June 30,
2007

June 30,
2006

Assets

Current Assets

Cash

$

––

$

––

Other current assets

––

––

Total Current Assets

––

––

Property and equipment, net

––

––

Other assets:

Due from related party

––

––

Total Assets

$

––

$

––

Liabilities and Stockholders’ Equity (Deficit)

––

.

Current Liabilities

Accounts payable

$

227,681

$

227,681

Due to related party

337,547

337,431

Other liabilities

––

33

Total Current Liabilities

565,228

565,145

Stockholders’ Equity (Deficit)

Preferred stock, $0.001 par value: 5,000,000 shares authorized 2,000 shares issued and outstanding.

2

2

Common stock, $0.001 par value: 300,000,000 shares authorized, 5,766,799 issued and outstanding as of June 30, 2006 and 2005, respectively.

5,767

5,767

Additional paid in capital

376,583

376,583

Deficit accumulated during development stage

(947,5807

)

(947,497

)

Total Stockholders’ Equity (Deficit)

(565,228

)

(565,145

)

Total Liabilities and Stockholders' Equity (Deficit)

––

––

For the Years Ended

June 30,

For the

period from

November 12,

1999

(inception) to
June 30,

2007

2006

2007

Revenues

$

     ––

$

––

$

         24,004

Cost of Goods Sold

––

––

8,766

Gross profit

––

––

15,238

Operating expenses

General and administrative

83

193

828,451

Impairment of long-lived assets

––

––

128,700

Depreciation

––

––

5,667

Total operating expenses

83

193

962,818

Loss from operations

(83

)

(193

)

(947,580

)

Other income (expense)

Interest income

––

––

––

Interest expense

––

––

––

Total other income (expense) - net

––

––

––

Net loss

$

     (83

)

$

(193

)

$

(947,580

)

Net loss per share - basic and diluted

$

     (0.02

)

$

(0.00

)

$

(0.21

)

Weighted average number of shares outstanding during the period - basic and diluted

5,766,799

5,766,799

4,496,298

For the Year Ended

June 30,

For the

period from

November 12,

1999

(inception) to
June 30,

2007

2006

2007

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

     (84

)

$

   (193

)

$

     (947,580

)

Adjustments to reconcile net loss to net cash used in operating activities

Depreciation

––

––

5,667

Stock issued for services

––

––

244,133

Impairment of long lived assets

––

––

128,700

Changes in operating assets and liabilities

Current assets

––

––

––

Accounts payable

––

––

227,681

Other liabilities

(33

)

23

(10

)

Net Cash Used In Operating Activities

(117

)

(170

)

(341409

)

CASH FLOWS USED FROM INVESTING ACTIVITIES

Purchase of fixed assets

––

––

(134,367

)

Net Cash Used In Investing Activities

––

––

(134,367

)

CASH FLOWS FROM FINANCING ACTIVITIES

Funds provided by (to) related party

117

170

337,547

Sale of preferred stock

––

––

––

Proceeds from sale of common stock

––

––

138,219

Net Cash Provided By Financing Activities

117

170

475,766

Net increase (decrease) in cash

––

––

(10

)

Cash - beginning of period

––

––

––

Cash - end of period

$

––

$

––

$

––

Supplemental Disclosure of Cash Flow Information

Cash paid during the period for:

Income taxes

$

––

$

––

$

––

Interest

$

––

$

––

$

––

Preferred Stock

Series A

Common Stock,

$.001 Par Value

Additional

Paid-In

Deficit

Accumulated

During

Development

Total

Stockholders’

Shares

Amount

Shares

Amount

Capital

Stage

Equity

Issuance of common stock for cash November 15, 1999 - related parties - founder shares

($0.001/share)

––

$

––

1,800,000

$

1,800

$

––

$

––

$

1,800

Issuance of common stock for cash December 5, 1999 - ($0.05/share) (Pursuant to Rule 504

Offering)

––

––

840,000

840

41,160

––

42,000

Net loss, 1999

––

––

––

––

––

(12,460

)

(12,460

)

Balance December 31, 1999

––

$

––

2,640,000

$

2,640

$

41,160

$

(12,460

)

$

31,340

Issuance of common stock for cash May 31, 2000 - ($0.05/share) (Pursuant to Rule 504

Offering)

––

––

371,300

371

18,194

––

18,565

Net loss, 2000

––

––

––

––

––

(20,985

)

(20,985

)

Balance December 31, 2000

––

––

3,011,300

$

3,011

$

59,354

$

(33,445

)

$

28,920

Shareholder contribution

––

––

––

––

6,250

––

6,250

Net loss, 2001

––

––

––

––

––

(20,255

)

(20,255

)

Balance December 31, 2001

––

––

3,011,300

$

3,011

$

65,604

$

(53,700

)

$

14,915

Shares issued in lieu of compensation

2,000

2

––

––

998

––

1,000

Net loss, 2002

––

––

––

––

––

(22,165

)

(22,165

)

Balance December 31, 2002

2,000

2

3,011,300

$

3,011

$

66,602

$

(75,865

)

$

(6,250

)

Shares issued for cash - (0.22/share) (pursuant to Rule 504 offering)

324,171

324

69,280

69,604

Shares issued for services

2,431,328

2,432

240,701

243,133

Net Loss for the six month ended June 30, 2003

(833,529

)

(833,529

)

Balance June 30, 2003

5,767

376,583

(909,394

)

(527,044

)

Net Loss Year ended June 30, 2004

––

––

––

––

––

(37,718

)

(37,718)

Balance June 30, 2004

2,000

2

5,766,799

5,767

376,583

(947,112

)

(564,760

)

Net Loss for the year ended June 30, 2005

––

––

––

––

––

(192

)

(192

)

Balance June 30, 2006

2,000

2

5,766,799

$

5,767

$

376,583

$

(947,304

)

$

(564,952

)

Net Loss for the year ended June 30, 2005

––

––

––

––

––

(193

)

(193

)

Balance June 30, 2006

2,000

2

5,766,799

5,767

376,583

(947,497

)

(565,145

)

Net Loss for year ended June 30, 2007

––

––

––

––

––

(83

)

(83

)

Balance June 30, 2007

2,000

2

5,766,799

5,767

376,583

(947,580

)

(565,228

)