UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington
D.C. 20549




AMENDMENT
NO. 1 TO


FORM
10-Q


(Mark
One)




x
            QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the quarterly period ended
September 30, 2008





o
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the transition period from
_________________ to _________________




Commission
      File No.: 333-137210




ZEVOTEK,
INC.


(Exact
name of registrant as specified in its charter)





Delaware
            05-0630427(State
      or other jurisdiction of
              incorporation
      or organization)
            (I.R.S.
      Employer
              Identification
      No.)134
      Cedar Street
              Nutley,
      NJ 07110
              (Address of
      principal executive offices)


Issuer’s
telephone number:  (973) 667-4026




___________________




Check
whether the registrant filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.   Yes x  No o




Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.




Large
      accelerated filter o
                              
                              Accelerated
      filter oNon-accelerated
      filter o(Do
      not check if a smaller reporting company)
                              Smaller
      reporting company x







Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act.  Yes o No x




APPLICABLE
ONLY TO CORPORATE ISSUERS




As of
December 11, 2008, 15,464,254 shares of our common stock were
outstanding.




Transitional
Small Business Disclosure Format:    Yes o No x












EXPLANATORY
NOTE





This  Amendment
No. 1 to quarterly report on Form 10-Q is being filed to provide the financial
statements required by Article 8-03 of Regulation S-X, management’s discussion
and analysis required by Item 303 of Regulation S-K, disclosure controls and
procedures required by Item 307 of Regulation S-K, internal control over
financial reporting required by Item 308T of Regulation S-K, and certifications
required under Rule 13a-14 of the Securities Exchange Act of 1934, as amended,
and Section 1350 of the Sarbanes-Oxley Act of 2002.  These items were not
available for filing with the quarterly report on Form 10-Q filed by us on
November 19, 2008.




2




PART
1:                                FINANCIAL
INFORMATION





ITEM
1 – FINANCIAL STATEMENTS




Zevotek
Inc.
 Condensed
Consolidated Balance Sheets
 September
30, 2008 and June 30, 2008




Sept.
      30
                                                
                                                
                                                June
      302008
                                                
                                                
                                                2008ASSETS
                                                
                                                (Unaudited)CURRENT
      ASSETSCash
                                                
                                                $
                                                708
                                                
                                                
                                                $
                                                6,755Other
      Receivables
                                                
                                                
                                                30,345
                                                
                                                
                                                
                                                30,345Total
      current assets
                                                
                                                
                                                31,053
                                                
                                                
                                                
                                                37,100Total
      Assets
                                                
                                                $
                                                31,053
                                                
                                                
                                                $
                                                37,100LIABILITIES
      AND DEFICIENCY IN STOCKHOLDERS' EQUITYCURRENT
      LIABILITIESAccounts
      payable and accrued expenses
                                                
                                                $
                                                1,298,630
                                                
                                                
                                                $
                                                1,277,385Convertible
      notes payable and demand notes ( net of debt discount of $ 263,054
      and
                                                
                                                
                                                138,745
                                                
                                                
                                                
                                                46,159$
      300,964 as of Sept. 30, 2008 and June 30, 2008,
    respectively).Customer
      Deposits
                                                
                                                
                                                24,351
                                                
                                                
                                                
                                                24,351Total
      current liabilities
                                                
                                                
                                                1,461,726
                                                
                                                
                                                
                                                1,347,895Total
      liabilities
                                                
                                                
                                                1,461,726
                                                
                                                
                                                
                                                1,347,895COMMITMENTS
      AND CONTINGENCIESDEFICIENCY
      IN STOCKHOLDERS' EQUITYSeries
      A Preferred Stock, $0.00001 par value, 10,000,000 shares
      authorized;
                                                
                                                
                                                1
                                                
                                                
                                                
                                                150,000  shares
      issued and outstanding at Sept. 30, 2008 and June 30,
2008,Series
      B Preferred Stock, $0.00001 par value, 1,000,000 shares authorized;
      1,000,000
                                                
                                                
                                                10
                                                
                                                
                                                
                                                10shares
      issued and outstanding at Sept. 30, 2008 and June 30,
2008,Common
      stock, $0.00001 par value,1,000,000,000 shares authorized; 14,992,254
      and
                                                
                                                
                                                150
                                                
                                                
                                                
                                                383,784,920
      and shares issued and outstanding at Sept, 30, 2008 and June 30,
      2008,respectivelyAdditional
      paid-in capital
                                                
                                                
                                                2,103,593
                                                
                                                
                                                
                                                2,013,381Accumulated
      (Deficit)
                                                
                                                
                                                (3,534,427
                                                )
                                                
                                                
                                                (3,324,225
                                                )Total
      deficiency in stockholders' equity
                                                
                                                
                                                (1,430,673
                                                )
                                                
                                                
                                                (1,310,795
                                                )Total
      Liabilities and Deficiency In Stockholders' Equity
                                                
                                                $
                                                31,053
                                                
                                                
                                                $
                                                37,100
  The accompanying notes are an integral part of the
unaudited condensed consolidated financial statements.
  3




Zevotek
Inc.
 Condensed
Consolidated Statements of Operations
 Three
Months Ending September 30, 2008 and 2007
 (Unaudited)


Three Months EndingSept.
      30,
                                                          
                                                          
                                                          Sept.
      30,2008
                                                          
                                                          
                                                          2007REVENUESSales
                                                          
                                                          $
                                                          -
                                                          
                                                          
                                                          $
                                                          1,812Cost
      of sales
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          600Gross
      Profit
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          1,212OPERATING
      EXPENSESSelling,
      general and administrative expenses
                                                          
                                                          
                                                          160,902
                                                          
                                                          
                                                          
                                                          275,535Total
      operating expenses
                                                          
                                                          
                                                          160,902
                                                          
                                                          
                                                          
                                                          275,535Operating  (loss)
                                                          
                                                          
                                                          (160,902
                                                          )
                                                          
                                                          
                                                          (274,323
                                                          )OTHER
      INCOME (EXPENSE)Amortization
                                                          
                                                          
                                                          (37,910
                                                          )
                                                          
                                                          
                                                          -Interest
      (expense)
                                                          
                                                          
                                                          (11,390
                                                          )
                                                          
                                                          
                                                          -Total
      other income (expense)
                                                          
                                                          
                                                          (49,300
                                                          )
                                                          
                                                          
                                                          -Loss
      before provision for income taxes
                                                          
                                                          
                                                          (210,202
                                                          )
                                                          
                                                          
                                                          (274,323
                                                          )Income
      taxes
                                                          
                                                          
                                                          -
                                                          
                                                          
                                                          
                                                          -Net  (loss)
                                                          
                                                          $
                                                          (210,202
                                                          )
                                                          
                                                          $
                                                          (274,323
                                                          )Net  (loss)
      per common share, basic
                                                          
                                                          $
                                                          (0.02
                                                          )
                                                          
                                                          $
                                                          (0.19
                                                          )Weighted
      average number of common shares outstanding
                                                          
                                                          
                                                          9,567,700
                                                          
                                                          
                                                          
                                                          1,434,741(basic
      & diluted)




The
accompanying notes are an integral part of the unaudited condensed consolidated
financial statements.






4




Zevotek
Inc.
 Condensed
Consolidated Statement of Stockholders' Equity (Deficit)
 For the
period from June 30, 2007 to September 30, 2008
  Preferred
      StockSeries
      A
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Series
      B
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Common
      Stock
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                AdditionalShares
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Amount
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Shares
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Amount
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Shares
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Amount
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Paid-In
                                                                                                                                                                                                  Capital
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                Accumulated Deficit
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                TotalBALANCE,
      June 30, 2007
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                50,000
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                1
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                -
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                -
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                1,430,260
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                14
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                814,834
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                (1,298,416
                                                                                                                                                                                                )
                                                                                                                                                                                                $
                                                                                                                                                                                                (483,567
                                                                                                                                                                                                )Common
      stock issued for services
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                1,994,780
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                20
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                845,540
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                845,560Fair
      Value of Beneficial Conversion Feature
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                314,049
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                314,049Conversion
      of debt for Preferred B
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                1,000,000
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                10
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                21,018
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                21,028Conversion
      of debt for common stock
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                359,880
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                4
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                17,940
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                17,944Net
      loss-Year ending June 30, 2008
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                (2,025,809
                                                                                                                                                                                                )
                                                                                                                                                                                                
                                                                                                                                                                                                (2,025,809
                                                                                                                                                                                                )BALANCE,
      June 30, 2008
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                50,000
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                1
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                1,000,000
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                10
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                3,784,920
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                38
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                2,013,381
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                (3,324,225
                                                                                                                                                                                                )
                                                                                                                                                                                                $
                                                                                                                                                                                                (1,310,795
                                                                                                                                                                                                )Common
      stock issued for services
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                883,334
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                9
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                79,991
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                80,000Conversion
      of debt for common stock
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                10,324,000
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                103
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                10,221
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                10,324Net
      loss- three months ended Sept 30, 2008
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                (210,202
                                                                                                                                                                                                )
                                                                                                                                                                                                
                                                                                                                                                                                                (210,202
                                                                                                                                                                                                )BALANCE,
      Sept  30, 2008
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                50,000
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                1
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                1,000,000
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                10
                                                                                                                                                                                                
                                                                                                                                                                                                
                                                                                                                                                                                                14,992,254
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                150
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                2,103,593
                                                                                                                                                                                                
                                                                                                                                                                                                $
                                                                                                                                                                                                (3,534,427
                                                                                                                                                                                                )
                                                                                                                                                                                                $
                                                                                                                                                                                                (1,430,673
                                                                                                                                                                                                )








5




Zevotek
Inc.
 Condensed
Consolidated Statements of Cash Flow
 Three
Months Ending September 30, 2008 and 2007
 (Unaudited)




Three
      Months EndingSept.
      30,
                        
                        
                        Sept.
      30,2008
                        
                        
                        2007CASH
      FLOWS FROM OPERATING ACTIVITIES:Net  (loss)
                        
                        $
                        (210,202
                        )
                        
                        $
                        (274,323
                        )Adjustments
      to reconcile net (loss) to net cash provided byoperating
      activities:Amortization
                        
                        
                        37,910
                        
                        
                        
                        -Common
      stock issued for services
                        
                        
                        80,000
                        
                        
                        
                        91,396Changes
      in operating assets and liabilities:(Increase)
      decrease in accounts receivable
                        
                        
                        -
                        
                        
                        
                        822(Increase)
      decrease in other receivables
                        
                        
                        -
                        
                        
                        
                        10,215Increase
      (decrease) in accounts payable and accrued expenses
                        
                        
                        21,245
                        
                        
                        
                        171,374Increase
      (decrease) in customer deposits
                        
                        
                        -
                        
                        
                        
                        1,649Net
      cash (used) provided by operating activities
                        
                        
                        (71,047
                        )
                        
                        
                        1,133CASH
      FLOWS FROM INVESTING ACTIVITIES:Net
      cash provided (used) by investing activities
                        
                        
                        -
                        
                        
                        
                        -CASH
      FLOWS FROM FINANCING ACTIVITIES:Proceeds
      from third party loans
                        
                        
                        65,000
                        
                        
                        
                        -Net
      cash provided by financing activities
                        
                        
                        65,000
                        
                        
                        
                        -Net
      (decrease) increase in cash
                        
                        
                        (6,047
                        )
                        
                        
                        1,133CASH
      and equivalents, beginning of period
                        
                        
                        6,755
                        
                        
                        
                        89CASH
      and equivalents, end of period
                        
                        $
                        708
                        
                        
                        $
                        1,222SUPPLEMENTAL
      DISCLOSURE OF CASH FLOWINFORMATION:Interest
      paid
                        
                        $
                        -
                        
                        
                        $
                        -Taxes
      Paid
                        
                        $
                        -
                        
                        
                        $
                        -Expenses
      paid with 883,334 shares of common stock
                        
                        $
                        80,000
                        
                        
                        $
                        -Expenses
      paid with 22,136 shares of common stock
                        
                        $
                        -
                        
                        
                        $
                        91,396Debt
      converted to 10,324,000 shares of common stock
                        
                        $
                        10,324
                        
                        
                        $
                        -




The
accompanying notes are an integral part of the unaudited condensed consolidated
financial statements.
  6




ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
A - SUMMARY OF ACCOUNTING POLICIES
 A summary
of the significant accounting policies applied in the preparation of the
accompanying unaudited condensed consolidated financial statements
follows.
  Business and Basis of
Presentation
  ZEVOTEK,
INC. (“Company” or “Registrant”) was organized on December 19, 2005 under the
state laws of Delaware with an original name of “The Diet Coffee Company.” On
March 1, 2006, the Company changed its name Diet Coffee Inc, and on June 25,
2008 to the current existing name.
  The
Company’s wholly-owned subsidiary is Ionic Bulb.com, Inc (Ionic Bulb) which was
formerly named Zevotek, Inc. Through its subsidiary, it markets and sells a
range of home care and household products. In May 2007, the Company entered into
a license agreement to sell an energy saving compact fluorescent light bulb
named the Ionic Bulb. The Company plans to market the Ionic Bulb through TV
infomercials, catalogs, magazines and major U.S. retail and specialty stores and
our websites www.ionic-bulb.com and www.zevo-tek.com..
  General
  The
accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America.
  In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. The
consolidated financial statements include the accounts of the Registrant and its
wholly-owned subsidiary, Ionic Bulb.com, Inc. The Registrant formed its Ionic
Bulb.com, Inc. subsidiary on August 21, 2007 and started its operations during
the fiscal year ending June 30, 2008. All significant inter-company transactions
and balances have been eliminated in consolidation.
  The
company has adopted the fiscal year end of June 30.
 
 Interim
Statements
 
 The
unaudited consolidated financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial
information.  As such, the financial statements do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements.  In the opinion of
management, all adjustments considered necessary for a fair presentation have
been included and these adjustments are of a normal recurring
nature.  These consolidated financial statements should be read in
conjunction with the financial statements for the year ended on June 30, 2008 on
Form 10-KSB of the Company, as filed with the Securities and Exchange
Commission.  The results of operations for the three months ended
September 30, 2008 are not necessarily indicative of the results for the full
fiscal year ending June 30, 2009.
  Reverse Stock
Split
  Effective
June 25, 2008, the Company authorized for its common stock a 50:1 reverse stock
split Also, par value for the Preferred Stock and Common stock was changed to
$.00001 per share All preferred and common stock and related information have
been retroactively restated.
  7
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
A - SUMMARY OF ACCOUNTING POLICIES (con’t)
  Revenue
Recognition
  The
Company recognizes revenue from product sales in accordance with Staff
Accounting Bulletin No. 104, Revenue Recognition ("SAB 104"), which superseded
Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements
("SAB101"). SAB 104 requires that four basic criteria must be met before revenue
can be recognized: (1) persuasive evidence of an arrangement exists; (2)
delivery has occurred; (3) the selling price is fixed and determinable; and (4)
collectibility is reasonably assured. Determination of criteria (3) and (4) are
based on management's judgment regarding the fixed nature of the selling prices
of the products delivered and the collectibility of those amounts. Provisions
for discounts and rebates to customers, estimated returns and allowances, and
other adjustments are provided for in the same period the related sales are
recorded. The Company defers any revenue for which the product was not delivered
or is subject to refund until such time that the Company and the customer
jointly determine that the product has been delivered or no refund will be
required.
  Consideration Paid to
Customers
  We offer
our customers certain incentives in the form of cooperative advertising
arrangements, product markdown allowances, trade discounts, cash discounts, and
slotting fees. We account for these incentives in accordance with Emerging
Issues Task Force Issue No. 0 1-9, Accounting for Consideration Given by a
Vendor to a Customer, ("EITF 0 1-9"). Markdown allowances, trade discounts,
cooperative advertising program participation and cash discounts are all
recorded as reductions of net sales. No customer incentives are included in
sales for the three months ended September 30, 2008 and the year ended June 30,
2008.
  Use of
Estimates
  The
preparation of the financial statement in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
  Foreign Currency
Translation
  The
Company translates the foreign currency financial statements in accordance with
the requirements of Statement of Financial Accounting Standards No. 52, "Foreign
Currency Translation." Assets and liabilities are translated at current exchange
rates, and related revenue and expenses are translated at average exchange rates
in effect during the period. Resulting translation adjustments are recorded as a
separate component in stockholders' equity. Foreign currency translation gains
and losses are included in the statement of operations.
  Cash and Cash
Equivalents
  For the
purpose of the accompanying financial statements, all highly liquid investments
with a maturity of three months or less are considered to be cash
equivalents.
  Inventories / Cost of Goods
Sold
  The
Company has adopted a policy to record inventory at the lower of cost or market
determined by the first-in-first-out method. The elements of cost that comprise
inventory and cost good sold are FOB shipping point costs, freight and
destination charges, customs and importation fees and taxes, customer broker
fees (if any) and other related costs. Warehousing costs are charged to cost of
goods in the period the costs are incurred. The Company provides inventory
allowances based on estimates of obsolete inventories.
  8
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
A - SUMMARY OF ACCOUNTING POLICIES  (cont’d)
  Inventories
consist of finished products available for sale to distributors and customers.
At September 30, 2008 and June 30, 2008 Finished Goods inventory was
$0.
  Allowance for doubtful
accounts
  The
Company maintains an allowance for doubtful accounts to reduce amounts to their
estimated realizable value, including reserves for customer and other receivable
allowances and incentives. In estimating the provision for doubtful accounts,
the company considers a number of factors including age of the accounts
receivable, trends and ratios involving the age of the accounts receivable and
the customer mix of each aging categories. As of September 30 2008 and June 30,
2008 the allowance for doubtful accounts was $0.
  Property and
Equipment
  Property
and equipment are stated at cost. When retired or otherwise disposed, the
related carrying value and accumulated depreciation are removed from the
respective accounts and the net difference less any amount realized from
disposition, is reflected in earnings. For financial statement purposes,
property and equipment would be recorded at cost and depreciated using the
straight-line method over their estimated useful lives.
  Impairment of Long-Lived
Assets
  The
Company has adopted Statement of Financial Accounting Standards No. 144 (SFAS
144). The Statement requires that long-lived assets and certain identifiable
intangibles held and used by the Company be reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Events relating to recoverability may include
significant unfavorable changes in business conditions, recurring losses, or a
forecasted inability to achieve break-even operating results over an extended
period. The Company evaluates the recoverability of long-lived assets based upon
forecasted discounted cash flows. Should impairment in value be indicated, the
carrying value of intangible assets will be adjusted, based on estimates of
future discounted cash flows resulting from the use and ultimate disposition of
the asset. SFAS No. 144 also requires assets to be disposed of be reported at
the lower of the carrying amount or the fair value less disposal
costs.
  Advertising
  The
Company follows SOP 93-7 whereby charging the costs of advertising to expenses
as incurred. The Company charged to operations $0, for the three months ending
September 30, 2008, and $ 22,238 for the year ending June 30, 2008.
  Comprehensive
Income
  Statement
of Financial Accounting Standards No. 130 ("SFAS 130"), "Reporting Comprehensive
Income," establishes standards for reporting and displaying of comprehensive
income, its components and accumulated balances. Comprehensive income is defined
to include all changes in equity except those resulting from investments by
owners and distributions to owners. Among other disclosures, SFAS 130 requires
that all items that are required to be recognized under current accounting
standards as components of comprehensive income be reported in a financial
statement that is displayed with the same prominence as financial statements.
The Company does not have any items of comprehensive income in the period
presented.
  9
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
A - SUMMARY OF ACCOUNTING POLICIES (cont’d)
  Income
Taxes
  The
Company has adopted Financial Accounting Standards No. 109 ("SFAS 109") which
requires the recognition of deferred tax liabilities and assets for the expected
future tax consequences of events that have been included in the financial
statement or tax returns. Under this method, deferred tax liabilities and assets
are determined based on the difference between financial statements and the tax
basis of assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse. Temporary differences between
taxable income reported for financial reporting purposes and income tax purposes
are insignificant.
  In June
2006, the FASB issued FASB Interpretation No. 48,Accounting for Uncertainty in
Income Taxes-an interpretation of FASB Statement No. 109("FIN 48"). FIN
48 prescribes a recognition threshold and measurement attribute for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. FIN 48 also provides guidance on
derecognition, classification, treatment of interest and penalties, and
disclosure of such positions. Effective August 1, 2007, the Company adopted the
provisions of FIN 48, as required. As a result of implementing FIN 48, there has
been no adjustment to the Company’s financial statements and the adoption of FIN
48 did not have a material effect on the Company’s consolidated financial
statements for the three months ending September 30, 2008.
  Research and
Development
  The
Company accounts for research and development costs in accordance with the
Financial Accounting Standards Board's Statement of Financial Accounting
Standards No. 2 ("SFAS 2"), "Accounting for Research and Development Costs."
Under SFAS 2, all research and development costs must be charged to expense as
incurred. Accordingly, internal research and development costs are expensed as
incurred. Third-party research and development costs are expensed when the
contracted work has been performed or as milestone results have been achieved.
Company-sponsored research and development costs related to both present and
future products are expensed in the period incurred. The Company had no
expenditures on research and product development for three months ending
September 30, 2008 and the year ending June 30 2008, respectively.
  Segment
Information
  The
Company has adopted Statement of Financial Accounting Standards No. 131,
Disclosures about Segments of an Enterprise and Related Information ("SFAS 131")
in the years ended December 31, 2001 and subsequent years. SFAS 131 establishes
standards for reporting information regarding operating segments in annual
financial statements and requires selected information for those segments to be
presented in interim financial reports issued to stockholders. SFAS 131 also
establishes standards for related disclosures about products and services and
geographic areas. Operating segments are identified as components of an
enterprise about which separate discrete financial information is available for
evaluation by the chief operating decision maker, or decision making group, in
making decisions on how to allocate resources and assess
performance.
  10
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
A - SUMMARY OF ACCOUNTING POLICIES (cont’d)
  Stock Based
Compensation
  In
December 2002, the FASB issued SFAS No. 148, “Accounting for Stock-Based
Compensation-Transition and Disclosure-an amendment of SFAS 123.” This statement
amended SFAS 123, “Accounting for Stock-Based Compensation,” to provide
alternative methods of transition for a voluntary charge to the fair value based
method of accounting for stock-based employee compensation. In addition, this
statement amended the disclosure requirements of SFAS No. 123 to require
prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the
method used on reported results. Effective for the period ended June 30, 2006
the Company has adopted SFAS 123 (R) which supersedes APB Opinion No. 25,
“Accounting for Stock Issued to Employees” and eliminates the intrinsic value
method that was provided in SFAS 123 for accounting of stock- based compensation
to employees. The Company made no employee stock-based compensation grants
before June 30, 2007 and during the year ended June 30, 2008 and
the  three months ending September  30, 2008 and therefore
has no unrecognized stock compensation related liabilities or expense unvested
or vested.
  Loss per
Share
  The
Company follows Statement of Financial Accounting Standards No. 128 (“SFAS No.
128”) “Earnings per Share”. Basic and diluted earnings (loss) per share amounts
are computed based on net income (loss) divided by the weighted average number
of common shares outstanding. The assumed exercise of 5,700 of stock options was
not included in the computation of diluted loss per share because the assumed
exercises would be anti-dilutive for the periods presented.
  Concentration of Credit
Risk
  Financial
instruments and related items, which potentially subject the Company to
concentrations of credit risk, consist primarily of cash, cash equivalents and
trade receivables. The Company places its cash and temporary cash investments
with high credit quality institutions. At times, such investments may be in
excess of the FDIC insurance limit.
  Reclassifications
  Certain
reclassifications have been made in prior year's financial statements to conform
to classifications used in the current year.
  11
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
 NOTE
B - GOING CONCERN MATTERS
  The
accompanying statements have been prepared on a going concern basis, which
contemplates the realization of assets and the satisfaction of liabilities in
the normal course of business. As shown in the accompanying financial
statements, for the three months ending  September 30, 2008 and the
year ending June 30, 2008 the Company had incurred losses of $ 210,202 and $
2,025,809, respectively. At September 30, 2008 the Company had a working capital
deficit of $1,430,673 and accumulated losses of $3,534,427. These factors among
others may indicate that the Company will be unable to continue as a going
concern for a reasonable period of time.
  The
Company is actively pursuing additional equity financing through discussions
with investment bankers and private investors. There can be no assurance the
Company will be successful in its effort to secure additional equity financing.
If operations and cash flows improve through these efforts, management believes
that the Company can continue to operate. However, no assurance can be given
that management's actions will result in profitable operations or the resolution
of its liquidity problems.
  The
Company's existence is dependent upon management's ability to develop profitable
operations and resolve its liquidity problems. Management anticipates the
Company will attain profitable status and improve its liquidity through the
continued developing, marketing and selling of its services and additional
equity investment in the Company. The accompanying financial statements do not
include any adjustments that might result should the Company be unable to
continue as a going concern.
  NOTE
C- OTHER RECEIVABLES
  Other
receivables at September 30, 2008 and June 30, 2008 consisted of $30,345 of
credit card holdbacks by a merchant bank that processes payment due for product
sales. The merchant bank holdback account is based on the dollar amount of sales
and is designed to allow the Company to receive the credit card holdback cash,
including interest for the Company, after customer refunds and charge-backs are
cleared. The credit card holdback is carried net of a $ 0 allowance for doubtful
accounts as of September 30, 2008 and June 30, 2008, respectively.
  NOTE
D- ACCOUNTS PAYABLE AND  LIABILITIES
  Accounts
payable and accrued liabilities at September 30, 2008 are as
follows:
  Accounts
      payable
                              
                              $
                              185,341Accrued
      professional fees
                              
                              
                              345,117Accrued
      payroll and payroll taxes
                              
                              
                              660,340Other
      accrued liabilities
                              
                              
                              107,832Total
                              
                              $
                              1,298,630
  12
 ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
 NOTE
E -
CONVERTIBLE  NOTES  PAYABLE  AND  DEMAND
NOTES
  Notes
      Payable to Interstellar Holdings, LLC.Demand
      promissory note (a)
                              
                              $
                              24,569Convertible
      term note (b)
                              
                              
                              106,441Convertible
      term note ( c )
                              
                              
                              155,789Convertible
      term note (d)
                              
                              
                              50,000Demand
      promissory note (e)
                              
                              
                              25,000Demand
      promissory note (f)
                              
                              
                              40,000Subtotal
                              
                              
                              401,799Less:
      Discount on Debt
                              
                              
                              (263,054
                              )Net
      current convertible notes payable and other demand notes
                              
                              $
                              138,745
 
 a)
                On
      November 10, 2008, the Company entered into a demand promissory note for
      the principal amount of $24,569 bearing interest at 10% per
      annum.
 b)
                On
      May 14, 2008, the Company entered into a convertible term note for the
      principal amount of $134, 759 bearing interest at 10% per annum with a
      maturity date of May 14, 2010.   At any time at the option
      of the note holder, principal and interest payments may be paid in common
      stock at a conversion price of $0.001 per
share.
 c)
                On
      May 27, 2008, the Company entered into a convertible term note for the
      principal amount of $155,789 bearing interest at 10% per annum with a
      maturity date of May 27, 2010.   At any time at the option
      of the note holder, principal and interest payments may be paid in common
      stock at a conversion price of $0.001 per
share.
 d)
                On
      January 1, 2008, Company entered into a convertible term note for the
      principal amount of $50,000 bearing interest at 7% per annum with a
      maturity date of June 30, 2008.  This note was to be converted
      into common stock at 90% of the common stock closing price at June 30,
      2008, or approximately 370,000 shares of common stock.  As of
      June 30, 2008, the holder of the note elected not to be paid in common
      stock.  In accordance with the agreement, all principal and
      interest was immediately due and payable as of June 30,
      2008.  The Company is in default of the terms of the
      note.
 e)
                On
      December 4, 2008, the Company entered into a demand promissory note for
      the principal amount of $25,000 bearing interest at 10% per
      annum.
 f)
                On
      December 4, 2008, the Company entered into a demand promissory note for
      the principal amount of $40,000 bearing interest at 10% per
      annum.
  In
accordance with Emerging Issues Task Force Issue 98-5, Accounting for
Convertible Securities with a Beneficial Conversion Features or Contingently
Adjustable Conversion Ratios ("EITF 98-5"), the Company recognized an imbedded
beneficial conversion feature present in the notes. The Company allocated a
portion of the proceeds equal to the intrinsic value of that feature to
additional paid in capital. The Company recognized and measured an aggregate of
$314,049 of the proceeds, which is equal to the intrinsic value of the imbedded
beneficial conversion feature, to additional paid in capital and a discount
against the Notes issued during the year ended June 30, 2008. The debt discount
attributed to the beneficial conversion feature is amortized over the Notes
maturity period (two years) as interest expense, adjusted for conversion of debt
to common stock.  During the year ended June 30, 2008, amortization
related to the beneficial conversion feature was $13,085 and $37,910 for the
three months ending September 30, 2008.
  13
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
F - FINANCING AGREEMENT
  On
October 23, 2007, Ionicbulb.com (f/k/a Zevotek, Inc.) our wholly-owned
subsidiary entered into a Supply Agreement with Star Funding, Inc. pursuant to
which Star Funding will provide, on a discretionary basis, purchase order
financing up to $2.5 million to facilitate Ionicbulb.com Inc.’s sale of its
Ionic Bulb product. This purchase order financing may be made via direct payment
to Ionicbulb.com’s suppliers, issue or cause the issuance of letters of credit,
and/or advances to Ionicbulb.com. Ionicbulb.com will be required to pay Star
Funding an amount equal to 2.5% of all “Expenses” (as defined) associated with
the purchase of any Goods under the Agreement, including letter of credit fees,
if any, which will equal 0.25% of the face amount of any letter of credit. As
collateral security for all of Ionicbulb.com’s obligations under the Supply
Agreement, Ionicbulb.com granted Star Funding a security interest in all of
Ionicbulb.com’s personal property and fixtures. The Supply Agreement is for an
initial term of two years, and will be automatically extended for additional 1
year terms unless terminated by either party with 60 days’ prior written notice
before the end of the initial or any renewal period.
  On
October 23, 2007, Ionicbulb.com also entered into a Factoring Agreement with
Star Funding pursuant to which Star Funding has agreed to purchase certain
accounts receivables of Ionicbulb.com under the Supply Agreement. Ionicbulb.com
has agreed to pay Star Funding a factoring commission of 1.5% of the gross
amount of each receivable under the Factoring Agreement provided, however, that
Ionicbulb.com has agreed that Star Funding will receive $15,000 in fees under
the Supply Agreement and the Factoring Agreement in the first 12 months and
Ionicbulb.com has agreed to pay Star Funding the shortfall by which all fees and
commissions are less than $15,000. As collateral security for all of
Ionicbulb.com’s obligations under the Supply Agreement, Ionicbulb.com granted
Star Funding a security interest in all of Ionicbulb.com’s personal property and
fixtures. The Supply Agreement is for an initial term of two years, and will be
automatically extended for additional 1 year terms unless terminated by
Ionicbulb.com upon 60 days’ prior written notice before the end of the initial
or any renewal period or by Star Funding upon 30 days prior written
notice.
  To
further secure Ionicbulb.com’s obligations under the Supply Agreement and the
Factoring Agreement (as discussed below), Diet Coffee has executed (i) a
guarantee and (ii) an assignment of that certain License and Supply Agreement
under which is obtained its distribution rights for the Ionic Bulb. In addition,
Mr. Engel, President of Ionicbulb.com and Zevotek, Inc., executed an Anti Fraud
and Performance Agreement under which Mr. Engel guaranteed Ionicbulb.com’s
representations and warranties under the Supply and Factoring Agreements. Mr.
Engel explicitly agrees that if any receivable purchased by Star Funding is not
paid when due (subject to certain exceptions), such non-payment shall be
presumed to be the result of a breach of Ionicbulb.com’s representations and
warranties under the Supply Agreement and/or the Factoring Agreement at which
time Star Funding may be able to execute on the (i) collateral pledged under the
Supply and Factoring Agreements and (ii) license for distribution of the Ionic
bulb product
  14
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
G – STOCKHOLDERS EQUITY
 
 Preferred
Stock
  The
Company has authorized 10,000,000 shares of Preferred Stock of which 50,000
shares have been designated as Series A Preferred stock, par value $0.00001, and
1,000,000 shares have been designated as  Series B Preferred Stock,
par value $.00001 within the limitations and restrictions stated in the
Certificate of Incorporation of the Company.
 
 The
Company issued of 50,000 shares of Series A - Preferred stock; non convertible.
Each share of the Series A- Preferred stock is entitled to 10,000 votes on all
matters submitted to the stockholders of the Company. The holders of the Series
A-Preferred stock are not granted any preference upon the liquidation,
dissolution or winding up of the business of the Company.
 
 The
Company designated and issued 1,000,000 shares of Series B Preferred
Stock.  0n May 14, 2008 the Company and an unrelated third party
entered into an exchange agreement under which the third party noteholder
exchanged a $21,026 promissory note for 1,000,000 shares of Series B Preferred
Stock.   Each share of Series B Preferred Stock is entitled to
5,000 votes on all matters submitted to the stockholders of the
Company.
 
 Common
stock
 
 Effective
June 25, 2008, the Company authorized a 50:1 reverse stock split. All common
stock and related information has been retroactively restated. Also at this time
the Company increased authorized Common stock, par value $0.00001 to
1,000,000,000. Prior to this date, the authorized shares were
200,000,000.
 
 At
September 30, 2008 and June 30, 2008, common shares issued and outstanding
were   14,992,254 and 3,784,920, respectively.
 
 On
September 11, 2007, the Company adopted its 2007 Stock Incentive Plan (the “2007
Plan”). The Company is permitted to issue up to 21,450,000 shares of common
stock under the Plan in the form of stock options, restricted stock awards, and
stock awards to employees, non-employee directors, and outside
consultants.
 
 On
December 13, 2007, the Company adopted its 2007 Stock Incentive Plan No. 2. (the
“2007 Plan #2”). The Company is permitted to issue up to 17,994,000 shares of
common stock under the Plan in the form of stock options, restricted stock
awards, and stock awards to employees, non-employee directors, and outside
consultants.
 
 On
February 21, 2008 the Company adopted its 2008 California Stock Incentive Plan.
The Company is permitted to issue up to 33,000,000 shares of common stock under
the Plan in the form of stock options, restricted stock awards, and stock awards
to employees, non-employee directors, and outside consultants. As of June 30,
2008, 571,251 shares have been issued under this Plan.
 
 On
February 21, 2008 the Company adopted its 2008 Stock Incentive Plan. The Company
is permitted to issue up to 33,000,000 shares of common stock under the Plan in
the form of stock options, restricted stock awards, and stock awards to
employees, non-employee directors, and outside consultants.
 
 During
the year ending June 30, 2008, the Company issued 1,994,780 shares of common
stock, valued at $845,560 for services and expenses. The Company converted debt
and accrued interest of $17,944 into 359,880 shares of common stock in May and
June 2008.
 
 In the
three months ending September 30, 2008 the company  issued 883,334
shares of common stock for services valued at $80,000, and
converted  $ 10,324 of  debt into 10,324,000 shares
of  common stock.
  15
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
H- INCOME TAXES
  The
Company has adopted Financial Accounting Standards No. 109, which requires the
recognition of deferred tax liabilities and assets for the expected future tax
consequences of events that have been included in the financial statement or tax
returns.
  Under
this method, deferred tax liabilities and assets are determined based on the
difference between financial statements and tax basis of assets and liabilities
using enacted tax rates in effect for the year in which the differences are
expected to reverse. Temporary differences between taxable income reported for
financial reporting purposes and income tax purposes are insignificant. A
management estimate that at June 30, 2008, the Company has available for federal
income tax purposes a net operating loss carry forward of approximately $2.5
million expiring by the year 2028, that may be used to offset future taxable
income. Due to significant changes in the Company's ownership, the future use of
its existing net operating losses may be limited.
  The
Company has provided a valuation reserve against the full amount of the net
operating loss benefit, since in the opinion of management based upon the
earnings history of the Company; it is more likely than not that the benefits
will not be realized. Components of deferred tax assets as of June 30, 2008 are
as follows:
  Net
      operating loss carry forward
                                    
                                    $
                                    750,000Valuation
      allowance
                                    
                                    
                                    (750,000
                                    )Net
                                    
                                    $
                                    0
 The
Company has not filed their federal or state income tax returns for fiscal years
ended June 30, 2006, 2007 and 2008.
 
 NOTE I - STOCK OPTIONS AND
WARRANTS
 
 During
the three months ending September 30, 2008, the company did not issue any stock
warrants. At September 30, 2008, the Company has 5,700  outstanding
common stock warrants exercisable at $25.00 per share.
 
 In July
2006, the Company sold 5,700 shares of its Common stock at a net average of
$0.925 per share. As part of the sale of Common stock the Company issued 5,700
warrants to purchase its Common stock at a price of $25.00 per share expiring 2
years from the date of issuance.
 
 On
December 13, 2007, the Company agreed to grant Mr. Engel options to purchase
72,000 shares of common stock, which options would vest at a rate of 2,000
shares per month. These options have not yet been deemed granted.
  16
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
 
 NOTE J - COMMITMENTS AND
CONTINGENCIES
 
 Employment
Agreement
  On
December 13, 2007, the Company entered into an employment agreement with Adam
Engel pursuant to which the Company employs Mr. Engel as President, Chief
Executive Officer, Chief Financial Officer, Treasurer and Secretary. The
agreement is for an initial term of three years and provides for an annual base
salary during the term of the agreement of $120,000, payable either in cash or
stock. The Company also agreed to grant Mr. Engel options to purchase 72,000
shares of Company common stock with an exercise price of $0.25per share (which
price shall not be less than 85% of the “fair market value” of the Company’s
common stock on the date of grant), which options would vest at a rate of 2,000
shares per month. These options have not yet been granted. In addition to salary
and benefit provisions, the agreements include defined commitments should we
terminate his employment without cause and 24 month non-compete/non solicitation
terms.
 
  U.S. Federal Trade
Commission Settlement
  On March
26, 2007, ZEVOTEK, INC. (the “Company”) received a letter from the U.S. Federal
Trade Commission (“FTC”) whereby the Company was informed that the FTC is
conducting an investigation into advertising claims made for the Company’s
weight loss product known as “Slim Coffee”. The purpose of the investigation was
to determine whether the Company, in connection with its sales of Slim Coffee,
engaged in unfair or deceptive acts or practices and false advertising. The FTC
threatened to file a complaint in the United States District Court, Southern
District of New York, alleging False Advertising, unless the Company and the FTC
could reach a satisfactory resolution to the matter. A negotiated settlement has
been reached with the FTC under which the Company, its officers and directors
did not admit any wrongdoing. On October 5, 2007, the Company executed a
stipulation to a final order and judgment in the amount of $923,910. The full
amount of the judgment, and payment of any portion of it is suspended and cannot
be reinstated so long as the Company abides by the reporting and monitoring
requirements of the judgment; does not make false advertising claims in
connection with any of its products in the future; and its past financial
disclosures to the FTC were materially accurate. The Company expects stipulation
will be executed by the FTC and filed with the United States District Court,
Southern District of New York. The Company expects to comply with terms of the
stipulation and does not anticipate incurring a liability for the
judgment.
 
 
 Royalty commitment and
Agreement Termination
  On May
18, 2007, ZEVOTEK, INC. (the "Company") entered into a Consulting, License and
Supply Agreement with Jason Ryu, pursuant to which the Company licensed the
right to market and sell a fluorescent light bulb that contains an air purifying
microchip ion emitter from Mr. Ryu. In exchange for this license the Company
agrees to pay Mr. Ryu a royalty of $0.20 per unit for the first 1.5 million
units sold by the Company and the lesser of $0.15 per unit or 5% of
manufacturing costs for all additional units. The initial term of this agreement
shall be two years and shall automatically be renewed for subsequent two year
periods if at lease 5 million units are old by the Company during each period.
Within ninety days from the date of this Agreement, the Company was required to
place an order not less than 100,000 units and at least 600,000 units each
quarter thereafter. Currently, the Company has placed an order for units and the
Company has issued 143,636 shares of its common stock as prepayment of royalties
under the agreement. Mr. Ryu has sent notice to the Company that license
agreement shall continue on a non-exclusive basis.
  On July
7, 2008, the company issued 83,334 shares of common stock to Mr. Ryu, valued at
$10,000, in full consideration for all amounts due under the Consulting, License
and Supply Agreement.  The Company continues to employ Mr. Ryu as a
consultant on an informal basis for which it pays him fees from time to time
and
the license permitting us to market our Ionic bulb product continues on a
non-exclusive basis.
  17
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
J - COMMITMENTS AND CONTINGENCIES (cont’d)
  Payroll
Taxes
  At June
30, 2008, the Company is delinquent with filing and remitting payroll taxes of
approximately $102,000 including estimated penalties and interest related to
payroll taxes withheld since April 2007. The Company has recorded the delinquent
payroll taxes, which are included in accrued expenses on the balance sheet.
Although the Company has not entered into any formal repayment agreements with
the respective tax authorities, management plans to make payment as funds become
available. Penalties and interest amounts are subject to increase based on a
number of factors that can cause the estimated liability to increase further.
Interest and penalties were accrued in an amount estimated to cover the ultimate
liability.
  Sales
Taxes
  At
September 30, 2008, the Company is delinquent with remitting sales taxes of
approximately $13,400, including related estimated penalties and interest
related to sales taxes withheld since 2006 in the state of New York. The Company
has recorded the delinquent sales taxes, which are included in accrued expenses
on the balance sheet. Although the Company has not entered into any formal
repayment agreements with the respective tax authorities, management plans to
make payment as funds become available. Penalties and interest amounts are
subject to increase based on a number of factors that can cause the estimated
liability to increase further. Interest and penalties were accrued in an amount
estimated to cover the ultimate liability.
  NOTE
K – NEW ACCOUNTING PRONOUNCEMENTS
  In
December 2007, the FASB issued FASB Statement No. 141 (revised 2007), Business
Combinations. This Statement replaces FASB Statement No. 141, Business
Combinations. This Statement retains the fundamental requirements in Statement
141 that the acquisition method of accounting (which Statement 141 called the
purchase method) be used for all business combinations and for an acquirer to be
identified for each business combination. This Statement defines the acquirer as
the entity that obtains control of one or more businesses in the business
combination and establishes the acquisition date as the date that the acquirer
achieves control. This Statement’s scope is broader than that of Statement 141,
which applied only to business combinations in which control was obtained by
transferring consideration. By applying the same method of accounting—the
acquisition method—to all transactions and other events in which one entity
obtains control over one or more other businesses, this Statement improves the
comparability of the information about business combinations provided in
financial reports.
  This
Statement requires an acquirer to recognize the assets acquired, the liabilities
assumed, and any noncontrolling interest in the acquiree at the acquisition
date, measured at their fair values as of that date, with limited exceptions
specified in the Statement. That replaces Statement 141’s cost-allocation
process, which required the cost of an acquisition to be allocated to the
individual assets acquired and liabilities assumed based on their estimated fair
values.
  In
February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
Financial Assets and Financial Liabilities.” SFAS 159 permits entities to choose
to measure many financial instruments, and certain other items, at fair value.
SFAS 159 applies to reporting periods beginning after November 15, 2007. The
adoption of SFAS 159 is not expected to have a material impact on our financial
condition or results of operations.
  18
  ZEVOTEK,
INC.
 NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2008
 (UNAUDITED)
  NOTE
K – NEW ACCOUNTING PRONOUNCEMENTS (cont’d)
  In
December 2007, the FASB issued FASB Statement No. 160 - Noncontrolling Interests
in Consolidated Financial Statements - an amendment of ARB No. 51. This
Statement applies to all entities that prepare consolidated financial
statements, except not-for-profit organizations, but will affect only those
entities that have an outstanding noncontrolling interest in one or more
subsidiaries or that deconsolidate a subsidiary. Not-for-profit organizations
should continue to apply the guidance in Accounting Research Bulletin No. 51,
Consolidated Financial Statements, before the amendments made by this Statement,
and any other applicable standards, until the Board issues interpretative
guidance.
  This
Statement amends ARB 51 to establish accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an
ownership interest in the consolidated entity that should be reported as equity
in the consolidated financial statements. Before this Statement was issued,
limited guidance existed for reporting noncontrolling interests. As a result,
considerable diversity in practice existed. So-called minority interests were
reported in the consolidated statement of financial position as liabilities or
in the mezzanine section between liabilities and equity. This Statement improves
comparability by eliminating that diversity.
 
 A
noncontrolling interest, sometimes called a minority interest, is the portion of
equity in a subsidiary not attributable, directly or indirectly, to a parent.
The objective of this Statement is to improve the relevance, comparability, and
transparency of the financial information that a reporting entity provides in
its consolidated financial statements by establishing accounting and reporting
standards that require: (a) The ownership interests in subsidiaries held by
parties other than the parent be clearly identified, labeled, and presented in
the consolidated statement of financial position within equity, but separate
from the parent’s equity, (b) The amount of consolidated net income attributable
to the parent and to the noncontrolling interest be clearly identified and
presented on the face of the consolidated statement of income, (c) Changes in a
parent’s ownership interest while the parent retains its controlling financial
interest in its subsidiary be accounted for consistently. A parent’s ownership
interest in asubsidiary changes if the parent purchases additional ownership
interests in its subsidiary or if the parent sells some of its ownership
interests in its subsidiary. It also changes if the subsidiary reacquires some
of its ownership interests or the subsidiary issues additional ownership
interests. All of those transactions are economically similar, and this
Statement requires that they be accounted for similarly, as equity transactions,
(d) When a subsidiary is deconsolidated, any retained noncontrolling equity
investment in the former subsidiary be initially measured at fair value. The
gain or loss on the deconsolidation of the subsidiary is measured using the fair
value of any noncontrolling equity investment rather than the carrying amount of
that retained investment, (e) Entities provide sufficient disclosures that
clearly identify and distinguish between the interests of the parent and the
interests of the noncontrolling owners.
  This
Statement is effective for fiscal years, and interim periods within those fiscal
years, beginning on or after December 15, 2008 (that is, January 1, 2009, for
entities with calendar year-ends). Earlier adoption is prohibited. This
Statement shall be applied prospectively as of the beginning of the fiscal year
in which this Statement is initially applied, except for the presentation and
disclosure requirements. The presentation and disclosure requirements shall be
applied retrospectively for all periods presented. Management believes this
Statement will have no impact on the financial statements of the Company once
adopted.
  19


ITEM
2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.





The
following discussion and analysis should be read in conjunction with our audited
consolidated financial statements and related notes included in this
report.  This report contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.  The
statements contained in this report that are not historic in nature,
particularly those that utilize terminology such as “may,” “will,” “should,”
“expects,” “anticipates,” “estimates,” “believes,” or “plans” or comparable
terminology are forward-looking statements based on current expectations and
assumptions.





Various
risks and uncertainties could cause actual results to differ materially from
those expressed in forward-looking statements.  Factors that could
cause actual results to differ from expectations include, but are not limited
to, those set forth under the section “Risk Factors” set forth in this
report.





The
forward-looking events discussed in this annual report, the documents to which
we refer you and other statements made from time to time by us or our
representatives, may not occur, and actual events and results may differ
materially and are subject to risks, uncertainties and assumptions about
us.  For these statements, we claim the protection of the “bespeaks
caution” doctrine.  All forward-looking statements in this document
are based on information currently available to us as of the date of this
report, and we assume no obligation to update any forward-looking
statements.  Forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual results to
differ materially from any future results, performance or achievements expressed
or implied by such forward-looking statements.





General





The following discussion and analysis
is provided to increase the understanding of, and should be read in conjunction
with, our unaudited financial statements and related notes included elsewhere in
this Report.  Historical results and percentage relationships among
any amounts in these financial statements are not necessarily indicative of
trends in operating results for any future period. This report contains “forward
looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995.  The statements, which are not historical facts
contained in this Report, including this Management’s discussion and analysis of
financial condition and results of operation, and notes to our unaudited
financial statements, particularly those that utilize terminology such as “may”
“will,” “should,” “expects,” “anticipates,” “estimates,” “believes,” or “plans”
or comparable terminology are forward-looking statements. Such statements are
based on currently available operating, financial and competitive information,
and are subject to various risks and uncertainties. Future events and our actual
results may differ materially from the results reflected in these
forward-looking statements. Factors that might cause such a difference include,
but are not limited to, dependence on existing and future key strategic and
strategic end-user customers, limited ability to establish new strategic
relationships, ability to sustain and manage growth, variability of operating
results, our expansion and development of new service lines, marketing and other
business development initiatives, the commencement of new engagements,
competition in the industry, general economic conditions, dependence on key
personnel, the ability to attract, hire and retain personnel who possess the
technical skills and experience necessary to meet the service requirements of
our clients, the potential liability with respect to actions taken by our
existing and past employees, risks associated with international sales, and
other risks described herein and in our other filings with the Securities and
Exchange Commission.




20





The safe harbor for forward-looking
statements provided by Section 21E of the Securities Exchange Act of 1934
excludes issuers of “penny stock” (as defined under Rule 3a51-1 of the
Securities Exchange Act of 1934). Our common stock currently falls within that
definition





All
forward-looking statements in this document are based on information currently
available to us as of the date of this report, and we assume no obligation to
update any forward-looking statements.  Forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
the actual results to differ materially from any future results, performance or
achievements expressed or implied by such forward looking
statements.





The
following discussion of our financial condition and results of operations should
be read in conjunction with our unaudited financial statements and related notes
appearing elsewhere in this report.





Company
History





We were
incorporated in the State of Delaware on December 19, 2005 and amended our
Certificate of Incorporation on March 1, 2006. On March 1, 2006, we changed our
name from The Diet Coffee Company, Inc. to Diet Coffee, Inc. and on June 26,
2008, we changed our name to Zevotek, Inc.   Our principal
executive offices are located at 134 Cedar Street, Nutley, NJ 07110. Our
telephone number is (973) 667-4026.




We are
engaged in the direct marketing and distribution of consumer
products.  Our first offering was the Slim Coffee product line, which
featured coffee beverages. We no longer sell or market Slim Coffee products and
do not anticipate selling Slim Coffee products in the fiscal year ended June 30,
2008.  In May 2007, we entered into a license agreement to sell
anenergy
saving compact fluorescent light bulb named the Ionic Bulb.   We
plan to market the Ionic Bulb through TV infomercials, catalogs, magazines and
major U.S. retail and specialty stores and our websites www.zevo-tek.com
and  www.ionicbulb.com.




Comparison
of Three Months Ended September 30, 2008 To September 30, 2007




Results
of Operations




Revenue




Our sales
were $0 for the three months ended September 30, 2008. We expect our sales
to increase in subsequent quarters as we finish the re-engineering of an
infomercial for our Ionic Bulb product.  Our sales were $1,812 for the
three months ended September 30, 2007 from residual sales of products under the
Slim Coffee product line, which we generated primarily from customer responses
to our advertisements and their placing orders with us through our
www.slimcoffee.com website or calling one of our toll-free telephone numbers.
 We no longer sell or market Slim Coffee products.





Gross
Profit




Our gross
profit was $0 for the three months ended September 30, 2008.  Our
gross profit was $1,212 for the three months ended September 30, 2007 and our
gross profit percentage was 66.8%for the three months
then ended.   The decrease in our gross profit for the quarter
was due to our lack of sales in the three months ended September 30,
2008


.


Operating
expenses




Operating
expenses for the three months ended September 30, 2008 were $160,902 and
consisted primarily of personnel costs and stock based compensation
costs.  Operating expenses for the three months ended September 30,
2007 were $275,535 and consisted primarily of rent and other office overhead
expenses, personnel costs, stock based compensation costs and licensing
royalties in accordance with the Ionic Bulb Licensing and Consulting
Agreement.




21




Operating expenses decreased to
$160,902 in the three months ended September 30, 2008, or approximately 41.6%,
from $275,535 for the comparable period in 2007. This decrease in primarily
attributable to the closing of our New York office and decreased payments to
consultants in the quarter as compared the same period in
2007.





Net
Income and Loss




Our net
loss was $210,202 for the quarter ended September 30, 2008 and our net loss was
$274,323 for the quarter ended September 30, 2007. We recently began operating
our business, including efforts to market and sell our products, and revenues
generated were not sufficient to cover our operating costs. We are continuing
our efforts to market and sell our products in order to generate a higher sales
volume and unless and until such time as we generate substantially higher sales
volume, we will continue realize net losses.





Our
net loss per common share was ($0.02) (basic and diluted) for three months
ended September 30, 2008 as compared to our ($0.19) (basic and diluted) net loss
per common share for the three months ended September 30, 2007.




The weighted average number of
outstanding shares was 9,567,700 (basic and diluted) for three months ended
September 30, 2008 as compared to 1,434,741 (basic and diluted) for the three
months ended September 30, 2007.





Liquidity
and Capital Resources




Overview




As of
September 30, 2008, we had a working capital deficit of
$1,430,673.  As of June 30, 2008, we had a working capital deficit of
$1,310,795.  Our cash position at September 30, 2008 was $708 as
compared to $6,755 at June 30, 2008.





For
quarter ended September 30, 2008, net cash used in operating activities was
$71,047, consisting primarily of a net loss of $210,202, adjusted primarily for
common stock issued for services of $80,000 and an increase in accounts payable
and accrued expenses of $21,245.





Cash
provided by financing activities totaled $65,000 consisting of proceeds from
third party loans.





We expect
capital expenditures to be nominal for the year ending June 30, 2009. These
anticipated expenditures are for continued investments in property and equipment
used in our business and software for our accounting and information
systems.




Financing




As of
September 30, 2008, we have raised an aggregate of $1,202,439 in financing
through the issuance of debt and equity securities.





Star
Funding Financing Facility





On
October 23, 2007, Ionicbulb.com, Inc. (f/k/a Zevotek, Inc.), our wholly owned
subsidiary, entered into a Supply Agreement with Star Funding, Inc. pursuant to
which Star Funding will provide, on a discretionary basis, purchase order
financing up to $2.5 million to facilitate Ionbulb.com Inc’s sale of its Ionic
Bulb product. This purchase order financing may be made via direct payment to
Ionbulb.com Inc’s suppliers, issue or cause the issuance of letters of credit,
and/or advances to Ionicbulb.com. Ionicbulb.com will be required to pay Star
Funding an amount equal to 2.5% of all “Expenses” (as defined) associated with
the purchase of any Goods under the Agreement, including letter of credit fees,
if any, which will equal 0.25% of the face amount of any letter of credit. As
collateral security for all of Ionicbulb.com Inc.’s obligations under the Supply
Agreement, Ionicbulb.com granted Star Funding a security interest in all of
Ionicbulb.com’s personal property and fixtures. The Supply Agreement is for an
initial term of two years, and will be automatically extended for additional 1
year terms unless terminated by either party with 60 days’ prior written notice
before the end of the initial or any renewal period.




22




On
October 23, 2007, Ionicbulb.com also entered into a Factoring Agreement with
Star Funding pursuant to which Star Funding has agreed to purchase certain
accounts receivables of Ionicbulb.com under the Supply Agreement. Ionicbulb.com
has agreed to pay Star Funding a factoring commission of 1.5% of the gross
amount of each receivable under the Factoring Agreement provided, however, that
Ionicbulb.com has agreed that Star Funding will receive $15,000 in fees under
the Supply Agreement and the Factoring Agreement in the first 12 months and
Ionicbulb.com has agreed to pay Star Funding the shortfall by which all fees and
commissions are less than $15,000. As collateral security for all of
Ioncibulb.com’s obligations under the Supply Agreement, Ioncibulb.com granted
Star Funding a security interest in all of Ionicbulb.com’s personal property and
fixtures. The Supply Agreement is for an initial term of two years, and will be
automatically extended for additional 1 year terms unless terminated by
Ionicbulb.com upon 60 days’ prior written notice before the end of the initial
or any renewal period, or by Star Funding upon 30 days prior written
notice.





To
further secure Ionicbulb.com’s obligations under the Supply Agreement and the
Factoring Agreement (as discussed below), we have executed (i) a guarantee and
(ii) an assignment of that certain License and Supply Agreement under which is
obtained its distribution rights for the Ionic Bulb. In addition, Adam Engel,
President of Zevotek and Ionicbulb.com, executed an Anti Fraud and Performance
Agreement under which Mr. Engel guaranteed Ionicbulb.com’s representations and
warranties under the Supply and Factoring Agreements. Mr. Engel explicitly
agrees that if any receivable purchased by Star Funding is not paid when due
(subject to certain exceptions), such non-payment shall be presumed to be the
result of a breach of Ionicbulb.com’s representations and warranties under the
Supply Agreement and/or the Factoring Agreement at which time Star Funding may
be able to execute on the (i) collateral pledged under the Supply and Factoring
Agreements and (ii) license for distribution of the Ionic bulb
product.





Financing
Needs




Since our
inception on December 19, 2005 to September 30, 2008, we have generated revenues
of $1,205,342 and have incurred a net loss of $2,416,011 It is hoped that we
will begin to achieve sustainable revenues within the next 12 months, of which
there can be no guarantee.  Our ability to achieve profitability is
dependent on several factors, including but not limited to, our ability to:
generate liquidity from operations and satisfy our ongoing operating costs on a
timely basis. We still need additional investments in order to continue
operations to cash flow break even. Additional investments are being sought, but
we cannot guarantee that we will be able to obtain such investments. Financing
transactions may include the issuance of equity or debt securities, obtaining
credit facilities, or other financing mechanisms. However, the trading price of
our common stock and conditions in the U.S. stock and debt markets make it more
difficult to obtain financing through the issuance of equity or debt securities.
Even if we are able to raise the funds required, it is possible that we could
incur unexpected costs and expenses, fail to collect significant amounts owed to
us, or experience unexpected cash requirements that would force us to seek
alternative financing. Further, if we issue additional equity or debt
securities, stockholders may experience additional dilution or the new equity
securities may have rights, preferences or privileges senior to those of
existing holders of our common stock. If additional financing is not available
or is not available on acceptable terms, we will have to curtail our operations
again, attempt to further restructure financial obligations and/or seek a
strategic merger, acquisition or a sale of assets.





The
independent auditor's report on our June 30, 2008 financial statements states
that our recurring losses raise substantial doubts about our ability to continue
as a going concern.





The
effect of inflation on our revenue and operating results was not significant.
Our operations are located in North America and there are no seasonal aspects
that would have a material effect on our financial condition or results of
operations.





We do not
maintain off-balance sheet arrangements nor do we participate in non-exchange
traded contracts requiring fair value accounting treatment.




23




CRITICAL
ACCOUNTING POLICIES AND USE OF ESTIMATES





Financial
Reporting Release No. 60, recently released by the Securities and Exchange
Commission, requires all companies to include a discussion of critical
accounting policies or methods used in the preparation of financial statements.
The notes to the consolidated financial statements include a summary of
significant accounting policies and methods used in the preparation of our
Consolidated Financial Statements. In addition, Financial Reporting Release No.
61 was recently released by the SEC requires all companies to include a
discussion which addresses, among other things, liquidity, off-balance sheet
arrangements, contractual obligations and commercial commitments. The following
is a brief discussion of the more significant accounting policies and methods
used by us.





The
discussion and analysis of our financial condition and results of operations are
based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of financial statements in accordance with generally accepted
accounting principles in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities,
including the recoverability of tangible and intangible assets, disclosure of
contingent assets and liabilities as of the date of the financial statements and
the reported amounts of revenues and expenses during the reported
period.





On an
on-going basis, we evaluate our estimates. The most significant estimates relate
to our recognition of revenue, the allowance for doubtful accounts receivable
and inventory valuation reserves.





We
believe the following critical accounting policies affect our more significant
judgments and estimates used in the preparation of our consolidated financial
statements:





Reverse
Stock Split





Effective
June 25, 2008, the Company authorized for its common stock  a 50:1
reverse stock split  Also, par value for the Preferred Stock and
Common stock was changed to $.00001 per share   All preferred and
common stock and related information have been retroactively
restated.





Revenue
Recognition





The
Company recognizes revenue from product sales in accordance with Staff
Accounting Bulletin No. 104, Revenue Recognition ("SAB104"), which superseded
Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements
("SAB101"). SAB 104 requires that four basic criteria must be met before revenue
can be recognized: (1) persuasive evidence of an arrangement exists; (2)
delivery has occurred; (3) the selling price is fixed and determinable; and (4)
collectibility is reasonably assured. Determination of criteria (3) and (4) are
based on management's judgment regarding the fixed nature of the selling prices
of the products delivered and the collectibility of those amounts. Provisions
for discounts and rebates to customers, estimated returns and allowances, and
other adjustments are provided for in the same period the related sales are
recorded. The Company defers any revenue for which the product was not delivered
or is subject to refund until such time that the Company and the customer
jointly determine that the product has been delivered or no refund will be
required.





Valuation
of Accounts Receivable





Our
allowance for doubtful accounts reflects our best estimate of probable losses,
determined principally on the basis of historical experience and specific
allowances for known troubled accounts.





Inventories
/ Cost of Goods Sold





The
Company has adopted a policy to record inventory at the lower of cost or market
determined by the first-in-first-out method. The elements of cost that comprise
inventory and cost good sold are FOB shipping point costs, freight and
destination charges, customs and importation fees and taxes, customer broker
fees (if any) and other related costs. Warehousing costs are charged to cost of
goods in the period the costs are incurred. The Company provides inventory
allowances based on estimates of obsolete inventories.




24




Allowance
for doubtful accounts





The
Company maintains an allowance for doubtful accounts to reduce amounts to their
estimated realizable value, including reserves for customer and other receivable
allowances and incentives. In estimating the provision for doubtful accounts,
the company considers a number of factors including age of the accounts
receivable, trends and ratios involving the age of the accounts receivable and
the customer mix of each aging categories.





Advertising





The
Company follows SOP 93-7 whereby charging the costs of advertising to expenses
as incurred. We
charged $0 to operations for the three months ended September 30, 2008 and
$22,238 for the year ended June 30, 2008





Off Balance Sheet
Arrangements





None




ITEM
3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK





As a “smaller reporting company” as
defined by Item 10 of Regulation S-K, we are not required to provide the
information required by this item.





ITEM
4T – CONTROLS AND PROCEDURES





Evaluation of Disclosure
Controls and Procedures





Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed by us in the reports that we
file or submit under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed by us in
the reports that we file under the Exchange Act is accumulated and communicated
to our management, including our principal executive and financial officers, as
appropriate to allow timely decisions regarding required
disclosure.




The
Company’s management, under the supervision and with the participation of our
Chief Executive Officer and Chief Financial Officer, carried out an evaluation
of the effectiveness of the design and operation of the Company's disclosure
controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the
Exchange Act) as of September 30,2008.  Based upon that evaluation and
the identification of the material weakness in the Company’s internal control
over financial reporting as described below under “Management’s Report on
Internal Control over Financial Reporting,” the Chief Executive Officer and
Chief Financial Officer concluded that the Company’s disclosure controls and
procedures were ineffective as of the end of the period covered by this
report.





Management's Report on
Internal Control over Financial Reporting




A
company’s internal control over financial reporting is a process designed by, or
under the supervision of, a public company’s principal executive and principal
financial officers, or persons performing similar functions, and effected by the
board of directors, management and other personnel, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles (“GAAP”) including those policies and procedures
that: (i) pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of the assets of
the company, (ii) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with GAAP,
and that receipts and expenditures are being made only in accordance with
authorizations of management and directors of the company, and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the company’s assets that could have a
material effect on the financial statements.




25




Management
is responsible for establishing and maintaining adequate internal control over
financial reporting. Our management, with the participation of our Chief
Executive Officer and Acting Chief Financial Officer, has assessed the
effectiveness of our internal control over financial reporting as of September
30, 2008. In making this assessment, our management used the criteria
established inInternal
Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).




During
this evaluation, the Company identified a material weakness in its internal
control over financial reporting.  A material weakness is a
deficiency, or combination of deficiencies, in internal control over financial
reporting such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented
or detected on a timely basis.  The identified material weakness
consists of, as of the end of the period covered by this report, limited
resources and limited number of employees, namely the lack of an audit
committee, an understaffed financial and accounting function, and the need for
additional personnel to prepare and analyze financial information in a timely
manner and to allow review and on-going monitoring and enhancement of our
controls.




Based on
our assessment and the criteria discussed above, the Company has concluded that,
as of September 30, 2008, the Company’s internal control over financial
reporting was not effective as a result of the aforementioned material
weakness.




Notwithstanding
the material weakness in the Company’s internal control over financial reporting
and the Company’s consequently ineffective disclosure controls and procedures
discussed above, management believes that the financial statements included in
this Quarterly Report on Form 10-QA present fairly, in all material respects,
our financial position, results of operations, and cash flows for the periods
presented in accordance with the U. S. generally accepted accounting
principles.




This
annual report does not include an attestation report of the Company’s
independent registered public accounting firm regarding internal control over
financial reporting. Management’s report was not subject to attestation by the
Company’s independent registered public accounting firm pursuant to temporary
rules of the SEC that permit the Company to provide only management’s report in
this annual report.





Limitations on Effectiveness
of Controls and Procedures





Our
management, including our Chief Executive Officer and Chief Financial Officer,
does not expect that our disclosure controls and procedures or our internal
controls will prevent all errors and all fraud. A control system, no matter how
well conceived and operated, can provide only reasonable, not absolute,
assurance that the objectives of the control system are met. Further, the design
of a control system must reflect the fact that there are resource constraints
and the benefits of controls must be considered relative to their costs. Because
of the inherent limitations in all control systems, no evaluation of controls
can provide absolute assurance that all control issues and instances of fraud,
if any, within the Company have been detected. These inherent limitations
include, but are not limited to, the realities that judgments in decision-making
can be faulty and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
control. The design of any system of controls also is based in part upon certain
assumptions about the likelihood of future events and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions. Over time, controls may become inadequate because of changes
in conditions, or the degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a cost-effective control
system, misstatements due to error or fraud may occur and not be
detected.





Changes
in Internal Control over Financial Reporting





There
were no changes in our internal control over financial reporting identified in
connection with the evaluation required by paragraph (d) of Rule 13a-15 or
15d-15 under the Exchange Act that occurred during the quarter ended September
30,2008 that have materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.




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PART
II:  OTHER INFORMATION




ITEM
1 – LEGAL PROCEEDINGS





On March
26, 2007, Diet Coffee, Inc. (the “Company”) received a letter from the U.S.
Federal Trade Commission (“FTC”) whereby the Company was informed that the FTC
is conducting an investigation into advertising claims made for the Company’s
weight loss product known as “Slim Coffee”. The purpose of the investigation was
to determine whether the Company, in connection with its sales of Slim Coffee,
engaged in unfair or deceptive acts or practices and false advertising. The FTC
threatened to file a complaint in the United States District Court, Southern
District of New York, alleging False Advertising, unless the Company and the FTC
could reach a satisfactory resolution to the matter. A negotiated settlement has
been reached with the FTC under which the Company, its officers and directors
did not admit any wrongdoing. On October 5, 2007, the Company executed a
stipulation to a final order and judgment in the amount of $923,910. The full
amount of the judgment, and payment of any portion of it is suspended and cannot
be reinstated so long as the Company abides by the reporting and monitoring
requirements of the judgment; does not make false advertising claims in
connection with any of its products in the future; and its past financial
disclosures to the FTC were materially accurate. The Company expects stipulation
will be executed by the FTC and filed with the United States District Court,
Southern District of New York. The Company expects to comply with terms of the
stipulation and does not anticipate incurring a liability for the
judgment.




Viatek
Litigation/Settlement. On November 5, 2008, we, and our wholly owned
subsidiary (the “Plaintiff Parties”) and Jason Ryu entered into a settlement
agreement (the “Settlement Agreement”) with Viatek Consumer Products Group, Inc.
(“Viatek”), (collectively, the “Defendant Parties”).
 
 The
Settlement Agreement was entered into in connection with an amended complaint
filed by us in May 2008 against the Defendant Parties in the United States
District Court for the Southern District of New York (the
“Lawsuit”).
 
 Under the
terms of the Settlement Agreement, the Plaintiff Parties and the Defendant
Parties have agreed to full and complete settlement and general release of all
claims asserted by the parties regarding the subject matter of the Litigation.
In consideration for this settlement of claims, Viatek agreed to pay us a
royalty on the Net Sales of Viatek Ionic Bulbs. Further, the parties agreed
to a joint stipulation for dismissal with prejudice of the Lawsuit, which was
filed on November 12, 2008.




ITEM
1A – RISK FACTORS





As a
“small reporting company” as defined by Item 10 of Regulation S-K, we are not
required to provide information required by this item.





ITEM
2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS





During
the quarter ended September 30, 2008, we issued an aggregate of 10,324,000
shares of common stock upon conversions of 10% convertible promissory notes. The
aggregate principal and interest amount of these notes that were converted was
$10,324. The issuances were exempt pursuant to Section 3(a)(9) of the Securities
Act as well as Section 4(2) of the Securities Act.





ITEM
3 – DEFAULT UPON SENIOR SECURITIES




None.





ITEM
4 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS




None.





ITEM
5 – OTHER INFORMATION





None.





ITEM
6 - EXHIBITS




Item
      No.
                  Description31.1
                  Certification
      of Adam J. Engel, Chief Executive Officer and Chief Financial Officer of
      Zevotek, Inc. pursuant to Rule 13a-14(a)32.1
                  Certification
      of Adam J. Engel, Chief Executive Officer and Chief Financial Officer of
      Zevotek, Inc. pursuant to 18 U.S.C. § 1350 adopted pursuant to Section 906
      of the Sarbanes Oxley Act of
2002




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SIGNATURES





Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.




ZEVOTEK,
      INC.December
      17, 2008
              /s/ Adam J.
      EngelAdam
      J. EngelPresident,
      Chief Executive Officer and Chief Financial Officer(Principal
      Executive and Financial and Accounting
Officer)




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