CURRENT
REPORT FOR ISSUERS SUBJECT TO THE


1934
ACT REPORTING REQUIREMENTS





FORM
10-K





SECURITIES
AND EXCHANGE COMMISSION


Washington,
DC 20549








Annual
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act





For the
Fiscal Year Ended December 31, 2008





REMEDIATION
SERVICES, INC.


(Exact
name of registrant as specified in its charter)





Nevada
            000-52235
            75-2834498(State
      or other jurisdiction of incorporation)
            (Commission
      File Number)
            (IRS
      Employer Identification





1111
Hughes Court Wylie, Texas 75098


(Address
of principal executive offices (zip code))





(972)
442-4314


(Registrant’s
telephone number, including area code)











(Former
address)





Securities
registered pursuant to Section 12(b) of the Act:  NONE


Securities
registered pursuant to Section 12(g) of the Act:  Common
Stock





Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Act of 1934 during the past 12 months and (2) has
been  subject to such filing  requirement  for the
past 90days  Yes [X]   No
[   ].





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 Filer [    ].
            
            Accelerated
      Filer    [    ].Non-Accelerated
      Filer [    ].
            
            Smaller
      Reporting Company [X]





Indicate
by a check mark whether the company is a shell company (as defined by Rule 12b-2
of the Exchange Act:  Yes
[    ]   No [ X ].





Aggregate
market value of the voting stock held by non-affiliates of the registrant as of
December 31, 2008:


$101,738.





Shares of
common stock outstanding at December 31,
2008:    5,906,950














PART I.





FORWARD-LOOKING
STATEMENTS





This
annual report on Form 10-K includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, which we refer
to in this annual report as the Securities Act, and Section 21E of the
Securities Exchange Act of 1934, as amended, which we refer to in this annual
report as the Exchange Act. Forward-looking statements are not statements of
historical fact but rather reflect our current expectations, estimates and
predictions about future results and events. These statements may use words such
as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project”
and similar expressions as they relate to us or our management. When we make
forward-looking statements, we are basing them on our management’s beliefs and
assumptions, using information currently available to us. These forward-looking
statements are subject to risks, uncertainties and assumptions, including but
not limited to, risks, uncertainties and assumptions discussed in this annual
report. Factors that can cause or contribute to these differences include those
described under the headings “Risk Factors” and “Management Discussion and
Analysis and Plan of Operation.”





If one or
more of these or other risks or uncertainties materialize, or if our underlying
assumptions prove to be incorrect, actual results may vary materially from what
we projected. Any forward-looking statement you read in this annual report
reflects our current views with respect to future events and is subject to these
and other risks, uncertainties and assumptions relating to our operations,
results of operations, growth strategy and liquidity. All subsequent written and
oral forward-looking statements attributable to us or individuals acting on our
behalf are expressly qualified in their entirety by this paragraph. You should
specifically consider the factors identified in this annual report which would
cause actual results to differ before making an investment decision. We are
under no duty to update any of the forward-looking statements after the date of
this annual report or to conform these statements to actual results.








ITEM
1.                      DESCRIPTION
OF BUSINESS





We were
incorporated on June 25, 1999 as Slopestyle Corporation in the State of Texas
and redomiciled to become a Nevada corporation on December 12, 2007 and renamed
Remediation Services, Inc. (herein referred to as “Remediation”, “the Company”,
“We” or “Us”.)    Our executive offices are located at 1111
Hughes Court, Wylie, Texas. We are engaged in the home restoration and mold
remediation business.





General





We are a
company that is in the restoration and mold remediation business for residential
and commercial structures. When damage by wind, fire, flood or any other
catastrophic event is experienced, we offer cleaning, restoration and
remediation services. We are certified in mold remediation, licensed by the
State of Texas and fully approved by The Texas Department of State Health
Services.





The
Company performs three types of services:  restoration, remediation
and specialty rug cleaning.     The following describes
each of these services:





Restoration:





The
restoration business is a highly competitive industry due to low economic and
education barriers of entry.  Although timely receivable collections
can be problematic, restoration contractors experience minimal credit risk since
many times their bills are paid by insurance companies, a significant advantage
over residential contractors. Finally, the restoration industry is largely
recession proof and non-cyclical. Hurricanes, tornadoes, hail storms, floods and
fires, along with a host of other natural and man-made perils, combine to
generate a year-round stream of potential customers without regard for the state
of the economy.






2





We obtain
our restoration projects through a number of strategies. These strategies
include referrals by insurance companies, relationships with general
contractors, and relationships with local business and municipal leaders.
Customers are located by visiting and campaigning at loss locations immediately
following a tornado, fire or flood. Such a process involves establishing
credibility by discussing and submitting prior work performed, obtaining all
necessary and appropriate licenses, and networking with on-the-ground adjusters
and professional personnel. Upon securing restoration contracts, subcontractors
are engaged through a formal bid process. We are dependent on subcontractors to
perform restoration work and manage the quality and timeliness of this work by a
company foreman responsible for the management of the entire work process. At
any one time, our foreman can have up to ten contractors working the job site.
The subcontractors are local suppliers of trade skills and work exclusively for
us under a written contract for the term of the restoration contract. Prior to
the restoration work commencing, we do compete for subcontractors, however once
contracts are signed and work begins, the subcontractor works exclusively for us
until the job is complete.





Our
restoration business concentrates on purchasing and restoring of single and
multi-family dwellings that can be restored through the contracting with local
contractors and subcontractors. We have made the strategic decision to focus our
restoration business on moderately to substantially damaged structures, staying
away from “total loss” situations as defined by insurance companies. This
strategy allows us to more quickly restore structures.   Once
restored, we sell these properties through customary channels used for
residential real estate sales.





Home
restoration typically involves the replacement of structural components,
specifically, load bearing beams, walls, roofs, ceilings, floors, and other
structural necessities. We draw on contractors and subcontractors with home
building experience and manage the work performed through on-site
foremen.





There are
generally two parts to the restoration industry, remediation (or mitigation) and
reconstruction. As the name implies, remediation means stopping or reducing
further losses. It includes such services as water extraction and smoke removal,
and is often limited to working with a structure’s interior and its contents.
The reconstruction side of the business involves demolition and replacement of
damaged structural components. Since the restoration industry is a relationship
driven business, we have consistently followed a marketing approach of building
relationships with contractors, local municipal leaders, and insurance
companies. Securing contracts on losses not involving existing relationships
often involves following storms and/or other natural disasters. We continue to
follow traditional methods for obtaining restoration work. We compete for
restoration contracts at loss locations. We use a variety of techniques to
determine where there are losses from fire, wind, storm etc. and to position
ourselves to be in contact with the decision maker on each loss.





Our
restoration construction company operates in a multi-billion dollar per year
industry where there are low barriers to entry and little to no regulation.
Consequently the industry is fragmented with thousands of restoration
contractors ranging in size from international giants to independent
contractors. However, despite the industry confusion and competition, we seek to
maintain a competitive advantage over other restoration companies with our work
quality, timeliness, and professional delivery of our
services.   We are subject to various state and local laws and
regulations regarding construction activities and building codes.





Remediation:








3





When mold
in a structure has been identified, the basic concepts of cleaning, restoration
and mold remediation are:





·
            Identify
      and stop the moisture source. Examples of sources can be roof leaks,
      condensation pan or drain line leaks, plumbing leaks, sewage line leaks,
      shower pan leaks, wall leaks, especially around windows, found water
      leaks, improper insulation associated with HVAC systems, or any other
      source found to cause elevated moisture or humidity
  levels.


·
            Dry
      the area. Until the building materials are dried to acceptable levels,
      mold will still likely grow. The drying process should be done in a manner
      not to cause the spread of mold spores or spread molds to other parts of
      the building not previously affected by the water or moisture problem. The
      drying industry should be referenced for proper drying
      techniques.


·
            Perform
      remediation. After the moisture source has been identified and corrected
      and the wet areas dried, then the remediation activities can begin. The
      remediation may consist of either the removal of or cleaning of water
      damaged and/or mold damaged materials. It is often the case that the
      drying process and the remediation process are done at the same time.
      There is usually no need to dry water-damaged materials that will need to
      be removed as part of the remediation process. The remediation can include
      several different types of work activities depending on the area of the
      structure being addressed, as well as the quantities of materials
      affected.





These
activities can include:





o
            removal
      of the affected area including paneling, wallboard, flooring, ceiling, and
      wood infrastructure to remove all mold damaged
  materials


o
            if
      the affected area is not removed the affected area will be cleaned,
      sanitized and dried to remove all mold
  contamination


o
            ensure
      the affected area is free of contaminated
  materials


o
            Final
      Clearance Tests – Upon completion of the remediation phase a new series of
      tests must be completed to assess successful elimination of the source of
      toxins, allergens, and other IAQ problems. Surface testing with either
      bulk tape or bulk scraping would show no active fungal presence. Air
      testing (total bio-aerosol collections) should show similar indoor/outdoor
      populations. Passing this test is required prior to moving into the
      reconstruction phase.





We will
perform all these remediation processes as necessitated by the particular
job.





We have
witnessed that dealing with mold contamination indoors has evolved into a
specialty industry. Many individuals in the cleaning, restoration, hazardous
materials, and industrial hygiene fields have noticed this evolution, from
common construction nuisance to specialty remediation service. The legal
profession has not missed the opportunity toward uniform treatment of mold
contamination in buildings, where many suits have been brought against insurance
companies claiming damage from mold thereby driving the growth in the mold
remediation industry and the attention that the insurance companies did not
treat mold claims uniformly. The legal profession is taking this opportunity to
force the establishment of a uniform treatment of mold contamination in
buildings. In addition, the International Association of Mold Remediation
Specialists publishes a remediation guide which promotes competence and quality
in mold mitigation and remediation through research and education. Their
materials can be viewed at www.iamrs.org.






4





In
general terms, mold is commonly identified as a black mossy fungus that grows in
dark and non-lit areas of walls and floors and ceilings which are exposed to
moisture. More technically, mold is a life form that thrives on water and can
grow at relative humidity of above 60 %. Molds produce tiny spores that
reproduce and float through the air both inside and outside. These spores give
off by-products such as volatile organic compounds and mycotoxins. Mycotoxins
are naturally occurring substances produced by fungi as a secondary metabolite
that typically affords the organisms’ survival. Exposure to these spores has
shown to cause a variety of health problems and allergic reactions. When mold
spores land on a damp surface indoor, they may begin growing and digesting
whatever they land on in order to survive. This can be wood, paper, carpet or
foods. If the mold continues to grow un-addressed, a problem with mold can
result and cause a situation where it has to be removed, often through
demolition of the substance it is growing on.





Specialty
Rug Cleaning:





The
Company also provides specialty rug cleaning services. Rugs are highly
susceptible to damage due to water, fire, or general dirty conditions. The first
step in the cleaning process is to know what you are cleaning and what damage
the object has sustained. We perform a fiber ID test to determine the content of
the rug. This is because different fibers and materials require different
cleaning solutions. Additionally, rugs with cotton fringes or wool face yearns
must be cleaned differently than other fiber content rugs. The primary steps in
specialized cleaning include:





·
            Thorough
      commercial vacuum application


·
            Reverse
      raised air-flow table treatment. Compressed air is forced through the back
      of the rug to remove particle matter out of the rug
  face.


·
            A
      dye application to prevent color fading or running during the cleaning
      process.


·
            Rug
      submersion in custom built self contained pool. Clean fresh water is
      constantly circulated and residue is filtered away from the
      pool.


·
            Forced
      air drying process.


·
            All
      fringes are hand treated and
combed.


·
            Rug
      is placed in our drying house and subsequently inspected for
      cleanliness.





During 2008 the Company had no sales
in this service segment.





BUSINESS
OPERATIONS:





Restoration
and Remediation:





The
Company employs a strict four-step remediation process. This
includes:





1.
            Project
      sequence planning


2.
            Containment
      and exposure control


3.
            Removal
      and disposal of contaminated
material


4.
            Hygienic
      cleaning of surfaces





The
importance of constructing proper containments cannot be over-emphasized. These
containments control the environment/air flow and eliminate cross-contamination,
restricting expansion of the problem and curbing the associated cost. Standards
such as the New York City Department of Health Guidelines on Assessment and
Remediation of Fungi in an Indoor Environment are valuable and followed by the
Company. The standards and testing utilized by the New York City Department of
Health include:






5





Systemic
Analysis:





·
            Health
      effects such as runny nose, eye irritation, cough, congestion, asthma
      aggravation, headache and fatigue.


·
            Immunological
      effects such as allergies and lung
damage.


·
            Toxic
      effects including respiratory and eye irritations and the inability to
      concentrate.


·
            Infectious
      disease such as aspergillosis.


·
            Medical
      evaluation


·
            Medical
      relocation





Remediation
Analysis:





·
            Visual
      Inspection


·
            Bulk/Surface
      Sampling


·
            Air
      Monitoring


·
            Analysis
      of environmental samples


·
            Remediation
      as needed. This includes small isolated areas, mid-sized isolated areas,
      large isolated areas, and extensive contamination
    remediation.


·
            Demolition
      and removal of contaminated
materials.





The
standards set forth by the New York Department of Health were the first in the
nation and are acting as a basic guide for all mold remediation. We believe the
above standards are comprehensive and provide a solid plan in executing
operations. We believe adhering to these standards will ensure a complete and
successful remediation process. In each of our jobs, we review these guidelines
and determine which ones apply to our particular job and then follow
them.  We ensure the adherence by subcontractors to standards
determined by the company through a specific and detailed Scope of Work and Work
Plan designed for each job site. The Scope of Work and Work Plan itemizes and
details the specific job functions and duties to be performed and is reviewed on
a daily basis by a job foreman responsible to our management. Summary reports
are transferred by fax or email to our corporate offices with progress reports
and digital pictures identifying work progression. Through this policing
activity and specific job requirements we are able to maintain subcontractor
compliance with our performance standards.





In
addition to the foregoing, the Company augments the remediation process with lab
testing, consultation, final testing and reconstruction where
required.





GOVERNMENT
REGULATION:





At the
present time there are no federal government regulations for mold remeditators.
We believe any legislation requiring licensing and certification to be in our
favor as we have numerous licenses and certifications as detailed in the section
below. On January 1, 2005, the State of Texas Department of Health adopted rules
for the testing, licensing and registration of mold remediators. The rules as
they have been adopted require potential licensees to take a course approved by
the Texas Department of Health, take an exam given by them, and then pay a
license fee. We believe that as of this date, we are in compliance with all the
new rules, having taken the required exam.  All licenses are current
and all related fees are paid up to current requirements. Additionally, all
subcontractors that require licensing to perform mold remediation are confirmed
by us through submission of relevant certification and licensing requirements.
These documents and licenses are then confirmed by us through state
records.





OUR
QUALIFICATIONS:





We
presently have several certification and licenses pertinent to our industry and
anticipate qualifying for the new license without further issues since we
already have all the qualifications as outlined in Legislative Update on HB 329,
the act that relates to Texas state regulation of mold assessors and
remediators, which can be seen at
http://www.texasboma.org/legislative_update_4_22_03.htm. The licenses we
currently hold are:








6





Institute
of Inspection, Cleaning and Restoration (“IIRC”)”





IIRC - Carpet Cleaning


IIRC - Upholstery & Fabric
Cleaning


IIRC - Journeyman Textile
Cleaner


IIRC - Odor Control





GEBCO
Associates:


Mold Remediation
Contractor         Certificate No.
05077





Texas
Department of Health Services:


Mold Remediation
Contractor         License No.
MRC0329.





INDUSTRY
& COMPETITION:





The mold
remediation industry is not highly competitive. Most of the companies have
developed their mold remediation business as a progression and add-on to their
restoration business or their air quality business, having much experience
leading up to their involvement in the mold remediation industry. We believe our
major competitors to be specialty remediation and cleaning companies, some of
which are national in scope. Most companies, however, are either local or
regional in scope.  The nature of the restoration and remediation
business is labor intensive and therefore is performed more accurately by people
in a standardized environment. However, the company has a competitive advantage
in standardized processes, training and services and can duplicate this system
in any part of the country.





We
believe our greatest competition is from nationally franchised operators, the
three largest of which are Service Master, Blackmon Mooring, and Serve Pro.
However, their success is based not only upon the nationally-known name but upon
the franchisee and the reputation he/she is able to establish. Since the
industry is relatively new and much of the work is localized, we dont see having
a national franchise name as that much of an advantage. We have been able to
concentrate our marketing and sales on companies that have ongoing business, for
example, home builders and developers.





Our
methods of competing are through establishing relationships with builders and
developers where we can solicit business from those who can give us continual
referrals.





Future
products and services: At the present time, we do not have plans to develop or
market additional products or services.





Sources
and Availability of Raw Material:


We are a
service business and do not use raw materials. We use products in performing our
service that are readily available from many sources.





Dependence
on One or a Few Major Customers:


We are
not dependent on any one or a few major customers.





Costs and
Effects of Compliance with Environmental Laws:


We are
not aware of nor do we anticipate any environmental laws with which we will have
to comply.










ITEM
2.                      DESCRIPTION
OF PROPERTY





Our
corporate and retail facilities are located in a 2,400 square foot warehouse
building which we rented from the CEO’s wife at a fair market value of $650 per
month during 2007.   The lease was renewed on December 20, 2007
and was extended through December 31, 2008 at a rate of $700 per
month.  In 2009 the lease has resorted to a month-to-month agreement
that is invoiced at $700 per month.









7






ITEM  3.                      LEGAL
PROCEEDINGS





As of
December 31, 2008, the Company is not involved in any legal
proceedings.








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





On
December 29, 2008, at the annual meeting of shareholders, a majority of our
shareholders approved the following actions, all as proposed in our Proxy
Statement:





1.
            To
      re-elect Reed Buley as our sole
director.






























8




PART
II





ITEM
      5.
            MARKET
      FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDERS
      MATTERS





The
common  stock is currently  quoted on
the  over-the-counter  Bulletin  Board under the
symbol "RMSI."





The
following  table sets forth the  quarterly  high
and low bid prices for the common stock since the
quarter  ended  March 31, 2007.  The prices set
forth below
represent  inter-dealer  quotations,  without
retail markup,  markdown or commission and may not be reflective of
actual transactions.








High
                  LowQuarter
      ended March 31, 2007
                  $.45
                  $.45Quarter
      ended June 30, 2007
                  $.45
                  $.45Quarter
      ended September 30,2007
                  $.45
                  $.45Quarter
      ended December 31, 2007
                  $.45
                  $.45Quarter
      ended March 31, 2008
                  $.45
                  $.45Quarter
      ended June 30, 2008
                  $.45
                  $.45Quarter
      ended September 30, 2008
                  $.45
                  $.25Quarter
      ended December 31, 2008
                  $.25
                  $.25





At
December 31, 2008, the closing price of the common stock was $.25 and we had
approximately 67 exclusive record holders of our common stock.  This
number excludes any estimate by us of the number of beneficial owners of shares
held in street name, the accuracy of which cannot be guaranteed.





Dividends:


We have
not paid cash dividends on any class of common equity since formation and we do
not anticipate paying any dividends on our outstanding common stock in the
foreseeable future.





Warrants:


The
Company has no warrants outstanding.





ITEM
6.                      SELECTED
FINANCIAL DATA





Not applicable for smaller reporting
companies.





ITEM
7.                      MANAGEMENT
DISCUSSIONS AND ANALYSIS OR PLAN OF OPERATION





SUMMARY
OF 2008





Our
fourth fiscal quarter and fiscal year ended on December 31, 2008.





REVENUE:  Revenue
for the year ended December 31, 2008, was $159,261 compared with revenues for
the twelve months ended December 31, 2007 of $258,328. The decrease in revenue
was due to an increase in the number of properties held for remediation that
were capitalized on the balance sheet at December 31, 2008 ($155,401) versus
December 31, 2007 ($0).  During 2008 remediated and sold properties
generated revenue of $116,079 versus revenue of $211,400 during
2007.  During 2008, there was one such project completed and sold,
while in 2007 there were two.








9





DIRECT
COSTS: Direct costs were $131,177 for the year ended December 31, 2008 compared
to $262,694 for the same period in 2006. The decrease in cost of sales is
related to reduction of properties held for remediation that were sold in 2008
(one) versus 2007 (two).   Margins remained consistent at
approximately 31%.





EXPENSES.
Total expenses without depreciation for the year ended December 31, 2008 were
$114,259 compared with expenses for the year ended December 31, 2007 of $61,749.
The expense increase was mainly due to three significant components: first, a
dispute with an advertising company was settled and $33,000 was charged to
expense; two, increased professional fees of $7,000 for business consulting; and
three, increased audit fees versus 2007.  This is exclusive of
depreciation expense, which was and $7,332 and $28,450 for the twelve months
ended December 31, 2008 and 2007 respectively.





NET
INCOME (LOSS). Net loss for the year ended December 31, 2008 was $97,314
compared to a net loss of $94,858 for the year ended December 31,
2007.  The loss remained flat, although costs were up significantly,
due to the improved performance of the Carpet Cleaning business (net improvement
of $24,000).





LIQUIDITY
AND CAPITAL RESOURCES. The Company filed on Form SB-1, a registration statement
with the U.S. Securities & Exchange Commission in order to raise funds to
develop their business. The registration statement became effective on September
14, 2006 and the Company  has raised funds under that registration
statement at $0.50 per share, since September 30, 2006. As of December 31, 2008,
the Company  has raised $183,475 by selling 366,950 shares. As of
December 31, 2008, our cash balance was $8,147.








ITEM
7A.                       QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK





Not
applicable for smaller reporting companies.








ITEM
8.                         
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA





The financial statements of the Company, together with the independent
auditors' report thereon of The Hall Group, CPAs appear on pages F-1 through
F-14 of this report.







ITEM
9.                        
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE


None.





ITEM
9A.                      CONTROLS
AND PROCEDURES







Evaluation of Disclosure
Controls and Procedures




We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) as of December 31, 2008.  This
evaluation was accomplished under the supervision and with the participation of
our chief executive officer / principal executive officer, and chief financial
officer / principal financial officer who concluded that our disclosure controls
and procedures are not effective to ensure that all material information
required to be filed in the annual report on Form 10-K has been made known to
them.




Disclosure,
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by in our reports
filed under the Securities Exchange Act of 1934, as amended (the "Act") is
accumulated and communicated to the issuer's management, including its principal
executive and principal financial officers, or persons performing similar
functions, as appropriate to allow timely decisions regarding required
disclosure.






10






Based
upon an evaluation conducted for the period ended December 31, 2008, our Chief
Executive and Chief Financial Officer as of December 31, 2008 and as of the date
of this Report, has concluded that as of the end of the periods covered by this
report, we have identified the following material weakness of our internal
controls:




·
            Reliance
      upon independent financial reporting consultants for review of critical
      accounting     areas and disclosures and material
      non-standard transaction.




·
            Lack
      of sufficient accounting staff which results in a lack of segregation of
      duties necessary for a good system of internal
  control.




In order
to remedy our existing internal control deficiencies, as our finances allow, we
will hire additional accounting staff.




Management’s Annual Report
on Internal Control Over Financial Reporting




Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in
Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control
system was designed 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 in the
United States of America.  Our internal control over financial
reporting includes those policies and procedures that (i) pertain to the
maintenance 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 accounting principles
generally accepted in the United States of America, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management 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.




Because
of inherent limitations, a system of internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate due to change in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.




Our
management conducted an evaluation of the effectiveness of our internal control
over financial reporting using the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in Internal
Control—Integrated Framework at December 31, 2008.   Based on its
evaluation, our management concluded that, as of December 31, 2008, our internal
control over financial reporting was not effective because of limited staff and
a need for a full-time chief financial officer.  A material weakness
is a deficiency, or a combination of control deficiencies, in internal control
over financial reporting such that there is a reasonable possibility that a
material misstatement of the Company’s annual or interim financial statements
will not be prevented or detected on a timely basis.




This
annual report does not include an attestation report of the Company’s registered
public accounting firm regarding internal control over financial
reporting.  Management’s report was not subject to the attestation by the
Company’s 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.




Changes in Internal Controls
over Financial Reporting




We have
not yet made any changes in our internal controls over financial reporting that
occurred during the period covered by this report on Form 10-K that has
materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.





11




PART
III





ITEM
10.                      DIRECTORS
AND EXECUTIVE OFFICERS OF REGISTRANT





Name
              Age
              PositionReed
      T, Buley
              50
              Director,
      President, Secretary and
Director





Background
of the Director and Executive Officer:





Mr. Buley
graduated from Trinity Valley Community College in 1992, Since graduation he has
held various management and operations positions before moving into the
restoration business. In the course of the restoration business, he added the
remediation and other specialty services. He was the manager of a water and fire
restoration company serving the Dallas/Fort Worth metroplex from 2000 until 2002
when he became President of Slopestyle Corporation (now Remediation Services,
Inc.). He has been the President of Slopestyle Corporation (now Remediation
Services, Inc.) since December 2002.








ITEM
11.                      EXECUTIVE
COMPENSATION





Following
is what our officers received in 2008 and 2007 as
cash and non-cash compensation.





Name
              Capacity
      Served
              Aggregate
      RemunerationReed
      T. Buley
              Director,
      President, Secretary and Director
              2008:
      $30,863
                2007:
      $15,499





As of the
date of this filing, our sole officer is our only employee. We have no
employment agreements with any officer, director or employee.








ITEM
      12.
            SECURITY
      OWNERSHIP OF MANANGEMENT AND BENEFICIAL
OWNERS





As of
December 31, 2008 the following persons are known to the Company to own 5% or
more of the Company's Voting Stock:





Title
      / Relationship to Issuer
                Name
      of Owner
                Number
      of Shares Owned
                Percent
      of TotalDirector,
      President, Secretary and Director
                Reed
      T. Buley
                5,000,000
                84.65%Shareholder
                Southern
      Fiduciary Financial, Inc. *
                500,000
                8.46%








* Shirley
Reynolds is the beneficial owner of Southern Fiduciary Financial,
Inc.

















12





ITEM
      13.
            CERTAIN
      RELATIONSHIPS AND RELATED PARTY
TRANSACTION





As of the
date of this filing, the following are agreements or proposed transactions,
whether direct or indirect, with related parties:





·
            Warehouse
      space and a truck are rented from the CEO’s wife, who is also a
      shareholder of the Company at fair market
value.


·
            The
      Company owes the Company’s CEO $12,648 at December 31, 2008 for operating
      expenses paid on the Company’s
behalf.





There are
no other agreements or proposed transactions.








ITEM
14. PRINCIPAL ACCOUNTANT FEES AND SERVICES




(1) AUDIT
FEES




The
aggregate fees billed for professional services rendered by our auditors, for
the audit of the registrant's annual financial statements and review of the
financial statements included in the registrant's Form 10-K or services that are
normally provided by the accountant in connection with statutory and regulatory
filings or engagements for fiscal year 2008 was $14,500 and in 2007 was
$14,000.




(2)
AUDIT-RELATED FEES




The
aggregate audit fees billed for professional services rendered by our auditors,
which are included in the Audit fees above, for the review of the quarterly
unaudited financial statements included in the registrant’s Form 10-Q were
approximately $2,000 per quarter.




(3) TAX
FEES




NONE




(4) ALL
OTHER FEES





NONE




(5) AUDIT
COMMITTEE POLICIES AND PROCEDURES




Audit
Committee Financial Expert





The
Securities and Exchange Commission has adopted rules implementing
Section 407 of the Sarbanes-Oxley Act of 2002 requiring public companies to
disclose information about “audit committee financial experts.”  As of the
date of this Annual report, we do not have a standing Audit Committee.   The functions of the
Audit Committee are currently assumed by our Board of Directors. 
Additionally, we do not have a member of our Board of Directors that qualifies
as an “audit committee financial expert.”  For that reason, we do not have
an audit committee financial expert.





(6)
If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent
employees.




Not
applicable.


13







PART IV





ITEM
      15.
            EXHIBITS,
      FINANICAL STATEMENTS AND REPORTS ON FORM
8-K





(a) The
following documents are filed as part of this report:  Included in
Part II, Item 7 of this report:





Report of Independent Registered
Accounting Firm





Consolidated Balance Sheets as of
December 31, 2008 and 2007





Consolidated
Statements of Operations for the Years Ended December 31, 2008 and
2007





Consolidated
Statements of Changes in Stockholders’ Equity for the Years Ended December 31,
2008 and 2007





Consolidated
Statements of Cash Flows for the Years Ended December 31, 2008 and
2007





Notes to
the Consolidated Financial Statements





(b) The
Company did not file any Form 8-K’s in 2008.





(c)           Exhibits


No.
              Description31.1
              Certification
      of the Company’s Principal Executive Officer pursuant to Section 302 of
      the Sarbanes-Oxley Act of 200231.2
              Certification
      of the Company’s Principal Financial Officer pursuant to Section 302 of
      the Sarbanes-Oxley Act of 200232.1
              Certification
      of the Company’s Principal Executive Officer and Principal Financial
      Officer pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of
      the Sarbanes-Oxley Act of
2002.











14


SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this Annual Report on Form 10-K to be signed on its behalf by the
undersigned hereunto duly authorized.








REMEDIATION
SERVICES, INC.





By: /s/   
Reed T. Buley





Reed T.
Buley


Chief
Executive Officer & Chief Financial Officer





Dated:
March 24, 2009











15


REMEDIATION
SERVICES, INC.


CONSOLIDATED
FINANCIAL STATEMENTS


DECEMBER
31, 2008





TABLE
OF CONTENTS







Report
      of Independent Registered Public Accounting Firm
                        F-2Consolidated
      Balance Sheets as of December 31, 2008 and 2007
                        F-3Consolidated
      Statements of Operations for the Years Ended December 31, 2008 and
      2007
                        F-4Consolidated
      Statement of Changes in Stockholders’ Equity for the Years Ended December
      31, 2008 and 2007
                        F-5Consolidated
      Statements of Cash Flows for the Years Ended December 31, 2008 and
      2007
                        F-6Notes
      to the Consolidated Financial Statements
                        F-7
      to
F-12
























F-1





REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM





To the
Board of Directors and Management of


Remediation
Services, Inc.


Wylie,
Texas





We have
audited the accompanying consolidated balance sheets of Remediation Services,
Inc. (formerly Slopestyle Corporation) as of December 31, 2008 and 2007 and the
related consolidated statements of operations, cash flows and changes in
stockholders’ equity for the years then ended.  These financial
statements are the responsibility of the Company’s management.  Our
responsibility is to express an opinion on these financial statements based on
our audits.





We
conducted our audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United
States).  Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements are free
of material misstatement.  An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for our opinion.





We were
not engaged to examine management’s assertion about the effectiveness of
Remediation Services, Inc.’s internal control over financial reporting as of
December 31, 2008 and 2007 and, accordingly, we do not express an opinion
thereon.





In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Remediation Services, Inc. as of
December 31, 2008 and 2007, and the results of its operations and its cash flows
for the years then ended, in conformity with accounting principles generally
accepted in the United States of America.





The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern.  As discussed in Note 11 to the
consolidated financial statements, the Company has suffered significant losses
and will require additional capital to develop its business until the Company
either (1) achieves a level of revenues adequate to generate sufficient cash
flows from operations; or (2) obtains additional financing necessary to support
its working capital requirements.  These conditions raise substantial
doubt about the Company’s ability to continue as a going
concern.  Management’s plans in regard to these matters are also
described in Note 11.  The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.








/s/  The Hall
Group, CPAs


The Hall
Group, CPAs


Dallas,
Texas





March 5,
2009





F-2


REMEDIATION
SERVICES, INC.


(FORMERLY
SLOPESTYLE CORPORATION)


Consolidated
Balance Sheets


December
31, 2008 and 2007





2008
                
                
                2007ASSETSCurrent
      AssetsCash
      and Cash Equivalents
                
                $
                8,147
                
                
                $
                84,503Accounts
      Receivable, Net of Allowancefor
      Doubtful Accounts of $8,676 and $1,851
                
                
                200
                
                
                
                55Due
      From Related Party
                
                
                0
                
                
                
                6,000Total
      Current Assets
                
                
                8,347
                
                
                
                90,558Fixed
      Assets, Net of Accumulated Depreciation of $71,591 and
    $64,259
                
                
                8,857
                
                
                
                16,189Property
      Held for Remediation
                
                
                155,401
                
                
                
                0TOTAL
      ASSETS
                
                $
                172,605
                
                
                $
                106,747LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      LiabilitiesAccounts
      Payable
                
                $
                9,621
                
                
                $
                623Accounts
      Payable - Related Parties
                
                
                0
                
                
                
                4,500Accrued
      Expenses
                
                
                20,563
                
                
                
                0Due
      to Related Parties
                
                
                17,632
                
                
                
                20,657Customer
      Deposit
                
                
                3,500
                
                
                
                0Notes
      Payable
                
                
                41,000
                
                
                
                0Current
      Portion of Mortgage Payable
                
                
                3,519
                
                
                
                0Total
      Current Liabilities
                
                
                95,835
                
                
                
                25,7800Long
      Term LiabilitiesMortgage
      Payable
                
                
                83,117
                
                
                
                0Total
      Long Term Liabilities
                
                
                83,117
                
                
                
                0Total
      Liabilities
                
                
                178,952
                
                
                
                25,780Stockholders'
      EquityPreferred
      Stock, $.001 par value, 25,000,000 shares authorized,0
      and 0 shares issued and outstanding
                
                
                0
                
                
                
                0Common
      Stock, $.001 par value, 50,000,000 shares authorized,5,906,950
      and 5,876,950 shares issued and outstanding
                
                
                5,907
                
                
                
                5,877Additional
      Paid-In Capital
                
                
                262,218
                
                
                
                252,248Retained
      Earnings (Deficit)
                
                
                (274,472
                )
                
                
                (177,158
                )Total
      Stockholders' Equity (Deficit)
                
                
                (6,347
                )
                
                
                80,967TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
                
                $
                172,605
                
                
                $
                106,747





The
Accompanying Notes are an Integral Part of these Consolidated Financial
Statements.







F-3






REMEDIATION
SERVICES, INC.


(FORMERLY
SLOPESTYLE CORPORATION)


Consolidated
Statements of Operations


For
the Years Ended December 31, 2008 and 2007





2008
                
                
                2007REVENUE
                
                $
                159,261
                
                
                $
                258,328DIRECT
      COSTS
                
                
                131,177
                
                
                
                262,694GROSS
      MARGIN (DEFICIT)
                
                
                28,084
                
                
                
                (4,366
                )OPERATING
      EXPENSESAdvertising
                
                
                3,019
                
                
                
                13,210Labor
                
                
                19,613
                
                
                
                0General
      and Administrative
                
                
                91,629
                
                
                
                48,539Depreciation
      and Amortization
                
                
                7,332
                
                
                
                28,450TOTAL
      OPERATING EXPENSES
                
                
                121,593
                
                
                
                90,199NET
      OPERATING (LOSS)
                
                
                (93,509
                )
                
                
                (94,565
                )OTHER
      INCOME (EXPENSE)Gain
      on Sale of Fixed Assets
                
                
                0
                
                
                
                326Interest
      Income
                
                
                119
                
                
                
                881Interest
      Expense
                
                
                (3,924
                )
                
                
                (1,500
                )TOTAL
      OTHER INCOME (EXPENSE)
                
                
                (3,805
                )
                
                
                (293
                )NET
      (LOSS) BEFORE INCOME TAXES
                
                
                (97,314
                )
                
                
                (94,858
                )Provision
      for Income Taxes (Expense) Benefit
                
                
                0
                
                
                
                0NET
      (LOSS)
                
                $
                (97,314
                )
                
                $
                (94,858
                )EARNINGS
      PER SHARE, Basic and DilutedWeighted
      Average of Outstanding Shares
                
                
                5,878,454
                
                
                
                5,865,964Income
      (Loss) for Common Stockholders
                
                $
                (0.02
                )
                
                $
                (0.02
                )





The
Accompanying Notes are an Integral Part of these Consolidated Financial
Statements.






F-4






REMEDIATION
SERVICES, INC.


(FORMERLY
SLOPESTYLE CORPORATION)


Consolidated
Statement of Changes in Stockholders’ Equity


For
the Years Ended December 31, 2008 and 2007









Common
      Stock
                
                
                Additional
                
                
                RetainedShares
                
                Amount
                
                
                Paid-In
                  Capital
                
                
                Earnings
                  (Deficit)
                
                
                TotalsStockholders'
      Equity, January 1, 2007
                
                
                5,815,550
                
                
                $
                5,816
                
                
                $
                221,609
                
                
                $
                (82,300
                )
                
                $
                145,125Issuance
      of Common Stockfor
      Cash
                
                
                51,400
                
                
                
                51
                
                
                
                25,649
                
                
                
                0
                
                
                
                25,700Issuance
      of Common Stockfor
      Services
                
                
                10,000
                
                
                
                10
                
                
                
                4,990
                
                
                
                0
                
                
                
                5,000Net
      (Loss)
                
                
                0
                
                
                
                0
                
                
                
                0
                
                
                
                (94,858
                )
                
                
                (94,858
                )Stockholders'
      Equity, December 31, 2007
                
                
                5,876,950
                
                
                $
                5,877
                
                
                $
                252,248
                
                
                $
                (177,158
                )
                
                $
                80,967Issuance
      of Common Stockfor
      Cash
                
                
                10,000
                
                
                
                10
                
                
                
                4,990
                
                
                
                0
                
                
                
                5,000Issuance
      of Common Stockfor
      Services
                
                
                20,000
                
                
                
                20
                
                
                
                4,980
                
                
                
                0
                
                
                
                5,000Net
      (Loss)
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                (97,314
                )
                
                
                (97,314
                )Stockholders'
      Equity (Deficit),December
      31, 2008
                
                
                5,906,950
                
                
                $
                5,907
                
                
                $
                262,218
                
                
                $
                (274,472
                )
                
                $
                (6,347
                )





The
Accompanying Notes are an Integral Part of these Consolidated Financial
Statements.







F-5








REMEDIATION
SERVICES, INC.


(FORMERLY
SLOPESTYLE CORPORATION)


Consolidated
Statements of Cash Flows


For
the Years Ended December 31, 2008 and 2007





2008
                
                
                2007CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      (Loss)
                
                $
                (97,314
                )
                
                $
                (94,858
                )Adjustments
      to reconcile net loss to net cashprovided
      by operating activities:Gain
      on Sale of Company Vans
                
                
                0
                
                
                
                (326
                )Issuance
      of Common Stock for Services
                
                
                5,000
                
                
                
                5,000Depreciation
      and Amortization
                
                
                7,332
                
                
                
                28,450(Increase)
      in Accounts Receivable
                
                
                (145
                )
                
                
                (55
                )Decrease
      in Receivable from Related Parties
                
                
                6,000
                
                
                
                0Increase
      (Decrease) in Accounts Payable
                
                
                8,998
                
                
                
                (34,748
                )Increase
      (Decrease) in Accounts Payable - Related Parties
                
                
                (4,500
                )
                
                
                4,500Increase
      (Decrease) in Due to Related Parties
                
                
                (3,025
                )
                
                
                9,893Increase
      in Customer Deposit
                
                
                3,500
                
                
                
                0Increase
      in Accrued Expenses
                
                
                20,563
                
                
                
                0Net
      Cash (Used) by Operating Activities
                
                
                (53,591
                )
                
                
                (82,144
                )CASH
      FLOWS FROM INVESTING ACTIVITIESProceeds
      from Sale of Company Vans
                
                
                0
                
                
                
                9,545Purchase
      of Properties Held for Remediation
                
                
                (126,000
                )
                
                
                0Capital
      Expenditures on Properties Held for Remediation
                
                
                (29,401
                )
                
                
                0Net
      Cash Provided (Used) by Investing Activities
                
                
                (155,401
                )
                
                
                9,545CASH
      FLOWS FROM FINANCING ACTIVITIESProceeds
      from Sale of Common Stock
                
                
                5,000
                
                
                
                25,700Proceeds
      from Notes Payable
                
                
                41,000
                
                
                
                0Proceeds
      from Mortgages Payable
                
                
                87,200
                
                
                
                0Principal
      Payment on Mortgages Payable
                
                
                (564
                )
                
                
                0Net
      Cash Provided by Financing Activities
                
                
                132,636
                
                
                
                25,700NET
      (DECREASE) IN CASH AND CASH EQUIVALENTS
                
                
                (76,356
                )
                
                
                (46,899
                )CASH
      AND CASH EQUIVALENTS AT BEGINNING OF YEAR
                
                
                84,503
                
                
                
                131,402CASH
      AND CASH EQUIVALENTS AT END OF YEAR
                
                $
                8,147
                
                
                $
                84,503SUPPLEMENTAL
      DISCLOSURESCash
      Paid During the Year for Interest Expense
                
                $
                979
                
                
                $
                0Non-Cash
      Investing Activities:Stock
      issued for Services
                
                $
                5,000
                
                
                $
                5,000





The
Accompanying Notes are an Integral Part of these Consolidated Financial
Statements.







F-6






REMEDIATION
SERVICES, INC.


(FORMERLY
SLOPESTYLE CORPORATION)


Notes
to the Consolidated Financial Statements


December
31, 2008 and 2007







NOTE 1 – NATURE OF
ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES





Nature of Activities,
History and Organization:





Remediation
Services, Inc. (herein referred to as “the Company” or “RMI”) operated during
2007 under the names Slopestyle Corporation, Carpet Star of Texas and Absolute
Remediation as a carpet cleaning, home restoration, and mold remediation
business for residential and commercial real estate.  The company is
located in Wylie, Texas and was incorporated on June 30, 1999, under the laws of
the State of Texas.





On
December 12, 2007, the Company changed its name from Slopestyle Corporation to
Remediation Services, Inc. and re-domiciled from Texas to Nevada.





During
2008, the Company purchased three properties which are being held for
investment.  The Company is making the necessary improvements for the
properties to be leased and/or sold.  One property was purchased and
sold during the year.





Significant Accounting
Policies:





The
Company’s management selects accounting principles generally accepted in the
United States of America and adopts methods for their
application.  The application of accounting principles requires the
estimating, matching and timing of revenue and expense. The accounting policies
used conform to generally accepted accounting principles which have been
consistently applied in the preparation of these financial
statements.





The
financial statements and notes are representations of the Company’s management
which is responsible for their integrity and objectivity. Management further
acknowledges that it is solely responsible for adopting sound accounting
practices, establishing and maintaining a system of internal accounting control
and preventing and detecting fraud.  The Company's system of
internal  accounting control is designed to assure, among other items,
that  1) recorded  transactions  are
valid;  2) valid  transactions  are
recorded;  and  3)
transactions  are  recorded in the proper  period
in a timely  manner to produce financial  statements which
present fairly the financial  condition,  results of
operations  and cash  flows of
the  Company  for
the  respective  periods  being
presented.





Basis of
Presentation:





The
Company prepares its financial statements on the accrual basis of
accounting.  All intercompany balances and transactions are
eliminated.





Cash and Cash
Equivalents:





Cash and
cash equivalents includes cash in banks with original maturities of three months
or less and are stated at cost which approximates market value, which in the
opinion of management, are subject to an insignificant risk of loss in
value.






F-7






Fair Value of Financial
Instruments:





The
carrying amounts of cash, cash equivalents, accounts receivable, accounts
payable and notes payable approximate their fair values due to the short-term
maturities of these instruments.  The carrying amount of the Company’s
marketable securities and accounts payable approximate fair value due to the
stated interest rates approximating market rates.





Accounts
Receivable:





Accounts
Receivable are carried at their face amount, less an allowance for doubtful
accounts.  On a periodic basis, the Company evaluates accounts
receivable and establishes the allowance for doubtful accounts based on a
combination of specific customer circumstances and credit conditions, based on a
history of write offs and collections.  The Company’s policy is
generally not to charge interest on trade receivables after the invoice becomes
past due.  A receivable is considered past due if payments have not
been received within agreed upon invoice terms.   Write offs are
recorded at a time when a customer receivable is deemed
uncollectible.  The Company incurred bad debt expense of $6,825 and $0
in 2008 and 2007, respectively.





Fixed
Assets:





Fixed
Assets are depreciated over their useful lives.  Depreciation is
calculated on a straight-line basis over five to seven years. Repairs and
maintenance is charged to expense as incurred.





Property Held for
Remediation:





Property
held for remediation is carried at historical cost. Additional expenditures for
the purpose of preparing the property for sale are
capitalized.  Properties held for sale are not depreciated. The
Company evaluates the total basis of each property for impairment.





Revenue
Recognition:





The
Company recognizes revenue in accordance with the Securities and Exchange
Commission Staff Accounting Bulletin No. 104, "Revenue Recognition in Financial
Statements" ("SAB 104"). Revenue will be recognized only when all of the
following criteria have been met:








·
            Persuasive
      evidence of an arrangement exists;


·
            Ownership
      and all risks of loss have been transferred to buyer, which is generally
      upon shipment or at the time the service is
  provided;


·
            The
      price is fixed and determinable;
and


·
            Collectability
      is reasonably assured.





Direct
Costs:





Types of
costs included in Direct Costs are:





·
            Carrying
      value of real estate sold


·
            Equipment
      expense


·
            Vehicle
      expense





Advertising
Costs





The
Company incurred $3,019 and $13,210 advertising costs for the years ended
December 31, 2008 and 2007, respectively.









F-8





Income
Taxes:





Income
from the corporation is taxed at regular corporate rates per the Internal
Revenue Code.  There are no provisions for current taxes due to net
available operating losses.





Recent Accounting
Pronouncements:





The
Company does not expect the adoption of recently issued accounting
pronouncements to have a significant impact on the Company’s results of
operations, financial position or cash flow.





Use of
Estimates:





The
preparation of financial statements 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.





Reclassification:





Certain
prior year amounts have been reclassified in the consolidated statements of
operations and consolidated statements of cash flows to conform to current
period presentation.  These reclassifications were not material to the
consolidated financial statements and had no effect on net earnings reported for
any period.







NOTE 2 – FIXED
ASSETS





Fixed
assets at December 31, 2008 and 2007 are as follows:





2008
                
                
                2007Vans
                
                $
                27,558
                
                
                $
                27,558Equipment
      in Vans
                
                
                27,164
                
                
                
                27,146Computer
                
                
                2,249
                
                
                
                2,249Trailer
                
                
                1,977
                
                
                
                1,977Leasehold
      Improvements
                
                
                21,518
                
                
                
                21,518Less:  Accumulated
      Depreciation and Amortization
                
                
                (71,591
                )
                
                
                (64,259
                )Total
      Fixed Assets
                
                $
                8,857
                
                
                $
                16,189





Depreciation
and amortization expense was $7,332 and $28,450 for the years ended December 31,
2008 and 2007, respectively.







NOTE 3 – PROPERTY HELD FOR
REMEDIATION





During
2008, the Company sold one property held for remediation.  The
contract sales price was $104,200, which is included in revenue, with direct
costs of $72,584.





During
2008, the Company purchased three residential properties. The properties are
recorded at historical cost.






F-9






At
December 31, 2008, the Property Held for Remediation included the
following:





Purchase
      Price
                          
                          $
                          126,000Capital
      Improvements
                          
                          
                          29,401Total
      Property Held for Remediation
                          
                          $
                          155,401





The
properties are not depreciated during the time they are held for
remediation.





The
Company currently has a one year lease agreement and an Option Contract for Sale
and Purchase on one of the properties.  The lease expires on August 4,
2009, and has future minimum rental payments of $7,525 due in 2009.





Pursuant
to the Option Contract, the Buyer paid a $3,500 option fee to the Company. The
Option expires on August 1, 2010.







NOTE 4 – NOTES AND MORTGAGE
PAYABLE





During
2007, the Company purchased properties with a mortgage loan provided by the
Company’s CEO.   The principal was paid in full when the property
was sold in 2007.





During
2008, the Company purchased two properties with two promissory notes. Each note
is payable to a related party. The notes are not secured by the properties;
however, the notes will become due and payable in the event the properties are
sold.





The first
note has an original principal balance of $26,000. The note bears interest at
12% per annum and is due and payable on December 31, 2009. There are no payments
required under the note until the maturity date. This note is classified as
current due to the maturity date occurring within one year of the balance sheet
date.





The
second note has an original principal balance of $15,000. The note bears
interest at 12% per annum and is due and payable on July 30, 2009. There are no
payments required under the note until the maturity date. This note is
classified as current due to the maturity date occurring within one year of the
balance sheet date.





During
2008, the Company executed a mortgage payable secured by one of the properties
held for investment. The original principal balance was $87,200. The mortgage
bears an interest rate of 6.75% and has a fifteen year term which matures in
November 2023. The mortgage requires monthly principal and interest payment of
$772.  The current portion of the mortgage is $3,519.





Interest
expense was $3,924 and $1,500 for the years ended December 31, 2008 and 2007,
respectively.







NOTE 5 –
EQUITY





On
December 12, 2007, the Company authorized 25,000,000 shares of preferred stock
with a par value of $.001, with the terms to be attached by the Board of
Directors at the time of issuance. As of December 31, 2008 and 2007, 0 and 0
shares were outstanding, respectively.





The
Company is authorized to issue 50,000,000 common shares at a par value of $0.001
per share. These shares have full voting rights.  At December 31, 2008
and 2007, there were 5,906,950 and 5,876,950 shares outstanding,
respectively.





There
were no stock warrants or options outstanding as of December 31, 2008 and 2007,
respectively.








F-10







NOTE 6 – COMMITMENTS AND
CONTINGENCIES





The
Company leases warehouse space under a one year lease which expires in December
2009 and a truck which expires during 2009.   Future minimum
rental obligations at December 31, 2008 are as follows:





Year
      Ended2009
                  
                  $
                  12,6912010
      and After
                  
                  
                  0Totals
                  
                  $
                  12,691





Rent
expense was $8,400 and $7,800 for the years ended December 31, 2008 and 2007,
respectively.  The Company leases both the warehouse and the truck
from the spouse of the Company’s CEO, who is also a shareholder.





During
2008, the Company executed an Option Contract for Sale and Purchase for one of
the properties held for investment. The buyer paid a $3,500 deposit for the
right to purchase the property for $107,500. The option expires on August 1,
2010.





Pursuant
to a Settlement Agreement between Southwestern Bell Yellow Pages (“SWBYP”) and
the Company’s CEO, a payment of $1,250 is required to be paid each month to
satisfy amounts due to SWBYP.  The Board of Directors of the Company
has agreed to assume the liability for the payment of these
amounts.  During 2008, $13,750 had been paid and is included in
General and Administrative Expenses.  At December 31, 2008 the balance
remaining on the settlement was $19,583.  This amount is included in
accrued expenses at December 31, 2008.











NOTE 7 – INCOME
TAXES





The
Company has adopted SFAS No. 109, which requires the use of the liability method
in the computation of income tax expense and the current and deferred income
taxes payable (deferred tax liability) or benefit (deferred tax
asset).   Valuation allowances are established when necessary to
reduce deferred tax assets to the amount expected to be realized be recorded
directly to retained earnings and reported as a change in accounting
principle.





The
cumulative tax effect at the expected tax rate of 25% of significant items
comprising the Company’s net deferred tax amounts as of December 31, 2008 and
2007 are as follows:





2008
                
                
                2007Net
      operating loss carryforward
                
                $
                68,618
                
                
                $
                44,290Less:
      valuation allowance
                
                
                (68,618
                )
                
                
                (44,290
                )Net
      deferred tax asset
                
                $
                0
                
                
                $
                0





The net
deferred tax asset generated by the loss carryforward has been fully reserved.
The cumulative net operating loss carryforward is approximately $274,472 at
December 31, 2008, and will expire in the years 2025 through 2028.





The
realization of deferred tax benefits is contingent upon future earnings and is
fully reserved at December 31, 2008.








F-11







NOTE 8 – RELATED PARTY
TRANSACTIONS





Warehouse
space and a truck are rented at fair market value from the CEO’s spouse, who is
also a shareholder of the Company.





The
Company owes the Company’s CEO $6,668 at December 31, 2008 for operating
expenses paid on the Company’s behalf.





The
Company owes $10,964 to a Consultant, also a shareholder at December 31, 2008
for professional fees paid on the Company’s behalf.







NOTE 9 – FINANCIAL CONDITION
AND GOING CONCERN





The
Company has an accumulated deficit through December 31, 2008 totaling $274,472
and had negative working capital of $87,488.  Because of this
accumulated deficit, the Company will require additional working capital to
develop its business operations.





The
Company has experienced no loan defaults, labor stoppages, legal proceedings or
any other operating interruption in 2008 or so far in
2009.  Therefore, these items will not factor into whether the
business continues as a going concern, and accordingly, Management has not made
any plans to dispose of assets or factor receivables to assist in generating
working capital.





The
Company intends to raise additional working capital either through private
placements, public offerings and/or bank financing, or additional loans from
Management if there is need for liquidity.   Management may also
consider reducing administrative costs and suspending all bonus and incentive
programs.  There are no assurances that the Company will be able to
either (1) achieve a level of revenues adequate to generate sufficient cash flow
from operations; or (2) obtain additional financing through either private
placement, public offerings and/or bank financing necessary to support the
Company’s working capital requirements.  To the extent that funds
generated from private placements, public offerings and/or bank financing are
insufficient, the Company will have to raise additional working
capital.  No assurance can be given that additional financing will be
available, or if available, will be on terms acceptable to the
Company.  If adequate working capital is not generated from
operations, financing is not available, or Management cannot loan sufficient
funds, the Company may not be able to continue its operations.





Management
believes that the efforts it has made to promote its operation will continue for
the foreseeable future.  These conditions raise substantial doubt
about the Company’s ability to continue as a going concern.  The
financial statements do not include any adjustments relating to the
recoverability and classification of asset carrying amounts or the amount and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.








F-12