UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

            [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                   For the Fiscal Year ended December 31, 2004

           [] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACTS OF 1934

   For the transition period from _____ to _____. Commission file number ____

                              PHOTONICS CORPORATION

        (Exact name of Small Business Issuer as specified in its charter)

           California                                     77-0102343
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

    420 E FM 3040, Ste. 118, PMB 216                    (972) 745-3020
        Lewisville, Texas 75067
(Address of Principal Executive Offices)         (Issuer's telephone number)

Securities registered under Section 12(b) of the Act: none

Securities registered under Section 12 (g) of the Act: COMMON, par value $.001

Check whether the issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the Company was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.

Yes (X)  No ( )

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B is contained in this form,  and no disclosure  will be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB.

Yes ( )  No (X)

State issuer's revenues for the most recent fiscal year: Zero

The estimated  aggregate market value of the voting stock held by non-affiliates
of the  registrant  as  reported  on the OTC  Electronic  Bulletin  Board  as of
December 31, 2004 was  $365,400.  The market value is based upon the average bid
price of the Common Stock of $ 0.0035 per share on December 31, 2004. The shares
outstanding  are  reduced  by shares of voting  stock held by each  officer  and
director and by each person who owns 5% or more of the outstanding voting stock.
This determination of affiliate status is not necessarily conclusive.

The number of shares  outstanding of the issuer's Common Stock, $.001 par value,
as of December 31, 2004 was 119,309,075 shares.


<PAGE>

                             Index to Annual Report


                                     PART I


ITEM 1 BUSINESS                                                          Page 3

ITEM 2 PROPERTIES                                                        Page 4

ITEM 3 LEGAL PROCEEDINGS - PHOTONICS CORPORATION                         Page 4

ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS               Page 6


                                     PART II


ITEM 5 MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
       STOCKHOLDER MATTERS                                               Page 6

ITEM 6 MANAGEMENT'S DISCUSSION AND ANALYSIS                             Page 7

ITEM 7 FINANCIAL STATEMENTS                                             Page 10

            Independent Auditor's Report                                Page  12
            Consolidated Balance Sheet                                  Page  13
            Consolidated Statements of Operations                       Page  14
            Consolidated Stockholders Deficit                           Page  15
            Consolidated Statements of Cash Flows                       Page  18
            Consolidated Statements of Cash Flows -
              Net Loss Reconciliation                                   Page  19
            Notes to Consolidated Financial Statements                  Page  20

ITEM 8 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
       ON ACCOUNTING AND FINANCIAL DISCLOSURE                            Page 27

            Item 8A - Controls and Procedures                            Page 27
            Item 8B - Other information                                  Page 27

                                    PART III


Item 9 DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
       COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT                 Page 27

ITEM 10 EXECUTIVE COMPENSATION                                           Page 28

ITEM 11 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT   Page 28

ITEM 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                   Page 29

ITEM 13 EXHIBITS AND REPORTS ON FORM 8-K                                 Page 29

ITEM 14 PRINCIPAL ACCOUNTANT FEES AND SERVICES                           Page 30





                                       2
<PAGE>

INTRODUCTION

This report contains forward-looking statements and the Company's actual results
could  differ  materially  from  those  anticipated  in  these  forward  looking
statements as a result of numerous factors,  including those set forth below and
elsewhere in this report.

                                     PART I

ITEM 1 DESCRIPTION OF BUSINESS

General

Photonics Corporation, d/b/a DTC Data Technology (the "Company", "Photonics", or
"DTC"),  a  California  Corporation  was  formed  from  a  merger  of  Photonics
Corporation  with DTC Data  Technology in March of 1996.  The Company  designed,
developed,  and marketed  Integrated Device Electronics (IDE) and Small Computer
Systems  Interface (SCSI) disk controller cards and Input/Output  (I/O) products
for personal computers.  However, as a result of recurring significant operating
losses,  in June  1999,  the  board of  directors  voted to shut  down  business
operations  and attempt to sell the Company or its assets.  Since that date, the
Company had been inactive in its original business operations.

Consequently,  during late January and into the first few days of February 2000,
days before the Company planned to file Chapter 11, the Company was contacted by
and reached an initial,  non-binding  agreement  to acquire  RealEstate4Sale.com
(RE4S).  Since  this  acquisition  agreement  is  superior  to the  filing  of a
bankruptcy  proceeding,  the Company  deferred  the  Chapter 11 filing;  and was
actively pursuing the acquisition of RE4S and, following the termination of that
transaction, the acquisition of REpipeline.com, Inc.

The initial,  non-binding agreement to acquire RE4S was terminated as of May 31,
2000. The Agreement,  executed as of June 30, 2000, was executed with a majority
of the same group of principals who represented RE4S but with their newly formed
company REpipeline.com, Inc. (Texas).

On  November  28,  2000,  the  Company  approved  the  merger  and  merged  with
REpipeline.com,  a Texas  Corporation,  an Internet vertical service provider to
the commercial real estate industry,  by issuing  18,127,707 common stock shares
valued  at  $18,128  in  exchange  for all of the  outstanding  common  stock of
REpipeline.com, Inc. ("REP").

The  transaction was accounted for as a reverse merger using the purchase method
of accounting with REP acquiring Photonics for financial reporting purposes. The
purchase  price of Photonics was  allocated  among its net assets based on their
relative  fair  market  values.  Because  Photonics  did not have any  assets or
business operations, no portion of the purchase price was allocated to goodwill.
Instead,  the  excess of the  purchase  price  over the fair value of net assets
acquired has been charged against  operations and reflected in the  accompanying
consolidated financial statements as an acquisition cost.



                                       3
<PAGE>

REpipeline.com,  Inc. was incorporated in the state of Texas on June 8, 2000. On
July 10, 2000, the REpipeline.com,  Inc., a Texas Corporation agreed to purchase
the assets  and  assume the  certain  liabilities  and  shareholder's  equity of
RealEstate4Sale.com.  RealEstate4Sale.com  ("RE4S") was incorporated in Colorado
on August 17,  1999,  and its  purpose  was to provide  commercial  real  estate
listings on the Internet. Subsequent to the acquisition of RealEstate4Sales.com,
the Company reincorporated REpipeline.com,  Inc. into a Delaware corporation and
made it a wholly owned subsidiary.

However,  the  concept  was deemed to be too narrow for the  marketplace,  which
requires a wider variety of services to the  commercial  real estate market over
the Internet,  which are best addressed by the expanded  concept of REP. REP and
Photonics,  by virtue of their reverse merger  acquisition,  is currently in the
development  stage. Its new website was completed in December 2000 and marketing
began in January 2001 with no results or revenues to date.

In the fourth quarter of 2001, the Company purchased all the outstanding  shares
of The Sarasota Group, Inc., a Florida  Corporation,  and made it a wholly owned
subsidiary.  The company's  then current  board  resigned  while  simultaneously
electing new officers and  directors  for the  Company.  The new  management  is
actively seeking additional developed,  revenue producing entities that might be
a good merger candidate for the Company.

ITEM 2 DESCRIPTION OF PROPERTIES

The Company  sold all its  property to Sunnyvale  Technology  Corporation  as of
December  31,  1999.   The  Company   formally  moved  its  office  to  that  of
REpipeline.com,  Inc.  immediately  after  the  merger  on  November  28,  2000.
REpipeline.com  subleased  approximately  4,700-sq.  ft.  of  office  space at a
monthly cost of $5,000.  The term of the sublease  expires on December 31, 2001.
The Company's subsidiary,  REpipeline.com,  Inc. is currently in default of this
lease agreement.

The Company currently shares  approximately 1,000 square feet of office space at
2724 Routh Street, Dallas, Texas 75201 and has a shared postal mail box at 420 E
FM 3040,  Suite 118, PMB 216,  Lewisville,  Texas 75067.  We receive this office
space and mail service "rent free" and it is provided by one of the stockholders
of the Company.

ITEM 3 LEGAL PROCEEDINGS - PHOTONICS CORPORATION

     1.   Abstract  of  judgment  dated  October  12,  1999;  Plaintiff  Insight
          Electronics.   Defendant  Data  Technologies  Corporation.  Amount  of
          judgment: $110,252.00
     2.   Default Judgment February 17, 2000, Plaintiff Danka Funding Company v.
          Defendant  Photonics,  Docket  No.  L-8482-99,  Superior  Court of New
          Jersey Law  Division,  Bergen  County  for  $40,474.00  with  proposed
          settlement offer by Danka of $ 30,355.72 as of March 22, 2000.  (lease
          of Kodak 85 Copier) Notice of Judgment dated November 29, 2000,  Santa
          Clara  County  Superior  Court -  Central  District,  Plaintiff  Danka
          Funding Company,  LLC v. Defendant  Photonics  Corporation.  Amount of
          judgment $ 41,341.89
     3.   Litigation  Superior Court,  Contra Costa County,  CA., Plaintiff L.A.
          Commercial Group, Inc (Bay Alarm) Defendant Photonics Corporation, for
          the amount of $8,666.00.
     4.   Default Judgment, Dallas County, Texas, Clerk of the County Courts Law
          No. 5, Bowne of Dallas,  LP v.  Photonics  Corporation,  et al,  cause
          number cc-02-14411-e, for $28,641, in July 2003.

In addition,  Photonics  Corporation  has the following  liens filed against its
assets:

1.       Type of lien:              Personal Property Tax
         Lien holder:               State of California/ Santa Clara County
         Amount of lien:            $5,444.87
         Date of lien:              November 6, 1998
         Debtor:                    Photonics Corporation

2.       Type of lien:              Personal Property Tax
         Lien holder:               State of California/ Santa Clara County
         Amount of lien:            $6,119.54
         Date of lien:              November 5, 1999
         Debtor:                    Photonics Corporation

There are various other  threatened or perceived  lawsuits,  but none have acted
against the company in the past 18 months.



                                       4
<PAGE>

The Company is subject to legal proceedings that arise in the ordinary course of
business. Primarily, these lawsuits are the result of defaulted accounts payable
of Photonics  prior to the merger with  REpipeline.com,  Inc.  and  consequently
common stock has been  allocated for the payment of these  payables,  which have
been  reflected  in  the  accompanying  consolidated  financial  statements,  in
accordance with the agreed  participation of other Photonics'  accounts payable.
Management  believes that the outcome of one or more of these matters may have a
material  adverse  effect  on the  Company's  consolidated  financial  position,
operating results or cash flows.

On February 28, 2003, Bowne of Dallas, LP, a printing company,  sued Repipeline,
Inc. and its successor in interest,  Photonics Corporation,  in the County Court
of  Dallas,  Law No. 5, for unpaid  printing  costs  associated  with the merger
between  Repipeline  and the Company in November  2000. The suit is for $28,641,
but in the suit Bowne  admits to being  damaged in the  amount of  $18,063.  The
Company will not defend  itself  against this suit and Bowne's legal counsel has
asked for and been granted a summary judgement against the Company.  This amount
has  previously  been  recorded  in  the  accompanying  consolidated  financials
statements as an account payable.

Many of the employees of the Company had previously  been employees of RE4S. Tom
Bailey, who was hired as President and CEO of RE4S on January 27, 2000, resigned
his  position  as of May 1, 2000,  citing a breach of  Contract  and  failure to
disclose the criminal background of Mr. Douglas Fonteno,  the founder and acting
officer of RE4S.

In April 2000, Mr. Fonteno was  incarcerated  for parole  violation from a prior
conviction of securities  fraud. On April 28, 2000, the board of directors voted
to expunge all shares of RE4S owned by Mr.  Fonteno,  his family  members and/or
affiliated companies,  which were issued for inadequate consideration and proper
approval by the Board of Directors. These shares were cancelled and are not held
in treasury.

On October 18, 2001,  Mr.  Fonteno  filed a lawsuit  against  Repipeline.com,  a
company  entitled  Photonics,  Inc.,  and former  officers and  directors of the
Company,  including Tom Bailey and Chip Langston  claiming  various  charges and
claims of  wrongdoing.  In June of 2004,  Tom Bailey and Chip Langston  informed
current  management  that all parties in the suit have agreed upon a settlement.
Since the Company was never formally served the lawsuit, current management does
not know what the settlement entails and cannot asses its potential exposure.

In June 2004,  Tom Bailey made various  verbal  threats to instigate  litigation
against the Company and its current and former  management to be reimbursed  for
the legal fees he incurred while defending  himself against the Fonteno lawsuit,
along with other claims of harm that Mr. Bailey may have  suffered.  Although no
formal action or complaint has been filed,  current management believes there is
a possibility,  although the Company's  legal counsel has not fully reviewed Mr.
Bailey's employment contract to offer an opinion on the potential exposure,  the
Company could be liable for up to $30,000 of legal fees Mr. Bailey  incurred for
his defense.

LEGAL PROCEEDINGS - REPIPELINE.COM, INC., which could affect Photonics

Around  June  2000,   REpipeline.com,   Inc.  (Texas)  acquired  the  assets  of
Realestate4sale.com  (RE4S).  One of the assets REpipeline did not acquire was a
claim by the company against Doug Fonteno.  Prior to his displacement  from RE4S
on April 1, 2000,  Mr.  Fonteno made numerous non interest  bearing  advances to
himself and several entities controlled by him totaling approximately $ 183,906.
Previously, on April 28, 2000, the Board of Directors of Realestate4sale.com had
voted to expunge  all shares of RE4S owned by Mr.  Fonteno,  his family  members
and/or affiliated companies,  which were issued for inadequate consideration and
lacked proper approval by the Board of Directors of RE4S.



                                       5
<PAGE>

The lawsuit against Mr. Fonteno was dropped by the Board in the third quarter of
2001 when the Company  was unable to  continue to pay for legal fees  associated
with the lawsuit.  REpipeline.com's  management  does not believe the outcome of
its  lawsuit  with RE4S  founder  will have an adverse  effect on the  Company's
financial  position,  operating  results or cash flows. On October 18, 2001, Mr.
Fonteno filed another  lawsuit  against  REpipeline.com,  Photonics,  and former
officers and  directors of the Company  claiming  various  charges and claims of
wrong doing.

There is a lien from the State of Texas against REpipeline.com,  Inc. for unpaid
wages to a former employee. The amount of the lien is for $14,344.27.

On October 13, 2001,  Today's Staffing,  Inc. sued  Repipeline.com in the Second
Court of Dallas County for unpaid fees  associated with  telemarketing  services
provided to the Company.  Management  has not  responded  and believes a default
judgment  will be  entered  against  the  Company.  The  lawsuit  is for  $7,096
including $1,774 in legal fees.

Management  is not able to quantify  such risk or exposure to  additional  legal
actions in relation to the financial statements represented herein.

There are various other  threatened or perceived  lawsuits,  but none have acted
against the company in the past 18 months.

ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

                                     PART II

ITEM 5 MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

MARKET

The  Company's  Common  Stock  trades  on the Over The  Counter  Bulletin  Board
("OTCBB") under the symbol: PHOX

HISTORICAL MARKET PRICE DATA FOR THE COMMON STOCK OF PHOTONICS CORPORATION

The following table sets forth the range of high and low closing sales prices
for Photonics Common Stock for the periods indicated:


                                                    High           Low

        Fiscal Year Ending December 31, 2003
                   First Quarter                   $0.003         $0.001
                   Second Quarter                  $0.015         $0.003
                   Third Quarter                   $0.021         $0.007
                   Fourth Quarter                  $0.030         $0.007
            Fiscal Year Ending December 31, 2004
                   First Quarter                   $0.020         $0.004
                   Second Quarter                  $0.015         $0.004
                   Third Quarter                   $0.008         $0.001
                   Fourth Quarter                  $0.006         $0.002

NUMBER OF SHAREHOLDERS AND TOTAL OUTSTANDING SHARES

As of December 31, 2004, there were approximately 2,500 holders of record of our
common stock and we had 119,309,075 common shares issued and outstanding.



                                       6
<PAGE>

DIVIDENDS

The Company  has not  historically  paid cash  dividends.  The Company  does not
anticipate paying any cash dividends in the foreseeable future.

PREFERRED SHARES

As of December 31, 2002,  the Company had  1,000,000  shares of preferred  stock
outstanding,  when exercised are convertible into 70% of the outstanding  common
stock when added together with the previously issued 14,000,000 shares of common
stock in the  Agreement  and Plan of  Reorganization  with  The  Sarasota  Group
shareholders on October 18, 2001. The preferred  shares were cancelled on May 8,
2003 and as of  December  31,  2004,  there are no  preferred  shares  issued or
outstanding.

OPTIONS

As of December 31, 2004,  there are  8,679,039  common  shares  reserved for the
exercise of options of the former  management team at an exercise price of $0.01
per option. The former management team is G. Thomas Bailey  (7,354,039),  Joseph
"Chip" Langston (700,000),  and Michael Craven (625,000).  All other options and
option agreements have been cancelled.

ITEM 6 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  Company  currently  does not have any full time or part time  employees  or
consultants, although the Board of Directors provides oversight, administration,
and  conduct of the day to day affairs of the  Company.  With the  exception  of
certain legal and accounting  fees that are necessary to be paid to maintain the
Company's listing on the OTCBB, management does not expect to hire any more full
time or part time  employees,  purchase  any  equipment,  or perform any product
development or research  services.  The Company does not have any available cash
and it is expected to require  approximately  $25,000 to maintain its listing on
the OTCBB. Since October 2001,  management and certain consultants have provided
this  capital  in  exchange  for  common  stock and notes  payable.  There is no
certainty  that  management  or various  consultants  will  continue  to provide
capital to the company.

At year end  December 31, 2002,  the Board of  Directors  agreed to  sell/assign
certain  non  trading  equities  in various  wholly  owned and  partially  owned
subsidiaries (all private  companies) to BBXsupport,  Inc., an affiliated entity
of the  President  of the  Registrant.  BBXsupport  is  expected  to provide the
capital necessary to affect the registration of those  securities.  There are no
guarantees,  in this global  economy,  that BBXsupport will be successful in its
attempts and efforts.

In 2004,  the  company had a net loss of $72,932  and  increased  its payable to
shareholders  by $33,100.  There is not guarantee  that the  shareholder's  will
continue to advance the necessary  capital to sustain the  company's  listing on
the OTCBB.  If the  listing on the OTCBB is not  maintained,  it could  severely
affect  the  liquidity  of  the  common  stock,  thus  a  further  detriment  to
shareholder value.

We currently have limited working capital. We may have to rely on loans from our
officers  and  directors  if we deplete all of our capital  until we complete an
acquisition  or  merger.  On  a  long-term  basis,  liquidity  is  dependent  on
commencement  of  operation  and receipt of  revenues,  additional  infusions of
capital and debt financing.  While we may be receiving  sufficient  infusions of
capital from our officers and directors,  we will not be generating any revenues
until the completion of a merger or acquisition  and we will not take any action
to acquire debt financing  other than infusions of capital from our officers and
directors.



                                       7
<PAGE>

Plan of Operation.

We are in a development  stage and have not conducted  any  operations  since we
ceased our internet operations over 36 months ago. We will be relying on cash on
hand and infusions  from our officers and  directors in order to pay  accounting
and legal  costs  associated  with filing our reports  with the  Securities  and
Exchange  Commission  and any  fees  due the  State  of  Texas.  Other  than the
foregoing, we do not anticipate spending any money.

We anticipate that until a business combination is completed with an acquisition
candidate,  we will not generate  revenues and may continue to operate at a loss
after completing a business  combination,  depending upon the performance of the
acquired  business.  We seek  acquisition  or  merger  candidates  with  ongoing
operations.

The  Company  did not have any  revenue  for the past three  fiscal  years.  The
Company has been financially supported by officers/directors and shareholders by
causing  those  individuals  or  entities  to  make  short  term  loans  to  the
corporation.  There can be no  assurances  that these  individual/entities  will
continue to fund the operations.  Management of the Company  continues to seek a
potential acquisition candidate.

FORWARD LOOKING STATEMENTS

Certain  statements  contained in this report that are not  historical  fact are
"forward-looking  statements" as that term is defined in the Private  Securities
Litigation  Reform Act of 1995. The words or phrases "will likely  result," "are
expected  to,"  "will  continue,"  "is  anticipated,"  "believes,"  "estimates,"
"projects" or similar expressions are intended to identify these forward-looking
statements.  These statements are subject to risks and uncertainties  beyond our
reasonable  control  that  could  cause  our  actual  business  and  results  of
operations  to differ  materially  from those  reflected in our  forward-looking
statements.  The safe harbor  provisions  provided in the Securities  Litigation
Reform Act do not apply to  forward-looking  statements  we make in this report.
Forward-looking  statements  are  not  guarantees  of  future  performance.  Our
forward-looking  statements  are  based on  trends  which we  anticipate  in our
industry  and our good  faith  estimate  of the  effect on these  trends of such
factors as industry capacity,  product demand and product pricing. The inclusion
of projections  and other  forward-looking  statements  should not be regarded a
representation by us or any other person that we will realize our projections or
that any of the  forward-looking  statements  contained in this  prospectus will
prove to be accurate.

Growth in the Future

New management is in the process of seeking  additional merger  candidates.  The
new  management  believes there is a good  opportunity  to find well  developed,
revenue producing acquisitions that will lead to shareholder growth.

RESULTS OF  OPERATIONS  FOR THE YEAR ENDED  DECEMBER  31, 2004  COMPARED TO YEAR
ENDED DECEMBER 31, 2004

REVENUES

The company did not produce any revenue in period ending December 31, 2004.

COSTS AND EXPENSES

The company incurred losses from operations for the twelve months ended December
31,  2004 of $72,932 as  compared  to losses of $87,557 for the same period last
year. The reduction in costs is associated with the "scaling down" of day to day
operations of the Company.

For the twelve months ended December 31, 2004, the Company  incurred General and
Administrative costs of $72,932 and Depreciation and Amortization costs of $0 as
compared to $87,557 and $0, respectively for the same period last year.



                                       8
<PAGE>

CAPITAL EXPENDITURES

We do not have any large capital expenditures planned for 2005.

LIQUIDITY AND CAPITAL RESOURCES

The Company has historically  sustained substantial losses from operations.  Any
current or future  demand  for cash  could  severely  effect  the  decisions  of
management  in pursuit of its  business  plan.  The Company  currently  does not
maintain cash on hand to sustain operations and relies upon the capital and cash
contributions  of it Board of  Directors  from time to time to meet certain cash
demands of the Registrant.

The accompanying  consolidated financial statements include the general accounts
have the  Company  and its  subsidiary,  The  Sarasota  Group,  Inc.,  a Florida
Corporation.  All  inter-company  transactions,  accounts and balances have been
eliminated  in  the  consolidation  and  there  were  no  material   intervening
transactions.

Basis of presentation and going concern uncertainty.

The consolidated financial statements of the Company have been prepared assuming
that the Company  will  continue as a going  concern.  However,  the Company has
incurred recurring losses and has been unable to secure additional  financing or
growth. These conditions, among others, give rise to substantial doubt about the
Company's  ability to continue as a going  concern.  Management is continuing to
seek additional equity capital to fund its operations and to provide the Company
with  adequate  funds to sustain its growth and continued  existence.  There is,
however,  no assurance  that the steps taken by Management  will meet all of the
Company's  needs or that it will continue as a going concern.  The  consolidated
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.

The preparation of financial  statements in conformity  with Generally  Accepted
Accounting Principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.









                                       9
<PAGE>

ITEM 7 FINANCIAL STATEMENTS






                              Photonics Corporation

                                and Subsidiaries

                          (A Development Stage Company)

                              Financial Statements

                                       and

             Report of Independent Registered Public Accounting Firm

                     Years Ended December 31, 2004 and 2003

                                       and

                   For the Period August 19, 1999 (Inception)

                            Through December 31, 2004










                                       10
<PAGE>

                                 C O N T E N T S
                                 ---------------



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM..............F-1

CONSOLIDATED BALANCE SHEETS..........................................F-2

CONSOLIDATED STATEMENTS OF OPERATIONS................................F-3

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT.....................F-4 - F-7

CONSOLIDATED STATEMENTS OF CASH FLOWS................................F-8 - F-9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS...........................F-10 - F-19



























                                       11
<PAGE>



             Report of Independent Registered Public Accounting Firm

Board of Directors
Photonics Corporation
    and Subsidiaries
Dallas, Texas

We have  audited  the  accompanying  consolidated  balance  sheets of  Photonics
Corporation and subsidiaries (a development  stage company),  as of December 31,
2004  and  2003,  and  the  related   consolidated   statements  of  operations,
stockholders'  deficit, and cash flows for the years ended December 31, 2004 and
2003 and for the period August 19, 1999  (inception)  through December 31, 2004.
These consolidated  financial statements are the responsibility of the Company's
management.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit 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.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in  all  material   respects,   the  financial  position  of  Photonics
Corporation and subsidiaries,  as of December 31, 2004 and 2003, and the results
of  their  operations  and  cash  flows  for the  above  referenced  periods  in
conformity with accounting principles generally accepted in the United States of
America.

As explained in Note 1, the Company  entered  into a merger  transaction  during
2000 that was  accounted  for as a reverse  merger  with the  Company  being the
acquired entity for financial reporting purposes.  As a result, the accompanying
consolidated  financial  statements  have been restated to present the financial
position and operating  results of the acquiring entity for financial  reporting
purposes.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will continue as a going  concern.  As also discussed in Note 1
to the consolidated  financial  statements,  the Company has suffered  recurring
losses from  operations  and has a net  working  capital  deficiency  that raise
substantial   doubts  about  its  ability  to  continue  as  a  going   concern.
Management's  plans in regard to these matters are also described in Note 1. The
consolidated  financial  statements  do not include any  adjustments  that might
result from the outcome of this uncertainty.



/s/ Turner, Stone & Company
Turner, Stone & Company
Certified Public Accountants
Dallas, Texas
January 10, 2005




                                      F-1
<PAGE>
<TABLE>
<CAPTION>

                              PHOTONICS CORPORATION
                                AND SUBSIDIARIES
                          (A DEVELOPMENT STAGE COMPANY)
                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 2004 AND 2003


                                     Assets


                                                                 2004           2003
                                                              -----------    -----------
<S>                                                           <C>            <C>
Current assets:
     Cash                                                     $       100    $      --
                                                              -----------    -----------

        Total current assets                                  $       100    $      --
                                                              ===========    ===========


                      Liabilities and Stockholders' Deficit

Current liabilities:
     Accounts payable, trade                                  $   234,093    $   234,093
     Accrued expenses                                                --            5,522
     Advances from stockholders                                    57,399         24,299
                                                              -----------    -----------

         Total current liabilities                                291,492        263,914
                                                              -----------    -----------

Commitments and contingencies                                        --             --

Stockholders' deficit:
     Preferred stock, $.001 par value, 50,000,000
        shares authorized,  None and None shares
        issued and outstanding                                       --             --
     Common stock, $.001 par value, 200,000,000
        shares authorized, 119,309,075 and 110,400,000
        shares outstanding, respectively                          119,309        110,400
     Paid in capital in excess of par                           2,270,272      2,233,727
     Deficit accumulated during the development stage          (2,680,973)    (2,608,041)
     Treasury stock 0 and 0
        common stock shares, at no cost                              --             --
                                                              -----------    -----------

                                                                 (291,392)      (263,914)
                                                              -----------    -----------

                                                              $       100    $      --
                                                              ===========    ===========
</TABLE>










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



                                      F-2
<PAGE>

                              PHOTONICS CORPORATION
                                AND SUBSIDIARIES
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003
                   FOR THE PERIOD AUGUST 19, 1999 (INCEPTION)
                            THROUGH DECEMBER 31, 2004



                                                                   Cumulative
                                      Year Ended     Year Ended       from
                                       12/31/04       12/31/03      Inception
                                     -----------    -----------    -----------


Revenues                             $      --      $      --      $      --
                                     -----------    -----------    -----------

Cost and Expenses
     Web site development costs             --             --          450,313
     Marketing and promotion                --             --           64,400
     Compensation and benefits              --             --          345,836
     General and administrative           72,932         87,557      1,136,441
     Acquisition costs                      --             --          507,694
     Depreciation and amortization          --             --          165,295
                                     -----------    -----------    -----------
                                          72,932         87,557      2,670,519

Loss from operations                     (72,932)       (87,557)    (2,670,519)

Interest expense                            --             --           10,454
                                     -----------    -----------    -----------

Loss before income taxes                 (72,932)       (87,557)    (2,680,973)

Provisions for income tax benefits          --             --             --
                                     -----------    -----------    -----------

Net loss                             $   (72,932)   $   (87,557)   $(2,680,973)
                                     ===========    ===========    ===========

Loss per share
     Basic                           $    (.0006)   $    (.0008)   $    (.0224)
     Diluted                         $    (.0006)   $    (.0008)   $    (.0224)







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


                                      F-3
<PAGE>
<TABLE>
<CAPTION>

                              PHOTONICS CORPORATION
                                AND SUBSIDIARIES
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     YEARS ENDED DECEMBER 31, 2004 AND 2003
                   FOR THE PERIOD AUGUST 19, 1999 (INCEPTION)
                            THROUGH DECEMBER 31, 2004



                                                                               Cumulative
                                                 Year Ended     Year Ended       from
                                                  12/31/04       12/31/03      Inception
                                                -----------    -----------    -----------
<S>                                             <C>            <C>            <C>
Cash flows from operating activities:
     Cash received from customers               $      --      $      --      $      --
     Cash paid to employees                            --             --         (122,340)
     Cash paid to suppliers                         (33,000)       (24,299)      (562,550)
     Interest paid                                     --             --           (1,000)
     Income taxes paid                                 --             --             --
                                                -----------    -----------    -----------

        Cash used in operating activities           (33,000)       (24,299)      (685,890)
                                                -----------    -----------    -----------

Cash flows from investing activities;
     Purchase of property and equipment                --             --           (9,990)
     Web development expenditures                      --             --         (166,126)
     Rental deposit advanced                           --             --          (15,696)
     Advances to former employees                      --             --         (284,534)
                                                -----------    -----------    -----------

        Cash used in investing activities              --             --         (476,346)
                                                -----------    -----------    -----------


Cash flows from financing activities:
     Proceeds from issuance of common stock            --             --        1,031,677
     Proceeds from note payable, stockholder           --             --           45,000
     Advances from a stockholder                     33,100         24,299         85,659
                                                -----------    -----------    -----------

        Cash provided by financing activities        33,100         24,299      1,162,236
                                                -----------    -----------    -----------

Net increase (decrease) in cash                         100           --             --

Cash at beginning of the period                        --             --             --
                                                -----------    -----------    -----------

Cash at end of the period                       $       100    $      --      $       100
                                                ===========    ===========    ===========
</TABLE>





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


                                      F-4
<PAGE>
<TABLE>
<CAPTION>

                              PHOTONICS CORPORATION
                                AND SUBSIDIARIES
                          (A DEVELOPMENT STAGE COMPANY)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     YEARS ENDED DECEMBER 31, 2004 AND 2003
                   FOR THE PERIOD AUGUST 19, 1999 (INCEPTION)
                            THROUGH DECEMBER 31, 2004

                           Reconciliation of Net Loss
                         To Net Cash Used in Operations
                         ------------------------------


                                                                          Cumulative
                                             Year Ended     Year Ended       from
                                              12/31/04       12/31/03      Inception
                                            -----------    -----------    -----------
<S>                                         <C>            <C>            <C>

Net loss                                    $   (72,932)   $   (87,557)   $(2,680,973)
                                            -----------    -----------    -----------
Adjustment to reconcile net loss to
  net cash used in operations:

     Depreciation and amortization          $      --      $      --      $   165,295
     Common stock issued for services            45,454         63,258        617,438
     Provision for uncollectable advances          --             --          284,534
     Impairment loss                               --             --           70,750
     Merger acquisition costs                      --             --          507,694
     (Increase) decrease in assets                 --             --           21,190
     Increase (decrease) in accounts
        payable                                  (5,522)          --           99,993
     Increase (decrease) in accrued
        expenses                                   --             --          228,189
                                            -----------    -----------    -----------
                                                 33,000         63,258      1,955,083
                                            -----------    -----------    -----------

Net cash used in operating activities       $   (33,000)   $   (24,299)   $  (685,890)
                                            ===========    ===========    ===========

                      Supplemental Disclosure of Non Cash
                       Investing and Financing Activities
                       ----------------------------------

Issuance of common stock in
    exchange for services                   $    45,454    $    63,258    $   571,984

Web development expenditures
    incurred as accounts payable            $      --      $      --      $    65,422

Issuance of common stock for
    investment in TFC and GOG               $      --      $      --      $    38,822
Issuance of common stock in
    repayment of advances from
    stockholder                             $      --      $      --      $    28,260

Settlement of judgments recorded
    as additional paid in capital           $      --      $      --      $   149,709

Transfer of TFC, GOG and REP shares
    in exchange for prepaid consulting      $      --      $      --      $    16,178
</TABLE>



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


                                      F-5
<PAGE>


                              PHOTONICS CORPORATION
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business and operations
-----------------------

Photonics Corporation, formerly dba DTC Data Technology (the Company, Photonics,
DTC), a California corporation,  began from a merger of Photonics Corp. with DTC
Data  Technology in March of 1996. The Company did design,  develop,  and market
Integrated Device  Electronics (IDE) and Small Computer Systems Interface (SCSI)
disk controller  cards and Input/Output  (I/O) products for personal  computers.
However,  as a result of recurring  significant  operating losses, in June 1999,
the board of directors  voted to shut down  business  operations  and attempt to
sell the Company or its assets.  Since that date,  the Company has been inactive
and in the development stage.

On  November  28,  2000,  the  Company  merged  with  REpipeline.com,   a  Texas
corporation, an Internet vertical service provider to the commercial real estate
industry,  by  issuing  18,127,707  common  stock  shares  valued at  $18,128 in
exchange for all of the outstanding common stock of REpipeline.com,  Inc. (REP).
Immediately  after the  merger,  the  Company  transferred  the net  assets  and
business   operations   to   REPipeline.com,   Inc.,  a  Delaware   corporation,
incorporated on June 8, 2000 as a wholly owned subsidiary of the Company.

Prior to this merger on July 10, 2000, REPipeline.com, Inc., a Texas corporation
also  incorporated on June 8, 2000, agreed to purchase the assets and assume the
certain   liabilities   and   shareholder's   equity   of   RealEstate4Sale.com.
RealEstate4Sale.com,  ("RE4S") was  incorporated in Colorado on August 17, 1999,
and its purpose was to provide  commercial real estate listings on the Internet.
However,  the  concept  was deemed to be too narrow for the  marketplace,  which
requires a wider variety of services to the  commercial  real estate market over
the Internet, which are best addressed by the expanded concept of REP.

The  transaction was accounted for as a reverse merger using the purchase method
of accounting with REP acquiring Photonics for financial reporting purposes. The
purchase  price of Photonics was  allocated  among its net assets based on their
relative  fair  values.  Because  Photonics  did not  have any  assets  and only
liabilities and had no business operations, no portion of the purchase price was
allocated to goodwill.  Instead,  the excess of the purchase price over the fair
value of net assets acquired has been charged  against  operations and reflected
in the accompanying consolidated financial statements as an acquisition cost.

In October 2001, the Company acquired all of the outstanding common stock of The
Sarasota Group, Inc. (SGI), a Florida corporation,  in exchange for the issuance
of 1,000,000  convertible  preferred stock shares (Note 3) and 14,200,000 common
stock  shares.  At the same  time,  the  Company's  then  current  officers  and
directors  resigned (Note 5) and the Company elected new officers and directors.
Since then, the preferred shares of stock have been cancelled.

SGI was  incorporated  on November 13, 2001, and prior to the acquisition had no
assets,  liabilities or business operations.  The purchase price, which exceeded
the fair value of net assets acquired,  has been charged against  operations and
reflected  in  the  accompanying   consolidated   financial   statements  as  an
acquisition cost.

Principles of consolidation
---------------------------

The accompanying  consolidated  financial statements include the accounts of the
Company and its subsidiary and The Sarasota Group, Inc., a Florida  corporation.
All intercompany transactions, accounts and balances have been eliminated in the
consolidation and there were no material inter-company transactions.

After its  transfer of REP common  stock shares to BBX (Note 4), the Board voted
to spin-off its remaining  1,005,207 common stock share holdings to stockholders
as a dividend thereby fully divesting itself of this subsidiary.



                                      F-6
<PAGE>

Basis of presentation and going concern uncertainty
---------------------------------------------------

The consolidated financial statements of the Company have been prepared assuming
that the Company  will  continue as a going  concern.  However,  the Company has
incurred  recurring losses and as of December 31, 2004 has a net working capital
deficit of approximately $291,392. These conditions,  among others, give rise to
substantial  doubt about the Company's  ability to continue as a going  concern.
Management is continuing to seek  additional  equity capital to fund a merger or
acquisition or to purchase an ongoing business.  Management  believes that these
steps will  provide the Company  with  adequate  funds to sustain its growth and
continued  existence.  There is,  however,  no assurance that the steps taken by
management  will meet all of the  Company's  needs or that it will continue as a
going  concern.  The  consolidated  financial  statements  do  not  include  any
adjustments that might result from the outcome of this uncertainty.

Management estimates
--------------------

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the  reported  amounts of revenues  and expenses  during the  reporting  period.
Actual results could differ from those estimates.

Cash flows
----------

For purposes of the consolidated statements of cash flows, the Company considers
all highly liquid  investments with original  maturities of three months or less
to be cash equivalents. None of the Company's cash is restricted.

Property and equipment
----------------------

Property  and  equipment  was  stated  at cost  less  accumulated  depreciation.
Depreciation  of property and equipment was being provided by the  straight-line
method over  estimated  useful  lives of three to seven  years.  During the year
ended  December 31, 2000,  the  Company's  property and  equipment  was taken in
connection with its abandonment of its leased facilities (Note 5).

Loss per share
--------------

Basic loss per share amounts are computed using the  weighted-average  number of
common  stock  shares  outstanding  during the  periods.  Diluted loss per share
amounts  are  computed  using the  weighted-average  number of common and common
equivalent shares outstanding  during the periods.  For the years ended December
31, 2004 and 2003 and the period August 19, 1999  (inception)  through  December
31, 2004,  basic loss per share amounts are computed  using  116,205,216,  , and
111,406,448  respectively,  weighted  average  number  of  common  stock  shares
outstanding,  after retroactively  adjusting these shares for the reverse merger
acquisition.  No effect has been given to the assumed  conversion  of  preferred
stock (Note 3) or the  exercise of  outstanding  stock  options  (Notes 5 and 7)
because the effect would be antidilutive.

Long-lived assets
-----------------

The Company  periodically reviews its long-lived assets and certain identifiable
intangibles for  impairment.  When events or changes in  circumstances  indicate
that the carrying amount of an asset may not be recoverable,  the Company writes
the asset down to its net realizable  value.  Prior to 2002, the Company had not
identified  any asset  impairments  since its  inception.  During the year ended
December 31, 2002, the Company determined that its website development costs had
been permanently impaired (Note 2).

Web site development costs
--------------------------

The Company accounted for its costs of developing its web site (Note 2) pursuant
to EITF Abstract No. 00-02.  Pursuant to this pronouncement,  all costs incurred
for  planning  activities  have been  charged to  expense.  Costs  incurred  for


                                      F-7
<PAGE>

development of the web site and its  infrastructure  have been  capitalized  and
were amortized using the straight-line  method over its estimated useful live of
three years,  beginning in December 2000, when the web site became available for
use. Costs incurred to operate the web site were charged to expense.

Stock based incentive program
-----------------------------

SFAS No. 123, "Accounting for Stock-Based  Compensation," encourages entities to
recognize  compensation cost for stock-based  employee  compensation plans using
the fair value  method of  accounting,  as defined  therein,  but allows for the
continued  use of  the  intrinsic  value  method  of  accounting  prescribed  by
Accounting  Principles Board (APB) Opinion No. 25,  "Accounting for Stock Issued
to Employees."  The Company has adopted the intrinsic value method of accounting
prescribed  by APB Opinion No. 25. As such,  the Company is required to disclose
pro forma net income and loss per share  amounts as if the fair value  method of
accounting has been applied (Note 7).

Recent Accounting Pronouncements
--------------------------------

During the year ended  December  31,  2004,  there were  several new  accounting
pronouncements  issued by the Financial  Accounting  Standards  Board (FSAB) the
most recent of which was Statements on Financial Accounting Standards (SFAS) No.
153,  Exchanges  of  Nonmonetary  Assets.  Each  of  these  pronouncements,   as
applicable,  has been or will be adopted  by the  Company.  Management  does not
believe the adoption of any of these accounting  pronouncements  has had or will
have a material impact on the Company's financial position or operating results.

In December 2004, the FSAB issued SFAS No. 123R, Share-Based Payments,  revising
to SFAS No.  123,  Accounting  for  Stock-Based  Compensation,  and  superseding
Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to
Employees.   SFAS  No.  123R   establishes   standards  for  the  accounting  of
transactions  in which an entity  exchanges its equity  instruments for goods or
services,   including   obtaining  employee  services  in  share-based   payment
transactions.  SFAS No. 123R  applies to all awards  granted  after the required
effective  date and to awards  modified,  purchased or canceled after that date.
Adoption  is  effective  as of the  beginning  of the  first  interim  or annual
reporting  period that begins after June 15, 2005.  Management  does not believe
the adoption of this accounting pronouncement will have a material impact on the
Company's financial position or operating results.


2.   WEB SITE DEVELOPMENT

During August 1999, the RE4S purchased a web site domain name for $90,000.  This
web  site  allowed  the  RE4S to  provide  commercial  listings  of real  estate
properties  over the  Internet.  However,  the focus of these  services  was too
narrow and was not accepted by the commercial real estate market,  therefore the
Company subsequently  abandoned this web site and returned it to the seller, who
forgave the remaining  $64,000  balance owed on the purchase  price.  During the
year  ended  December  31,  2000,  the  actual  payments  made for this web site
totaling $26,000,  along with the operating costs, were charged to expense.  The
RE4S website  technology was discontinued and REpipeline's  technology  platform
was available for testing by customers on December 1, 2000.

In connection  with the  development of  REpipeline's  website,  the Company has
capitalized  $231,548 of  development  costs,  which  consist  primarily  of the
internal  labor costs of  employees  directly  associated  with the  development
activity and external direct costs of materials and services consumed during the
development  activity.  These costs were amortized over the three year estimated
useful  life of the web site  beginning  December  1, 2000.  For the years ended
December 31, 2004 and 2003 and the period  August 19, 1999  (inception)  through
December  31,  2004,   amortization   expense   totaled  $0,  $0  and  $160,798,
respectively.

During the year ended December 31, 2002, the Company determined that its website
development  costs had been permanently  impaired and the remaining  unamortized
carrying  value of these costs  totaling  $70,751  were  charged to earnings and
reflected in the accompanying  consolidated  financial statements as general and
administrative expenses.


                                      F-8
<PAGE>

3.   PREFERRED STOCK

In December 1996, the Company entered into a Private Placement  Memorandum (PPM)
for the sale of up to 3,600,000 shares of Series A Convertible  Preferred Stock,
at $1.00 per  share,  with  minimum  lots  being  25,000  shares.  The  Series A
Convertible  Preferred  Stock was  convertible  into  common  stock on a 1 for 1
basis, and carries a provision for a 10% cumulative dividend,  with dividends in
arrears  greater than 12 months being payable in the form of common stock at the
equivalent  rate of $1.00 per  common  share.  The  Series A shares  also have a
liquidation preference of $1.00 per share and voting rights.

As a  condition  of the  merger  transaction  with REP  (Note  1),  the  Company
converted  all  of  its  outstanding  preferred  stock,  along  with  cumulative
dividends in arrears totaling $490,318, into common stock. At December 31, 2000,
no preferred stock shares were outstanding.

In April 2001, the Company amended its articles of incorporation to increase the
number of preferred stock shares  authorized from 6,000,000 shares to 50,000,000
shares,  reduce  the par value of the  preferred  stock  from $1.00 to $.001 and
eliminated its previous rights and preferences.

On October 18, 2001, in connection with the Company's  merger with SGI (Note 1),
the Company issued 1,000,000 convertible preferred stock shares. The shares were
convertible  into common stock in an amount such that,  when added to the common
stock shares already issued to SGI, SGI will own 70% of the  outstanding  common
stock shares of the Company. No other rights or privileges exist with respect to
these shares. These shares were cancelled on May 8, 2003.

4.   RELATED PARTY TRANSACTIONS

Prior to the  Company's  merger  transaction  with REP (Note 1), the Company had
outstanding  notes  payable to  stockholders'  totaling  $1,510,000  and accrued
interest payable  relating to these notes payable of $306,758.  The Company also
had an outstanding note payable  totaling  $497,000 and accrued interest payable
related to this note payable of $111,300 to a former  creditor  whose  President
was a former director of the Company.  The notes were unsecured,  due on demand,
convertible into preferred stock and contained  interest rates of 10% to 15%. As
a condition of the merger,  these notes  payable and all accrued  interest  were
converted into 867,657 common stock shares.

In October  2000,  the Company  borrowed  $45,000 from a  stockholder.  The note
payable  is due on or before  August 31,  2001,  bears  interest  at 9.0% and is
unsecured. The note also granted an option, which expired on August 31, 2001, to
purchase 45,000 common stock shares at $1.00 per share. At December 31, 2002 and
2001, accrued interest payable on this note totaled $5,404 and $1,354. (prior to
the BBX transaction described below).

During the year ended December 31, 2004 a director/shareholder  had non-interest
bearing   advances  to  the  Company  totaling  $32,399  and  a  non  affiliated
shareholder  totalling $25,000.  The advances were due upon demand as funds were
available.  On December  31,  2002,  previous  advances  of $28,266  were repaid
through the issuance of 10,751,166 common stock shares.

5.   COMMITMENTS AND CONTINGENCIES

Employment agreements
---------------------

On July 1, 2000,  the Company  entered  into  employment  agreements  with three
former members of executive  management.  The  agreements,  which expire through
June 30, 2004,  provided for annual compensation of totaling $306,000 increasing
to $534,000 after the Company raised $2 million in equity funding.  In addition,
two of the agreements provided signing bonuses totaling $250,000,  payable after
the above funding has been raised. The Company had the option to pay half of the
amount  payable in common stock shares of the Company valued at the bid price of
the stock as of the effective date of the agreement. In the case of termination,
the agreements provided for a 12-month salary severance package,  reduced by 50%
if the  termination is for cause.  The agreements also provided stock options to
purchase up to 17,508,078 common shares at $.01 per share based on various goals
as these goals are defined in the agreements and 1,200,000 common shares at $.01
per share, which vest over three years.


                                      F-9
<PAGE>

In addition,  this  employment  agreement  provided  qualified stock options for
500,000 of the Company's  common stock at an exercise  price of $ 0.10 per share
(post  merger).  These  options vest over the three year term of the  employment
agreement  and  automatically  expire three years from the date they vest.  Upon
termination,  all vested options must be exercised within 45 days or they expire
and all  non-vested  options will be  cancelled.  Subject to the approval of the
Photonic's shareholders.

In connection with the Company's  merger with SGI (Note 1), the above agreements
were terminated and the Company is no longer  obligated under these or any other
employment  agreements.  In this process,  stock  options to purchase  8,679,039
common  stock  shares  were  fully  vested to the  former  executive  management
members.  The  options are  exercisable  at a price of $.01 per share and do not
expire (Note 7).

Leases
------

The Company was obligated under a non-cancelable  operating  sublease  agreement
for its office  facilities,  effective May 1, 2000 and which expired on December
31, 2001.  The  agreement  provided for a monthly  rental  payment of $5,232 and
there was no option for renewal.  However,  in June 2001, the Company was unable
to pay its  monthly  rent and the space was taken back along with the  Company's
property  and  equipment.  In  addition,  a  three-month  security  deposit  was
forfeited.  Although the Company is no longer  obligated  under this  agreement,
there is no assurance the sublessor will not initiate legal action in the future
to recover approximately $30,000 of unpaid rent.

The Company  currently does not maintain office  facilities and is not obligated
under any noncancelable obligations.

Legal matters - Photonics Corporation
-------------------------------------

The Company is subject to legal proceedings that arise in the ordinary course of
business. Primarily, these lawsuits are the result of defaulted accounts payable
of Photonics  prior to the merger with  REpipeline.com,  Inc.  and  consequently
common stock has been  allocated for the payment of these  payables,  which have
been  reflected  in  the  accompanying  consolidated  financial  statements,  in
accordance with the agreed  participation of other Photonics'  accounts payable.
Management  believes that the outcome of one or more of these matters may have a
material  adverse  effect  on the  Company's  consolidated  financial  position,
operating results or cash flows.

On February 28, 2003, Bowne of Dallas, LP, a printing company,  sued Repipeline,
Inc. and its successor in interest,  Photonics Corporation,  in the County Court
of  Dallas,  Law No. 5, for unpaid  printing  costs  associated  with the merger
between  Repipeline  and the Company in November  2000. The suit is for $28,641,
but in the suit Bowne  admits to being  damaged in the  amount of  $18,063.  The
Company will not defend  itself  against this suit and Bowne's legal counsel has
asked for and been granted a summary judgement against the Company.  This amount
has  previously  been  recorded  in  the  accompanying  consolidated  financials
statements as an account payable.

Many of the employees of the Company had previously  been employees of RE4S. Tom
Bailey, who was hired as President and CEO of RE4S on January 27, 2000, resigned
his  position  as of May 1, 2000,  citing a breach of  Contract  and  failure to
disclose the criminal background of Mr. Douglas Fonteno,  the founder and acting
officer of RE4S.

In April 2000, Mr. Fonteno was  incarcerated  for parole  violation from a prior
conviction of securities  fraud. On April 28, 2000, the board of directors voted
to expunge all shares of RE4S owned by Mr.  Fonteno,  his family  members and/or
affiliated companies,  which were issued for inadequate consideration and proper
approval by the Board of Directors. These shares were cancelled and are not held
in treasury.

On  October  18,  2001,  Mr.  Fonteno  filed a lawsuit  against  Repipeline.com,
Photonics,  and former  officers and  directors of the  Company,  including  Tom
Bailey and Chip Langston  claiming various charges and claims of wrongdoing.  In
June of 2004, Tom Bailey and Chip Langston informed current  management that all
parties in the suit have agreed upon a  settlement.  Since the Company was never
formally  served  the  lawsuit,  current  management  does  not  know  what  the
settlement entails and cannot asses its potential exposure.


                                      F-10
<PAGE>
<TABLE>
<CAPTION>

In June 2004,  Tom Bailey made various  verbal  threats to instigate  litigation
against the Company and its current and former  management to be reimbursed  for
the legal fees he incurred while defending  himself against the Fonteno lawsuit,
along with other claims of harm that Mr. Bailey may have  suffered.  Although no
formal action or complaint has been filed,  current management believes there is
a possibility,  although the Company's  legal counsel has not fully reviewed Mr.
Bailey's employment contract to offer an opinion on the potential exposure,  the
Company could be liable for up to $30,000 of legal fees Mr. Bailey  incurred for
his defense.

6.   EMPLOYEE BENEFIT PLANS

The Company adopted a Shared Savings Plan (the SSP) covering  substantially  all
of its  employees.  The SSP  allows  employees  to defer from 2% to 12% of their
compensation  to the  maximum  amount  permitted  by law.  Employee  and Company
contributions  are  considered tax deferred under Section 401(k) of the Internal
Revenue  Code.  Under the terms of the SSP,  the  Company can  contribute,  on a
quarterly basis,  shares of its common stock to each employee's account equal in
value to 40% of the employee's  contributions,  limited, however to $2,000 or 6%
of   compensation   per  calendar   year,   whichever  is  less.  The  Company's
contributions vest at the rate of 25% for each full year of service, as defined,
but become 100% vested upon normal retirement,  disability or death. Neither the
Company nor any of its employees have made any contributions to this plan.

7.   STOCK OPTION PLAN

The  Company's  stock  option plan (the 1997 Stock  Option  Plan) allows for the
issuance  of  incentive  and   nonqualified   stock  options  to  employees  and
consultants  of the Company.  Options  granted  under the Plan are generally for
periods  not to exceed ten years and  generally  must be at prices not less than
100% and 85%, for incentive and nonqualified stock options, respectively, of the
estimated  fair  value of the  stock on the date of grant as  determined  by the
Board of Directors.  Options granted to shareholders who own greater than 10% of
the  outstanding  stock are established at the estimated fair value of the stock
on the date of grant.  Stock  options  granted  by the  Company  to  others  are
primarily for legal and investment banking services.

In  connection  with the  Company's  acquisition  of SGI (Note 1),  the  Company
renegotiated  the  stock  options   previously  granted  to  former  members  of
management  (Note 4).  These  options  for  8,679,039  common  stock  shares are
considered a new grant pursuant to the above  pronouncement and are revalued for
purposes of the pro forma  information.  These options are fully vested,  do not
expire and exercisable at $.01 per share, the closing bid price of the Company's
common stock on the date of grant.  Accordingly,  no compensation was charged to
income using the intrinsic value method of accounting.

SFAS 123,  "Accounting  for Stock-Based  Compensation,"  requires the Company to
provide pro forma information  regarding net income and earnings per share as if
compensation  cost for the Company's  stock option plans had been  determined in
accordance  with the fair value method  prescribed  in this  pronouncement.  The
Company estimates the fair value of the stock options at the grant date by using
the  Black-Scholles  option  pricing-model  with the following  weighted-average
assumptions:  dividend yield of 0; expected volatility of 187 percent; risk-free
interest rates of 5.6%;  and expected  lives of three years.  The estimated fair
value  of  these  options  was  determined  to be  $.01.  Under  the  accounting
provisions  of SFAS 123,  the  Company's  net loss and loss per share would have
been changed to the pro forma amounts indicated below. (Note 1)

                                                                            Cumulative
                                               Year Ended     Year Ended       from
                                                12/31/04       12/31/03      Inception
                                              -----------    -----------    -----------
<S>                                           <C>            <C>            <C>
Net loss attributed to common shareholders:

    As reported                               $   (72,392)   $   (87,557)   $(2,793,310)
    Pro forma                                 $   (72,392)   $   (87,557)   $(2,680,973)

Basic and diluted loss per share:

    As reported                               $    (.0008)   $    (.0008)   $    (.0236)
    Pro forma                                 $    (.0008)   $    (.0008)   $    (.0236)
</TABLE>


                                      F-11
<PAGE>

On February 24, 2004,  the Company  established  the 2004 Stock Plan.  This plan
registers,  via an S-8 registration statement, up to 18,000,000 shares of common
stock to be issued to qualified  recipients.  Eligible  Participants in the Plan
shall be such key  employees,  non-employee  directors  and  consultants  of the
Company  and its  Subsidiaries,  whether or not  members  of the  Board,  as the
Committee,  in its  sole  discretion,  may  designate  from  time to  time.  The
Committee's  designation  of a  Participant  in any year shall not  require  the
Committee  to  designate  such person to receive  Awards in any other year.  The
designation  of a Participant  to receive an Award under one portion of the Plan
does not require the Committee to include such Participant  under other portions
of the Plan. The Committee  shall consider such factors as it deems pertinent in
selecting  Participants  and in  determining  the  types  and  amounts  of their
respective Awards.

8.   INCOME TAXES

The Company  accounts for corporate income taxes in accordance with Statement of
Financial  Accounting Standards (SFAS) No. 109. Under SFAS No. 109, deferred tax
assets and liabilities are recognized for the estimated  future tax consequences
attributable to differences  between the financial statement carrying amounts of
existing  assets and  liabilities  and their  respective tax bases. In addition,
future tax benefits,  such as those from net operating loss carry forwards,  are
recognized to the extent that  realization  of such benefits is more likely than
not.  Deferred tax assets and  liabilities  are measured using enacted tax rates
expected  to  apply  to  taxable  income  in the  years  which  those  temporary
differences are expected to be recovered or settled.  The effect on deferred tax
assets and  liabilities  of a change in tax rates is recognized in income in the
period that  includes  the  enactment  date.  Other than the  deferred tax asset
relating to the  Company's  net  operating  losses,  which totals  approximately
$750,000  and which has been fully  offset by a valuation  reserve,  the Company
does not have any other significant deferred tax assets or liabilities.

A reconciliation  of income tax expense at the statutory  federal rate of 34% to
income  tax  expense at the  Company's  effective  tax rate for the years  ended
December 31, 2004 and 2003 and the period  August 19, 1999  (inception)  through
December 31, 2004 is as follows.

                                                              Cumulative
                                  Year Ended    Year Ended       from
                                   12/31/04      12/31/03      Inception
                                  ----------    ----------    ----------

Tax expense (benefit) computed
     at statutory rate            $  (24,800)   $  (29,800)   $ (886,700)
Increase in valuation allowance       24,800        29,800       886,700
                                  ----------    ----------    ----------
                                  $     --      $     --      $     --
                                  ==========    ==========    ==========

As of December 31, 2004, the Company has approximately $2,600,000 of regular net
operating  losses to offset future  federal income tax, which expire through the
year 2012. Prior to the Company's  merger  transaction with REP, the Company had
prior net operating loss carry forwards of  approximately  $ 102 million and tax
credit carry forwards of  approximately $ 2 million.  The Tax Reform Act of 1986
imposed  substantial  restrictions  of the utilization of net operating loss and
tax credit carry  forwards in the event of an  "ownership  change" as defined by
the Internal  Revenue Code. If the Company has an "ownership  change" as defined
by the Internal  Revenue Code, the Company's  ability to utilize the federal and
California  net  operating  losses could be reduced.  With respect to the merger
transaction with REP (Note 1), the Company has not made this  determination  and
it is not certain whether any of these prior carry forwards will be utilized.





                                      F-12
<PAGE>

ITEM 8 CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None

ITEM 8A CONTROLS AND PROCEDURES

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

Evaluation of disclosure and controls and procedures

Based on their  evaluation of the Company's  disclosure  controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e)  under the Securities  Exchange Act
of 1934) as of the end of the  period  covered  by this  annual  report  on Form
10-KSB the Company's  chief  executive  officer has concluded that the Company's
disclosure  controls  and  procedures  are  designed to ensure that  information
required to be  disclosed by the Company in the reports that it files or submits
under the Exchange Act is recorded,  processed,  summarized and reported  within
the time periods  specified in the SEC's rules and forms and are operating in an
effective manner.

Changes in internal controls over financial reporting

There  were  no  changes  in the  Company's  internal  controls  over  financial
reporting or in other factors that have materially  affected,  or are reasonably
likely to materially  affect,  the  Company's  internal  control over  financial
reporting.

ITEM 8B OTHER INFORMATION

None

                                    PART III

Item 9 DIRECTORS,  EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
WITH SECTION 16(A) OF THE EXCHANGE ACT

The following table includes the names,  ages and positions of our directors and
executive  officers as of December  31, 2004.  A summary of the  background  and
experience of each of these individuals immediately follows the table.

Mark Lindberg            37       President, Secretary, and Director

Mark Lindberg,  37, is President,  CFO and Director of our Company. Mr. Lindberg
has  more  than 15  years of  experience  in  public  accounting,  domestic  and
international finance and management of public and private companies.  From time
to time,  Mr.  Lindberg  holds  various  positions as President and CFO of other
publicly  traded  companies.  His term as an officer and  director in the public
companies  is  generally   for  short   periods  as   determined  in  a  planned
reorganization or completion of a public offering. Mr. Lindberg currently serves
as  an  officer   and   director   in  two  OTC   companies,   both  in  planned
reorganizations. Prior to this, he served as Chairman and CEO of an OTC Bulletin
Board Internet  holding  company.  From 1991 to 1996, Mr. Lindberg  directed the


                                       27
<PAGE>

operations of National  Health Care Discount,  Inc. in Dallas,  Texas, a private
direct marketer of health and wellness services. Mr. Lindberg started his career
as a Tax Specialist at Deloitte & Touche in Kansas City, Missouri.  Mr. Lindberg
has a Bachelor of Science degree in accounting  from Baker  University  where he
attended on a golf scholarship.

Our directors receive no cash compensation for their services as directors.  Our
policy is to reimburse  non-employee directors for expenses actually incurred in
connection  with  attending  meetings of our board of  directors.  Directors and
executive officers are also eligible for stock and option grants under our stock
option plans as determined by our board of directors.

COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

Section  16(a) of the Exchange Act  requires  our  officers and  directors,  and
persons who own more than 10% of a registered class of our equity securities, to
file reports of ownership  and change in ownership  with the SEC. Our  officers,
directors and greater than 10%  stockholders  are required by SEC regulations to
furnish us with copies of all Section  16(a)  forms they file.  We believe  that
from  January  1, 2004  through  December  31,  2004,  the  filing  requirements
applicable to our officers,  directors  and greater than 10%  stockholders  were
timely  met.  In 2005,  the  Company  intends to aid and  assist  its  officers,
directors and greater than 10% stockholders to meet timely filing deadlines.

The board of directors of Photonics  Corporation has determined that it does not
have a financial expert on its Audit Committee.  Due to the limited transactions
and current "development stage" circumstances,  the board has determined that it
is not financially  prudent to have an audit committee.  Once a merger candidate
is  discovered  or operations  for the company  begin,  the board will include a
financial expert on its Audit Committee.

CODE OF ETHICS

Photonics  Corporation  has  adopted  a code  of  ethics  for its  officers  and
directors. We will provide to any person without charge, upon written request to
our above address, a copy of such code of ethics.

ITEM 10 EXECUTIVE COMPENSATION

The following  table sets forth the cash and other  compensation  we paid during
the last three fiscal years to our chief executive officer,  president and other
individuals who served as executive  officers and whose total  compensation  was
$100,000 or more.

                        Year          Salary         Bonus          Stock Awards

Mark Lindberg           2004          $0             $0             $ 0
President, Treasurer,   2003          $0             $0             $ 0
Secretary               2002          $0             $0             $ 5,000 (1)


     (1)  The  Registrant  issued  5,000,000  shares  of  common  stock  to Mark
          Lindberg.  The quoted  price of the stock on the day of  issuance  was
          $0.001 bid.

EMPLOYMENT AGREEMENTS

There  are  no  current  employment  agreements  with  any of  the  officers  or
directors.  All previous  agreements have been cancelled through the issuance of
notes payable and stock.

ITEM 11 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following  table sets forth,  as of December 31, 2004,  certain  information
concerning the beneficial ownership of each class of our voting stock held by:



                                       28
<PAGE>

     -    each  beneficial  owner of 5% or more of our  voting  stock,  based on
          reports filed with the SEC and certain other information;

     -    each of our directors; - each of our executive officers; and

     -    all of our executive officers and directors as a group.

NAME AND ADDRESS (1)      COMMON (2)       % COMMON      PREFERRED   % PREFERRED

Mark Lindberg            5,000,000             4.19          --           --
G. Thomas Bailey (3)     1,000,000              *            --           --
OTC Support, Inc.       10,751,166            9.01

Officers and Directors
as a group               5,000,000            4.19%          --           --

     (1)  The address of each officer and director is 2724 Routh Street, Dallas,
          Texas 75201.
     (2)  Unless otherwise  indicated,  we believe that all persons named in the
          table have sole voting and investment power with respect to all shares
          of common stock  beneficially  owned by them. A person is deemed to be
          the  beneficial  owner of  securities  which may be  acquired  by such
          person within 60 days from the date on which  beneficial  ownership is
          to be determined upon the exercise of options, warrants or convertible
          securities. Figures are as of December 31, 2004.
     (3)  G. Thomas Bailey also has  7,354,039  options that can be exercised at
          $0.01 per share. If exercised,  Mr. Bailey's  ownership in the Company
          would be 7.00%.

ITEM 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

As of December  31,  2004,  the Company has  received  short term,  non interest
bearing  loans or advances  from entities  affiliated  with is  President,  Mark
Lindberg and another shareholder of the company totaling $57,399.  The loans are
due on demand.

ITEM 13 EXHIBITS AND REPORTS ON FORM 8K

a)       31.1  Certificate  of  Principal  Executive  Officer  required  by Rule
               13a-14(a)  or Rule  15d-14(a) of the  Securities  Exchange Act of
               1934,  as adopted  pursuant to Section 302 of the  Sarbanes-Oxley
               Act of 2002 (filed herewith).

         31.2  Certificate  of  Principal  Financial  Officer  required  by Rule

               13a-14(a)  or Rule  15d-14(a) of the  Securities  Exchange Act of
               1934,  as adopted  pursuant to Section 302 of the  Sarbanes-Oxley
               Act of 2002 (filed herewith).

         32.1  Certificate  of  Chief  Executive  Officer  and  Chief  Financial
               Officer  pursuant to 18 U.S.C.  Section 1350, as adopted pursuant
               to  Section  906  of  the   Sarbanes-Oxley  Act  of  2002  (filed
               herewith).


(b)      Reports on Form 8-K. None



                                       29
<PAGE>

ITEM 14 PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees. The aggregate fees billed for professional  services rendered by our
current principal  accountants for the audit of our annual financial  statements
and review of our quarterly financial statements were $9,390 and $11,100 for the
years ended December 31, 2004 and 2003, respectively.

Audit-Related Fees: None

Tax Fees: None.

All Other Fees: None


SIGNATURE

Pursuant to the  requirements  of Section 3 or 15(d) of the Securities  Exchange
Act of 1934,  the Company has duly caused this report to be signed on its behalf
By the undersigned, thereunto duly authorized.

PHOTONICS CORPORATION

DATE:    January 17, 2005

BY:  /s/ Mark Lindberg
   --------------------------
         Mark Lindberg
         President and CFO



                                       30