139,659 |
|                                                                  |                                                              |                                                                        | Non-cash                gains (losses) from discontinued operations - Sespe   |                                                               | (87,837)      |          |              | 78,025 |
|                                                                  |                                                              |                                                                        | Amortization                of deferred financing costs                       |                                                               | 6,906         |          |              | 31,964 |
|                                                                  | Changes                in operating assets and liabilities:       |                                                                        |                                                                          |                                                               |          |          |
|                                                                  |                                                              | (Increase)                decrease in accounts receivable                   |                                                                          |  264,045                                                      |          |          |  (1,570,601) |
|                                                                  |                                                              | (Increase)                decrease in inventory                             |                                                                          | (548,859)                                                          |          |          | -                 |
|                                                                  |                                                              | Increase                (decrease) in accrued interest on convertible notes |                                                                          | -                                                                  |          |          |  108,424     |
|                                                                  |                                                              | Increase                (decrease) in income taxes payable                  |                                                                          | (163,843)                                                          |          |          | (244,942)         |
|                                                                  |                                                              | Increase                (decrease) in management fees payable               |                                                                          | (39,316)                                                           |          |          | (59,750)          |
|                                                                  |                                                              | Increase                (decrease) in accounts payable and accrued expenses |                                                                          |  564,685                                                      |          |          | 1,321,825         |
|                                                                  |                                                              | Increase                (decrease) in liabilities of discontinued - Sespe   |                                                                          | 1,154                                                              |          |          | 28,422            |
|                                                                  |                                                              |                                                                        |                                                                          | Net                cash provided by (used in) operating activities |          |  425,716 |              |   | (272,429) |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
| Cash                flow from investing activities:                   |                                                              |                                                                        |                                                                          |                                                               |          |
|                                                                  |                                                              |                                                                        |                                                                          | Net                cash used in investing activities               |          | -             |              |   | - |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
| Cash                flow from financing activities:                   |                                                              |                                                                        |                                                                          |                                                               |          |
|                                                                  | Proceeds                from notes payable - shareholders         |                                                                        | 50,000                                                                        |                                                               |          | 14,304        |
|                                                                  | Payments                on notes payable - shareholders           |                                                                        |  (2,500)                                                                 |                                                               |          | -             |
|                                                                  | Proceeds                from loans                                |                                                                        |  200,000                                                                 |                                                               |          | -             |
|                                                                  | Proceeds                from convertible notes payable            |                                                                        | -                                                                             |                                                               |          |  200,000 |
|                                                                  | (Increase)                decrease in deferred financing costs    |                                                                        | -                                                                             |                                                               |          |  (3,012) |
|                                                                  |                                                              |                                                                        |                                                                          | Net                cash generated by financing activities          |          |  247,500 |              |   |  211,292 |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
|                                                                  |                                                              |                                                                        |                                                                          | Net                increase in cash and cash equivalents           |          |  673,216 |              |   | (61,137) |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
|                                                                  |                                                              |                                                                        |                                                                          | Cash                and cash equivalents at beginning of year      |          |  589,995 |              |   |  219,340 |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
|                                                                  |                                                              |                                                                        |                                                                          | Cash                and cash equivalents at end of period          | $             | 1,263,211     |              | $ |  158,203 |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
|                                                                  |                                                              |                                                                        |                                                                          |                                                               |          |          |              |   |   |
| **Supplementary                disclosures of cash flow information** |                                                              |                                                                        |                                                                          |                                                               |          |
|                                                                  | Cash                paid during the year for                      |                                                                        |                                                                          |                                                               |          |          |
|                                                                  |                                                              | Interest                                                                    | $                                                                             | -                                                                  |          | $             | -                 |
|                                                                  |                                                              | Taxes                                                                       | $                                                                             |  302,200                                                      |          | $             |  259,609     |

|   | Issued                857,383,194 shares of common stock in connection with the merger                with                H&H Glass. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | Issued                1,576,545 shares of common stock for the payment of interest on a                convertible note, valued at                $14,977; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Issued                5,586,364 shares of common stock for professional services valued                at                $139,659; |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | Issued                a warrant to purchase 12,000,000 shares of the Company’s common stock in                exchange for professional services valued at                $222,606. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.                          Summary      of Significant Accounting Policies**

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

| Net                sales               |   | Rebate |
|----------------------------------------|--------|--------|
| Below                $2,500,000        |   | None   |
| $2,500,000                - $3,499,999 |   | 0.5%   |
| $3,500,000                - $4,499,999 |   | 1.0%   |
| $4,500,000                - $5,499,999 |   | 1.5%   |
| $5,500,000                or more      |   | 2.0%   |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

| Computers                and equipment  | 3-5                years |
|-----------------------------------------|--------------------------|
| Furniture                & Fixtures | 5-7                years |

*Accounting for Equity Instruments That Are Issued to      Other Than Employees for Acquiring, or in Conjunction with Selling Goods or      Services*
*Accounting for Consideration Given by a Vendor      to a Customer (Including a Reseller of the Vendor’s      Products)*

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

*Accounting for Stock-Based Compensation*
*Accounting for Stock Issued to Employees*
*Statement of Cash Flows*

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

*“The Fair Value      Option for Financial Assets and Financial Liabilities—Including an amendment of      FASB Statement No. 115”*

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**1.           Summary      of Significant Accounting Policies (continued)**

*Accounting for Income Tax Benefits of Dividends on Share-Based      Payment Awards.*
*, *
*Accounting for Advance      Payments for Goods or Services to Be Used in Future Research and Development      Activities*

**2.              Convertible      Notes Payable**

| Date                of Note                   |   | Amount                of Notes |      | Conversion                Price |                             | Term                of Note |
|-----------------------------------------------|--------|--------------------------------|-----------|---------------------------------|----------------------------------|-----------------------------|
| December                12, 2003 (2)          |   | $                              | 676,576   |                            | $                0.04 or 70% (1) |                        | 3                years |
| May                3, 2004                    |   |                           | 650,000   |                            | $                0.09 or 85% (1) |                        | 3                years |
| March                29, 2005                 |   |                           | 125,000   |                            | $                0.04 or 85% (1) |                        | 1                year |
| June                23, 2005                  |   |                           | 350,000   |                            | $                0.03 or 80% (1) |                        | 2                years |
| December                13, 2005 (2)          |   |                           | 150,000   |                            | 70%                              |                        | 2                years |
| March                13, 2006 (2)             |   |                           | 100,000   |                            | 70%                              |                        | 2                years |
| April                11, 2006 (2)             |   |                           | 100,000   |                            | 70%                              |                        | 2                years |
| Total                convertible notes        |   |                           | 2,151,576 |                            |                             |                        |   |
| Less                unamortized bond discount |   |                           | (32,547)  |                            |                             |                        |   |
| Net                convertible notes          |   | $                              | 2,119,029 |                            |                             |                        |   |

| Date                of Warrants Issued |   | Number                of Warrants |   | Exercise                Price |   | Term                of Warrants |
|----------------------------------------|--------|-----------------------------------|--------|-------------------------------|--------|---------------------------------|
| May                3, 2004             |   | 1,666,667                         |   | $                             | 0.147  |                            | 5                years |
| March                29, 2005          |   | 694,444                           |   | $                             | 0.042  |                            | 5                years |
| March                29, 2005          |   | 3,000,000                         |   | $                             | 0.040  |                            | 5                years |
| June                23, 2005           |   | 1,666,667                         |   | $                             | 0.040  |                            | 5                years |

**2.           Convertible      Notes Payable (continued)**

*Redemption      Option -*

*Debt      features - *

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**2.           Convertible      Notes Payable (continued)**

| Date                of Warrants Issued                                                 |   | Number                of Warrants |   | Value                at Issuance |    | Initial                Volatility Factor |
|----------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------|---------|------------------------------------------|
| May                3, 2004                                                             |   | 1,666,667                         |   | $                                | 92,711  |                                     | 188 | % |
| March                29, 2005                                                          |   | 694,444                           |   | $                                | 21,387  |                                     | 104 | % |
| March                29, 2005                                                          |   | 3,000,000                         |   | $                                | 93,080  |                                     | 104 | % |
| June                23, 2005                                                           |   | 1,666,667                         |   | $                                | 49,340  |                                     | 101 | % |
| February                28, 2006  (cancelled                in January 2007) |   | 12,000,000                        |   | $                                | 222,606 |                                     | 122 | % |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**2.           Convertible      Notes Payable (continued)**

| Date                of Note      |   | Amount                of Notes |    | Debt                Features Value at Issuance |   | Initial                Carrying Value |
|----------------------------------|--------|--------------------------------|---------|------------------------------------------------|--------|---------------------------------------|
| December                12, 2003 |   | $                              | 676,576 |                                           | $      | 338,642                               |   | $ | 337,934 |
| May                3, 2004       |   | $                              | 650,000 |                                           | $      | 516,920                               |   | $ | - |
| March                29, 2005    |   | $                              | 125,000 |                                           | $      | 33,850                                |   | $ | - |
| June                23, 2005     |   | $                              | 350,000 |                                           | $      | 73,964                                |   | $ | 226,696 |
| December                13, 2005 |   | $                              | 150,000 |                                           | $      | 76,150                                |   | $ | 73,850 |
| March                13, 2006    |   | $                              | 100,000 |                                           | $      | 50,767                                |   | $ | 49,233 |
| April                11, 2006    |   | $                              | 100,000 |                                           | $      | 50,189                                |   | $ | 49,811 |

| $      | 17,043  | income,                decrease in value of 2003, 2004, 2005, 2006 and 2007 warrant                liability    |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|
|   | 770,973 | income,                decrease in value of 2003, 2004, 2005, 2006 and 2007 derivative                liability |
| $      | 788,016 | other                income related to convertible debt                                                         |

| $      | 221,928  | income,                decrease in value of 2003, 2004, 2005 and 2006 and warrant                liability |
|--------|----------|------------------------------------------------------------------------------------------------------------|
|   | (75,042) | expense,                increase in value of 2003, 2004, 2005 and 2006 derivative                liability |
| $      | 146,886  | other                income related to convertible debt                                                    |

| $      | 0       | of                interest expense related to accretion of 2003 convertible                debt |
|--------|---------|-------------------------------------------------------------------------------------------------|
|   | 79,938  | of                interest expense related to accretion of 2004 convertible                debt |
|   | 54,592  | of                interest expense related to accretion of 2005 convertible                debt |
|   | 37,560  | of                interest expense related to accretion of 2006 convertible                debt |
| $      | 172,090 | of                interest expense related to convertible                debt                   |

| $      | 77,166  | of                interest expense related to accretion of 2003 convertible                debt |
|--------|---------|-------------------------------------------------------------------------------------------------|
|   | 152,454 | of                interest expense related to accretion of 2004 convertible                debt |
|   | 107,824 | of                interest expense related to accretion of 2005 convertible                debt |
|   | 26,455  | of                interest expense related to accretion of 2006 convertible                debt |
| $      | 363,899 | of                interest expense related to convertible                debt                   |

| $      | 1,373,570 | December                31, 2005 value                          |
|--------|-----------|-----------------------------------------------------------------|
|   | 99,044    | original                carrying value on 2006 convertible debt |
|   | 474,325   | accretion                of convertible debt                    |
| $      | 1,946,939 | December                31, 2006 carrying value of debt         |

| $      | 1,946,939 | December                31, 2006 value                          |
|--------|-----------|-----------------------------------------------------------------|
|   | -         | original                carrying value on 2007 convertible debt |
|   | 172,090   | accretion                of convertible debt                    |
| $      | 2,119,029 | September                30, 2007 carrying value of debt        |

| $      | 1,497,659 | December                31, 2005 value of derivative liability                |
|--------|-----------|-------------------------------------------------------------------------------|
|   | 100,956   | original                values of 2006 derivative liability                   |
|   | 44,454    | increase                in values of 2003 derivative liability                |
|   | (11,470)  | increase                in values of 2004 derivative liability                |
|   | 64,090    | increase                in values of 2005 derivative liability                |
|   | 4,723     | increase                in values of 2006 derivative liability                |
| $      | 1,700,412 | December                31, 2006 value of derivative                liability |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**2.           Convertible      Notes Payable (continued)**

| $      | 1,700,412 | December                31, 2006 value of derivative liability                 |
|--------|-----------|--------------------------------------------------------------------------------|
|   | 0         | original                values of 2007 derivative liability                    |
|   | (369,361) | decrease                in values of 2003 derivative liability                 |
|   | (138,916) | decrease                in values of 2004 derivative liability                 |
|   | (176,284) | decrease                in values of 2005 derivative liability                 |
|   | (86,412)  | decrease                in values of 2006 derivative liability                 |
| $      | 929,493   | September                30, 2007 value of derivative                liability |

| $      | 126,095   | December                31, 2005 value of warrant liability         |
|--------|-----------|---------------------------------------------------------------------|
|   | 222,606   | original                carrying values of 2006 warrant liability   |
|   | (11,302)  | income,                decrease in value of 2004 warrant liability  |
|   | (70,038)  | income,                decrease in value of 2005 warrant liability  |
|   | (129,903) | income,                decrease in values of 2006 warrant liability |
| $      | 137,458   | December                31, 2006 value of warrant liability         |

| $      | 137,458 | December                31, 2006 value of warrant liability         |
|--------|---------|---------------------------------------------------------------------|
|   | 0       | original                carrying values of 2006 warrant liability   |
|   | (2,369) | Income,                increase in value of 2004 warrant liability  |
|   | (8,151) | income,                increase in value of 2005 warrant liability  |
|   | (6,523) | income,                decrease in values of 2006 warrant liability |
| $      | 120,415 | September                30, 2007 value of warrant liability        |

**3.           Common      Stock Transactions**

**4.           Related      Party Transactions**

**5.           Accounts      Receivable**

**6.           Property      and Equipment**

|                                                          | 2007   |     | 2006   |
|---------------------------------------------------------------|--------|----------|--------|
| Furniture                and fixtures                         | $      | 14,552   |   | $ | 14,552 |
| Computers                and equipment                        |   | 23,452   |   |   | 23,452 |
|                                                          |   | 38,004   |   |   | 38,004 |
| Less                accumulated depreciation and amortization |   | (25,499) |   |   | (22,457) |
|                                                          | Total  | $        | 12,505 |   | $ | 15,547 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**6.           Property      and Equipment (continued)**

|                                                          | September |   | December |
|---------------------------------------------------------------|-----------|--------|----------|
|                                                          | 2007      |   | 2006     |
| Furniture                and fixtures                         | $         | -      |     | $ | 85,000 |
| Vehicles                                                      |      | -      |     |   | 14,712 |
| Computers                and equipment                        |      | -      |     |   | 22,094 |
|                                                          |      | -      |     |   | 121,806 |
| Less                accumulated depreciation and amortization |      | (-)    |     |   | (103,719) |
|                                                          |      |   | -        |   |   | 18,087 |
| Less                expense for disposal of assets            |      | -      |     |   | (18,087) |
|                                                          | Total     | $      | -        |   | $ | - |

**7.           Accounts      Payable and Accrued Expenses**

|                                                 | September                30, 2007 |      | December                31, 2006 |
|------------------------------------------------------|-----------------------------------|-----------|----------------------------------|
| Accounts                payable                      | $                                 | 3,235,236 |                             | $ | 2,627,400 |
| Accrued                professional and related fees |                              | 71,800    |                             |   | 114,950 |
| Accrued                officer’s compensation  |                              | 118,143   |                             |   | 118,143 |
| Accrued                settlements                   |                              | 25,692    |                             |   | 25,692 |
|                                                 | Total                             | $         | 3,450,871                        |   | $ | 2,886,185 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**7.           Accounts      Payable and Accrued Expenses (continued)**

|                                                   | September                30, 2007 |    | December                31, 2006 |
|--------------------------------------------------------|-----------------------------------|---------|----------------------------------|
| Accounts                payable                        | $                                 | 225,198 |                             | $ | 327,963 |
| Accrued                liabilities                     |                              | 1,175   |                             |   | 1,175 |
| Accrued                payroll and related liabilities |                              | 4,192   |                             |   | 37,340 |
| Accrued                settlements                     |                              | 7,024   |                             |   | 7,024 |
| Sales                tax payable                       |                              | -       |                             |   | 43 |
|                                                   | Total                             | $       | 237,589                          |   | $ | 373,545 |

**8.           Commitments      and Contingencies**

*Department      of Health Services - Medi-Cal Action against Classic Care      Pharmacy*

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**8.           Commitments      and Contingencies (continued)**

*Department      of Health Services - Medi-Cal Action against Classic Care Pharmacy      (continued)*

*H.D.      Smith Wholesale Drug Company – Action for breach of contact and other various      causes of action*

*McKesson      Medical – Surgical Inc. v. Effective Health*

*Ventura      County Superior Court, Case No. CIV234713*

*Medical      License*

*Pharm-Aid,      Inc. v. Effective Health, Inc., et al.*

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**8.           Commitments      and Contingencies (continued)**

*Operating      leases*

| Year                ended December 31, |   |   |
|----------------------------------------|--------|--------|
| 2007                                   | $      | 20,561 |
| 2008                                   |   | 51,966 |
| Thereafter                             |   | -      |
|                                   |   |   |
|                                   | $      | 72,527 |

*Chief      Executive Officer Compensation*

**8.           Commitments      and Contingencies (continued)**

*Chief      Executive Officer Compensation (continued)*

**9.           Stock      Options and Warrants**

|                                   | Warrants                Outstanding |                                                      | Warrants                Exercisable |
|----------------------------------------|-------------------------------------|-----------------------------------------------------------|-------------------------------------|
| Range                of ExercisePrices |                                | NumberOutstanding                as of September 30, 2007 |                                | WeightedAverageRemaining                Contractual Life |   | WeightedAverageExercisePrice |   | Number                Exercisable as of September 30, 2007 |   | WeightedAverageExercisePrice |
|                                   |                                |                                                      |                                |   |   |   |   |   |   |   |   |   |
| $0.03                - $0.17           |                                | 25,972,221                                                |                                | 2.01 |   | $ | 0.06 |   | 25,972,221 |   | $ | 0.06 |
|                                   |                                |                                                      |                                |   |   |   |   |   |   |   |   |   |
|                                   |                                | 25,972,221                                                |                                | 2.01 |   | $ | 0.06 |   | 25,972,221 |   | $ | 0.06 |

|                                   | Warrants                Outstanding |                                                     | Warrants                Exercisable |
|----------------------------------------|-------------------------------------|----------------------------------------------------------|-------------------------------------|
| Range                of ExercisePrices |                                | NumberOutstanding                as of December 31, 2006 |                                | WeightedAverageRemaining                Contractual Life |   | WeightedAverageExercisePrice |   | Number                Exercisable as of December 31, 2006 |   | WeightedAverageExercisePrice |
|                                   |                                |                                                     |                                |   |   |   |   |   |   |   |   |   |
| $0.03                - $0.17           |                                | 37,972,221                                               |                                | 3.21 |   | $ | 0.06 |   | 37,972,221 |   | $ | 0.06 |
|                                   |                                |                                                     |                                |   |   |   |   |   |   |   |   |   |
|                                   |                                | 37,972,221                                               |                                | 3.21 |   | $ | 0.06 |   | 37,972,221 |   | $ | 0.06 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**9.           Stock      Options and Warrants (continued)**

|                                          | WarrantsAndStock                OptionsOutstanding |   | WeightedAverageExercisePrice |
|-----------------------------------------------|----------------------------------------------------|--------|------------------------------|
|                                          |                                               |   |                         |   |
| Outstanding                December 31, 2005  | 25,972,221                                         |   | $                            | 0.06 |
|                                          |                                               |   |                         |   |
| Granted                February 28, 2006      | 12,000,000                                         |   | $                            | 0.05 |
| Exercised                                     | -                                                  |   | $                            | - |
| Expired/Cancelled                             | -                                                  |   | $                            | - |
|                                          |                                               |   |                         |   |
| Outstanding                December 31, 2006  | 37,972,221                                         |   | $                            | 0.06 |
|                                          |                                               |   |                         |   |
| Granted                2007                   | -                                                  |   | $                            | - |
| Exercised                                     | -                                                  |   | $                            | - |
| Expired/Cancelled                             | (12,000,000)                                       |   | $                            | 0.05 |
|                                          |                                               |   |                         |   |
| Outstanding                September 30, 2007 | 25,972,221                                         |   | $                            | 0.06 |

**10.           Earnings      per Share**

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**11.           Discontinued      Operations – Classic Care, Inc.**

**12.           Discontinued      Operations – Sespe Pharmacy (Effective Health, Inc.)**

|                                                               | September                30, 2007                    |      | December                31, 2006 |
|--------------------------------------------------------------------|------------------------------------------------------|-----------|----------------------------------|
| Assets:                                                            |                                                 |      |                             |   |   |
|                                                               | Cash                                                 | $         | 31                               |   | $ | 43 |
|                                                               | Accounts                receivable, net of reserve   |      | -                                |   |   | 7,168 |
|                                                               | Inventory                                            |      | -                                |   |   | 46,454 |
| Total                assets                                        | $                                                    | 31        |                             | $ | 53,665 |
|                                                               |                                                 |      |                             |   |   |
| Liabilities:                                                       |                                                 |      |                             |   |   |
|                                                               | Accounts                payable and accrued expenses | $         | (237,589)                        |   | $ | (373,545) |
|                                                               | Note                payable – related party    |      | -                                |   |   | (4,360) |
| Total                liabilities                                   | $                                                    | (237,589) |                             | $ | (377,905) |
|                                                               |                                                 |      |                             |   |   |
| Net                Assets (Liabilities) of Discontinued Operations | $                                                    | (237,558) |                             | $ | (324,240) |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

**12.           Discontinued      Operations – Sespe Pharmacy (Effective Health, Inc.)      (continued)**

|                              | 2007   |     | 2006   |
|-----------------------------------|--------|----------|--------|
| Revenues                          | $      | -        |   | $ | 455,869 |
| Cost                of sales      |   | -        |   |   | (341,468) |
| Operating                expenses |   | (51,895) |   |   | (334,913) |
| Other                income       |   | 94,779   |   |   | - |
| Other                expense      |   | (1,600)  |   |   | (18,825) |
| Net                Income (loss)  | $      | 41,284   |   | $ | (239,337) |

**13.           Merger      with H&H Glass, Inc.**

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

|                                                            |  H&H                                |                                                          |  Kaire                andSubsidiaries      |                                                            | PurchaseAdjustments |         | Post-Merger      |
|-----------------------------------------------------------------|----------------------------------------------|---------------------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------------|---------------------|--------------|------------------|
| Current                Assets                                   |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |
|                                                            | Cash                                         | $                                                             | 1,215,943                                       |                                                            | $                   |  47,268 |             | $ |   |   | $ | 1,263,211 |
|                                                            | Investments                - temporary       |                                                          | 251,382                                         |                                                            |                |  -      |             |   |   |   |   | 251,382 |
|                                                            | Accounts                receivable           |                                                          | 3,512,798                                       |                                                            |                |  -      |             |   |   |   |   | 3,512,798 |
|                                                            | Inventories                                  |                                                          | 548,859                                         |                                                            |                |  -      |             |   |   |   |   | 548,859 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         | Total                Current Assets                           |                                            | 5,528,982                                                       |                |         |  47,268     |   |   |  - |   |   | 5,576,250 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
| Property,                Plant and Equipment                    |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |
|                                                            | Property,                plant and equipment |                                                          |  38,004                                    |                                                            |                |  -      |             |   |   |   |   |  38,004 |
|                                                            | Accumulated                depreciation      |                                                          | (25,499)                                        |                                                            |                |  -      |             |   |   |   |   | (25,499) |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         | Total                Property, Plant and Equipment            |                                            |  12,505                                                    |                |         |  -          |   |   |  - |   |   |  12,505 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
| Other                Assets                                     |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |
|                                                            | Deposits                                     |                                                          | 6,496                                           |                                                            |                |  -      |             |   |   |   |   | 6,496 |
|                                                            | Deferred                tax asset            |                                                          | 160,605                                         |                                                            |                |  -      |             |   |   |   |   | 160,605 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         | Total                Other Assets                             |                                            | 167,101                                                         |                |         |  -          |   |   |  - |   |   | 167,101 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         |                                                          |                                            | Total                Assets                                     | $                   | 5,708,588    |             | $ |  47,268 |   | $ |  - |   | $ | 5,755,856 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
| Liabilities                and Stockholders’ Equity       |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |
|                                                            | Current                Liabilities           |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |
|                                                            |                                         | Accounts                payable                               | $                                               | 3,214,567                                                       |                | $            |  20,669     |   | $ |   |   | $ | 3,235,236 |
|                                                            |                                         | Accrued                expenses                               |                                            |  -                                                         |                |         | 215,635          |   |   |   |   |   | 215,635 |
|                                                            |                                         | Management                fees payable                        |                                            | 308,250                                                         |                |         |  -          |   |   |   |   |   | 308,250 |
|                                                            |                                         | Liabilities                of discontinued operations (Sespe) |                                            |  -                                                         |                |         | 237,558          |   |   |   |   |   | 237,558 |
|                                                            |                                         | Advances                from shareholders                     |                                            |  -                                                         |                |         | 146,766          |   |   |   |   |   | 146,766 |
|                                                            |                                         | Related                party advances                         |                                            |  -                                                         |                |         | 6,021            |   |   |   |   |   | 6,021 |
|                                                            |                                         | Short-term                loans payable                       |                                            |  -                                                         |                |         | 200,000          |   |   |   |   |   | 200,000 |
|                                                            |                                         | Convertible                debt                               |                                            |  -                                                         |                |         | 2,119,029        |   |   |   |   |   | 2,119,029 |
|                                                            |                                         | Derivative                liability                           |                                            |  -                                                         |                |         | 929,439          |   |   |   |   |   | 929,439 |
|                                                            |                                         | Warrant                liability                              |                                            |  -                                                         |                |         | 120,415          |   |   |   |   |   | 120,415 |
|                                                            |                                         | Accrued                interest - convertible                 |                                            |  -                                                         |                |         | 472,594          |   |   |   |   |   | 472,594 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         |                                                          | Total                Current Liabilities        |                                                            | 3,522,817           |         |             | 4,468,126 |   |   |  - |   |   | 7,990,943 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            | Stockholders’                Equity    |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |
|                                                            |                                         | Common                stock                                   |                                            | 1,000                                                           |                |         |  42,617     |   |   | (1,000) | (a) |   | 900,000 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   | 857,383 | (b) |   |   |
|                                                            |                                         | Additional                paid-in capital                     |                                            |  -                                                         |                |         |  40,139,231 |   |   | 1,000 | (a) |   |  - |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |  (857,383) | (b) |   |   |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   | (39,282,848) | (c) |   |   |
|                                                            |                                         | Accumulated                other comprehensive income         |                                            | 109,620                                                         |                |         |  -          |   |   |   |   |   | 109,620 |
|                                                            |                                         | Retained                earnings                              |                                            | 2,075,151                                                       |                |         | (44,602,706)     |   |   |  39,282,848 | (c) |   | (3,244,707) |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         |                                                          | Total                Stockholders’ Equity |                                                            | 2,185,771           |         |             | (4,420,858) |   |   |  - |   |   | (2,235,087) |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
|                                                            |                                         |                                                          |                                            | Total                Liabilities and Stockholders’ Equity | $                   | 5,708,588    |             | $ |  47,268 |   | $ |  - |   | $ | 5,755,856 |
|                                                            |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |   |   |   |   |
| (a)                Eliminate H&H Glass’s common stock |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |
| (b)                Shares issued in connection with merger:     |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |
| (c)                Eliminate Kaire’s Accumulated Deficit  |                                         |                                                          |                                            |                                                            |                |         |             |   |   |   |   |

|                                                            |                                         |                                                  |                                            |                                                            |  H&H |      |  Kaire                andSubsidiaries |        | PurchaseAdjustments |             | Post-Merger |
|-----------------------------------------------------------------|----------------------------------------------|-------------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------------|---------------|-----------|--------------------------------------------|-------------|---------------------|------------------|-------------|
| Current                Assets                                   |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |
|                                                            | Cash                                         | $                                                     | 589,995                                         |                                                            | $             |  -   |                                       | $           |                |             | $           | 589,995 |
|                                                            | Investments                - temporary       |                                                  | 223,972                                         |                                                            |          |  -   |                                       |        |                |             |        | 223,972 |
|                                                            | Accounts                receivable           |                                                  | 3,776,843                                       |                                                            |          |  -   |                                       |        |                |             |        | 3,776,843 |
|                                                            | Deferred                financing costs      |                                                  |  -                                         |                                                            |          | 6,906     |                                       |        |                |             |        | 6,906 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         | Total                Current Assets                   |                                            | 4,590,810                                                       |          |      | 6,906                                      |        |                |  -          |        |   | 4,597,716 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
| Property,                Plant and Equipment                    |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |
|                                                            | Property,                plant and equipment |                                                  |  38,004                                    |                                                            |          |  -   |                                       |        |                |             |        |  38,004 |
|                                                            | Accumulated                depreciation      |                                                  | (22,457)                                        |                                                            |          |  -   |                                       |        |                |             |        | (22,457) |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         | Total                Property, Plant and Equipment    |                                            |  15,547                                                    |          |      |  -                                    |        |                |  -          |        |   |  15,547 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
| Other                Assets                                     |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |
|                                                            | Deposits                                     |                                                  | 6,496                                           |                                                            |          |  -   |                                       |        |                |             |        | 6,496 |
|                                                            | Deferred                tax asset            |                                                  | 160,605                                         |                                                            |          |  -   |                                       |        |                |             |        | 160,605 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         | Total                Other Assets                     |                                            | 167,101                                                         |          |      |  -                                    |        |                |  -          |        |   | 167,101 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         |                                                  |                                            | Total                Assets                                     | $             | 4,773,458 |                                       | $           | 6,906               |             | $           |  - |   | $ | 4,780,364 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
| Liabilities                and Stockholders’ Equity       |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |
|                                                            | Current                Liabilities           |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |
|                                                            |                                         | Accounts                payable                       | $                                               | 2,551,418                                                       |          | $         |  75,982                               |        | $                   |             |        | $ | 2,627,400 |
|                                                            |                                         | Accrued                expenses                       |                                            |  -                                                         |          |      | 258,785                                    |        |                |             |        |   | 258,785 |
|                                                            |                                         | Management                fees payable                |                                            | 347,566                                                         |          |      |  -                                    |        |                |             |        |   | 347,566 |
|                                                            |                                         | Income                taxes payable                   |                                            | 163,843                                                         |          |      |  -                                    |        |                |             |        |   | 163,843 |
|                                                            |                                         | Liabilities                of discontinued operations |                                            |  -                                                         |          |      | 324,240                                    |        |                |             |        |   | 324,240 |
|                                                            |                                         | Advances                from shareholders             |                                            |  -                                                         |          |      |  99,266                               |        |                |             |        |   |  99,266 |
|                                                            |                                         | Related                party advances                 |                                            |  -                                                         |          |      | 6,021                                      |        |                |             |        |   | 6,021 |
|                                                            |                                         | Convertible                debt                       |                                            |  -                                                         |          |      | 1,946,939                                  |        |                |             |        |   | 1,946,939 |
|                                                            |                                         | Derivative                liability                   |                                            |  -                                                         |          |      | 1,700,412                                  |        |                |             |        |   | 1,700,412 |
|                                                            |                                         | Warrant                liability                      |                                            |  -                                                         |          |      | 137,458                                    |        |                |             |        |   | 137,458 |
|                                                            |                                         | Accrued                interest - convertible         |                                            |  -                                                         |          |      | 472,594                                    |        |                |             |        |   | 472,594 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         |                                                  | Total                Current Liabilities        |                                                            | 3,062,827     |      |                                       | 5,021,697   |                |             |  -     |   |   | 8,084,524 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            | Stockholders’                Equity    |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |
|                                                            |                                         | Common                stock                           |                                            | 1,000                                                           |          |      |  42,617                               |        |                | (1,000)          | (a)         |   | 900,000 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        | 857,383 | (b) |   |   |
|                                                            |                                         | Additional                paid-in capital             |                                            |  -                                                         |          |      |  40,139,231                           |        |                | 1,000            | (a)         |   |  - |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |  (857,383) | (b) |   |   |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        | (39,282,848) | (c) |   |   |
|                                                            |                                         | Accumulated                other comprehensive income |                                            |  82,210                                                    |          |      |  -                                    |        |                |             |        |   |  82,210 |
|                                                            |                                         | Retained                earnings                      |                                            | 1,627,421                                                       |          |      | (45,196,639)                               |        |                |  39,282,848 | (c)         |   | (4,286,370) |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         |                                                  | Total                Stockholders’ Equity |                                                            | 1,710,631     |      |                                       | (5,014,791) |                |             |  -     |   |   | (3,304,160) |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
|                                                            |                                         |                                                  |                                            | Total                Liabilities and Stockholders’ Equity | $             | 4,773,458 |                                       | $           | 6,906               |             | $           |  - |   | $ | 4,780,364 |
|                                                            |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |   |   |   |   |
| (a)                Eliminate H&H Glass’s common stock |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |
| (b)                Shares issued in connection with merger:     |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |             |        |
| (c)                Eliminate Kaire’s Accumulated Deficit  |                                         |                                                  |                                            |                                                            |          |      |                                       |        |                |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

|                                                      |                                                     |                                                            |                                                     |                                | Three                Months Ended September 30, 2007 |         | Nine                Months Ended September 30, 2007 |
|-----------------------------------------------------------|----------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------|-------------------------------------|------------------------------------------------------|--------------|-----------------------------------------------------|
|                                                      |                                                     |                                                            |                                                     |                                | H&H                                              |         | Kaire                                               |   | Merged |   | H&H |   | Kaire                + Subs |   | Merged |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                  | $                                                        | 5,226,199                                                       |                                                     | $                                   |  -                                              |         | $                                                   | 5,226,199 |   | $ |  13,613,106 |   | $ |  - |   | $ |  13,613,106 |
| Cost                of goods sold                         |                                                     | (4,647,654)                                                     |                                                     |                                |  -                                              |         |                                                | (4,647,654) |   |   | (11,968,225) |   |   |  - |   |   | (11,968,225) |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      | Gross                Profit                              |                                                            | 578,545                                                  |                                |                                                 |  -      |                                                |   | 578,545 |   |   | 1,644,881 |   |   |  - |   |   | 1,644,881 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Expenses                         |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |
|                                                      | Administrative                expenses                   |                                                            | 266,631                                                  |                                |                                                 | 3,489        |                                                |   | 270,120 |   |   | 662,165 |   |   |  54,770 |   |   | 716,935 |
|                                                      | Rent                                                     |                                                            |  24,944                                             |                                |                                                 |  -      |                                                |   |  24,944 |   |   |  63,052 |   |   |  - |   |   |  63,052 |
|                                                      | Salaries                and wages                        |                                                            |  97,644                                             |                                |                                                 |  -      |                                                |   |  97,644 |   |   | 349,783 |   |   |  - |   |   | 349,783 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      | Total                Operating Expenses                  |                                                            | 389,219                                                  |                                |                                                 | 3,489        |                                                |   | 392,708 |   |   | 1,075,000 |   |   |  54,770 |   |   | 1,129,770 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     | Net                Income from Operations                       |                                                     | 189,326                             |                                                 |         | (3,489)                                             |   |   | 185,837 |   |   | 569,881 |   |   | (54,770) |   |   | 515,111 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income/(Expense)                     |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |
|                                                      | Debt                issuance costs                       |                                                            |  -                                                  |                                |                                                 |  -      |                                                |   |  - |   |   |  - |   |   | (6,906) |   |   | (6,906) |
|                                                      | Interest                income                           |                                                            | 5,932                                                    |                                |                                                 |  -      |                                                |   | 5,932 |   |   |  16,207 |   |   |  - |   |   |  16,207 |
|                                                      | Change                in warrant liability               |                                                            |  -                                                  |                                |                                                 | (12,592)     |                                                |   | (12,592) |   |   |  - |   |   |  17,043 |   |   |  17,043 |
|                                                      | Change                in derivative liability            |                                                            |  -                                                  |                                |                                                 |  45,821 |                                                |   |  45,821 |   |   |  - |   |   | 770,973 |   |   | 770,973 |
|                                                      | Accretion                of debt                         |                                                            |  -                                                  |                                |                                                 | (21,020)     |                                                |   | (21,020) |   |   |  - |   |   |  (172,090) |   |   |  (172,090) |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     | Total                Other Income/(Expense)                     |                                                     | 5,932                               |                                                 |         |  12,209                                        |   |   |  18,141 |   |   |  16,207 |   |   | 609,020 |   |   | 625,227 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     |                                                            | Pre-tax                Income from Continuing Operations |                                | 195,258                                              |         |                                                | 8,720 |   |   | 203,978 |   |   | 586,088 |   |   | 554,250 |   |   | 1,140,338 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                Tax Expense                         |                                                     | (83,500)                                                        |                                                     |                                |  -                                              |         |                                                | (83,500) |   |   |  (138,357) |   |   |  - |   |   |  (138,357) |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     |                                                            | Net                Income from Continuing Operations     |                                | 111,758                                              |         |                                                | 8,720 |   |   | 120,478 |   |   | 447,731 |   |   | 554,250 |   |   | 1,001,981 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income/(Loss)                from Discontinued Operations |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |
|                                                      | Net                Income of discontinued (Classic Care) |                                                            |  -                                                  |                                |                                                 |  -      |                                                |   |  - |   |   |  - |   |   | (1,600) |   |   | (1,600) |
|                                                      | Net                Income of discontinued (Sespe)        |                                                            |  -                                                  |                                |                                                 |  -      |                                                |   |  - |   |   |  - |   |   |  41,284 |   |   |  41,284 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     | Total                Income/(Loss) from Discontinued Operations |                                                     |  -                             |                                                 |         |  -                                             |   |   |  - |   |   |  - |   |   |  39,684 |   |   |  39,684 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     |                                                            | Net                Income                                |                                | 111,758                                              |         |                                                | 8,720 |   |   | 120,478 |   |   | 447,731 |   |   | 593,934 |   |   | 1,041,665 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      | Other                Comprehensive Income/Loss           |                                                            | (23,065)                                                 |                                |                                                 |  -      |                                                |   | (23,065) |   |   |  27,410 |   |   |  - |   |   |  27,410 |
|                                                      |                                                     |                                                            |                                                     |                                |                                                 |         |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |                                                     |                                                            |                                                     | Comprehensive                Income | $                                                    |  88,693 |                                                | $ | 8,720 |   | $ |  97,413 |   | $ | 475,141 |   | $ | 593,934 |   | $ | 1,069,075 |

----

**Kaire            Holdings            Incorporated**

**and            Subsidiaries**

**Notes            to Consolidated Financial            Statements**

**September            30,            2007**

|                                                              |                                          |                                        |                                                        |                                       | Three                Months Ended September 30, 2006 |            | Nine                Months Ended September 30, 2006 |
|-------------------------------------------------------------------|-----------------------------------------------|---------------------------------------------|-------------------------------------------------------------|--------------------------------------------|------------------------------------------------------|-----------------|-----------------------------------------------------|
|                                                              |                                          |                                        |                                                        |                                       | H&H                                              |            | Kaire                + Subs                         |   | Merged |   | H&H |   | Kaire                + Subs |   | Merged |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                          | $                                             | 4,547,008                                   |                                                        | $                                          |  -                                              |            | $                                                   | 4,547,008 |   | $ |  10,154,218 |   | $ |  - |   | $ |  10,154,218 |
| Cost                of goods sold                                 |                                          | (4,023,138)                                 |                                                        |                                       |  -                                              |            |                                                | (4,023,138) |   |   | (8,815,258) |   |   |  - |   |   | (8,815,258) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              | Gross                Profit                   |                                        | 523,870                                                     |                                       |                                                 |  -         |                                                |   | 523,870 |   |   | 1,338,960 |   |   |  - |   |   | 1,338,960 |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Expenses                                 |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |
|                                                              | Administrative                expenses        |                                        | 186,815                                                     |                                       |                                                 | (12,252)        |                                                |   | 174,563 |   |   | 502,487 |   |   | 339,761 |   |   | 842,248 |
|                                                              | Rent                                          |                                        |  18,910                                                |                                       |                                                 |  -         |                                                |   |  18,910 |   |   |  56,152 |   |   |  - |   |   |  56,152 |
|                                                              | Salaries                and wages             |                                        |  91,416                                                |                                       |                                                 |  32,500    |                                                |   | 123,916 |   |   | 325,061 |   |   |  82,500 |   |   | 407,561 |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              | Total                Operating Expenses       |                                        | 297,141                                                     |                                       |                                                 |  20,248    |                                                |   | 317,389 |   |   | 883,700 |   |   | 422,261 |   |   | 1,305,961 |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |                                          | Net                Income from Operations   |                                                        | 226,729                                    |                                                 |            | (20,248)                                            |   |   | 206,481 |   |   | 455,260 |   |   |  (422,261) |   |   |  32,999 |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income/(Expense)                             |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |
|                                                              | Debt                issuance costs            |                                        |  -                                                     |                                       |                                                 | (5,459)         |                                                |   | (5,459) |   |   |  - |   |   | (31,964) |   |   | (31,964) |
|                                                              | Other                income                   |                                        |  -                                                     |                                       |                                                 |  -         |                                                |   |  - |   |   |  - |   |   |  21,298 |   |   |  21,298 |
|                                                              | Interest                Income                |                                        | 2,793                                                       |                                       |                                                 |  -         |                                                |   | 2,793 |   |   | 8,345 |   |   |  - |   |   | 8,345 |
|                                                              | Other                expense                  |                                        |  -                                                     |                                       |                                                 |  -         |                                                |   |  - |   |   |  (192) |   |   |  - |   |   |  (192) |
|                                                              | Interest                expense               |                                        |  -                                                     |                                       |                                                 | (41,032)        |                                                |   | (41,032) |   |   |  - |   |   |  (123,402) |   |   |  (123,402) |
|                                                              | Change                in warrant liability    |                                        |  -                                                     |                                       |                                                 |  65,635    |                                                |   |  65,635 |   |   |  - |   |   | 221,928 |   |   | 221,928 |
|                                                              | Change                in derivative liability |                                        |  -                                                     |                                       |                                                 | (29,051)        |                                                |   | (29,051) |   |   |  - |   |   | (75,042) |   |   | (75,042) |
|                                                              | Accretion                of debt              |                                        |  -                                                     |                                       |                                                 |  (112,356) |                                                |   |  (112,356) |   |   |  - |   |   |  (363,899) |   |   |  (363,899) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |                                          | Total                Other Income/(Expense) |                                                        | 2,793                                      |                                                 |            |  (122,263)                                     |   |   |  (119,470) |   |   | 8,153 |   |   |  (351,081) |   |   |  (342,928) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |                                          |                                        | Pre-tax                Income from Continuing Operations    |                                       | 229,522                                              |            |                                                |  (142,511) |   |   |  87,011 |   |   | 463,413 |   |   |  (773,342) |   |   |  (309,929) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                Tax Expense                                 |                                          | (14,667)                                    |                                                        |                                       |  -                                              |            |                                                | (14,667) |   |   | (14,667) |   |   |  - |   |   | (14,667) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |                                          |                                        | Net                Income/(Loss) from Continuing Operations |                                       | 214,855                                              |            |                                                |  (142,511) |   |   |  72,344 |   |   | 448,746 |   |   |  (773,342) |   |   |  (324,596) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income/(Loss)                from Discontinued Operations (Sespe) |                                          |  -                                     |                                                        |                                       |  (105,408)                                      |            |                                                |  (105,408) |   |   |  - |   |   |  (239,337) |   |   |  (239,337) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |                                          |                                        | Net                Income/(Loss)                            |                                       | 214,855                                              |            |                                                |  (247,919) |   |   | (33,064) |   |   | 448,746 |   |   | (1,012,679) |   |   |  (563,933) |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                gain on investments held for sale       |                                          |  -                                     |                                                        |                                       |  -                                              |            |                                                |  - |   |   |  17,465 |   |   |  - |   |   |  17,465 |
|                                                              |                                          |                                        |                                                        |                                       |                                                 |            |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |                                          |                                        |                                                        | Comprehensive                Income/(Loss) | $                                                    | 214,855         |                                                | $ |  (247,919) |   | $ | (33,064) |   | $ | 466,211 |   | $ | (1,012,679) |   | $ |  (546,468) |

----

**Item      2.                      Management's      Discussion and Analysis of Financial Condition and Results of      Operations.**

| ·   |    On                January 23, 2007, Kaire Holdings, Inc., through its subsidiary YesRx.com,                signed a letter of intent to acquire H&H Glass, an Illinois                corporation, which was formed in 1989 and distributes Asian glass                to North                America.  In fiscal year December 31, 2005, H&H Glass had                net revenues of approximately $13.5 million and net earnings of                approximately $0.5 million.  This acquisition was consummated on                July 2, 2007 with the execution of the Agreement and Plan of Merger                by the                parties. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   On                February 4, 2007, Kaire Holdings, Inc. discontinued its pharmacy                business                and voluntarily terminated its Effective Health, Inc.                subsidiary. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   On                February 21, 2007, Kaire Holdings, Inc., appointed two members to                its                Board of Directors who have the credentials to guide Kaire Holdings,                Inc.                in its new direction. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |   Continue                growing revenue and profits through H&H                Glass; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   |   Expand                the new business model to include other areas that fall within our                distribution expertise; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Once                our business model is in place and successful, use it to attract                other                successful China companies as acquisition                candidates. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Results      of Operations**

----

**PART      II.  OTHER INFORMATION**

**Item      1.                      Legal      Proceedings**

*McKesson      Medical – Surgical Inc. v. Effective Health*

*Ventura      County Superior Court, Case No. CIV234713*

*Medical      License*

*Pharm-Aid,      Inc. v. Effective Health, Inc., et al.*

| **Date** | **Subject**                                                                                          |
|----------|------------------------------------------------------------------------------------------------------|
| 10/3/07  | ITEM                9.01 Audited and proforma financials statements for H&H                Glaxx |

----

----