----

----

|  [ x ] | Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2010 |
|-------------|----------------------------------------------------------------------------------------------------------------------------------|

| [    ] | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ___to___ |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------|

| Minnesota(State or other jurisdiction of incorporation or organization)               | 41-1596056(I.R.S. Employer Identification No.) |
|---------------------------------------------------------------------------------------|------------------------------------------------|
| 3240 Aldrich Ave S Suite 301, Minneapolis, MN(Address of Principal Executive Offices) | 55408(Zip Code)                                |

| Securities registered pursuant to Section 12(g) of the Exchange Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 Title of each class                                                                                        Name of each exchange on which registered |
| Common Stock, no par value                                                                       OTC Bulletin Board                                                                                                                                                                                                                       |

----

|  ITEM                                                                                                                                                                                     |  PAGE |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|  PART I                                                                                                                                                                                   |       |
|  1.             Business                                                                                            | 3          |
|  1A.          Risk Factors                                                                                                              | 5          |
|  1B.          Unresolved Staff Comments                                                                                            | 5          |
|  2.             Description of Property                                                                                  | 5          |
|  3.             Legal Proceedings                                                                                   | 5          |
|  4.             Submission of Matters to a Vote of Security Holders                             | 6          |
|  PART II                                                                                                                                                                                  |       |
|  5.            Market for Registrant's Common Equity, Related Stockholder Matters & Issuer Purchases of Equity Securities | 6          |
|  6.            Selected Financial Data                                                                                             |       |
|  7.            Management's Discussion & Analysis of Financial Condition and Results of Operations                   | 7          |
|  7A.         Quantitative and Qualitative Disclosures about Market Risk                                                                      |       |
|  8.            Financial Statements & Supplementary Data                                                                  | 7          |
|  9.            Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                           |       |
|  9A. (T).  Controls and Procedures                                                                                                                                         | 8          |
|  9B.          Other Information                                                                                                    |       |
| PART III                                                                                                                                                                                       |       |
| 10.           Directors, Executive Officers, and Corporate Governance                                                                   | 10         |
| 11.           Executive Compensation                                                                                               | 11         |
| 12.           Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.                 | 12         |
| 13.           Certain Relationships and Related Transactions, and Director Independence                                                      | 13         |
| 14.           Principal Accountant Fees and Services                                                                                    | 14         |
| 15.           Exhibits, Financial Statement Schedules                                                                         |       |
| SIGNATURES                                                                                                                                                                                     | 28         |
|                                                                                                                                                                                           |       |
|                                                                                                                                                                                           |       |

----

----

| (a)   | Market Information |
|-----------------|--------------------|

| First  |   | $ | 0.006  |   |   | $ | 0.0018 |   |
|--------|--------|---|--------|--------|--------|---|--------|--------|
| Second |   | $ | 0.0038 |   |   | $ | 0.002  |   |
| Third  |   | $ | 0.0025 |   |   | $ | 0.002  |   |
| Fourth |   | $ | 0.0017 |   |   | $ | 0.001  |   |

| First  |   | $ | 0.03   |   |   | $ | 0.0151 |   |
|--------|--------|---|--------|--------|--------|---|--------|--------|
| Second |   | $ | 0.02   |   |   | $ | 0.005  |   |
| Third  |   | $ | 0.029  |   |   | $ | 0.01   |   |
| Fourth |   | $ | 0.0185 |   |   | $ | 0.005  |   |

| (a)   | Record Holders |
|-----------------|----------------|

| (b)   | Dividends |
|-----------------|-----------|

| (c)   | Recent Sales of Unregistered Securities |
|-----------------|-----------------------------------------|

----

|   | Evaluation of Disclosure Controls and Procedures |
|--------|--------------------------------------------------|

----

| Paul  W. Peterson | 61 | Director                                                               |
|-----------------------------|----|------------------------------------------------------------------------|
| Andrew D. Hyder             | 44 | Director, Chairman of the Board, Chief Executive Officer and President |
| Sharon R. Hyder             | 64 | Director                                                          |

----

|  Name andPrincipal Position                           |   Year |   Salary  |   Bonus (1) |   Option Awards (2) | Non-Equity Incentive Plan Compensation  |  All Other Compensation |   Total |
|------------------------------------------------------------|------------------|--------------------------|-----------------------|-------------------------------|----------------------------------------------|------------------------------|-------------------|
| Andrew D. HyderChief Executive Officer and President  | 2010             | $0                       | $0                    | $0                            | $0                                           | $17,944                      | $17,944           |

|                    | Option Awards (1)                                            |
|------------------------------|--------------------------------------------------------------|
|     Name | NumberofSecurities Underlying Unexercised OptionsExercisable |  Number of Securities Underlying Unexercised OptionsUnexercisable |     Option Exercise Price  |     Option Expiration Date |
|  Andrew D. Hyder        |  2,500                                                  |  0 |  n/a |  n/a |

|   | (1)   All options granted pursuant to our 1999 Stock Option and Stock Award Plan, as amended. |
|--------|--------------------------------------------------------------------------------------------------------------|

----

| Name of Beneficial Owner                          |   | Shares of Common Stock Beneficially Owned (#) |      |   | Percentage of Common Stock BeneficiallyOwned (%) (1) |   |
|---------------------------------------------------|--------|-----------------------------------------------|-----------|--------|------------------------------------------------------|--------|
| Andrew D. Hyder                                   |   |                                          | 1,276,408 | (2)    |                                                 |   | .73 | %* |
| Sharon R. Hyder                                   |   |                                          | 15,683    | (3)    |                                                 |   | .008 | % * |
| Paul W Peterson                                   |   |                                          | 1,100,000 | (3)    |                                                 |   | .63 | % * |
| All officers and directors as a group (3 persons) |   |                                          | 2,392,091 | (4)    |                                                 |   | 1.93 | % |

|   | * Less than 1%. |
|--------|-----------------|

| (1) | Beneficial ownership is determined in accordance with SEC rules, and includes any shares as to which the security or stockholder has sole or shared voting power or investment power, and also any shares which the security or stockholder has the right to acquire within 60 days of the date hereof, whether through the exercise or conversion of any stock option, convertible security, warrant or other right.  The indication herein that shares are beneficially owned is not an admission on the part of the security or stockholder that he, she or it is a direct or indirect beneficial owner of those shares. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | Includes shares of common stock issuable upon exercise of options to purchase an aggregate of 2,500 shares of common stock that are currently exercisable or will become exercisable within the next 60 days.  Also includes 25,000 shares of common stock held by Mr. Hyder’s daughter, whom Mr. Hyder disclaims any beneficial ownership interest to, except to the extent of his pecuniary interest therein. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Directors |
|-----|-----------|

| (4)   | All officers and directors as a group |
|-----------------|---------------------------------------|

|   | The following table sets forth, as of December 31, 2010, the (i) number of securities to be issued upon the exercise of outstanding options, warrants and rights issued under the equity compensation plans, (ii) the weighted average exercise price of such options, warrants and rights, (each as converted pursuant to the merger).  All outstanding options identified herein are governed by the terms of the Company’s 1999 Stock Option and Stock Award Plan, as amended. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                             |  Number of securities to be issued upon exercise of outstanding options, warrants and rights(a) |  Weighted -average price of outstanding options, warrants and rights(b) | Number of securities remaining available for future issuance under equity compensation plan (excluding (a))(c) |
|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
| Equity compensation plans not approved by security holders  |   0                                                                                        |   $0.00                                                            |   -                                                                                                  |
|       Total                   | 0                                                                                               | $0.00                                                                   | -                                                                                                              |

|       |   | 2010 |   |   | 2009   |   |
|------------|--------|------|--------|--------|--------|--------|
| Audit fees |   | $    | 0      |   |   | $      | 15,500 |   |

----

| SUBJEX CORPORATION                                                |   |
|-------------------------------------------------------------------|--------|
| STATEMENTS OF OPERATIONS                                          |   |
|                                                              |   | FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 |   |
|                                                              |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |
|                                                              |   | FOR THE YEAR ENDED DECEMBER 31, 2010 |   |   | FOR THE YEAR ENDED DECEMBER 31, 2009 |   |
|                                                              |   | unaudited |   |   | audited |   |
|                                                              |   |   |   |   |   |   |
|  REVENUES                                                    |   | $ | 49 |   |   | $ | 11,025 |   |
|                                                              |   |   |   |   |   |   |   |   |
|  EXPENSES                                                    |   |   |   |   |   |   |   |   |
|      Selling, general and administrative |   |   | 134,847 |   |   |   | 169,639 |   |
|                                                              |   |   |   |   |   |   |   |   |
|  TOTAL OPERATING EXPENSES                                    |   |   | 134,847 |   |   |   | 169,639 |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |

----

| Signature                          | Title             | Date           |
|------------------------------------|-------------------|----------------|
| /s/ Andrew D. HyderAndrew D. Hyder | President and CEO | April 15, 2011 |

----

|                                     |                                           |       |       |                                                                       |              |   |       |              |    |
|------------------------------------------|------------------------------------------------|------------|------------|----------------------------------------------------------------------------|-------------------|--------|------------|-------------------|---------|
| SUBJEX CORPORATION                       |                                           |
| BALANCE SHEETS                           |                                           |
| AS OF DECEMBER 31, 2010 AND 2009         |                                           |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |
|                                     |                                           |       |       |                                                                       | Decmeber 31, 2010 |   |       | December 31, 2009 |    |
|                                     |                                           |       |       |                                                                       | unaudited         |   |       | audited           |    |
| ASSETS                                   |                                           |       |       |                                                                       |              |   |
| Current Assets                           |                                           |       |       |                                                                       |              |   |       |              |
| Cash and cash equivalents                |                                           | $          | -          |                                                                       |              | $      | 147        |              |
| Accounts receivable                      |                                           |       | -          |                                                                       |              |   | -          |              |
|                                     | Total current assets                           |       |       | -                                                                          |              |   |       | 147               |    |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |
| Other Assets                             |                                           |       |       |                                                                       | -                 |   |       |              | -       |   |
|                                     | Total assets                                   |       | $          | -                                                                          |              |   | $          | 147               |    |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT    |                                           |       |       |                                                                       |              |   |       |              |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |
| Current Liabilities                      |                                           |       |       |                                                                       |              |   |       |              |    |   |
| Short-term notes payable                 |                                           | $          | 17,677     |                                                                       |              | $      | 17,677     |              |
| Subordinated convertible notes payable   |                                           |       | 23,000     |                                                                       |              |   | 23,000     |              |
| Accounts payable                         |                                           |       |       |                                                                       | 223,297           |   |       |              | 224,017 |   |
| Accrued expenses:                        |                                           |       |       |                                                                       |              |   |       |              |    |   |
|                                     | Accrued expenses-related party                 |       |       | 50,461                                                                     |              |   |       | 629,903           |    |
|                                     | Payroll and payroll taxes                      |       |       | 18,266                                                                     |              |   |       | 18,266            |    |
|                                     | Accrued interest                               |       |       | 29,857                                                                     |              |   |       | 27,589            |    |
|                                     | Accrued expenses                               |       |       | 4,207                                                                      |              |   |       | 4,207             |    |
|                                     | Total current liabilities                      |       |       | 366,764                                                                    |              |   |       | 944,659           |    |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |
|                                     | Total liabilities                              |       |       | 366,764                                                                    |              |   |       | 944,659           |    |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |
| Stockholders' Deficit                    |                                           |       |       |                                                                       |              |   |       |              |    |   |
| Common stock, no par or stated value;    |                                           |       |       |                                                                       |              |   |       |              |
|                                     | 200,000,000 shares authorized: 140,806,887 and |       |       |                                                                       |              |   |       |              |    |
|                                     |                                           | 99,903,131 |       | December 31, 2010 and                                                      |              |   |       |              |    |   |   |   |
|                                     | December 31, 2009, respectively                |       |       | 6,905,923                                                                  |              |   |       | 6,215,609         |    |
| Subscriptions received                   |                                           |       | 24,500     |                                                                       |              |   |       |              |
| Accumulated deficit                      |                                           |       | (7,297,187 | )                                                                          |              |   | (7,160,121 | )                 |
| Total stockholders' deficit              |                                           |       | (366,764   | )                                                                          |              |   | (944,512   | )                 |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |   |
| Cash and cash equivalents at end of year |                                           | $          | 0          |                                                                       |              | $      | 147        |              |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |   |
|                                     |                                           |       |       |                                                                       |              |   |       |              |    |   |   |   |
|                                     |                                           |       |       | The accompanying notes are an integral part of these financial statements. |              |

----

| SUBJEX CORPORATION                                                         |   |
|----------------------------------------------------------------------------|--------|
| STATEMENTS OF OPERATIONS                                                   |   |
| FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009                             |   |
|                                                                       |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |
|                                                                       |   | For the year ended December 31, 2010 |   |   | For the year ended December 31, 2009 |   |
|                                                                       |   | unaudited |   |   | audited |   |
|                                                                       |   |   |   |   |   |   |
| REVENUES                                                                   |   | $ | 49 |   |   | $ | 11,025 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| EXPENSES                                                                   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                                        |   |   | 134,847 |   |   |   | 169,639 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| TOTAL OPERATING EXPENSES                                                   |   |   | 134,847 |   |   |   | 169,639 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| OPERATING LOSS                                                             |   |   | (134,798 | ) |   |   | (158,614 | ) |
|                                                                       |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                     |   |   |   |   |   |   |   |   |
| Interest expense                                                           |   |   | (2,268 | ) |   |   | (2,956 | ) |
|                                                                       |   |   |   |   |   |   |   |   |
| NET LOSS                                                                   |   | $ | (137,066 | ) |   | $ | (161,570 | ) |
|                                                                       |   |   |   |   |   |   |   |   |
| NET LOSS PER SHARE: BASIC AND DILUTED                                      |   | $ | (0.00 | ) |   | $ | (0.00 | ) |
|                                                                       |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBERS OF SHARES OUTSTANDING: BASIC AND DILUTED          |   |   | 124,178,313 |   |   |   | 99,682,409 |   |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements. |   |

----

| SUBJEX CORPORATION                                                         |   |
|----------------------------------------------------------------------------|--------|
| STATEMENTS OF CASH FLOWS                                                   |   |
| FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009                             |   |
|                                                                       |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |
|                                                                       |   | For the year ended December 31, 2010 |   |   | For the year ended December 31, 2009 |   |
|                                                                       |   | unaudited |   |   | audited |   |
| Cash flows from operating activities:                                      |   |   |   |   |   |   |
| Net loss for the period                                                    |   | $ | (137,066 | ) |   | $ | (161,570 | ) |
| Adjustments to reconcile net loss to                                       |   |   |   |   |   |   |   |   |
| net cash flows from operating activities:                                  |   |   |   |   |   |   |   |   |
| Court order settled with issuance of common stock                          |   |   | - |   |   |   | 73,000 |   |
| Non cash common stock issued for consulting services                       |   |   | 65,000 |   |   |   | 250 |   |
| Changes in operating assets and liabilities:                               |   |   |   |   |   |   |   |   |
| Accounts receivable                                                        |   |   | - |   |   |   | 3,011 |   |
| Accounts payable                                                           |   |   | (720 | ) |   |   | 39,930 |   |
| Accrued expenses                                                           |   |   | - |   |   |   | 260 |   |
| Accrued expenses-related party                                             |   |   | (579,443 | ) |   |   | 422,947 |   |
| Payroll and payroll taxes payable                                          |   |   | - |   |   |   | (19,819 | ) |
| Accrued interest                                                           |   |   | 2,268 |   |   |   | 2,269 |   |
| Short-term note payable                                                    |   |   | - |   |   |   | (1,500 | ) |
| Net cash flows used in operating activities                                |   |   | (649,961 | ) |   |   | 358,778 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                      |   |   |   |   |   |   |   |   |
| Deposits                                                                   |   |   | - |   |   |   | 2,611 |   |
| Net cash flows used in investing activities                                |   |   | - |   |   |   | 2,611 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                      |   |   |   |   |   |   |   |   |
| Proceeds from issuance of common stock                                     |   |   | 43,500 |   |   |   | 87,900 |   |
| Subscriptions received                                                     |   |   | 24,500 |   |   |   | - |   |
| Notes retired-related party                                                |   |   | 581,814 |   |   |   | - |   |
| Shares retired-related party                                               |   |   | - |   |   |   | (438,688 | ) |
| Shares retired- unrelated party                                            |   |   | - |   |   |   | (12,000 | ) |
| Net cash flows used in financing activities                                |   |   | 649,814 |   |   |   | (362,788 | ) |
|                                                                       |   |   |   |   |   |   |   |   |
| Net decrease in cash and equivalents                                       |   |   | (147 | ) |   |   | (1,399 | ) |
| Cash and cash equivalents at beginning of year                             |   |   | 147 |   |   |   | 1,546 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                   |   | $ | 0 |   |   | $ | 147 |   |
|                                                                       |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements. |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |

----

|                                              |   |         |        |   |   |   |      |        |   |   |          |   |
|---------------------------------------------------|--------|--------------|-------------|--------|--------|--------|-----------|-------------|--------|--------|---------------|--------|
| STATEMENT OF STOCKHOLDERS' DEFICIT                |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |
| YEARS ENDED DECEMBER 31, 2010 AND 2009            |   |
| Unaudited and Ureviewed                           |   |
|                                              |   | Common Stock |        |   |   |   |      | Accumulated |   |   | Stockholders' |   |
|                                              |   | Shares       |        |   | Amount |   |      | Deficit     |   |   | Deficit       |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |
| Balance, December 31, 2008                        |   |         | 99,497,720  |   |   |   | 6,505,147 |        |   | $      | (6,998,551    | )      |   | $ | (493,404 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Common stock issuance                             |   |         | 7,359,167   |   |   |   | 87,900    |        |   |   |          |   |   |   | 87,900 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Common stock issuance for consulting services     |   |         | 10,000      |   |   |   | 250       |        |   |   |          |   |   |   | 250 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Shares retired-Related party                      |   |         | (8,803,756  | )      |   |   | (438,688  | )           |   |   |          |   |   |   | (438,688 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Shares retired- consulting services               |   |         | (60,000     | )      |   |   | (12,000   | )           |   |   |          |   |   |   | (12,000 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Common stock issuance for court orderd settlement |   |         | 1,900,000   |   |   |   | 73,000    |        |   |   |          |   |   |   | 73,000 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Net Loss                                          |   |         |        |   |   |   |      |        |   |   | (161,570      | )      |   |   | (161,570 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Balance, December 31, 2009                        |   |         | 99,903,131  |   |   | $      | 6,215,609 |        |   | $      | (7,160,121    | )      |   | $ | (944,512 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Common stock issuance                             |   |         | 20,000,000  |   |   |   | 43,500    |        |   |   |          |   |   |   | 43,500 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Common stock issuance for consulting services     |   |         | 9,000,000   |   |   |   | 65,000    |        |   |   |          |   |   |   | 65,000 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Notes retired-Related party                       |   |         | 11,903,756  |   |   |   | 581,814   |        |   |   |          |   |   |   | 581,814 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Subscriptions received                            |   |         | -           |   |   |   | -         |        |   |   |          |   |   |   | 24,500 |   |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
| Net Loss                                          |   |         |        |   |   |   |      |        |   |   | (137,066      | )      |   |   | (137,066 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |
|                                              |   |         | 140,806,887 |   |   | $      | 6,905,923 |        |   | $      | (7,297,187    | )      |   | $ | (366,764 | ) |
|                                              |   |         |        |   |   |   |      |        |   |   |          |   |   |   |   |   |

----

|                          | 2010                                                                                                                       | 2009                                                                                                     |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
| Company Vehicle               | $           11,186                                                  | $        11,186                                                  |
| Office and Computer Equipment | 49,583                                                                                                                     | 49,583                                                                                                   |
| Furniture and Fixtures        | 14,231                                                                                                                     |   14,231                                                                                       |
| Accumulated Depreciation      | (60,192)                                                                                                                   |  (60,192)                                                                                           |
| Impairment of Fixed Assets    | (14,808)                                                                                                                   | (14,808)                                                                                                 |
| Property and Equipment, net   | $                    0 | $                 0 |

|                             | 2010                                                                        | 2009                                                                                                              |
|----------------------------------|-----------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
|                             | Shares                                                                      | WeightedAverage Exercise Price                                                                                    | Shares | Weighted Average Exercise Price |
| Outstanding at beginning of year |          12,500                |     $              0.80 |       12,500 | $        0.80 |
| Canceled/Expired                 |             (0) |      0.00                                                                                |            (0) |     0.00 |
| Outstanding at end of year       |          12,500                |      $             0.80 |          12,500 | $        0.80 |

----

|                             | 2010    | 2009                           |
|----------------------------------|---------|--------------------------------|
|                             | Shares  | WeightedAverage Exercise Price | Shares | WeightedAverage Exercise Price |
| Outstanding at beginning of year | 101,000 | $   0.17        | 176,000 | $   0.40 |
| Granted                          |    | 0.00                           | 0 | 0.00 |
| Exercised                        | - -     | - -                            | - - | - - |
| Canceled/Expired                 | -101000 | 0.40                           | -75,000 | 0.40 |
| Outstanding at end of year       | 0.00    | $   0.00        | 101,000 | $   0.17 |

|                | 2010                                                                                                                                                                 | 2009       |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                | Amount                                                                                                                                                               | %          | Amount | % |
| Expected Federal    | $               (46,602)                                                                  | (34%)      | $             (54,932) | (34%) |
| Expected State      |   (5,483)                                                                                                                                                  |  (4%) |     (6,463) |  (4%) |
| Valuation allowance | 53,085                                                                                                                                                               | 38%        | 61,395 | 38% |
| Total               | $                           - |       | $                           - |   |

|                                                            |   | 2010   |       |   | 2009   |   |
|-----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Deferred tax asset relating to netoperating loss carry-forwards |   | $      | 1,970,900  |   |   | $      | 1,970,900 |   |
| Valuation allowance                                             |   |   | (1,970,900 | )      |   |   | (1,970,900 | ) |
| Net deferred tax asset                                          |   | $      | 0          |   |   | $      | 0 |   |

|              |   | Federal |      |
|-------------------|--------|---------|-----------|
| December 31, 2019 |   | $       | 49,000    |   |
| 2020              |   |    | 1,010,000 |   |
| 2021              |   |    | 1,051,000 |   |
| 2022              |   |    | 778,000   |   |
| 2023              |   |    | 300,000   |   |
| 2024              |   |    | 280,000   |   |
| 2025              |   |    | 464,000   |   |
| 2026              |   |    | 348,000   |   |
| 2027              |   |    | 1,328,000 |   |
| 2028              |   |    | 307,000   |   |
| 2029              |   |    | 161,000   |   |
| 2030              |   |    | 137,000   |   |
|              |   | $       | 6,213,000 |   |

----

|                                 |   | 2010 |   |   | 2009   |   |
|--------------------------------------|--------|------|--------|--------|--------|--------|
| Cash paid during year for interest   |   | $    | 0      |   |   | $      | 0 |   |
| Cash paid during year for income tax |   | $    | 0      |   |   | $      | 0 |   |

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