Document:

spier_empagmt.htm

    
      

       

       

    

            
FIFTH AMENDMENT TO AMENDED EMPLOYMENT AGREEMENT

    
 

    

    This
Fifth Amendment made effective as of December 13, 2007, between ANTHONY SPIER
(“Employee”) and

    WELLS-GARDNER
ELECTRONICS CORPORATION, an Illinois corporation (“Company”).

    

    WHEREAS
Employee and Company entered into an Amended Employment Agreement effective as
of February

     29,
1996, as amended by that certain First Amendment to Amended Employment Agreement
dated as of 

    February
10, 1999; and as amended by resolution of the Compensation Committee at its
April 24, 2001 meeting; 

    and as
amended by that certain Second Amendment dated as of February 11, 2002; as
amended by that certain 

    Third
Amendment dated as of December 18, 2002; and as further amended by that certain
Fourth Amendment 

    dated as
of February 8, 2005 (as so amended, the “Employment Agreement”);
and

    

    WHEREAS
Employee and Company desire to further amend the Employment Agreement in
accordance with the 

    specific
terms and provisions set forth in this Fifth Amendment.

    

    NOW,
THEREFORE, in consideration of the premises hereto and consideration, the
receipt and sufficiency of 

    which is
hereby acknowledged, Employee and Company hereby amend the Employment Agreement
as follows:

    

    Paragraph
3 is hereby amended in its entirety to read as follows:

    

    
      	
               
      

            	
              “3.

            	
              Term. The term
      of Employee’s employment hereunder shall be until December 31,
      2011.”

            

    

    

    EXCEPT AS
AMENDED HEREBY, the Employment Agreement shall continue in full force and
effect.

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment as of the
day and year first 

    above
written.

    

    
      	 
      	
              Company:

            
	 
      	 
      
	 
      	
              WELLS-GARDNER
      ELECTRONICS CORPORATION

            
	 
      	
              An
      Illinois Corporation

            
	 
      	 
      
	 
      	
              /s/
      Marshall L. Burman

            
	 
      	
              By:

            	
              Marshall
      L. Burman

            
	 
      	
              Title:

            	
              Chairman,
      Compensation Committee

            
	 
      	
              Dated:

            	
              January
      9, 2008

            
	 
      	 
      	 
      
	 
      	 
      	
              Employee:

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Anthony S. Spier

            
	 
      	 
      	
              Anthony
      S. Spierwea_financials.htm

    

      

      

      

      

      

      

      

      

      

      

      

      

      WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

       (Incorporated
in Malaysia)

      Company
No: 501396-U

      

      Financial
Statements and Supplementary Data

      for
the financial period ended October 5, 2007

      

      

      

      

      

      

      Contents

      

      

      
        	 
      	
                Page

              
	 
      	 
      
	
                Report
      of Independent Registered Public Accounting
    Firm........................................

              	
                1

              
	 
      	 
      
	
                Balance
      Sheets as of October 5, 2007 and December 31,
      2006.................................

              	
                2

              
	 
      	 
      
	
                Income
      Statements for the Period/Years Ended October 5, 2007, December 31, 2006
      and 2005........................................................................................................

              	
                 

                3

              
	 
      	 
      
	
                Statements
      of Changes in Equity for the Period/Years Ended October 5,
      2007,  December 31, 2006 and
      2005...............................................................................

              	
                 

                4

              
	 
      	 
      
	
                Cash
      Flows Statements for the Period/Years Ended October 5, 2007, December 31,
      2006 and
      2005...........................................................................................................

              	
                 

                5

              
	 
      	 
      
	
                Notes
      to Financial Statements............................................................................

              	
                6-15

              
	 
      	 
      
	 
      	 
      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      

      

      

      

      

      

      

      Report
Of Independent Registered Public Accounting Firm

      To
The Members of

      WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

      (Incorporated
in Malaysia)

      

      

      We have
audited the accompanying balance sheets of Wells Eastern Asia Displays (M) Sdn.
Bhd. as of October 5, 2007 and December 31, 2006 and the related income
statements, statements of changes in equity and cash flows statement for
period/year ended October 5, 2007 and December 31, 2006. 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 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 statements presentation. We believe that our audit provide a
reasonable basis for our opinion.

      

      In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Wells Eastern Asia Displays (M)
Sdn. Bhd. as of October 5, 2007 and December 31, 2006 and the results of its
operations and its cash flows for the period/year ended October 5, 2007 and
December 31, 2006 in conformity with accounting principles generally accepted in
the United States of America.

      

      Without
qualifying our opinion, we draw attention to Note 2.1 to the financial
statements pertaining to the cessation of the Company’s business operations on
July 31, 2007.

      

      

      

      

      

      

      

      

      

      

      
        	
                /s/
      Horwath

              	 
      
	
                Penang,
      Malaysia

              	 
      
	 
      	 
      

      

      

      Dated :
28 January 2008

      

      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      
        Balance
Sheets

      

      

      
        	 
      	 
      	 
      	 
      	 
      	
                As
      of October 5,

              	 
      	
                As
      of December 31,

              
	 
      	 
      	 
      	 
      	 
      	
                2007

              	 
      	
                2006

              
	 
      	 
      	 
      	 
      	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                ASSETS

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Current
      Assets

              	 
      	 
      	 
      	 
      
	 
      	 
      	
                Cash
      and cash equivalents

              	 
      	
                1,233,485

              	 
      	
                2,115,164

              
	 
      	 
      	
                Trade
      accounts receivable

              	 
      	
                0

              	 
      	
                0

              
	 
      	 
      	
                Trade
      accounts receivable, related party

              	 
      	
                0

              	 
      	
                2,258,493

              
	 
      	 
      	
                Inventories

              	 
      	
                0

              	 
      	
                727,742

              
	 
      	 
      	
                Prepaid
      and other current assets

              	 
      	
                0

              	 
      	
                18,465

              
	 
      	 
      	
                Income
      taxes receivable

              	 
      	
                39,812

              	 
      	
                37,859

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Total
      Current Assets

              	 
      	
                1,273,297

              	 
      	
                5,157,723

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Property
      and equipment, net

              	 
      	
                0

              	 
      	
                184,920

              
	 
      	
                Deferred
      tax assets

              	 
      	
                0

              	 
      	
                0

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Total
      Assets

              	 
      	
                1,273,297

              	 
      	
                5,342,643

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                LIABILITIES
      AND SHAREHOLDERS' EQUITY

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Current
      Liabilities

              	 
      	 
      	 
      	 
      
	 
      	 
      	
                Trade
      accounts payable

              	 
      	
                0

              	 
      	
                123,095

              
	 
      	 
      	
                Trade
      accounts payable, related party

              	 
      	
                0

              	 
      	
                314,984

              
	 
      	 
      	
                Other
      accounts payable, related party

              	 
      	
                0

              	 
      	
                427,316

              
	 
      	 
      	
                Accrued
      expenses and others

              	 
      	
                21,833

              	 
      	
                188,704

              
	 
      	 
      	
                Bank
      borrowings

              	 
      	
                0

              	 
      	
                1,377,602

              
	 
      	 
      	
                Income
      taxes payable

              	 
      	
                0

              	 
      	
                0

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Total
      Current Liabilities

              	 
      	
                21,833

              	 
      	
                2,431,701

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Stockholders'
      equity:

              	 
      	 
      	 
      	 
      
	 
      	 
      	
                Common
      stock, RM1.00 (equivalent to USD 0.2632) par value

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                1,315,789

              	 
      	
                1,315,789

              
	 
      	 
      	
                (10,000,000
      shares authorized, 5,000,000 shares issued and outstanding 2007 ,2006 and
      2005, respectively)

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Exchange
      translation reserve

              	 
      	
                344,819

              	 
      	
                185,927

              
	 
      	 
      	
                (Accumulated
      losses)/Retained earnings

              	 
      	
                (409,144)

              	 
      	
                1,409,226

              
	 
      	
                Total
      Stockholders' Equity

              	 
      	
                1,251,464

              	 
      	
                2,910,942

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Total
      Liabilities and Stockholders' Equity

              	 
      	
                1,273,297

              	 
      	
                5,342,643

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

      

      
        
          
            
              The annexed notes form an integral part
of these financial
statements                                                              

            

          

           

        

        
          Page
1

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      

      

      
        Income
Statements

      

      

      
        	 
      	 
      	 
      	 
      	
                For
      the

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
                Period
      Ended

              	 
      	
                For
      the Years Ended

              
	 
      	 
      	 
      	 
      	
                October
      5,

              	 
      	
                December
      31,

              
	 
      	 
      	 
      	 
      	
                2007

              	 
      	
                2006

              	 
      	
                2005

              
	 
      	 
      	 
      	 
      	
                USD

              	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                REVENUE

              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Net
      related party revenue

              	
                4,141,970

              	 
      	
                6,278,848

              	 
      	
                16,549,707

              
	 
      	 
      	
                Net
      third party revenue

              	
                306

              	 
      	
                4,210

              	 
      	
                38,697

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Net
      revenue

              	
                4,142,276

              	 
      	
                6,283,058

              	 
      	
                16,588,404

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                COST
      OF REVENUE

              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Related
      party cost of revenue

              	
                218,546

              	 
      	
                1,184,812

              	 
      	
                8,523,179

              
	 
      	 
      	
                Third
      party cost of revenue

              	
                3,840,542

              	 
      	
                4,555,820

              	 
      	
                6,698,545

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Cost
      of revenue

              	
                4,059,088

              	 
      	
                5,740,632

              	 
      	
                15,221,724

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Gross
      profit

              	
                83,188

              	 
      	
                542,426

              	 
      	
                1,366,680

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                OPERATING
      EXPENSE

              	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Selling,
      general and administrative

              	
                226,229

              	 
      	
                295,556

              	 
      	
                566,814

              
	 
      	 
      	
                Research
      and development

              	
                0

              	 
      	
                0

              	 
      	
                165,401

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Total
      operating expense

              	
                226,229

              	 
      	
                295,556

              	 
      	
                732,215

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                (Loss)/Profit
      from operations

              	
                (143,041)

              	 
      	
                246,870

              	 
      	
                634,465

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Interest
      income

              	
                46,529

              	 
      	
                7,699

              	 
      	
                6,481

              
	 
      	 
      	
                Interest
      expense

              	
                (26,386)

              	 
      	
                (105,338)

              	 
      	
                (183,644)

              
	 
      	 
      	
                Other
      income

              	
                22,627

              	 
      	
                49,427

              	 
      	
                77,774

              
	 
      	 
      	
                Loss
      on foreign exchange

              	
                (122,934)

              	 
      	
                (254,755)

              	 
      	
                0

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                (Loss)/Profit
      before income taxes

              	
                (223,205)

              	 
      	
                (56,097)

              	 
      	
                535,076

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Tax
      expense

              	
                (268)

              	 
      	
                (15,881)

              	 
      	
                (71,978)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Net
      (Loss)/Profit

              	
                (223,473)

              	 
      	
                (71,978)

              	 
      	
                463,098

              

      

      

      

      

      

      

      

      

      
        
          
            
              The annexed notes form an integral part
of these financial
statements                                                             

            

          

           

        

        
          Page
2

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      

      

      

      

      

      

      
        

        Statements
Of Changes in Equity

      

      

      
        	 
      	 
      	
                Common
      Stock

              	 
      	
                Exchange

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	
                translation

              	 
      	
                Retained

              	 
      	 
      
	 
      	 
      	
                Shares

              	 
      	
                Amount

              	 
      	
                reserve

              	 
      	
                earnings

              	 
      	
                Total

              
	 
      	 
      	 
      	 
      	
                USD

              	 
      	
                USD

              	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Balance
      at December 31, 2004

              	
                5,000,000

              	 
      	
                1,315,789

              	 
      	
                0

              	 
      	
                1,018,106

              	 
      	
                2,333,895

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Net
      profit for the year

              	
                0

              	 
      	
                0

              	 
      	
                0

              	 
      	
                463,098

              	 
      	
                463,098

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Balance
      at December 31, 2005

              	
                5,000,000

              	 
      	
                1,315,789

              	 
      	
                0

              	 
      	
                1,481,204

              	 
      	
                2,796,993

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Exchange
      translation differences recognised directly in equity

              	
                0

              	 
      	
                0

              	 
      	
                185,927

              	 
      	
                0

              	 
      	
                185,927

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Net
      loss for the year

              	
                0

              	 
      	
                0

              	 
      	
                0

              	 
      	
                (71,978)

              	 
      	
                (71,978)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Total
      recognised income and expenses

              	
                0

              	 
      	
                0

              	 
      	
                185,927

              	 
      	
                (71,978)

              	 
      	
                113,949

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Balance
      at December 31, 2006

              	
                5,000,000

              	 
      	
                1,315,789

              	 
      	
                185,927

              	 
      	
                1,409,226

              	 
      	
                2,910,942

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Dividend
      paid

              	
                0

              	 
      	
                0

              	 
      	
                0

              	 
      	
                (1,594,897)

              	 
      	
                (1,594,897)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Exchange
      translation differences recognised directly in equity

              	
                0

              	 
      	
                0

              	 
      	
                   158,892

              	 
      	
                0

              	 
      	
                158,892

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Net
      loss for the period

              	
                0

              	 
      	
                0

              	 
      	
                0

              	 
      	
                  (223,473)

              	 
      	
                (223,473)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Total
      recognised income and expenses

              	
                0

              	 
      	
                0

              	 
      	
                158,892

              	 
      	
                (1,818,370)

              	 
      	
                (1,659,478)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Balance
      at October 5, 2007

              	
                5,000,000

              	 
      	
                1,315,789

              	 
      	
                344,819

              	 
      	
                (409,144)

              	 
      	
                1,251,464

              

      

      

      

      

      

      

      

      

      

      

      
        
          
            
              The annexed notes form an integral part
of these financial
statements                                                             

            

          

           

        

        
          Page
3

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      
        

        Cash
Flows Statements

      

      

      
        	 
      	 
      	 
      	
                2007

              	 
      	
                2006

              	 
      	
                2005

              
	 
      	 
      	 
      	
                USD

              	 
      	
                USD

              	 
      	
                USD

              
	
                CASH
      FLOWS FROM OPERATING ACTIVITIES

              	 
      	 
      	 
      	 
      	 
      
	
                Net
      (Loss)/Profit

              	
                (223,473)

              	 
      	
                (71,978)

              	 
      	
                463,098

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Adjustments
      for:-

              	 
      	 
      	 
      	 
      	 
      
	
                Bad
      debt written off

              	
                417

              	 
      	
                0

              	 
      	
                0

              
	
                Depreciation

              	
                31,342

              	 
      	
                63,628

              	 
      	
                78,793

              
	
                Inventories
      written off

              	
                307,990

              	 
      	
                0

              	 
      	
                0

              
	
                Loss
      on sale of property, plant and equipment

              	
                54,330

              	 
      	
                0

              	 
      	
                1,667

              
	
                Property,
      plant and equipment written-off

              	
                56,268

              	 
      	
                1,274

              	 
      	
                0

              
	
                Changes
      in net assets and liabilities

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                Trade
      accounts receivable

              	
                0

              	 
      	
                22,801

              	 
      	
                91,791

              
	 
      	
                Trade
      accounts receivable - related party

              	
                2,258,493

              	 
      	
                1,940,093

              	 
      	
                3,005,322

              
	 
      	
                Inventories

              	
                419,752

              	 
      	
                922,324

              	 
      	
                361,038

              
	 
      	
                Prepaid
      and other current assets

              	
                18,048

              	 
      	
                24,547

              	 
      	
                (21,673)

              
	 
      	
                Income
      tax receivable

              	
                (1,953)

              	 
      	
                (37,859)

              	 
      	
                0

              
	 
      	
                Deferred
      tax assets

              	
                0

              	 
      	
                25,618

              	 
      	
                (25,618)

              
	 
      	
                Trade
      accounts payable

              	
                (123,095)

              	 
      	
                (82,396)

              	 
      	
                (1,000,515)

              
	 
      	
                Trade
      accounts payable - related party

              	
                (314,984)

              	 
      	
                (675,653)

              	 
      	
                (1,596,866)

              
	 
      	
                Accrued
      expenses and others

              	
                (594,187)

              	 
      	
                (467,432)

              	 
      	
                674,449

              
	 
      	
                Income
      taxes payable

              	
                0

              	 
      	
                (49,495)

              	 
      	
                37,899

              
	
                Net
      cash from/(used in) operating activities

              	
                1,888,948

              	 
      	
                1,615,472

              	 
      	
                2,069,385

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                CASH
      FLOWS FROM INVESTING ACTIVITIES

              	 
      	 
      	 
      	 
      	 
      
	
                Proceeds
      from sale of property, plant and equipment

              	
                46,425

              	 
      	
                30,835

              	 
      	
                5,789

              
	
                Purchase
      of property, plant and equipment

              	
                0

              	 
      	
                (1,644)

              	 
      	
                (15,070)

              
	
                Net
      cash from/(used in) investing activities

              	
                46,425

              	 
      	
                29,191

              	 
      	
                (9,281)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                CASH
      FLOW S FROM FINANCING ACTIVITIES

              	 
      	 
      	 
      	 
      	 
      
	
                Dividend
      paid

              	
                (1,594,897)

              	 
      	
                0

              	 
      	
                0

              
	
                Increase/(Decrease)
      in bank borrowings

              	
                (1,377,602)

              	 
      	
                15,697

              	 
      	
                (2,042,864)

              
	
                Net
      cash from/(used in) financing activities

              	
                (2,972,499)

              	 
      	
                15,697

              	 
      	
                (2,042,864)

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Net
      (decrease)/increase in cash and cash equivalents

              	
                (1,037,126)

              	 
      	
                1,660,360

              	 
      	
                17,240

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Effect
      of exchange rate changes

              	
                155,447

              	 
      	
                169,337

              	 
      	
                0

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Cash
      and cash equivalents brought forward

              	
                2,115,164

              	 
      	
                285,467

              	 
      	
                268,227

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Cash
      and cash equivalents carried forward

              	
                1,233,485

              	 
      	
                2,115,164

              	 
      	
                285,467

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Supplemental
      cash flow information

              	 
      	 
      	 
      	 
      	 
      
	
                Cash
      paid for interest

              	
                26,386

              	 
      	
                          105,338

              	 
      	
                          183,644

              
	
                Cash
      paid for income tax

              	
                808

              	 
      	
                            77,492

              	 
      	
                            59,697

              

      

      

      
        
          
            
              The annexed notes form an integral part
of these financial
statements                                                             

            

          

           

        

        
          Page
4

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      1.           General
Information

      

      The
Company was incorporated in year 2000, principally engaged in the manufacture of
colour video monitors. There are two major stockholders, Wells-Gardner
Electronics Corporation and Eastech Electronics (M) Sdn. Bhd., each holding 50%
of the paid up capital of the Company.

      

      The
registered office of the Company is located at 51-21-A, Menara BHL Bank, Jalan
Sultan Ahmad Shah, 10050 Penang, Malaysia and the principal place of business of
the Company is located at Lot 316 & 317, Jalan PKNK 3/2, Kawasan
Perindustrian Sungai Petani, 08000 Sungai Petani, Kedah, Malaysia.

      

      

      2.           Summary
of Significant Accounting Policies

      

      2.1           Basis
of Accounting

      

      Basis
of Preparation of Financial Statements

      

      The
financial statements of the Company are prepared under the historical cost
convention, modified to include other bases of measurement as disclosed in other
sections of the significant accounting policies, and in compliance with the
accounting principles generally accepted in the United States of
America.

      

      Going Concern

      

      The
Company had ceased its business operations on July 31, 2007. Accordingly, the
directors have decided to prepare the financial statements on a net realisable
value basis, as opposed to the going concern basis. Where appropriate,
adjustments have been made relating to the recoverability and classification of
recorded asset amounts and to the amounts and classification of
liabilities.

      

      
        	
                 
      

              	
                2.2

              	
                Property,
      Plant and Equipment

              

      

      

      
        	
                 
      

              	
                Property,
      plant and equipment are stated at cost less accumulated depreciation and
      accumulated impairment losses, if
any.

              

      

      

      
        	
                 
      

              	
                Property,
      plant and equipment are depreciated on a straight-line method over the
      estimated useful lives of the assets using the following annual
      rates:-

              

      

      

      
        	
                Plant
      and machinery

              	
                10-20%

              
	
                Electrical
      installation and renovation

              	
                10%

              
	
                Motor
      vehicles

              	
                20%

              
	
                Office
      equipment

              	
                20%

              
	
                Furniture
      and fittings

              	
                10%

              
	
                Computer

              	
                10-20%

              
	
                Factory
      tools and equipment

              	
                20%

              
	
                Mould

              	
                10%

              

      

      
        
          
            
                                                                         

            

          

           

        

        
          Page
5

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      2.           Significant
Accounting Policies (cont’d)

      

      2.3           Impairment
of Assets

      

      The
carrying amounts of assets, other than deferred tax assets, inventories and
financial assets, are reviewed at each balance sheet date to determine whether
there is any indication that an item of asset may be impaired. If any such
indication exists, the recoverable amount of the asset is estimated. Any excess
of the carrying amount of the asset over its recoverable amount represents an
impairment loss and is recognised as an expense in the income
statement.

      

      An
impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount and it is reversed only to the extent that the
increased carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, had no impairment loss
been recognised. The reversal is recognised in the income
statement.

      

      There
were no impairment loss recognized in the income statements for the period/years
ended October 5, 2007, December 31, 2006 and 2005.

      

      2.4           Inventories

      Inventories
are valued at the lower of cost (determined on the first-in, first-out basis)
and net realisable value after making due allowance for any obsolete or
slow-moving items. Cost consists of all costs of purchase, costs of conversion
and other costs incurred in bringing the inventories to their present location
and condition.

      

      2.5           Receivables

      

      
        	
                 
      

              	
                Receivables
      are carried at anticipated realisable values. Bad debts are written off
      when identified. An estimate is made for doubtful debts based on a review
      of all outstanding amounts as at the balance sheet
  date.

              

      

      

      2.6           Payables

      

      Payables
are recognised at cost which is the fair value of the consideration to be paid
in the future for goods and services received.

      

      2.7           Loans
and Borrowings

      

      All loans
and borrowings are initially recognised at cost which is the fair value of the
proceeds received. The loans and borrowings are subsequently stated at amortised
cost using the effective yield method. The effective interest rate is the
historical rate for a fixed rate instrument and the current market rate for a
floating rate instrument.

      

      All
borrowing costs are recognised as an expense in the period in which they are
incurred.

      
        
          
            
                                                                    

            

          

           

        

        
          Page
6

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      2.           Significant
Accounting Policies (cont’d)

      

      2.8           Provisions

      

      A
provision is recognised when it is probable that an outflow of resources
embodying economic benefits will be required to settle a present obligation
(legal or constructive) as a result of a past event and a reliable estimate can
be made of the amount.

      

      2.9           Foreign
Currency Transactions and Translation

      

      Transactions
in foreign currencies are converted into the functional currency at the rates of
exchange ruling at the transaction dates. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated into
the functional currency at the rates of exchange ruling at that date.
Non-monetary assets and liabilities which are stated at cost denominated in
foreign currencies are translated into the functional currency at the rates of
exchange ruling at the transaction dates. Exchange gains and losses arising on
foreign currency transactions and translation are recognised in the income
statement.

      

      2.10           Share
Capital

      

      The
Company has only one class of share capital, i.e. ordinary shares of RM1.00
(equivalent to USD0.2632) each, which is classified as equity. External costs
directly attributable to the issue of new shares are written-off to the share
premium account or, where there is no such account, charged to the income
statement.

      

      2.11           Income
Recognition

      

      Income
from the sale of goods is recognised upon delivery of goods and customer’s
acceptance. Interest income is recognised on an accrual basis.

      

      2.12           Income
Taxes

      

      Income
taxes for the year comprise current tax and deferred tax.

      

      Current
tax represents the expected amount of income taxes payable in respect of the
taxable profit for the year and is measured using the tax rates that have been
enacted or substantially enacted by the balance sheet date.

      

      Deferred
tax is provided for under the balance sheet liability method in respect of all
temporary differences between the carrying amount of an asset or liability in
the balance sheet and its tax base except for those temporary differences
associated with goodwill, negative goodwill or the initial recognition of an
asset or liability in a transaction which is not a business combination and
affects neither accounting nor taxable results at the time of the
transaction.

      
        
          
            
                                                                       

            

          

           

        

        
          Page
7

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      2.           Significant
Accounting Policies (cont’d)

      

      2.12           Income
Taxes (cont’d)

      

      A
deferred tax liability is recognised for all taxable temporary differences
whereas a deferred tax asset is recognised for all deductible temporary
differences, unused tax losses and unused tax credits to the extent that it is
probable that future taxable profit will be available against which the
deductible temporary differences, unused tax losses and unused tax credits can
be utilised. Deferred tax assets and
liabilities are measured at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on the tax
rates that have been enacted or substantially enacted by the balance sheet
date.

      

      2.13           Employee
Benefits

      

      Short-term
Employee Benefits

      

      Short-term
employee benefits such as wages, salaries, bonuses and social security
contributions are recognised as an expense in the period in which the associated
services are rendered by the employees.

      

      Defined
Contribution Plans

      

      As
required by law, employers in Malaysia make contributions to the state pension
scheme, Employees Provident Fund (“EPF”). Such contributions are recognised as
an expense in the period in which the associated services are rendered by the
employees.

      

      2.14           Cash
and Cash Equivalents

      

      Cash and
cash equivalents comprise cash in hand, bank balances, demand deposits, deposits
pledged with financial institutions, bank overdrafts and short-term, highly
liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.

      

      2.15           Financial
Instruments

      

      Recognised
and Unrecognised

      

      The
accounting policies for recognised financial instruments are disclosed in the
individual policies associated with each item. The Company does not have any
unrecognised financial instruments.

      

      

      

      

      

      
        
          
            
                                                                       

            

          

           

        

        
          Page
8

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      2.           Significant
Accounting Policies (cont’d)

      

      2.15           Financial
Instruments (cont’d)

      

      Fair
Values

      

      The
carrying amounts of financial assets and liabilities with short maturity periods
are assumed to approximate their fair values due to the short term nature of the
instruments. The fair value of related party accounts receivable and payable are
not practical to estimate based upon the related party nature of the underlying
transactions.

      

      2.16           Estimates

      

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

      

      

      3.           Financial
Risk Management

      

      The
activities of the Company expose it to certain financial risks, including
currency risk, interest rate risk, credit risk, liquidity risk and cash flow
risk. The overall financial risk management objective of the Company is to
maximise shareholders’ value by minimising the potential adverse impacts of
these risks on its financial position, performance and cash flows.

      

      The Board
of Directors explicitly assumes the responsibilities of financial risk
management which is carried out mainly through risk reviews and internal control
systems.

      

      Currency
Risk

      

      The
Company’s exposure to currency risk arises mainly from normal trading
transactions denominated in foreign currencies.

      

      The
Company does not use any derivative financial instruments to manage its exposure
to currency risk as the directors are of the opinion that the net exposure is
not significant.

      

      Interest
Rate Risk

      

      The
Company’s exposure to interest rate risk arises mainly from
borrowings.

      

      The
Company manages its exposure to interest rate risk by seeking to obtain the most
favourable interest rates available without increasing its other financial risk
exposures.

      
        
          
            
                                                                      

            

          

           

        

        
          Page
9

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      
        	
                3.  

              	
                Financial
      Risk Management (cont’d)

              

      

      

      Credit
Risk

      

      The
Company’s exposure to credit risk arises mainly from receivables. The maximum
credit risk exposure is best represented by the total carrying amount of these
financial assets in the balance sheet.

      

      The
Company manages its exposure to credit risk by assessing counter parties’
financial standings on an ongoing basis, setting and monitoring counter parties’
limits and credit terms. The Company does not have any major concentration of
credit risk other than the significant amount owing by a related party as
disclosed in the financial statements.

      

      Liquidity
and Cash Flow Risks

      

      The
Company’s exposure to liquidity and cash flow risks arises mainly from general
funding and business activities.

      

      The
Company practises prudent liquidity risk management by maintaining sufficient
cash and the availability of funding through certain committed credit
facilities.

      

      

      4.           Property
and Equipment

      

      Property
and equipment consist of the following as of October 5, 2007 and December 31,
2006  :-

      

      
        	 
      	
                October
      5, 2007

              	 
      	
                December
      31, 2006

              
	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      
	
                Plant
      and machinery, factory tools and equipment

              	
                0

              	 
      	
                572,565

              
	
                Electrical
      installation and renovation

              	
                0

              	 
      	
                15,013

              
	
                Motor
      vehicles

              	
                0

              	 
      	
                14,974

              
	
                Office
      equipment, furniture and fittings and computers

              	
                0

              	 
      	
                34,553

              
	 
      	 
      	 
      	 
      
	
                Total

              	
                0

              	 
      	
                637,105

              
	
                Less
      : Accumulated depreciation

              	
                0

              	 
      	
                (452,185)

              
	 
      	 
      	 
      	 
      
	
                Property
      and equipment, net

              	
                0

              	 
      	
                184,920

              

      

      

      

      

      

      

      

      

      
        
          
            
                                                                        

            

          

           

        

        
          Page
10

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      5.           Inventories

      

      Inventories
consist of the following as of October 5, 2007 and December 31, 2006
:-

      

      
        	 
      	
                October
      5, 2007

              	 
      	
                December
      31, 2006

              
	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      
	
                Raw
      materials

              	
                0

              	 
      	
                586,548

              
	
                Work-in-progress

              	
                0

              	 
      	
                163,548

              
	
                Finished
      goods

              	
                0

              	 
      	
                22,661

              
	
                Goods-in-transit

              	
                0

              	 
      	
                1,133

              
	 
      	 
      	 
      	 
      
	
                Total

              	
                0

              	 
      	
                773,890

              
	
                Inventory
      obsolescence reserve

              	
                0
       

              	 
      	
                (46,148)

              
	   
      	
                0

              	 
      	
                727,742

              

      

      

      6.           Prepaid
and Other Current Assets

      

      Prepaid
and other current assets consists of the following as of October 5, 2007 and
December 31, 2006 :-

      

      
        	 
      	
                October
      5, 2007

              	 
      	
                December
      31, 2006

              
	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      
	
                Sundry
      deposits

              	
                0

              	 
      	
                953

              
	
                Advance
      to suppliers

              	
                0

              	 
      	
                974

              
	
                Prepaid
      expenses

              	
                0

              	 
      	
                15,481

              
	
                Other

              	
                0

              	 
      	
                1,057

              
	 
      	 
      	 
      	 
      
	
                Total

              	
                0

              	 
      	
                18,465

              

      

      

      
        	
                7.  

              	
                Accrued
      Expenses and Other

              

      

      

      Accrued
expenses and other consists of the following as of October 5, 2007 and December
31, 2006 :-

      

      
        	 
      	
                October
      5, 2007

              	 
      	
                December
      31, 2006

              
	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      
	
                Accrued
      expenses

              	
                21,833

              	 
      	
                47,981

              
	
                Other
      payables

              	
                0

              	 
      	
                52,346

              
	
                Provisions

              	
                0

              	 
      	
                88,377

              
	 
      	 
      	 
      	 
      
	
                Total

              	
                21,833

              	 
      	
                188,704

              

      

      

      
        
          
            
                                                                          

            

          

           

        

        
          Page
11

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      8.           Bank
Borrowings - Secured

      

      
        	 
      	
                October
      5, 2007

              	 
      	
                December
      31, 2006

              
	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      
	
                Banker
      acceptance I

              	
                0

              	 
      	
                434,376

              
	
                Banker
      acceptance IV

              	
                0

              	 
      	
                81,269

              
	
                Export
      credit refinancing I

              	
                0

              	 
      	
                379,442

              
	
                Export
      credit refinancing II

              	
                0

              	 
      	
                482,515

              
	 
      	
                0

              	 
      	
                1,377,602

              

      

      

      The
details of bank borrowings as of December 31, 2006 were as
follows:-

      

      
        	
                Facility

              	
                Bank

              	
                Maturity

              	
                Interest

              
	 
      	 
      	 
      	 
      
	
                Banker
      acceptance I

              	
                Affin
      Bank Berhad

              	
                January
      - April 2007

              	
                3.75%
      - 3.80%

              
	 
      	 
      	 
      	 
      
	
                Banker
      acceptance IV

              	
                Malayan
      Banking Berhad

              	
                January
      2007

              	
                3.47%

              
	 
      	 
      	 
      	 
      
	
                Export
      Credit Refinancing I

              	
                Malayan
      Banking Berhad

              	
                January
      - April 2007

              	
                4.25%

              
	 
      	 
      	 
      	 
      
	
                Export
      Credit Refinancing II

              	
                Southern
      Bank Berhad

              	
                February
      - March 2007

              	
                4.25%

              

      

      

      Banker
acceptance I was secured by one of the fixed deposits of the Company and
guaranteed by Eastern Asia Technology Limited, which is the holding corporation
of a substantial shareholder of the Company. All other bank borrowing were
secured by the fixed deposits of the Company. The bank borrowings had been
settled when payments are due.

      

      

      9.           Tax
Expense

      
 

      
        
          	 
      	
                  For
      the

                  Period

                  Ended

                  October
      5,

                	 
      	
                  For
      the Years Ended

                  December
      31

                
	 
      	
                  2007

                	 
      	
                  2006

                	 
      	
                  2005

                
	 
      	
                  USD

                	 
      	
                  USD

                	 
      	
                  USD

                
	
                  Tax
      based on results for the year:-

                	 
      	 
      	 
      	 
      	 
      
	
                  Malaysian
      income tax

                	
                  0

                	 
      	
                  1,379

                	 
      	
                  97,596

                
	
                  Deferred
      tax

                	
                  0

                	 
      	
                  0

                	 
      	
                  (25,367)

                
	 
      	
                  0

                	 
      	
                  1,379

                	 
      	
                  72,229

                
	
                  Tax
      (over)/underprovided in prior year:-

                	 
      	 
      	 
      	 
      	 
      
	
                  Malaysian
      income tax

                	
                  268

                	 
      	
                  (12,132)

                	 
      	
                  0

                
	
                  Deferred
      tax

                	
                  0

                	 
      	
                  26,634

                	 
      	
                  (251)

                
	 
      	
                  268

                	 
      	
                  15,881

                	 
      	
                  71,978

                

        

      

      
        
          
            
                                                                         

            

          

           

        

        
          Page
12

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      9.           Tax
Expense (cont’d)

      

      The
numerical reconciliation between the applicable tax rate, which is the statutory
income tax rate, and the average effective tax rate is as follows
:-

      

      
        	 
      	 
      	 
      	
                For
      the Period Ended October 5,

              	 
      	
                 

                 

                For
      the Years Ended December 31,

              
	 
      	 
      	
                2007

              	 
      	
                2006

              	 
      	
                2005

              
	 
      	 
      	
                %

              	 
      	
                %

              	 
      	
                %

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                Applicable
      tax rate

              	
                (27.00)

              	 
      	
                (28.00)

              	 
      	
                28.00

              
	 
      	
                Non-deductible
      expenses

              	
                11.91

              	 
      	
                8.77

              	 
      	
                1.75

              
	 
      	
                Tax
      exempt income from pioneer status

              	
                0.00

              	 
      	
                0.00

              	 
      	
                (15.88)

              
	 
      	
                Unrecognised
      in deferred tax assets

              	
                15.09

              	 
      	
                21.57

              	 
      	
                0.00

              
	 
      	
                Average
      effective tax rate

              	
                0.00

              	 
      	
                13.87

              	 
      	
                13.87

              

      

      

      

      10.           Deferred
Tax Assets

      

      
        	 
      	
                October
      5, 2007

              	 
      	
                December
      31, 2006

              
	 
      	
                USD

              	 
      	
                USD

              
	 
      	 
      	 
      	 
      
	
                Balance
      at 1 January

              	
                0
      

              	 
      	
                25,618

              
	
                Deferred
      tax - prior year

              	
                0

              	 
      	
                (25,618)

              
	
                Balance
      at 5 October/31 December

              	
                0
      

              	 
      	
                0

              
	 
      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
        
          
            
                                                                           

            

          

           

        

        
          Page
13

          
            

          

        

        
           

          
            WELLS
EASTERN ASIA DISPLAYS (M) SDN. BHD.

            (Incorporated
in Malaysia)

            Company
No: 501396-U

          

        

      

      

      

      

      Notes
To The Financial Statements

      
        For
The Financial Period Ended October 5, 2007

      

      

      11.           Significant
Transactions With Related Parties

      The
following represent related party transactions for each of the financial
period/years ended October 5 and December 31 :-

      

      
        	 
      	
                For
      the Period Ended October 5,

              	 
      	
                 

                 

                For
      the Years Ended December 31,

              
	 
      	
                2007

                USD

              	 
      	
                2006

                USD

              	 
      	
                2005

                USD

                 

              
	
                Sale
      of goods to Wells-Gardner Electronics Corporation *

              	
                 

                4,141,970

              	 
      	
                 

                6,278,848

              	 
      	
                 

                16,549,707

              
	
                Purchase
      of goods from Wells-Gardner Electronics Corporation *

              	
                 

                218,546

              	 
      	
                 

                765,240

              	 
      	
                 

                4,481,625

              
	
                Management
      fee charged by Eastech Electronics (M) Sdn. Bhd. **

              	
                 

                41,722

              	 
      	
                 

                63,468

              	 
      	
                 

                132,740

              
	
                Purchase
      of goods from Eastech Electronics (M) Sdn. Bhd. **

              	
                 

                0

              	 
      	
                 

                419,572

              	 
      	
                 

                4,041,554

              
	
                Rental
      of premises charged by Eastech Electronics (M) Sdn. Bhd.
**

              	
                 

                32,826

              	 
      	
                 

                53,337

              	 
      	
                 

                51,340

              

      

      

      
        	
                 
      

              	
                *

              	
                A substantial shareholder
      which holds 50% of the equity interest in the
    Company.

              

      

      
        	
                 
      

              	
                **

              	
                A substantial shareholder
      which holds 50% of the equity interest in the
    Company.

              

      

      

      

      
        	
                12.  

              	
                Reporting
      Periods And Comparative Figures

              

      

      This set
of financial statements has been presented for the period from January 1, 2007
to October 5, 2007. Accordingly, the comparative figures for the statements of
income, changes in equity and cash flows and the related notes are not
comparable as they were extracted from the annual audited financial statements
of the Company for the financial years ended December 31, 2006 and
2005.

      

      

      13.           Subsequent
Events

      

      Subsequent
to balance sheet date, the Company commences the process of liquidation on 1
November 2007.

      

      On 26
December 2007, the Company made its first cash distribution to the shareholders
amounting to approximately USD1,014,000.

      

      
        
          
            
                                                                          

            

          

           

        

        
          Page
14

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