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<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>UNITED STATES</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><B>Washington, D.C. 20549</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center><B>FORM
10-Q</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><U>X
&nbsp;&nbsp;&nbsp;</U>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=center><B>For
the quarterly period ended September 30, 2009</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>___
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=center>For the transition period
from ____ to ____</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B><U>WORLDWIDE ENERGY AND MANUFACTURING USA, INC.</U></B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>(Exact
name of registrant as specified in its charter)</P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Colorado</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>0-31761</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>77-0423745</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(State or other jurisdiction of incorporation or
organization)</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(Commission File Number)</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(I.R.S. Employer Identification No.)</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top colSpan=3>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>408 N. Canal Street</P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>South San Francisco, CA &nbsp;94080</P></TD></TR>
<TR>
<TD vAlign=top colSpan=3>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(Address of principal executive
offices)</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Registrant&#146;s telephone number, including area code: (650) 794-9888
</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the past 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes
&nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">x</FONT> &nbsp;No &nbsp;<FONT
style="FONT-FAMILY: Wingdings">&#168;</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (&#167; 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
&nbsp;Yes &nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">&#168;</FONT> No
&nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">&#168;</FONT> </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting Company. &nbsp;See the definitions of &#147;large accelerated filer,&#148;
&#147;accelerated filer&#148; and &#147;smaller reporting Company&#148; in Rule 12b-2 of the
Exchange Act.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Large Accelerated
Filer&nbsp;&nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">&#168;</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated
Filer&nbsp;&nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">&#168;</FONT> &nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Non-Accelerated
Filer&nbsp; &nbsp;&nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">&#168;</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smaller
reporting Company &nbsp;&nbsp;<FONT style="FONT-FAMILY: Wingdings">x</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Indicate by check
mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the
Exchange Act). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes <FONT
style="FONT-FAMILY: Wingdings">&#168;</FONT> &nbsp;&nbsp;No <FONT
style="FONT-FAMILY: Wingdings">x</FONT></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Indicate the number
of shares outstanding of each of the issuer's classes of stock, as of the latest
practicable date.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 1 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px">&nbsp;</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none frame=void>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Class of Securities</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Shares Outstanding at September 30, 2009</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Common Stock, no par value</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>3,621,611</P></TD><A name=_Toc133030766></A><A
name=_Toc143508260></A><A name=_Toc143509054></A><A
name=_Toc143509150></A><A name=_Toc166657191></A><A
name=_Toc166657341></A></TR></TABLE>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px"><BR>&nbsp;</P><A name=_Toc245791418></A><A
name=_Toc245791822></A><A name=_Toc245793846></A><A name=_Toc245793954></A><A
name=_Toc245794011></A>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 2 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><B>PART 1 - FINANCIAL
INFORMATION</B></P>
<P style="MARGIN: 0px"><BR></P><A name=_Toc133030767></A><A
name=_Toc245793847></A><A name=_Toc245793955></A><A name=_Toc245794012></A>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
1. </B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"><B>FINANCIAL
STATEMENTS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; TEXT-INDENT: -48px; LINE-HEIGHT: 15pt">(a)</P>
<P
style="PADDING-LEFT: 72px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The
unaudited condensed consolidated financial statements of registrant for the
three and nine months ended September 30, 2009 and 2008, follow. &nbsp;The
condensed consolidated financial statements reflect all adjustments which are,
in the opinion of management, necessary to a fair statement of the results for
the interim periods presented. &nbsp;All such adjustments are of a normal and
recurring nature.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px"><BR><BR>&nbsp;</P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 3 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>INDEX</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>PAGE</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">ITEM 1.
&nbsp;FINANCIAL STATEMENTS</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>3</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">CONDENSED
CONSOLIDATED BALANCE SHEETS </P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>5</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>6</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS </P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>7</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">NOTES TO THE
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS </P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>9</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt">ITEM
2.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 72px; LINE-HEIGHT: 13pt">MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>33</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt">ITEM
3.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 72px; LINE-HEIGHT: 13pt">QUANTITATIVE
AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>40</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt">ITEM
4.</P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 72px; LINE-HEIGHT: 13pt">CONTROLS
AND PROCEDURES</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>40</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;PART II.
&nbsp;OTHER INFORMATION</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>42</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">SIGNATURES</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>44</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>&nbsp;</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;</B></P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px; TEXT-INDENT: 302px">- 4 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA,
INC. AND SUBSIDIARIES</B></P><A name=_Toc245793848></A><A
name=_Toc245793956></A><A name=_Toc245794013></A>
<P style="PADDING-LEFT: 72px; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><FONT
style="FONT-SIZE: 11pt"><B>CONDENSED CONSOLIDATED BALANCE SHEETS</B></FONT></P>
<P style="MARGIN: 0px" align=center><B>AS OF SEPTEMBER 30, 2009 AND DECEMBER 31,
2008</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>September 30, 2009 </B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>December 31, 2008</B></P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center>ASSETS</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>(Unaudited) </B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Current assets:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Cash and cash equivalents</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>5,067,638</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,092,476
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Restricted cash</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>1,417,356</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>-</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accounts receivables, net of allowances of $281,000
and $46,000, respectively</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,985,055 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,790,506
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Notes receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;354,263 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;269,507
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Inventories</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;4,926,189
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,754,765
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Income tax receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;186,157 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Advances to suppliers</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;539,394 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,824
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Other receivables</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111,006 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185,400
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Prepaid and other current assets</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;401,260 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206,770
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total current assets</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;27,988,318 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,399,248 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Property, plant and equipment, net</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;3,554,610
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,353,539
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Intangible assets</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,101,000
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,101,000
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Goodwill</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285,714 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285,714
&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Investment at cost</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51,892
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;51,892
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Deposits paid for contracts in process</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,673,084
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Long term receivable &#150; related party</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;253,996 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260,973
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Other assets</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,559
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total assets</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;33,235,530 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,133,009 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center>LIABILITIES AND EQUITY</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Current liabilities:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accounts payable</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;14,481,008 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,400,253
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accrued expenses</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,029,332
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;867,291
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Line of credit</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,000,000
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Acquisition cost payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;285,714
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Tax payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;492,516 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;364,213
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Due to related parties</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,351,276
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,243,024
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Customer deposits</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;175,723 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;964,998
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total current liabilities</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;19,529,855 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,125,493
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Non-current liabilities</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Line of credit</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;763,285 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;937,075
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Loan payable to stockholders</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,024
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total non-current liabilities</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;763,285 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;997,099
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total liabilities</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;20,293,140 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,122,592
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Stockholders&#146; equity </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Common stock (No Par Value; 100,000,000 shares
authorized; 3,621,611 and 3,493,511 shares issued and outstanding,
respectively)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,270,399
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,108,379
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Retained earnings</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;5,160,166
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,801,921
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accumulated other comprehensive income</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;665,510 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;487,478
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total equity attributable to Worldwide</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;12,096,075 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,397,778 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Non-controlling interest</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;846,315 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;612,639
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total stockholders&#146; equity</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;12,942,390 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,010,417 </P></TD></TR>
<TR>
<TD vAlign=top colSpan=2>
<P style="MARGIN: 0px">Total liabilities and stockholders&#146; equity</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right>$ </P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;33,235,530 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right>$</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,133,009
</P></TD></TR></TABLE><A name=RANGE!A1:E69></A><A name=_Toc80349519></A>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center>See accompanying notes to unaudited
condensed consolidated financial statements</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 5 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P><A name=_Toc245793849></A><A name=_Toc245793957></A><A
name=_Toc245794014></A>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 13pt"
align=center><FONT style="FONT-SIZE: 11pt"><B>UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME</B></FONT></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="MARGIN: 0px" align=center><B>&nbsp;For the Three Months Ended
</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="MARGIN: 0px" align=center><B>&nbsp;For the Nine Months Ended
</B></P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="MARGIN: 0px" align=center><B>September 30,</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="MARGIN: 0px" align=center><B>September 30,</B></P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>2009</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>2008</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>2009</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>2008</B></P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Revenue</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=justify>Sales</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>18,618,508 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>19,102,654 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>39,217,288 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>31,348,064 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=justify>Cost of goods sold</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>15,757,244 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>17,738,721 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>32,654,832 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>27,493,975 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Gross profit</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;2,861,264 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,363,933 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;6,562,456 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;3,854,089 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Operating Expenses</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Selling, general and administrative expenses</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,316,386 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;750,983
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;3,728,136 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;2,227,502 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="PADDING-LEFT: 20px; MARGIN: 0px; TEXT-INDENT: -20px">Management
and professional fees paid to shareholders (Note 14)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;80,000 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;72,680 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260,000 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225,680 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Stock based compensation</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,800 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(15,000)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,020
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,000 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Depreciation</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,485 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,879
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;246,366
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,713 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total operating expenses</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,526,671 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;811,542
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;4,396,522 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;2,558,895 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net operating income</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,334,593 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;552,391
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;2,165,934 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,295,194 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Other Income (expenses)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Interest income</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,007
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,267
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,164 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,217 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Interest expense</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(20,114)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,287)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(40,923)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;(74,375)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Interest expense paid to shareholders (Note
14)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9,838)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;(27,284)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Other income (expense)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13,391 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,704
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,399
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,704
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Exchange &nbsp;gain (loss)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97,996 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103,421
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(691)</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total other expenses</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;94,280 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,846
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,061 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;(84,429)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Income before income taxes</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,428,873 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;555,237
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;2,248,995 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,210,765 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Income taxes</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(427,497)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,514)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(670,121)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;(16,813)</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Income after taxes</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,001,376 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;546,723
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,578,874 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,193,952 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="PADDING-LEFT: 20px; MARGIN: 0px; TEXT-INDENT: -18px">Net
income(loss) from discontinued operations, net of tax</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,115)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,017
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net income before non-controlling interest</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,001,376 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;540,608
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,578,874 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,195,969 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net income attributable to non-controlling
interest</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;(98,019)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(220,629)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
&nbsp;&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net income attributable to Worldwide</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;903,357
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;540,608
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,358,245 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,195,969 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Other comprehensive income</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=justify>Foreign currency translation, net of
tax</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,423 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;146,017
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;191,079
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;102,835
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Comprehensive income (loss) attributable to
non-controlling interest</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;524
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,047)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
&nbsp;&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Total &nbsp;comprehensive income</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;987,304
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;686,625
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,536,277 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;1,298,804 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Basic and diluted earnings per share from
continuing operations</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.25
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.38
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Basic and diluted earnings per share from
discontinued operations</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00
&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.00)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00
&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.00
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Basic and diluted earnings per share</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.25
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.17
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.38
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Basic and diluted weighted average shares
outstanding</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;3,621,611 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;3,170,906 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;3,578,014 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><B>&nbsp;</B></P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;2,471,384 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=center><BR>See
accompanying notes to unaudited condensed consolidated financial statements</P>
<P style="MARGIN: 0px" align=center>- 6 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 14px" align=center>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P><A name=_Toc245793850></A><A name=_Toc245793958></A><A
name=_Toc245794015></A>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 13pt"
align=center><FONT style="FONT-SIZE: 11pt"><B>UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="MARGIN: 0px" align=center><B>For the Nine Months
Ended</B></P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="MARGIN: 0px" align=center><B>September 30,</B></P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>2009</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px" align=center><B>2008</B></P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Cash flows from operating activities:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD><A name=RANGE!A5></A></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Net income attributable to Worldwide</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,358,245
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,195,969
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net income attributable to non-controlling
interest</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;220,629
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="PADDING-LEFT: 17px; MARGIN: 0px; TEXT-INDENT: -18px">Adjustments
to reconcile net income to net cash used in operating activities:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Depreciation</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;246,564
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;74,646
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Allowance for bad debts</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;234,796
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20,000)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Stock based compensation</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,020
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,000
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Changes in operating assets and liabilities:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accounts receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;(10,250,963)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(2,496,611)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Notes receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(84,468)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Inventories</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;(1,167,944)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(1,433,804)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Income tax receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(185,921)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,375)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Advance to suppliers</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(438,754)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,847)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Related party payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,497
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Prepaid and other current assets</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(198,622)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(277,531)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accounts payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;11,155,323 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,308,977
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Accrued expense and acquisition cost payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(123,636)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;105,196 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Tax payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;128,152 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,105
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Customer deposits</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(789,339)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net cash provided by (used by) operating
activities</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;272,579 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(1,441,275)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Cash flows from investing activities:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Loan to related parties</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(207,130)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Capital expenditures</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;(744,218)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(648,887)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Deposits paid for investment in subsidiaries</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>-</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>(772,692)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Deposits to restricted account</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;(1,417,356) </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net cash used by investing activities</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;(2,161,574)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;(1,628,709)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Cash flows from financing activities:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Proceeds from issuance of common stock</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;4,578,494
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Repayment of loans payable to shareholders</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60,024)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(438,788)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Proceeds from related parties</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;107,521
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Net proceeds from line of credit</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000,000
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;1,166,786
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Repayment of bank loans</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(173,790)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net cash flows provided by financing
activities:</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,873,707
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;5,306,492
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Effect of exchange rate changes on cash and cash
equivalents</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9,550)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,411 </P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Net increase (decrease) in cash and cash
equivalents</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24,838)
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,350,919
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Cash and cash equivalents- beginning of
period</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,092,476
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,111,825
</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Cash and cash equivalents- end of period</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,067,638
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;4,462,744
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center>See accompanying notes to unaudited
condensed consolidated financial statements</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 7 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px"><B>Supplemental disclosure of non cash
activities:</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=2>
<P style="MARGIN: 0px">Cash paid during the period for:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Interest </P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,923
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101,659 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px">Income tax </P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;390,217
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,758
</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center>See accompanying notes to unaudited
condensed consolidated financial statements</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 8 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P><A name=_Toc245793851></A><A name=_Toc245793959></A><A
name=_Toc245794016></A>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 13pt"
align=center><FONT style="FONT-SIZE: 11pt"><B>NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"><B>1.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>MANAGEMENT'S
REPRESENTATION OF INTERIM FINANCIAL INFORMATION</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
accompanying unaudited condensed consolidated financial statements have been
prepared by Worldwide Energy and Manufacturing USA, Inc. and subsidiaries
without audit pursuant to the rules and regulations of the Securities and
Exchange Commission. &nbsp;Certain information and disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted as allowed by such rules
and regulations, and management believes that the disclosures are adequate to
make the information presented not misleading. &nbsp;These condensed
consolidated financial statements include all of the adjustments, which in the
opinion of management are necessary to a fair presentation of financial position
and results of operations. &nbsp;All such adjustments are of a normal and
recurring nature. Interim results are not necessarily indicative of results for
a full year.&nbsp;These condensed consolidated financial statements should be
read in conjunction with the audited financial statements at December 31, 2008
as filed in the Company Form 10-K filed with the Commission on April 14, 2009
and the amended 10K/A filed August 19, 2009 and September 1, 2009.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"><B>2.
</B></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>SIGNIFICANT
ACCOUNTING POLICIES </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>This
summary of significant accounting policies of the Company is presented to assist
in understanding the Company&#146;s financial statements. &nbsp;The financial
statements and notes are representations of the Company&#146;s management, which is
responsible for their integrity and objectivity. These accounting policies
conform to generally accepted accounting principles and have been consistently
applied in the preparation of the condensed consolidated financial statements
and the restated December 31, 2008 financials included in the 10-K/A filed on
September 1, 2009. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In June
2009 the FASB established the Accounting Standards Codification ("Codification"
or "ASC") as the source of authoritative accounting principles recognized by the
FASB to be applied by nongovernmental entities in the preparation of financial
statements in accordance with generally accepted accounting principles in the
United States ("GAAP"). Rules and interpretive releases of the Securities and
Exchange Commission ("SEC") issued under authority of federal securities laws
are also sources of GAAP for SEC registrants. Existing GAAP was not intended to
be changed as a result of the Codification, and accordingly the change did not
impact our financial statements. The ASC does change the way the guidance is
organized and presented.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Description
of Business </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Worldwide Energy and Manufacturing USA, Inc. (&#147;Worldwide&#148; or &#147;the
Company&#148;) is an international manufacturing and engineering firm, concentrating
on PV solar modules and contract manufacturing services, using multiple
factories in China. Worldwide services customers primarily in Europe, South
Korea for our solar modules and United States-based companies for their
outsource of smaller and scale production orders for offshore production in
China. From our inception in 1993 until 2005, we were strictly an intermediary
or &#147;middle man,&#148; working with our customers and our subcontractors to assure
that our customers received high quality components on a timely basis that
fulfilled their specific needs. While we still subcontract a significant portion
of our business, since 2005, we have begun the transition to becoming a direct
contract manufacturer, operating several of our own factories. &nbsp;Recently,
we announced the opening of two additional factories, allowing us to become a
direct manufacturer for solar modules and for power supply units as described
below.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In
February of 2008, Worldwide established a solar division that focuses on
photovoltaic module technology under the brand name of &#147;Amerisolar.&#148; &nbsp;On
February 25, 2008, the Company changed its name from Worldwide Manufacturing
USA, Inc. to Worldwide Energy and Manufacturing USA, Inc. in order to reflect
its expansion into the solar energy industry. The Company issued 300,000
restricted shares for the Amerisolar brand name. </P>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 9 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Worldwide leased a
129,167 square foot facility in Ningbo, China. The lease term is from July 18,
2008 to July 17, 2013. This facility houses the production operations and
R&amp;D center for the Company&#146;s solar division. Operations at this facility
began during the first quarter of 2009.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited (&#147;De Hong&#148;), through acquiring 55% of
the outstanding capital stock of De Hong, a China corporation, through
Worldwide&#146;s wholly owned subsidiary Intech Electro-Mechanical Products Co.,
Ltd., a Chinese corporation (&#147;Intech&#148;). Shanghai De Hong Electric and Electronic
Company is the holding Company for the operating subsidiary Shanghai
Intech-Detron Electronic Co. (&#147;Detron&#148;). &nbsp;The Company purchased De Hong
based on the fair value of its assets at the time of purchase. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
terms of the purchase agreement stated that Worldwide would pay a cash
consideration of $1,022,700 dollars for 55% interest in DeHong. Intech paid the
first installment of $714,286 on behalf of Worldwide in September 2008. During
the three months ended March 31, 2009, Worldwide paid $308,414 for the second
installment and the total consideration of the purchase price of $1,022,700 was
paid in full.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company funded the acquisition with some of the proceeds from its sale of
1,055,103 shares of its common stock, or $4,747,970, which took place in June
2008. &nbsp;&nbsp;Worldwide received 55% control of the operating subsidiary,
Detron. &nbsp;Detron is a power supply factory in Shanghai, China with design
and R&amp;D capabilities. &nbsp;This was accounted for as a purchase of Detron,
where Worldwide has operating control. The Company began to consolidate Detron
into the Company&#146;s consolidated financial statements beginning on October 1,
2008.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
August 15, 2008, Worldwide formed a new Company called Nantong Ningbo Solar
factory (&#147;Ningbo Solar&#148;), which is our solar energy research, development and
manufacturing subsidiary. The Company established a factory to provide
installation services to different solar project. The Company also acts as an
agent to import or export the products and services overseas. The Ningbo Solar
factory began operations during the first quarter of 2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
November 14, 2005, Worldwide established a die-casting and machining presence
through leasing an existing facility from a former supplier, and initially
investing approximately $500,000 to upgrade the equipment and manufacturing
buildings. In this transaction, we acquired assets, the expertise of the
employees, the managers of the factories, and a portion of the existing
customers of those factories. In the third quarter of 2005, we also established
an electronics manufacturing factory. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As of
December 31, 2008 we own and operate four factories that we now use for the
manufacturing of certain product lines that we historically had to subcontract,
and we are using the services of approximately 40 subcontractors to manufacture
those product lines for which we do not have our own manufacturing
capabilities.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center>- 10 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Principles
of Consolidation </B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">The
accompanying consolidated financial statements include Worldwide Energy and
Manufacturing USA, Inc., a Colorado corporation and a public company, its
operating subsidiary, Worldwide USA, a California corporation, and six
subsidiary companies, Shanghai Intech Electro-Mechanical Products Co.,
Ltd.(&#147;Intech&#148;), Shanghai Intech Precision Mechanical Products Ltd(&#147;Die Cast&#148;).,
Shanghai Intech-Detron Electric and Electronic Company Limited (&#147;Detron&#148;),
Ningbo Solar Factory (&#147;Ningbo Solar&#148;), Nantong Solar Factory (&#147;Nantong&#148;) and
Shanghai De Hong Electric and Electronic Company Limited (&#147;De Hong&#148;), owned by
Worldwide USA. </P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">Effective
January 1, 2009, the Consolidation Topic, ASC 810-10-45-16, revised the
accounting treatment for non-controlling minority interests of partially-owned
subsidiaries.&nbsp;&nbsp;Non-controlling minority interests represent the
portion of earnings that is not within the parent Company&#146;s control. These
amounts are now required to be reported as equity instead of as a liability on
the balance sheet.&nbsp;&nbsp;This change resulted in a $612,639
reclassification from other long-term liabilities to shareholders&#146; equity on the
December 2008 consolidated balance sheet and is primarily related to the
$1,022,700 investment in Shanghai De Hong Electric and Electronic Company
Limited (&#145;De Hong&#148;).&nbsp; Additionally, this statement requires net income from
non-controlling minority interests to be shown separately on the consolidated
statements of income and other comprehensive income.&nbsp;&nbsp;These amounts
are $98,019 and $220,629 for the three and nine month periods respectively
ending September 30, 2009, and shown separately in the unaudited consolidated
statement of income and other comprehensive income. All significant intercompany
balances and transactions have been eliminated in consolidation.</P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">The
Company also consolidates any variable interest entities (VIEs), of which it is
the primary beneficiary, as defined. &nbsp;The Company does not have any VIEs
that need to be consolidated at this time. When the Company does not have a
controlling interest in an entity, but exerts a significant influence over the
entity, the Company would apply the equity method of accounting. </P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt"><B>Comprehensive
Income</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company reports comprehensive income in accordance with FASB ASC Topic 220
&#147;Comprehensive Income," which established standards for reporting and displaying
comprehensive income and its components in a financial statement that is
displayed with the same prominence as other financial statements.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR>The
accumulated other comprehensive income on the consolidated balance sheets at
September 30, 2009 and December 31, 2008 are summarized as follows: </P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>September 30, 2009</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>December 31, 2008</B></P></TD></TR>
<TR>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Accumulated
Other Comprehensive Income</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Foreign
Currency Translation Adjustment</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;665,510
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;487,478 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;665,510
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;487,478
</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 11 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Comprehensive
Income (continued)<BR></B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
components of comprehensive income on the statements of income and comprehensive
income for the three and nine month periods ended September 30, 2009 and 2008
are summarized as follows:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;For the Three Months Ended September 30,</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;For the Nine Months Ended September
30,</B></P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>2009</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>2008</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>2009</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>2008</B></P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Other
Comprehensive Income</B></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net Income
attributable to Worldwide</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>903,357</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>540,608</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,358,245</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,195,969</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Foreign
Currency Translation Adjustment</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>83,423 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>146,017 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>191,079 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>102,835 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Comprehensive
Income (Loss) attributable to Non-Controlling Interest</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;524
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,047)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
Comprehensive Income</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>987,304 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>686,625 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,536,277 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,298,804 </P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Accounts Receivable</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Trade
accounts receivables are recorded at the invoiced amount and do not bear
interest. Amounts collected on trade accounts receivables are included in net
cash provided by operations activities in the consolidated cash flow statements.
The Company maintains an allowance for doubtful accounts for estimated losses
inherent in its accounts receivable portfolio. In establishing the required
allowance, management considers historical losses, current receivables aging
reports and existing industry and People&#146;s Republic of China (&#147;PRC&#148;) economic
data. The Company reviews its allowances every month. Past due invoices over 90
days that exceed a specific amount are reviewed individually for collectability.
During the nine month period ended September 30, 2009, a total amount of $9,610
was charged off against the allowance after all means of collection were
exhausted and the potential for recovery was considered remote. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Property and equipment</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Property, plant and equipment are stated at cost. Depreciation is
computed over the estimated useful lives of the related asset type using the
straight-line method for financial statement purposes. Maintenance and repairs
are expensed as incurred and the costs of additions and betterments that
increase the useful lives of the assets are capitalized. When property or
equipment is disposed, the cost and related accumulated depreciation and
amortization are removed from the accounts and any gain or loss is included in
other income or expenses. &nbsp;We evaluate the</P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 12 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Property and
equipment (continued)</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>the
recoverability of property, plant and equipment and intangible assets in
accordance with FASB ASC Topic 360, &#147;<I>Property, Plant, and Equipment</I>,&#148; and
FASB ASC Topic 205, &#147;<I>Presentation of Financial Statements</I>.&#148; We test for
impairment losses on long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than then assets&#146; carrying amounts. An impairment loss
is recognized in the event the carrying value of these assets exceeds the fair
value of the applicable assets. Impairment evaluations involve management
estimates of asset useful lives and future cash flows. Actual useful lives and
cash flows could be different from those estimated by management, which could
have a material effect on our operating results and financial position. &nbsp;As
of September 30, 2009, management determined that there was no such
impairment.</P>
<P
style="MARGIN-TOP: 11px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=justify>The estimated service lives of property and equipment are as
follows: </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 6px; PADDING-LEFT: 16px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; TEXT-INDENT: -16px; LINE-HEIGHT: 13pt">Buildings
and leasehold improvements</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>7&nbsp;to&nbsp;40&nbsp;years</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 6px; PADDING-LEFT: 16px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; TEXT-INDENT: -16px; LINE-HEIGHT: 13pt">Machinery
and equipment</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=right>5
years</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 6px; PADDING-LEFT: 16px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; TEXT-INDENT: -16px; LINE-HEIGHT: 13pt">Transportation
vehicles</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=right>5
years</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 6px; PADDING-LEFT: 16px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; TEXT-INDENT: -16px; LINE-HEIGHT: 13pt">Furniture
and fixtures</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=right>7
years</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="MARGIN-TOP: 6px; PADDING-LEFT: 16px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; TEXT-INDENT: -16px; LINE-HEIGHT: 13pt">Computers
and computer software</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=right>3
years</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Construction
in-progress</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Plant
and production lines currently under development are accounted for as
construction-in-progress. Construction-in-progress is recorded at acquisition
cost, including land rights cost, development expenditure, professional fees and
the interest expenses capitalized during the course of construction for the
purpose of financing the project. Upon completion and readiness for use of the
project, the cost of construction-in-progress is to be transferred to fixed
assets, at which time depreciation will commence. As of September 30, 2009, the
Company has incurred and capitalized into construction-in-progress $1,522,818 of
construction costs. This construction in progress includes $1,082,644 for the
building of a new solar factory and $440,174 for a new building and die cast
machinery. The Company had no capitalized interest and to date has funded this
construction through operations without the use of outside
financing.&nbsp;&nbsp;The estimated additional cost to be incurred in 2009 is
$400,000 and the total cost of the project will be $4,500,000. &nbsp;Upon
completion of the construction in progress, the Company will record to property
and equipment and beginning to depreciate over the useful life.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Long-Lived
Assets</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">The
Company&#146;s long-lived assets and other assets are reviewed for impairment in
accordance with the guidance of the FASB ASC 360-10, Property, Plant, and
Equipment, whenever events or changes in circumstances indicate that the
carrying amount of the asset may not be recoverable. Recoverability of an asset
to be held and used is measured by a comparison of the carrying amount of an
asset to the future undiscounted cash flows expected to be generated by the
asset. If such asset is considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the asset
exceeds its fair value. Fair value is determined through various valuation
techniques including discounted cash flow models, quoted market values and
third-party independent appraisals, as considered necessary. Through September
30, 2009, the Company had not experienced impairment losses on its long-lived
assets. However, there can be no assurances that demand for the Company&#146;s
products or services will continue, which could result in an impairment of
Long-Lived assets in the future.</P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 13 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 12px"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Inventories
</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="MARGIN-TOP: 5px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=justify>Inventories are stated at lower of cost or market and consist of
materials, labor and overhead. The Company determines the cost of inventory by
the first-in, first-out method. The Company evaluates inventories for excess
quantities and obsolescence. This evaluation includes analyses of sales levels
by product and projections of future demand. In order to state the inventory at
lower of cost or market, the Company maintains reserves against its inventory.
If future demand or market conditions are less favorable than the Company&#146;s
projections, a write-down of inventory may be required, and would be reflected
in cost of goods sold in the period the revision is made. Inventories consist of
raw material, work in progress and finished goods of manufactured
products.&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>&nbsp;</B></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>&nbsp;Revenue
Recognition </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company recognizes revenues in accordance with the guidelines of the Securities
and Exchange Commission (&#147;SEC&#148;) Staff Accounting Bulletin (&#147;SAB&#148;) No. 104
&#147;Revenue Recognition&#148;. &nbsp;The Company recognizes revenue from product sales
when the orders are completed and shipped, provided that collection of the
resulting receivable is reasonably assured. &nbsp;Amounts billed to customers
are recorded as sales while the shipping costs are included in cost of sales.
Returns of defective custom parts may only be exchanged for replacement parts
within 30 days of the invoice date. &nbsp;Returns of defective parts, may be
exchanged for replacement parts or for a refund. &nbsp;Revenue from
non-refundable customer tooling deposits is recognized when the materials are
shipped or when the deposit is forfeited, whichever is earlier. &nbsp;During the
current quarter, industry conditions and market forces have necessitated the
Company to extend their payment terms in the marketplace; however, this change
in terms does not prohibit the Company from recognizing revenue in accordance
with SAB No. 104. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Cash
and Cash Equivalents </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For
purposes of the statement of cash flows, the Company considers all highly liquid
debt instruments purchased with a maturity of three months or less to be cash
equivalents. &nbsp;A substantial amount of the Company&#146;s cash is held in bank
accounts in the People&#146;s Republic of China and is not protected by the Federal
Deposit Insurance Corporation (FDIC) insurance or any other similar insurance.
Accounts held at U.S. financial institutions are insured by the FDIC up to
$250,000. As of September 30, 2009 the Company&#146;s cash balance held at U.S banks
was $2,762,295 which was $2,262,295 in excess of the insured amounts. Given the
current economic environment and the financial conditions of the banking
industry there is a risk that deposits may not be readily available or covered
by such insurance. The Company has had no loss on excess cash in domestic or
foreign banks in past years.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Income tax</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="MARGIN-TOP: 5px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt">The
Company is subject to income taxes in the U.S. and China. Significant judgment
is required in evaluating our uncertain tax positions and determining our
provision for income taxes. In accordance with FASB ASC Topic 740, <I>&#147;Income
Taxes,&#148; </I>we provide for the recognition of deferred tax assets if realization
of such assets is more likely than not. &nbsp;</P>
<P style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px">&nbsp;</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 14 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P
style="MARGIN-TOP: 5px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 5px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Income tax (continued)</B></P>
<P style="MARGIN-TOP: 5px; MARGIN-BOTTOM: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 5px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=justify>Taxation on profits earned in the PRC has been calculated on the
estimated assessable profits for the year at rates of taxation prevailing in the
municipalities in the PRC in which the Company operates.</P>
<P
style="MARGIN-TOP: 5px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=justify>The Company does not accrue United States income tax on unremitted
earnings from foreign operations, as it is the Company&#146;s intention to invest
these earning in the foreign operations indefinitely.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Under
the Provisional Regulations of The People&#146;s Republic of China Concerning Income
Tax on Enterprises promulgated by the State Council which came into effect on
January 1, 1994, income tax is payable by a Wholly Foreign Owned Enterprises at
a rate of 15% of their taxable income. Preferential tax treatment may, however,
be granted pursuant to any law or regulations from time to time promulgated by
the State Council. On March 16, 2007, The People&#146;s Republic of China enacted a
new Enterprise Income Tax Law for the purpose of unifying the tax treatment of
domestic and foreign enterprises. This new law eliminates the preferential tax
treatment for new Wholly Foreign Owned Enterprises but allows previously granted
exemptions to stay in place through 2012, with the exception that the statutory
tax rate will increase by 2% per year from 15% in 2006 to 25% by 2012. The
Company did not have any subsidiaries that qualified for any preferred tax
treatment. &nbsp;For income tax purposes, we use 39% blended rate (US Federal
and state) for US operations an approximately 10% to 25%, based on the
municipality in which the subsidiary resides, for China based operations. These
rates are applied to Net Income before Income Taxes.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Goodwill
</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">The
Company evaluates goodwill and other intangible assets in accordance with FASB
ASC Topic 350, &#147;<I>Intangibles &#151; Goodwill and Other.&#148; </I>Goodwill is recorded
at the time of an acquisition and is calculated as the difference between the
total consideration paid for an acquisition and the fair value of the net
tangible and intangible assets acquired. Accounting for acquisitions requires
extensive use of accounting estimates and judgments to allocate the purchase
price to the fair value of the net tangible and intangible assets acquired,
including in-process research and development (&#147;IPR&amp;D&#148;). Goodwill and
intangible assets deemed to have indefinite lives are not amortized, but are
subject to annual impairment tests. If the assumptions and estimates used to
allocate the purchase price are not correct, or if business conditions change,
purchase price adjustments or future asset impairment charges could be required.
The value of our intangible assets, including goodwill, could be impacted by
future adverse changes such as: (i)&nbsp;any future declines in our operating
results, (ii)&nbsp;a decline in the valuation of technology Company stocks,
including the valuation of our common stock, (iii)&nbsp;a significant slowdown
in the worldwide economy or (iv)&nbsp;any failure to meet the performance
projections included in our forecasts of future operating results. In accordance
with FASB ASC Topic 350, the Company tests goodwill for impairment on an annual
basis or more frequently if the Company believes indicators of impairment exist.
Impairment evaluations involve management estimates of asset useful lives and
future cash flows. Significant management judgment is required in the forecasts
of future operating results that are used in the evaluations. It is possible,
however, that the plans and estimates used may be incorrect. If our actual
results, or the plans and estimates used in future impairment analysis, are
lower than the original estimates used to assess the recoverability of these
assets, we could incur additional impairment charges in a future period.</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 12px">&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 15 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt"><B>Goodwill
(Continued)</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">The
Company performs its annual impairment review of goodwill in December, and when
a triggering event occurs between annual impairment tests. The Company recorded
no impairment loss for December 31, 2008 or for the period ending September 30,
2009.</P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Non-Cash
Equity Transactions </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Shares
of equity instruments issued for non-cash consideration are recorded at the fair
value of the consideration received based on the market value of services to be
rendered, or at the value of the stock given, considered in reference to
contemporaneous cash sale of stock. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Estimates</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
preparation of these consolidated financial statements in accordance 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 dates of the consolidated financial statements and the
reported amounts of net sales and expenses during the reported periods.
&nbsp;Actual results may differ from those estimates and such differences may be
material to the financial statements. &nbsp;The more significant estimates and
assumptions by management include among others: &nbsp;useful lives and residual
values of fixed assets, valuation of inventories and accounts receivable, stock
based compensation, purchase price allocation, and goodwill and intangible
assets impairment tests. The current economic environment has increased the
degree of uncertainty inherent in these estimates and assumptions. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Foreign
Currency Transactions and Translation </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company&#146;s principal country of operations is The People&#146;s Republic of China. The
financial position and results of operations of the Company are determined using
the local currency (&#147;Renminbi&#148; or &#147;Yuan&#148;) as the functional currency. The
results of operations denominated in foreign currency are translated at the
average rate of exchange during the reporting period. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Assets
and liabilities denominated in foreign currencies at the balance sheet date are
translated at the exchange rates prevailing at the balance sheet date. The
registered equity capital denominated in the functional currency is translated
at the historical rate of exchange at the time of capital contribution. All
translation adjustments resulting from the translation of the financial
statements into the reporting currency (&#147;US Dollars&#148;) are dealt with as a
separate component within stockholders&#146; equity. Translation adjustments net of
tax totaled $83,423 and $146,017, for the three months ended September 30, 2009
and 2008, respectively and $191,079 and $102,835, for the nine months ended
September 30, 2009 and 2008, respectively.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As of
September 30, 2009 and 2008, the exchange rate was RMB 6.8376 and RMB 6.8551 per
U.S. Dollar, respectively. &nbsp;The average exchange rate for the nine months
ended September 30, 2009 and 2008 was RMB 6.8425 and RMB 6.9989,
respectively.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px"><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 16 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B></B>&nbsp;<B>WORLDWIDE
ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>&nbsp;NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Fair Value
Measurements</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Effective April 1,
2009, the FASB ASC Topic 825, <I>Financial Instruments</I>,
requires<I>&nbsp;</I>disclosures about fair value of financial instruments in
quarterly reports as well as in annual reports.&nbsp;&nbsp;For Worldwide, this
statement applies to certain investments and long-term debt.&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The FASB ASC Topic
820, <I>Fair Value Measurements and Disclosures</I>, clarifies the definition of
fair value for financial reporting, establishes a framework for measuring fair
value and requires additional disclosures about the use of fair value
measurements.&nbsp;&nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Various inputs are
considered when determining the fair value of the Company&#146;s investments and
long-term debt.&nbsp;&nbsp;The inputs or methodologies used for valuing
securities are not necessarily an indication of the risk associated with
investing in these securities.&nbsp;&nbsp;These inputs are summarized in the
three broad levels listed below.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol">&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Level
1 &#150; observable market inputs that are unadjusted quoted prices for identical
assets or liabilities in active markets.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol">&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Level
2 &#150; other significant observable inputs (including quoted prices for similar
securities, interest rates, credit risk, etc&#133;).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol">&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Level
3 &#150; significant unobservable inputs (including the Company&#146;s own assumptions in
determining the fair value of investments).</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company adoption of FASB ASC Topic 825 did not have a material impact on the
Company&#146;s consolidated financial statements.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
carrying value of financial assets and liabilities recorded at fair value is
measured on a recurring or nonrecurring basis. Financial assets and liabilities
measured on a non-recurring basis are those that are adjusted to fair value when
a significant event occurs. The Company had no financial assets or liabilities
carried and measured on a nonrecurring basis during the reporting periods.
Financial assets and liabilities measured on a recurring basis are those that
are adjusted to fair value each time a financial statement is prepared. The
Company&#146;s had no financial assets and/or liabilities carried at fair value on a
recurring basis at September 30, 2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As of
September 30, 2009 and December 31, 2008 the fair value of cash, accounts
receivable, other receivables, accounts payable, commercial notes payable, lines
of credit and accrued expenses approximated carrying value due to the short
maturity of the instruments, quoted market prices, or interest rates, which
fluctuate with market rates.</P>
<P style="MARGIN: 0px" align=justify><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 17 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Fair Value
Measurements (Continued)</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
availability of inputs observable in the market varies from instrument to
instrument and depends on a variety of factors including the type of instrument,
whether the instrument is actively traded, and other characteristics particular
to the transaction. For many financial instruments, pricing inputs are readily
observable in the market, the valuation methodology used is widely accepted by
market participants, and the valuation does not require significant management
discretion. For other financial instruments, pricing inputs are less observable
in the market and may require management judgment.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify><B>Basic and diluted
earnings per share</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Basic
earnings per share are based on the weighted-average number of shares of common
stock outstanding.&nbsp;&nbsp;Diluted earnings per share is based on the
weighted-average number of shares of common stock outstanding adjusted for the
effects of common stock that may be issued as a result of the following types of
potentially dilutive instruments:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P style="PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Warrants,</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P style="PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Employee stock options, and</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P style="PADDING-LEFT: 120px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Other equity awards, which include long-term incentive awards.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The FASB ASC Topic
260, <I>Earnings Per Share</I>, requires Worldwide to include additional shares
in the computation of earnings per share, assuming dilution.&nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>Diluted earnings per share
are based on the assumption that all dilutive options were converted or
exercised. Dilution is computed by applying the treasury stock method. Under
this method, options are assumed to be exercised at the time of issuance, and as
if funds obtained thereby were used to purchase common stock at the average
market price during the period.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>Basic and diluted earnings
per share are the same as there was no dilutive effect of the warrants and stock
options for the three and nine months ended September 30, 2009 and 2008. </P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px" align=center>- 18 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px"><BR></P><A name=FIS_UNIDENTIFIED_TABLE_5></A>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Concentrations,
Risks, and Uncertainties </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>All of
the Company&#146;s manufacturing is located in the Peoples Republic of China
(&#147;PRC&#148;).&nbsp;&nbsp;There can be no assurance that the Company will be able to
successfully continue to manufacture its products and failure to do so would
have a material adverse effect on the Company&#146;s financial position, results of
operations and cash flows. Also, the success of the Company&#146;s operations is
subject to numerous contingencies, some of which are beyond management&#146;s
control. These contingencies include general economic conditions, price of raw
material, competition, governmental and political conditions, and changes in
regulations. Because the Company is dependent on foreign trade in PRC, the
Company is subject to various additional political, economic and other
uncertainties. Among other risks, the Company&#146;s operations will be subject to
risk of restrictions on transfer of funds, domestic and international customs,
changing taxation policies, foreign exchange restrictions, and political and
governmental regulations.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company operates in China, which may give rise to significant foreign currency
risks from fluctuations and the degree of volatility of foreign exchange rates
between U.S. dollars and the Chinese currency RMB.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>At
September 30, 2009, one customer accounted for more than 10% of the Company&#146;s
accounts receivable, with a total amount of $8,851,808, representing 59.1% of
total accounts receivable in aggregate. This accounts receivable includes sales
with extended payment terms due to market conditions and competitive pressures.
At September 30, 2008, three customers individually accounted for more than 10%
of the Company&#146;s accounts receivable, these customers&#146; total accounts receivable
amounts to $2,830,204, representing 48.0% of total accounts receivable in
aggregate. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>At
September 30, 2009, one customer accounted for more than 10% of our quarterly
sales with a sales mount of $10,859,160 or 58.3% of sales. &nbsp;At September
30, 2008, two customers individually accounted for greater than 10% of quarterly
sales with a total sales volume in the quarter of $14,390,132, or 75.3%.
&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>At
September 30, 2009, one supplier accounted for more than 10% of our Cost of
Goods Sold for the quarter. &nbsp;Purchases from this supplier totaled
$9,036,295 or 57.3% of the quarterly Cost of Goods Sold. &nbsp;Market conditions
have allowed the Company to negotiate extended payment periods from this
supplier. &nbsp;At September 30, 2008, one supplier accounted for greater than
10% of our Cost of Goods Sold in the period at $2,436,595 or 13.7% of the
quarterly Cost of Goods sold.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Payments of dividends may be subject to some restrictions due to
the fact that the operating activities are conducted in subsidiaries residing in
the Peoples Republic of China.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As part
of the production process, the Company may be required by its suppliers to
advance funds under short-term agreements for tooling and other pre-production
costs. &nbsp;The advances are generally unsecured and may carry interest at the
prevailing market rate for short-term instruments. &nbsp;Such tooling is in most
cases, either owned by the supplier or our customers and is generally of value
primarily for the specific needs of the Company&#146;s customers. &nbsp;At September
30, 2009, the Company has made advances to its suppliers of $539,394 for
materials and inventory. &nbsp;The Company in turn requires its customers to
provide a non-refundable down payment to offset such startup costs. &nbsp;As of
September 30, 2009, the Company has customer deposits of $175,723.&nbsp;In the
event that a supplier is unable to fulfill its production agreements with the
Company, management believes that other suppliers can be found for the Company&#146;s
products. &nbsp;However, a change in suppliers would cause a delay in the
production process, and could result in loss of tooling deposits and other
supplier advances, which could negatively affect the Company&#146;s operating
results. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center>-&nbsp;19 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>2.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED) </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify><B>Concentrations, Risks,
and Uncertainties (continued)</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company sells its goods and services internationally, with the majority of its
revenue currently being derived from customers in the United States and Europe.
&nbsp;As such, the Company is susceptible to credit risk on accounts and notes
receivable from customers. &nbsp;Generally, the Company does not obtain security
from its customers in support of accounts receivable. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Subsequent
Events</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In
May&nbsp;2009, the FASB issued accounting guidance now codified as FASB ASC
Topic 855, &#147;<I>Subsequent Events,&#148; </I>which establishes general standards of
accounting for, and disclosures of, events that occur after the balance sheet
date but before financial statements are issued or are available to be issued.
FASB ASC Topic 855 is effective for interim or fiscal periods ending after
June&nbsp;15, 2009. The Company has evaluated subsequent events for the period
from September&nbsp;30, 2009, the date of these financial statements, through
November 13, 2009, which represents the date these financial statements are
being filed with the Commission. Pursuant to the requirements of FASB ASC Topic
855, there were no events or transactions occurring during this subsequent event
reporting period that require recognition or disclosure in the financial
statements. With respect to this disclosure, the Company has not evaluated
subsequent events occurring after November 13, 2009. &nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR></P>
<P style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=justify><B>Stock Based Compensation </B>&nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 11px; LINE-HEIGHT: normal">For
purposes of determining the variables used in the calculation of stock
compensation expense under the provisions of FASB ASC Topic 505, &#147;<I>Equity</I>&#148;
and FASB ASC Topic 718, &#147;<I>Compensation &#151; Stock Compensation,&#148; </I>we perform
an analysis of current market data and historical Company data to calculate an
estimate of implied volatility, the expected term of the option and the expected
forfeiture rate. With the exception of the expected forfeiture rate, which is
not an input, we use these estimates as variables in the Black-Scholes option
pricing model. Depending upon the number of stock options granted, any
fluctuations in these calculations could have a material effect on the results
presented in our condensed consolidated statement of income and other
comprehensive income. In addition, any differences between estimated forfeitures
and actual forfeitures could also have a material impact on our financial
statements<FONT style="FONT-SIZE: 10pt">.</FONT></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12px; LINE-HEIGHT: 13pt">Share-based
compensation costs that have been included in operating expenses amounted to
$162,020 and $95,000 for the nine months ended September 30, 2009 and 2008,
respectively. &nbsp;For the three month period ending September 30, 2009 and
September 3, 2008, stock based compensation was $46,800 and ($15,000),
respectively.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Recently Enacted
Accounting Standards</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Accounting Standards Update ("ASU") ASU No. 2009-05 (ASC Topic
820), which amends Fair</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Value
Measurements and Disclosures - Overall, ASU No. 2009-13 (ASC Topic 605),
Multiple Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985),
Certain Revenue Arrangements that include Software Elements, and various other
ASU's No. 2009-2 through ASU No. 2009-15 which contain technical corrections to
existing guidance or affect guidance to specialized industries or entities were
recently issued. These updates have no current applicability to the Company, or
their effect on the financial statements would not have been significant.</P>
<P style="MARGIN: 0px" align=justify><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 20 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>3. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>COMMITMENTS AND CONTINGENCIES</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company leases its office spaces and certain vehicles and equipment under
non-cancelable operating leases. &nbsp;Minimum future rental payments under
non-cancelable operating leases with remaining terms in excess of one year as of
December 31, 2008, in the aggregate and for each of the five succeeding fiscal
years are as follows: </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none frame=void>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Year ended
December 31</P></TD>
<TD vAlign=top colSpan=2>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2009</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>154,302</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2010</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>526,253</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2011</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;494,713</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2012</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>498,663</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">2013</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;320,603</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&#12288;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total minimum
future rental payment</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,994,534</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Total
rent and lease expense was $338,784 and $158,448 for the nine months ended
September 30, 2009 and 2008, respectively.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Total
rent and lease expense was $112,331 and $65,098 for the three months ended
September 30, 2009 and 2008, respectively. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company has various purchase commitments for materials, supplies and services
incident to the ordinary conduct of business, generally for quantities required
for the Company&#146;s business and at prevailing market prices. No material annual
loss is expected from these commitments.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company has advances to several material and inventory suppliers in the amount
of $539,394 which will be offset against future purchases from those
suppliers.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
company has a contingency associated with our capital raises done in 2008
requiring certain milestones to be met. The contingency states: &nbsp;&#147;If (a)
the Company fails to report at least $2,500,000 in EBITDA less noncash
expenditures for the fiscal year ending December 31, 2009, as disclosed in the
Company&#146;s Form 10-K for the fiscal year ending December 31, 2009 (&#147;2009
Milestone&#148;), the date of disclosure of such 2009 Milestone (&#147;2009 Milestone
Date&#148;) and such 10-K, and (b) if the average of the ten closing prices for each
of the ten trading days immediately following the 2009 Milestone Date is less
than the lesser of the Per Share Purchase Price and the 2008 Milestone Price,
which is $4.50 (&#147;2009 Milestone Price&#148;), then, within 13 Trading Days of the
2009 Milestone Date, the Company shall issue to each Purchaser a number of
shares of Common Stock equal to the difference between (i) the number of shares
of Common Stock issued to such Purchaser on the Closing Date along with any 2008
Milestone Shares issued pursuant to the 2008 Milestone Date, which are
none,&nbsp; and (ii) the number of shares of Common Stock that would otherwise
have been issuable to such Purchaser on the closing date if the Per Share
Purchase Price was equal to the 2009 Milestone Price.&#148; <FONT
style="WORD-SPACING: 0px; FONT: medium 'Times New Roman'; TEXT-TRANSFORM: none; COLOR: rgb(0,0,0); TEXT-INDENT: 0px; WHITE-SPACE: normal; LETTER-SPACING: normal; BORDER-COLLAPSE: separate; orphans: 2; widows: 2; webkit-border-horizontal-spacing: 0px; webkit-border-vertical-spacing: 0px; webkit-text-decorations-in-effect: none; webkit-text-size-adjust: auto; webkit-text-stroke-width: 0px"><FONT
style="FONT-SIZE: 15px; COLOR: rgb(255,0,0); LINE-HEIGHT: 17px; FONT-FAMILY: 'Times New Roman', serif"><FONT
style="FONT-SIZE: 11pt"><FONT color=#000000>(&#147;2009 Milestone Shares&#148;).&#148;&nbsp;
Jimmy and Mindy Wang have deposited into an escrow account 1,620,954 shares of
common stock to satisfy the issuance of any shares related to the 2009 Milestone
Shares.</FONT></FONT><FONT style="FONT-SIZE: 11pt"></FONT></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify></FONT></FONT><BR>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company is not involved in any legal matters except for the Other Receivable
listed in Note 6 and those arising in the normal course of business. While
incapable of estimation, in the opinion of the management, the individual
regulatory and legal matters in which it might involve in the future are not
expected to have a material adverse effect on the Company&#146;s financial position,
results of operations, or cash flows. </P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 21 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>4.</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>ACCOUNTS RECEIVABLE</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Accounts receivable by major categories are summarized as
follows:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: normal"
align=center>September 30<FONT style="FONT-SIZE: 8pt">,</FONT> 2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>December 31, 2008</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Accounts
Receivable &#150; pledged to banks</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,672,948
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,385,298
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Accounts
Receivable &#150; not pledged</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,592,845
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,450,842
</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,265,793
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,836,140
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Less:
allowances for doubtful accounts</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(280,738)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(45,634)</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,985,055
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,790,506
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify>Under
the terms of a revolving line of credit agreement with Bank of the West
indicated in Note 13, the revolving line of credit is secured by 70% of accounts
receivable and all business assets of Worldwide USA and guaranteed by certain of
its officers. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt"
align=justify><B>5. </B></P>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 23px; LINE-HEIGHT: 13pt"
align=justify><B>INVENTORIES</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Inventories by major categories are summarized as follows:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: normal"
align=center>September 30<FONT style="FONT-SIZE: 8pt">,</FONT> 2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>December 31, 2008</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Raw
materials</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;872,268
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;752,249
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Work in
progress</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;353,447
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,107,857
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Finished
goods</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,808,705
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,914,021
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Finished goods
&#150; pledged to the bank</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;911,178
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,945,598
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,774,127
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Less:
allowances for slowing moving items</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19,409)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19,362)</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,926,189
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,754,765
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify>Under
the terms of a revolving line of credit agreement with Bank of the West
indicated in Note 13, the revolving line of credit is secured by 50% of
inventories and all business assets of of Worldwide USA and guaranteed by
certain of its officers. </P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 22 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>6.</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>OTHER RECEIVABLE</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company has other receivables of $111,006 due from a supplier. In the China
legal system we have received a judgment for the total amount in May 2009.
&nbsp;The supplier appealed the judgment, but the original decision was upheld
in August 2009. &nbsp;Management believes we will be able to collect this amount
by the end of the first half of 2010.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>7. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>INCOME TAX </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>Our statutory federal
income tax is 34% and our state income tax rate is 9.3%. The Company has no
amounts of federal tax due in the periods presented. The provision for income
taxes consists of the following:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>For The Nine Months Ended</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>For The Three Months Ended</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>September 30,</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>September 30,</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=center>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Current income
tax expense in China</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>134,835</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>16,813</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>65,380</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>8,514</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">U.S Federal
Tax</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>463,023</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>304,633</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">State and local
income taxes currently paid or payable U.S</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>72,263</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>57,484</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Income tax
expense</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>670,121</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>16,813</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>427,497</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>8,514</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px; FONT-FAMILY: Univers"
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt"
align=justify><B>8. </B></P>
<P
style="PADDING-LEFT: 24px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 23px; LINE-HEIGHT: 13pt"
align=justify><B>PROPERTY AND EQUIPMENT </B></P>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; LINE-HEIGHT: 13pt"
align=justify>The Company has $16,709 property and equipment located in the
United States for period ending September 30, 2009. &nbsp;For period ending
December 31, 2008, $22,437 of property plant and equipment was located in the
United States. &nbsp;Property and equipment for September 30, 2009 was
$3,537,901 in the PRC. For the period ending December 31, 2008, $1,331,102 of
the Company&#146;s property and equipment was located in the PRC. The Company&#146;s
property and equipment consisted of the following at September 30, 2009 and
December 31, 2008:</P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 23 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>8.</B></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>PROPERTY AND EQUIPMENT (Continued)</B></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>September 30, 2009</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>December 31, 2008</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Vehicles</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;$</P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>415,923</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp; $</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>248,112</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Furniture and fixtures</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>259,478</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>100,346</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Equipment</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,742,999</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,107,151</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Software</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>37,266</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>37,237</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Others</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>55,496</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>57,669</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Leasehold improvements</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;668,332</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-&#12288;</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,179,494</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,550,515</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Less: accumulated depreciation</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(1,147,702)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>(627,791)</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>2,031,792</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>922,724</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Construction in progress </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,522,818</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>430,815</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Total</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;$</P></TD>
<TD>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,554,610</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp; $</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>1,353,539</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-RIGHT: 96px; MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"><B>9.
</B></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>INTANGIBLE
ASSETS </B></P>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; TEXT-INDENT: -1064px; LINE-HEIGHT: 14pt"
align=justify>The &nbsp;1,101,000 or $3.67 per share. The &#147;AMERISOLAR&#148; modules
are backed by ISO 9001:2000 and ISO 14000 environmental quality </P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Intangible assets consist of the brand name &#147;Amerisolar&#148;. The
brand name &#147;Amerisolar&#148; was purchased on February 25, 2008 from a third party in
exchange for 300,000 shares of the Company&#146;s restricted stock. The Company
valued the stock at $3.67 per share for stated value of $1,101,000 which
represents a 25% discount to the closing price of $4.60 on February 25, 2008.
&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;The "AMERISOLAR" modules are backed by ISO 9001:2000 and ISO
14000 environmental quality certifications. </P>
<P style="MARGIN: 0px"><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>The brand name is carried at cost and is not being amortized as
management has determined the asset has an indefinite useful life. If no legal,
regulatory, contractual, competitive, economic or other factors limit the useful
life of the asset it shall be considered to be indefinite. &nbsp;In recording of
the brand name is was determined that the expected useful life is indefinite and
cash flows from the brand name are expected to contribute to the Company over an
indefinite period of time. &nbsp;No impairment has been recognized during the
nine-month periods ended September 30, 2009 and 2008.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>10. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>INVESTMENT AT COST</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>On June 24, 2008, the Company paid $51,892 for an Investment in
Tomii International representing approximately 19% equity interest in Tomii
International; Tomii International is a privately held Company that is a
development stage entity with no significant operations. The Company&#146;s
accounting for this Investment on the cost basis - management has determined
there is no impairment on investment as of September 30, 2009. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>11.</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>RESTRICTED CASH</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>During the nine months ended September 30, 2009, the Company paid
$2,500,000 and deposited this amount in an escrow account in the Bank of China
for the incorporation of the subsidiary of Nantong Ningbo Solar factory located
in China for the purpose of registered capital and working capital.
&nbsp;&nbsp;The fund has been transferred to a cash account accessible by the
division specifically for facility start-up costs. The Chinese government
requires us to have registered capital in order to complete the project.
&nbsp;Total spending as of September 30, 2009 is $1,082,644 and has been used
for land purchase and initial construction expenses. &nbsp;The factory will be
completed in April, 2010.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 24 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>12. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>GOODWILL </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
October 14, 2008, Worldwide Energy and Manufacturing USA, Inc. completed the
acquisition of 55% of Shanghai De Hong Electric and Electronic Company Limited
(&#147;De Hong&#148;) through acquiring 55% of the outstanding capital stock of De Hong, a
China corporation. After the completion of the acquisition, it changed its name
to Shanghai Intech-Tron Electron-Electric Co., Ltd (&#147;Intech-Tron&#148;). The terms of
the Purchase Agreement dated February 3, 2008 was that Worldwide USA paid cash
consideration of $1,022,700 for 55% interest in DeHong. Intech paid the first
installment of $714,286 on behalf of Worldwide in September 2008. During the
three months ended March 31, 2009, Worldwide paid $308,414 for the second
installment and the total consideration of the investment of $1,022,700.
&nbsp;This was accounted for as a purchase of Detron, where Worldwide has
operating control. Detron was consolidated into the consolidated financial
statements of Worldwide as of October 1, 2008.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Detron's assets are comprised of mostly currents assets where only
$158,520 were related to equipment or fixed assets. The Company determined fair
value by taking the net tangible assets (less all allowance for receivables and
inventory which Worldwide subsidiaries had verified through on-site observation
and valuation) and discounted all currents liabilities which were determined to
be owed and current based on Company records (invoices) providing $1,326,214 in
net tangible assets of which $729,421 or 55% (Worldwide's ownership) was
determined to be fair value for Detron's assets. The Company paid $1,022,700 for
these assets of which $285,714 was allocated to goodwill.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px; FONT-FAMILY: Arial" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;411,316
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Accounts
Receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,929,314
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Note
receivable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;226,877
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Inventories</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;774,295
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Advances to
suppliers</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21,703
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Prepaid and
other current assets</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231,967
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Property, plant
and equipment, net</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158,520
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Other
assets</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,059
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Goodwill</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>285,714</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Trade
payables</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(962,839)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Accrued
expenses</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(422,943)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Income taxes
payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29,717)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Related parties
payable</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,015,773)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">45% Minority
Interest</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(596,793)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt; FONT-FAMILY: Arial"
align=right>&#12288;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">55% Net assets
acquired</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px; FONT-FAMILY: Arial" align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,022,700
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 25 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=center><B><FONT style="FONT-SIZE: 11pt">WORLDWIDE
ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES</FONT></B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>13. &nbsp;</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>LINE OF CREDIT </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As of
September 30, 2009, the Company has the following line of credit</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Banker</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Amount of the
credit line</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Loan
period</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Interest
rate</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Secured
by</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>September 30, 2009</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px">&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Bank of the
West</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$2,000,000 </P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>5/20/2008 - 5/20/2010</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4%</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=right>70%
Accounts receivable + 50% inventory</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000,000
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Bank of the
West</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$1,025,000 </P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>5/20/2008 - 6/01/2011</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>4%</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=right>70%
Accounts receivable + 50% inventory</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;763,285
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Total
loans</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,763,285
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Less: long term
portion</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(763,285)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000,000
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">For maturities of
long-term loans are as follows as of September 30, 2009</P>
<P style="MARGIN: 0px"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -7px; LINE-HEIGHT: 13pt">22009</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;-</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -7px; LINE-HEIGHT: 13pt">22010</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;2,000,000</P></TD></TR>
<TR>
<TD vAlign=top>
<P
style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -7px; LINE-HEIGHT: 13pt">22011</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;763,285</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;$</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;2,763,285</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>On May 20, 2008 the Company paid off its line of credit with Well
Fargo in the amount of $960,000 and established a new line of credit facility
with Bank of the West. Under the terms of the revolving line of credit agreement
with Bank of the West, dated May 20, 2008, the Company could borrow up to
$3,025,000 at a rate of 5.0%. This rate is subject to change based on the prime
rate which was 3.25% as of September 30, 2009. &nbsp;The interest rate as of
September 30, 2009 was 4% for both lines of credit. The revolving line of credit
is secured by the assets of the Company and guaranteed by certain of its
officers. Payments on the lines of credit are due monthly and payment varies
according to the balance outstanding and interest rate.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>The Company can borrow up to $2,000,000 and $1,025,000 within two
credit lines. The maturity date of these two credit lines is May 20, 2010 and
June 1, 2011 respectively. The balance outstanding under both lines of credit as
of September 30, 2009 is $2,000,000 and $763,285, respectively. The Company has
approximately $261,715 available under both lines of credit combined. The
Company was in compliance with bank covenants at September 30, 2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 26 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL TATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt; FONT-FAMILY: TimesNewRomanPSMT-Identity-H"><B>14.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"><B>STOCK
TRANSACTIONS</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>On January 2, 2009, a consultant returned 4,000 shares to the
Company for the work that was not performed. There was a $14,680 reduction in
stock based compensation and additional paid in capital with this
transaction.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
March 6, 2009, the Company issued 120,000 shares of its common stock to
consultants, valued at $187,200, for the consulting services to be performed
during 2009. The Company will amortize the consultancy fee of $187,200 over the
12-month term of the agreement from January 1, 2009 to December 31, 2009. A
compensation expense of $15,600 will be recorded each month during the term of
the agreement. Total compensation expense under this agreement for the three and
nine month period ending September 30, 2009 was $46,800 and $140,400,
respectively. &nbsp;Total remaining stock based compensation to be expensed in
the future total $46,800 as of September 30, 2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
March 20, 2009, the Company issued 8,000 shares of its common stock in exchange
for one unit of JK Advisors Fund LLC, which was distributed to the shareholders
of the fund. On June 23, 2009 the Company and JK advisors mutually agreed to
cancel the transaction with no penalties or fees for either party.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 0px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>On June 23, 2009 the Company issued a total of 12,100 restricted
shares for services consisting of 1) 5,000 shares being issued to its outside
independent Board of Directors, 2) 4,000 shares being issued for legal services
and 3,100 shares being issued to employees in China. The shares had a fair
market value of $3.00 which was determined by taking the bid price of $4.63 and
discounting by 35% due to the restricted nature, the low trading volume and wide
fluctuations in stock price. The Company recorded $36,300 stock-based
compensation expense for these transactions during the period ending June 30,
2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>15.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>PENSION
PLAN AND STOCK OPTION PLAN </B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company established a stock option plan on April 1, 2004 for the benefit of all
full-time employees. The Company approved the plan to issue up to 300,000 shares
of common stock. &nbsp;The stock option plan provides employees, consultants and
directors the opportunity to purchase shares. &nbsp;The exercise price of an
incentive stock option granted under this plan must be equal to or greater than
the fair market value of the shares of the Company&#146;s common stock on the date
the option is granted. &nbsp;The exercise price of a non-qualified option
granted under this plan must be equal to or greater than 85% of the fair market
value of the shares of the common stock on the date the option is granted.
&nbsp;An incentive stock option granted to an optionee owning more than 10% of
the voting stock must have an exercise price equal to or greater than 110% of
the fair market value of our common stock on the date the option is granted. On
April 1, 2004, the Board granted options to purchase 109,213 shares at an
exercise price of $6.00 per share. As of September 30, 2009 no stock options
have been exercised.</P>
<P style="MARGIN: 0px" align=center><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 27 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify><B>16. </B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><B>RELATED PARTY TRANSACTIONS </B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>(1) Long term receivable &#150;
related party</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify><B></B>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;September 30, </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>December 31,</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(unaudited)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Mr.&nbsp;Ding
Honglin &#150; Mr. Ding is the General Manager of Shanghai Intech Precision
Machinery Co. Ltd &#150; Loan to accommodate partnership separation</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>253,996 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>260,973 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 32px; FONT-SIZE: 11pt; MARGIN: 0px" align=justify>The
amounts due from related party are unsecured, interest free and have no fixed
repayment dates.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>(2) Due to a related
party</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify><B>&nbsp;</B></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;September 30, </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>December 31,</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(unaudited)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Shanghai Jinde
Electro-Mechanical Co. Ltd, the shareholder of Shanghai Intech-Tron
Electron-Electric Co., Ltd advanced to Detron for working capital
purposes.</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,351,276 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,243,024
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="PADDING-LEFT: 32px; FONT-SIZE: 11pt; MARGIN: 0px" align=justify>The
amounts due to a related party are unsecured, interest free and have no fixed
repayment dates.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>(3)&nbsp;Loan payable to
stockholders</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>September30, </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>December 31,</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(unaudited)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Mr. Jimmy Wang
and Mrs. Mindy Wang, principal stockholders, executive officers and
members of the Board of Directors of the Company</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;-</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,024
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The loan payable was
for working capital purposes and was fully paid during the nine months ending
September 30, 2009. </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 28 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=center><B><FONT style="FONT-SIZE: 11pt">WORLDWIDE
ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES</FONT></B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B><FONT
style="FONT-SIZE: 11pt">NOTES TO THE</FONT> UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"
align=justify><B>17.</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 14pt"
align=justify><B>EARNINGS PER SHARE</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>FASB
ASC Topic 260, <I>Earnings Per Share</I>, requires a reconciliation of the
numerator and denominator of the basic and diluted earnings per share (EPS)
computations.&nbsp; </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For the
three and nine months ended September 30, 2009 and the same period in 2008, the
following were included as potential dilutive shares. Employee stock options of
109,213 with an exercise price of $6.00. &nbsp;Class A warrants<B> </B>to
purchase 722,221 common shares at an exercise price of $7.00 and Class B
warrants to purchase 388,888 shares at an exercise price of $9.00 of common
stock. &nbsp;Due to the exercise price being in excess of the estimated fair
market value of the Company&#146;s stock, using the treasury stock method, all
potential dilutive shares were deemed to be anti-dilutive.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">The following table
sets forth the computation of basic and diluted net income per share:</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;For The Three Months Ended </P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;For The Nine Months Ended </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;September 30, </P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=3>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;September 30, </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;(unaudited) </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(unaudited)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>&nbsp;(unaudited) </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>(unaudited)</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net income
attributable to the common stockholders</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>903,357&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;540,608
</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,358,245
</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,195,969
</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Basic weighted
average outstanding shares of common stock</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;3,621,611 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;3,170,906 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,578,014</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,471,384 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Dilutive effect
of options and warrants</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>-</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Diluted
weighted average common stock and common stock equivalents</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;3,621,611 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;3,170,906 </P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>3,578,014</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;2,471,384 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Earnings per
share:</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Basic</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.25 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.17 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.38 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.48 </P></TD></TR>
<TR>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Diluted</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.25 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>$
</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.17 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>$
</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.38 </P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center>$
</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>0.48 </P></TD></TR></TABLE>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 29 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>18.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>OPERATING
RISK</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><U>Interest rate
risk</U></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>The interest rates and terms of repayment of bank lines of credit
are disclosed in Note 13. Other financial assets and liabilities do not have
material interest rate risk. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><U>Credit risk</U></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company is exposed to credit risk from its cash in bank and accounts receivable.
&nbsp;The credit risk on cash in banks is limited because the counterparties are
recognized financial institutions. &nbsp;Accounts receivable are subjected to
credit evaluations and as such are inherently subject to credit risk. &nbsp;An
allowance has been made for estimated irrecoverable amounts which have been
determined by reference to past default experience and the current economic
environment. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><U>Foreign currency risk</U></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Most of
the transactions of the Company were settled in Renminbi and Euros. &nbsp;Thus,
the Company has significant foreign currency risk exposure. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><U>Company&#146;s operations are substantially in foreign
countries</U>.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Substantially all of the Company&#146;s products are manufactured in
China. The Company&#146;s operations are subject to various political, economic, and
other risks and uncertainties inherent in China. Among other risks, the
Company&#146;s operations are subject to the risks of restrictions on transfer of
funds, export duties, quotas, and embargoes, domestic and international customs
and tariffs, changing taxation policies, foreign exchange restrictions and
political conditions and governmental regulations.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>19.
</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><B>SEGMENT
INFORMATION </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company&#146;s operations are classified into two principal reportable segments that
provide different products or services. &nbsp;These two segments are contract
manufacturing and solar.&nbsp;Worldwide USA contract manufacturing division
purchases and sells a wide variety of manufactured goods from China procured by
its subsidiaries or contractors in China to a wide range of customers from
different industries. Our solar module division procures and manufactures solar
modules for sale to the solar industry. Our solar industry represents 83% of our
business. Although both segments are involved in manufacturing they serve
different customers and are managed separately requiring specialized expertise.
We determine our operating segments in accordance with FASB ASC Topic 280,
<I>&#147;Segment Reporting&#148; </I>Our CEO has been identified as the chief operating
decision maker as defined by FASB ASC Topic 280. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 30 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center><B></B>&nbsp;<B>WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</B></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><B>FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 96px; MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -21px; LINE-HEIGHT: 16pt"><B>19.
</B></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 60px; LINE-HEIGHT: 14pt"><B>SEGMENT
INFORMATION (CONTINUED)</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Segmental
Data &#150; Three months ended September 30, 2009 and September 30, 2008 </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt">Reportable
Segments<B> &nbsp;&nbsp;</B>(amounts in thousands)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD colSpan=5>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><U>September 30, 2009</U></P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD colSpan=7>
<P style="FONT-SIZE: 12pt; MARGIN: 0px; LINE-HEIGHT: 14pt"
align=center><U>September 30, 2008</U></P></TD></TR>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Solar</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Contract Mfg</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Total</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Solar</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Contract Mfg</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Disc. Op.</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Total</U></P></TD></TR>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">External revenue</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,533 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,086 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,619
</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,776 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,327 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,103
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Costs of goods</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13,734)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,023)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;(15,757)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15,338)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,401)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;(17,739)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Gross profit</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,798 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,063 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,861 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;438
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;926
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,364
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">G/A Expenses</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(515)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(801)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,316)
</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(231)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(520)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(751)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Operating profit</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,225 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,335 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;207
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;346
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;552
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Interest income</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3
</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Interest expenses</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Depreciation</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(83)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Net profit after tax</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;827
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;174
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,001 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;207
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;340
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;547
</B></P></TD></TR>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN: 0px">Expenditures for long-lived assets</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(494)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(503)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(475)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(475)</B></P></TD></TR></TABLE>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>In our solar division, Europe represented approximately 90.9% and
South Korea represented approximately 8.8% of our sales in the three months
ended September 30, 2009. For the three-month period ending September 30, 2008
Europe represented 61.0% of our business with South Korea representing 39.0% of
our total solar sales. For our contract manufacturing business, the United
States represents approximately 35.8% and China represents 64.0% of sales for
the three-month period ending September 30, 2009. &nbsp;For the 2008, the United
States represented 48.5% and China 48.1% of that division&#146;s sales.
&nbsp;&nbsp;</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 31 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR>&nbsp;</P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Segmental
Data &#150; Nine months ended September 30, 2009 and September 30, 2008</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><B>Reportable
Segments &nbsp;</B>(amounts in thousands) </P>
<P
style="PADDING-RIGHT: 96px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt">&nbsp;&nbsp;</P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Solar</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Contract Mfg</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Total</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Solar</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Contract Mfg</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Disc. Op.</U></P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="MARGIN: 0px" align=center><U>Total</U></P></TD></TR>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD>
<TD>
<P>&nbsp;</P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">External revenue</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,433 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,784 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39,217
</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21,567 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,768 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,348
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Costs of goods</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26,330)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,325)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;(32,655)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20,416)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,078)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;(27,494)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Gross profit</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,591 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,971 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,562 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,151 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,703 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,854
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">G/A Expenses</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,964)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,764)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,728)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(719)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,509)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,228)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Operating profit</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,915 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;251
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,166 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;432
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;863
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,295
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Interest income</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14
</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
&nbsp;&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12
</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Interest expenses</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
&nbsp;&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
&nbsp;&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(74)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(74)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Depreciation</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(91)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(155)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(246)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)</B></P></TD></TR>
<TR>
<TD>
<P style="MARGIN: 0px">Net profit after tax</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,469 </P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,579 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;761
</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px" align=right><B>9 </B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,194
</B></P></TD></TR>
<TR>
<TD>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="MARGIN: 0px">Expenditures for long-lived assets</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(641)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(103)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(744)</B></P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(173)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(475)</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="MARGIN: 0px"
align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(648)</B></P></TD></TR></TABLE>
<P
style="PADDING-RIGHT: 96px; PADDING-LEFT: 14px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 14pt"><FONT
style="BACKGROUND-COLOR: #00ff00"></FONT>&nbsp;</P>
<P
style="PADDING-RIGHT: 2px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 12.95pt"
align=justify>In our solar division, Europe represented approximately 84.2% of
our sales and South Korea represented 14.6% of our sales for the nine-month
period ended September 30, 2009. For the nine-month period ending September 30,
2008, Europe represented 62.8% of our business with South Korea representing
32.5% of our total sales. For our contract manufacturing business in the
nine-month period ending September 30, 2009, the United States represents
approximately 41.5% and China represents approximately 57.1%. &nbsp;For 2008,
the United States represented 54.8% and China 42.1. </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 32 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
&nbsp;2.</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"><B>MANAGEMENT&#146;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">DISCLAIMER REGARDING
FORWARD LOOKING STATEMENTS</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Certain
statements in this Form 10-Q, which are not statements of historical fact, are
what are known as "forward-looking statements," which are basically statements
about the future. For that reason, these statements involve risk and uncertainty
since no one can accurately predict the future. Words such as "plans,"
"intends," "hopes," "seeks," "anticipates," "expects," and the like, often
identify such forward looking statements, but are not the only indication that a
statement is a forward-looking statement. Such forward-looking statements
include statements concerning our plans and objectives with respect to our
present and future operations, and statements which express or imply that such
present and future operations will or may produce revenues, income or profits.
These and other factors may cause our actual results to differ materially from
any forward-looking statement. &nbsp;We caution you not to place undue reliance
on these forward-looking statements. &nbsp;Although we base these
forward-looking statements on our expectations, assumptions, and projections
about future events, actual events and results may differ materially, and our
expectations, assumptions, and projections may prove to be inaccurate. The
forward-looking statements speak only as of the date hereof, and we expressly
disclaim any obligation to publicly release the results of any revisions to
these forward-looking statements to reflect events or circumstances after the
date of this filing. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Overview</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Worldwide Energy and Manufacturing USA, Inc. (&#147;Worldwide&#148;, &#147;the
Company&#148;, &#147;we&#148;, &#147;us&#148; or &#147;our&#148;) is a manufacturing engineering firm an
international manufacturing and engineering firm, concentrating on PV solar
modules and contract manufacturing services, using multiple factories in China.
Worldwide services customers primarily in Europe and South Korea with respect to
our solar modules and United States-based companies that outsource their smaller
scale production orders for offshore production in China. From our inception in
1993 until 2005, we were strictly an intermediary or &#147;middle man,&#148; working with
our customers and our subcontractors to assure that our customers received high
quality components on a timely basis that fulfilled their specific needs. While
we still subcontract a significant portion of our business, since 2005, we have
begun the transition to becoming a direct contract manufacturer, operating
several of our own factories. This trend will continue if the right
opportunities arise. Recently, we announced two additional factories allowing us
to become a direct manufacturer for solar modules and for power supply units as
described below:</P>
<P style="MARGIN-TOP: 7px; MARGIN-BOTTOM: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited (&#147;De Hong&#148;) through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide&#146;s
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation (&#147;Intech&#148;). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970 on June 23, 2008 and an
additional sale of 56,007 shares of common stock, $252,027 on July 24, 2008.
&nbsp;Shanghai De Hong Electric and Electronic Company is the holding Company
for the operating subsidiary Shanghai Intech-Detron Electronic Co. (&#147;Detron&#148;).
Therefore, Worldwide received 55% control of the operating subsidiary Shanghai
Intech-Detron Electric and Electronic Company Limited (&#147;Detron&#148;). Detron is a
power supply factory in Shanghai, China with design and R &amp; D capabilities.
Under the terms of the purchase agreement dated February 3, 2008, Worldwide paid
cash consideration of $1,022,700 for a 55% interest in De Hong. Intech paid the
first installment of $714,286 on behalf of Worldwide in September, 2008. On
March 31, 2009, Worldwide paid $308,414 for the second installment, such that
the total consideration of the investment is $1,022,700.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
August 15, 2008, the Company formed a new Company called Nantong Ningbo Solar
Factory (&#147;Ningbo Solar&#148;), which is the solar energy research and development
manufacturer. The Company established a factory to provide installation services
to different solar projects. The Company also acts as agent to import or export
the products and services overseas.</P>
<P style="MARGIN-TOP: 7px; MARGIN-BOTTOM: 0px" align=justify><BR></P>
<P style="MARGIN-TOP: 7px; MARGIN-BOTTOM: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 33 -</P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>On
November 10, 2008 the Company announced the establishment of a new solar module
production and R&amp;D facility. We leased a 128,000-square-foot facility in
Ningbo, China. This facility houses the Company&#146;s research center and part of
its photovoltaic (PV) manufacturing operations. We believe the establishment of
this facility will help to improve margins for our solar modules. The Company
will focus its efforts on the solar module industry both at present as well as
in the future. The trend for the future for Worldwide will be to continue to
expand and seek opportunities to increase market share in the solar module
industry.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 7px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"
align=justify>The city of Ningbo is about two hours away from downtown Shanghai.
The production capacity of the factory is between 60 to 80 megawatts per year,
depending on staffing. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Despite
these additions and enlarging our capability as a direct manufacturer for
several products lines we are still constrained in our growth for a number of
reasons. Many Fortune 500 and other large companies either cannot, or choose
not, to work with contract manufacturers preferring to go directly to the source
that can manufacture the product and thereby avoid the additional expense of the
middleman. This is particularly true for very large orders, where the added cost
of the middleman can have a material impact on the customers&#146; bottom line. As a
result, our revenues have for the most part, but not entirely, been limited to
smaller scale production orders primarily (but not entirely) placed by companies
that are not among the largest companies in the United States or elsewhere.
Additionally, as a middleman we must share any potential gross profit with the
subcontracting factory. Therefore, our customers are generally smaller, the
orders they place are generally smaller and the income and profit we can
generate from those orders is of necessity limited because we are not directly
manufacturing the products. On the other hand, when we subcontract the actual
manufacturing of our customers&#146; products and components, we do not need to hire
factory employees, purchase materials, purchase and maintain manufacturing
equipment or incur the costs of the manufacturing facilities. To some extent,
these costs are built into the price charged by our subcontractors, but if we do
not place orders, we do not incur those costs. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Our
management has carefully considered these factors and during 2004 made the
strategic decision to move our Company away from our historical complete
reliance on subcontractors. The future trend of these decisions is to control
our entire production process and improve profit margins. At the beginning of
2005 we did not own any of our own factories and used as our suppliers of
materials and labor approximately 100 factories in China, mostly in Shanghai or
the surrounding area. Since 2005 we have acquired an electronics factory, and
acquired a die-casting and machining factory through the leasing of an existing
facility from a former vendor. Then the Company made an initial investment of
approximately $500,000 to upgrade the equipment and manufacturing buildings.
&nbsp;The Company also recently announced the acquisition of a power supply
company with designing and R&amp;D capabilities and the establishment of a solar
module factory on November 10, 2008. &nbsp;In these transactions we acquired
assets, the expertise of the employees, the managers of the factories, and a
portion of the existing customers of those factories with the exception of the
solar module factory which we established on our own. As a result, as of
November 10, 2008, we own and operate four factories that we now use for the
manufacture of certain product lines that we historically had to subcontract,
and we are using the services of approximately 40 subcontractors to manufacture
those product lines for which we do not have our own manufacturing
capabilities.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
establishment of these factories, including asset purchases and factory
upgrades, was funded by three separate sources. The earlier acquisitions of the
die cast and electronic factory primarily was financed by loans from Jimmy and
Mindy Wang, our principal stockholders and executive officers, as well as
increased lines of credit. Our credit line increased to $3,025,000 with Bank of
the West from a $2,250,000 line with Wells Fargo during 2008. &nbsp;The power
supply company and the establishment of the new solar module factory were funded
by two equity transactions dated June 23 and July 24, 2008 where the Company
raised approximately $5,000,000. In the future, we expect to continue to acquire
or newly-establish factories that will give us the capability to manufacture
those product lines our management believes are the most profitable. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>With
the continuing transition into direct manufacturing and the renewable energy
field, we expect to continue to increase sales outside the United States, and in
particular, increase the number of customers in PRC, other Asian markets and
Europe. Our costs to establish and improve these factories will increase along
with sales and profits.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=center>- 34 -</P>
<P style="MARGIN: 0px"><BR></P>
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<DIV style="WIDTH: 624px">
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<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Through
the development of our product mix, which consists of solar modules, casting,
machining and stamping, electronics and fiber optics products lines, our
business has become more diverse. In the past, foundry and machining and
stamping accounted for more than 90% of our business. This percentage has
decreased since forming our own factories along with our new energy division
which now represents approximately 83% and 75% of our sales volume for the three
months and nine months ending September 30, 2009, respectively. &nbsp;With
greater market penetration, and the market expanding, the solar content of our
overall business is expected to increase. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Generally, our operating results have been, and will continue to
be, affected by a number of factors, and uncertainties including the
following:</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Our customers may cancel or delay orders or change production
quantities;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Our operating results vary significantly from period to period due
to the mix of the manufacturing services we are providing, the number and size
of new manufacturing programs, the degree to which we utilize our manufacturing
capacity, seasonal demand, shortages of components and other factors</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Integration of acquired businesses and facilities;&nbsp;and</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="PADDING-RIGHT: 74px; MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt; FONT-FAMILY: Symbol"
align=justify>&#183;</P>
<P
style="PADDING-RIGHT: 74px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Managing growth and changes in our operations.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 7px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 13pt"><FONT
style="BACKGROUND-COLOR: #ffffff">We also are subject to other risks, including
risks associated with operating in foreign countries, changes in our tax rates,
and fluctuations in currency exchange rates. </FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Results of
Operations</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Net
sales for the three months ending September 30, 2009 were $18,618,508 compared
to net sales of $19,102,654 for the same period in 2008. This decrease of
$484,146, or 2.5% is due to a drop in market level pricing on Solar Modules (our
MW shipments actually increased by approximately 2.99 MW when comparing these
periods) and by the decreased volume from our Contract Manufacturing division.
&nbsp;We have seen significant market price deterioration in the last several
months on PV solar Modules, but in the last several weeks, we have seen a
stabilization of pricing and expect this to continue through second quarter
2010. Lower volume in our Contract Manufacturing division is brought about by
lower overall consumption by our customers due to the current global economic
conditions and as the economy recovers, we expect our sales volume to
correspondingly increase. &nbsp;The Company continues to focus on the sales and
marketing of its solar modules by establishing sales teams in China, United
States and European countries. &nbsp;Solar module revenues comprise
approximately 83.4% of the Company's gross sales in the three-month period
ending September 30, 2009 compared to 82.6% in the same period of 2008. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Net
sales for the nine-month period ending September 30, 2009 was $39,217,288
compared to sales of $31,348,064 in the nine-month period ending September 30,
2008. &nbsp;The increase of $7,869,224 or approximately 25.1% was the result of
an increase in shipments from the Solar division. The Company continues to focus
on market penetration for its PV Solar Modules and expect sales to increase.
&nbsp;Solar module revenues comprise approximately 75.1% of the Company's gross
sales in the nine-month period ending September 30, 2009 compared to 68.8 % in
the same period of 2008.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Gross
profit increased by $1,497,331, or 109.8% from $1,363,933 in the quarter ending
September 30, 2008 to $2,861,264 for the three months ending September 30, 2009.
&nbsp;The gross profit from solar module sales was $1,797,729 for the three
months ended September 30, 2009 compared to $437,595 in the same period of 2008.
This represents an increase of $1,360,134 in gross profit for our energy
division or approximately 310% and is due to lower material costs for module
production. &nbsp;As stated before, the supply chain for PV solar modules has
experienced market dynamics and significant price pressures, although current
levels seem to have stabilized. &nbsp;The gross profit for contract
manufacturing for the three months ended September 30, 2009 was $1,063,535
compared to $926,338 in the same period of 2008, an increase of $137,197 or
14.9% and is due to cost reduction programs and the inclusion of the higher
margin electronics sales at Detron.</P>
<P style="MARGIN: 0px" align=center><BR>- 35 -</P>
<P style="MARGIN: 0px"><BR></P>
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<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For the
nine months ending September 30, 2009 gross profit was $6,562,456 compared to
gross profit of $3,854,089 in the same period in 2008. This represents an
increase of $2,708,367 or 70.3%. &nbsp;The gross profit for the nine months
ended September 30, 2009 for the solar division was $3,590,782 compared to
$1,151,325 in the same period of 2008. This represents an increase of $2,439,457
in gross profit in the nine months ending September 30, 2009 or an approximate
increase of 211.8% due to robust sales and material cost reductions compared to
2008. &nbsp;The gross profit for contract manufacturing for the nine months
ended September 30, 2009 was $2,971,674 compared to $2,702,764 in the same
period of 2008, an increase of $268,411 or approximately 9.9% due to the
inclusion of higher margin electronics sales at Detron and cost reduction
efforts at all manufacturing facilities. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Cost of
goods sold for the three months ended September 30, 2009 was $15,757,244
compared to $17,738,721 for the same period in 2008. &nbsp;The decrease is
$1,981,477 or approximately 11.2% was primarily due to the softer sales from
both of our divisions and heavy reductions in the cost of materials for solar
modules. &nbsp;The cost of goods for solar modules for quarter ending September
30, 2009 was $13,734,458 compared to $15,338,086 for the same period in 2008.
The decrease of $1,603,628 reflects the economies achieved by our procurement
teams in sourcing the solar components. &nbsp;The costs of goods sold for
Contract Manufacturing was $2,022,786 for the quarter ending September 30, 2009
compared to cost of goods sold of $2,400,635, a $377,849 reduction, due to lower
sales volume and aggressive cost reduction measures coming to fruition.
&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Cost of
goods sold for the nine months ended September 30, 2009 was $32,654,832 compared
to $27,493,975 for the same period in 2008, an increase of $5,160,857 or
approximately 18.8%. &nbsp;The cost of goods for the energy division for nine
months ending September 30, 2009 was $26,330,403 compared to $20,416,103 for the
same period in 2008. The increase of $5,914,300 or 29% was due to the higher
sales. &nbsp;The costs of goods sold for contract manufacturing was $6,324,529
for the nine months ending September 30, 2009 compared to cost of goods sold of
$7,077,874 in the same period of 2008, a reduction of approximately 10.6% due to
the inclusion of higher margin business at Detron and cost reduction efforts.
</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
gross margin was 15.4% for the three months ending September 30, 2009 compared
to 7.1% in the same period in 2008. &nbsp;The gross margin for our Solar
Division for the quarter ending September 30, 2009 was approximately 11.6%
compared to 2.8% for the same period in 2008. &nbsp;This increase is due to the
before mentioned cost reductions. &nbsp;The gross margin for contract
manufacturing for the quarter ending September 30, 2009 was 34.5% compared to
27.8% in the same period in 2008. The improvement of gross margin in contract
manufacturing was due to improved margins at the Electro Mechanical division and
the inclusion of Detron.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
gross margin was 16.7% for the nine months ending September 30, 2009 compared to
12.3% in the same period in 2008. &nbsp;Gross margin for Solar for the period
increased from 5.3% to 12.2% due to material cost reductions and economies
brought about with higher sales volume, both in sales value and Mega-Watts
shipped. &nbsp;Gross margin for Contract Manufacturing increased from 27.7% to
30.4 % due to aforementioned cost reduction programs and higher margin business
from Detron. &nbsp;&nbsp;&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><FONT
style="BACKGROUND-COLOR: #00ff00"></FONT>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In the
nine month period ending September 30, 2009 there was stock based compensation
of $162,020 compared to $95,000 for stock based compensation in 2008. Further
the Company had depreciation expense of $246,366 in the nine month period ending
September 30, 2009 compared to $10,713 in the same period of 2008, due to the
greater amount of depreciable assets owned by the Company. </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Net
income before tax for the three months ending September 30, 2009 was $1,428,873
compared to a net income before tax of $555,237 for the three months ended
September 30, 2008. The increase of $873,636 or approximately 157.3% is
primarily due to the higher gross profit driven by our material cost reductions.
&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For the
nine-month period ending September 30, 2009, net income before tax was
$2,248,995 compared to net income of $1,210,765 in the same period in 2008. The
increase of $1,038,230 or approximately 85.7%, was the result of increase sales
for our solar modules and increased gross profit from cost reductions. &nbsp;Net
income after tax for the three months ending September 30, 2009 was $1,001,376
compared to a net profit of $546,723 for the three </P>
<P style="MARGIN: 0px" align=justify><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 36 -</P>
<P style="MARGIN: 0px"><BR></P>
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</DIV>
<DIV style="WIDTH: 624px">
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<P style="MARGIN: 0px">&nbsp;</P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>months
ended September 30, 2008. The increase of $454,653 or approximately 83.2% was
driven by greater profitability of both the Solar and Contract Manufacturing
divisions. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Net
income after tax for the nine months ending September 30, 2009 was $1,578,874
compared to a net profit of $1,193,952 for the nine months ended September 30,
2008. The increase of $384,922 or approximately 32.2% was the result of greater
gross margins across the corporation. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Selling, general and administration expenses for the three months
ended September 30, 2009, totaled $1,316,386 compared to $750,983 in the same
quarter in 2008, an increase of $565,403 or approximately 75.3%. Sales, general
and administration expenses were $514,516 for three month period ending
September 30, 2009 compared to $231,008 in the same period in 2008 an increase
of $283,508 or 122.7% for our solar module division as this division continues
to grow its sales and marketing efforts. Sales, general and administration
expenses for the three months ended September 30, 2009 for our contract
manufacturing division was $801,870 compared to $519,975 in the same period of
2008. The increase of $281,895 or 54.2% was due primarily to the inclusion of
Detron. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For the
nine-month period ending September 30, 2009 sales, general and administration
expenses was $3,728,136 compared to $2,227,502 in the same period in 2008, an
increase of $1,500,634 or approximately 67.4%. &nbsp;Sales, general and
administration expenses were $1,964,547 for nine month period ending September
30, 2009 compared to $718,575 in the same period in 2008 an increase of
$1,245,972 or 172.0% for our solar module division as this division continues to
grow. Sales, general and administration expenses for the nine-month period ended
September 30, 2009 for our contract manufacturing division was $1,763,589
compared to $1,508,927 in the same period of 2008. The increase of $254,662 or
16.9% was due primarily to the increase of Detron. We do not anticipate
significant increases in sales, general and administration expenses other than
those directly attributed to increases in sales such as marketing and sales
commissions.</P>
<P
style="MARGIN-TOP: 6px; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6px; LINE-HEIGHT: 13pt">LIQUIDITY
AND CAPITAL RESOURCES</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
following is a summary of Worldwide&#146;s cash flows from (used in) operating,
investing, and financing activities during the periods indicated: </P>
<P style="MARGIN: 0px" align=center><BR></P>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 rules=none align=center
frame=void>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom colSpan=5>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>Nine months ended September 30,</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=top colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2009</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top colSpan=2>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>2008</P></TD></TR>
<TR>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P>&nbsp;</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash at
Beginning of Period</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,092,476
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,111,825
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net Cash
provided by (used by) Operating Activities</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;272,579
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,441,275)</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net Cash used
by Investing Activities</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,161,574)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,628,709)</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Net Cash
provided by Financing Activities</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,873,707
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,306,492
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Effect of
Exchange Rate Changes on Cash</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9,550)</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,411
</P></TD></TR>
<TR>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Cash at End of
Period</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,067,638
</P></TD>
<TD vAlign=bottom>
<P>&nbsp;</P></TD>
<TD vAlign=top>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=center>$</P></TD>
<TD vAlign=bottom>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,462,744
</P></TD></TR></TABLE>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In 2008
our credit line was increased&nbsp;by approximately $775,000&nbsp;from a line of
credit in the amount of $2.25 million with Golden Gate Bank to $3.025 million,
as a result of securing two new credit lines with Bank of the West, one for
$1,025,000 and the other for $2,000,000. The credit line with Golden Gate Bank
was subsequently closed. These revolving lines of credit are secured by the
assets of the Company and guaranteed by its officers. The maturity date of these
two credit lines is May 20, 2010 and June 1, 2011, respectively. The balance
outstanding on the first line of credit as of September 30, 2009 is $2,000,000,
and $0 is still available for use. Additionally, the second line of credit has a
balance outstanding of $763,285 and $261,715 is still available for use as of
September 30, 2009.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>For the
nine-month period ending September 30 2009, net cash provided by operations was
$272,579 compared to net cash used by September 30, 2008 of $1,441,275. The
major factor for the increase in net cash provided by operations was the
increase in profitability of the Company. Net cash used in investing was
$<FONT
style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: PMingLiU; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA">2,161,574</FONT><FONT
style="FONT-SIZE: 10pt; COLOR: #1f497d; FONT-FAMILY: Calibri; mso-fareast-font-family: PMingLiU; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA; mso-bidi-font-family: 'Times New Roman'"></FONT>
in the nine-</P>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 37 -</P>
<P style="MARGIN: 0px"><BR></P>
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</DIV>
<DIV style="WIDTH: 624px">
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<P style="MARGIN: 0px">&nbsp;</P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>month
period ending September 30, 2009, compared to net cash used of $1,628,709 in the
same period of 2008. This increase was the result of our acquisition of
property, plant and equipment and the construction in progress of our new solar
module factory and the transfer of $1,417,356 into a restricted account for the
start-up of the new solar factory. The Company anticipates further growth in
2009 as the economy is anticipated to improve. If such growth materializes we
will finance this growth through Company profitability as well as outside
sources of funding if required. Net cash flows provided by financing activities
in the nine-month period ending September 30, 2009 was $1,873,707 compared to
$5,306,492 in 2008. &nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As the
company continues to grow our Solar division, we must follow industry trends in
regards to extended payment terms to our customers. &nbsp;Typically these market
conditions affect the whole supply chain and as extended terms are offered to
consumers, favorable terms can be negotiated with the supplier base. Our current
cash position allows flexibility to accommodate these market conditions.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company raised approximately, $4,747,970 on June 23, 2008 and an additional
$252,027 on July 24, 2008 for gross proceeds of approximately $5 million, or net
proceeds of $4,650,139 after offering expenses. The Company issued 1,111,109
restricted common shares along with warrants to purchase an additional 1,111,109
shares with 722,221 warrants having an exercise price of $7.00 and 388,888 of
those warrants having an excise price of $9.00. These funds were used to expand
our energy division through the establishment of a new solar module factory
announced on November 10, 2008 along the acquisition of a power supply Company
with design and R&amp;D capabilities. &nbsp;Additionally, these funds will be
used to provide additional working capital for the solar module factory to
purchase raw materials and to expand the solar module business segment.
&nbsp;However, certain contingencies are associated with this sale:</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>&#147;If (a)
the Company fails to report at least $2,500,000 in EBITDA less noncash
expenditures for the fiscal year ending December 31, 2009, as disclosed in the
Company&#146;s Form 10-K for the fiscal year ending December 31, 2009 (&#147;2009
Milestone&#148;), the date of disclosure of such 2009 Milestone (&#147;2009 Milestone
Date&#148;) and such 10-K, and (b) if the average of the ten closing prices for each
of the ten trading days immediately following the 2009 Milestone Date is less
than the lesser of the Per Share Purchase Price and the 2008 Milestone Price,
which is$4.50 (&#147;2009 Milestone Price&#148;), then, within 13 Trading Days of the 2009
Milestone Date, the Company shall issue to each Purchaser a number of shares of
Common Stock equal to the difference between (i) the number of shares of Common
Stock issued to such Purchaser on the Closing Date along with any 2008 Milestone
Shares issued pursuant to the 2008 Milestone Date, which are none,&nbsp; and
(ii) the number of shares of Common Stock that would otherwise have been
issuable to such Purchaser on the closing date if the Per Share Purchase Price
was equal to the 2009 Milestone Price.&#148;&nbsp; <FONT
style="FONT-SIZE: 11pt">Jimmy and Mindy Wang have deposited into an escrow
account 1,620,954 shares of common stock to satisfy the issuance of any shares
related to the 2009 Milestone Shares.</FONT><FONT
style="FONT-SIZE: 11pt"></FONT></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><BR>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>PLAN OF
OPERATION</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company will continue to focus on the expansion of its renewable energy division
by the continued development of its newly established solar factory in Ningbo,
China as well as the continued quality enhancements of its solar module brand,
"Amerisolar". &nbsp;Additionally, we intend to develop the U.S. solar module
market and plan to expand our operation in this market. We believe that the
renewable energy division offers the Company its greatest growth and profit
potential in both the present and foreseeable future. The Company presently has
enough liquidity to meet its expansion plans. However, depending on growth the
Company may need additional funding in the future.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Off-Balance Sheet Arrangements </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We do not have any
off-balance sheet arrangements that are currently material or reasonably likely
to be material to our financial position or results of operations.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>Contractual Obligations </B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The 1st
&#147;Rights for Construction&#148; for our Nantong facility was issued on December 19,
2008 to Worldwide Energy and Manufacturing USA by the Department of Interior of
Jiangsu Province, China.</P>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 38 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
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<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>There
was an official agreement between the Department of Civil Engineering (in
building and constructions) for the city of Nantong and Worldwide Manufacturing
Solar Division located in Nantong dated May 27, 2009 in detailing of the
construction for the PV solar module manufacturing facility.&nbsp; Agreement
details:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt">1)</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Land
usages and rights</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt">2)</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Fees
and application process</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt">3)</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Date
of Completions</P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -24px; LINE-HEIGHT: 13pt">4)</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">All
and other related subjects</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">An amendment
subsequently followed in further requirements and commitments of both parties
were executed on May 29, 2009.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Critical
Accounting Policies and Estimates &nbsp;</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>This
discussion and analysis of financial condition and results of operations is
based on our consolidated financial statements, which have been prepared in
accordance with U.S. generally accepted accounting principles. The preparation
of these financial statements requires us to make estimates and judgments that
affect the reported amounts of assets, liabilities, revenues and expenses and
related disclosures. On an on-going basis, we evaluate our estimates, including
those related to property, plant and equipment, inventories, revenue
recognition, inventories, accounts receivable and foreign currency transactions
and translation. We base our estimates on historical experience and on various
other market-specific assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. &nbsp;Actual results, however, may differ significantly from
these estimates. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>We
believe the following critical accounting policies reflect the more significant
judgments and estimates used in the preparation of our consolidated financial
statements: </P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify><I>Revenue Recognition </I></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>We
recognize revenues in accordance with the guidelines of the Securities and
Exchange Commission (&#147;SEC&#148;) Staff Accounting Bulletin (&#147;SAB&#148;) No. 104 &#147;Revenue
Recognition&#148;. We recognize revenue from product sales when the orders are
completed and shipped, provided that collection of the resulting receivable is
reasonably assured. Amounts billed to customers are recorded as sales while the
shipping costs are included in cost of sales. Returns on defective custom parts
may only be exchanged for replacement parts within 30 days of the invoice date.
Returns on defective parts, which can be resold, may be exchanged for
replacement parts or for a refund. &nbsp;Revenue from non-refundable customer
tooling deposits is recognized when the materials are shipped or when the
deposit is forfeited, whichever is earlier.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"><I>Foreign
Currency Transactions and Translation </I></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
Company&#146;s principal country of operations is The People&#146;s Republic of China. The
financial position and results of operations of the Company are determined using
the local currency (&#147;Renminbi&#148; or &#147;Yuan&#148;) as the functional currency. The
results of operations denominated in foreign currency are translated at the
average rate of exchange during the reporting period.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px" align=justify>&nbsp;</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Assets
and liabilities denominated in foreign currencies at the balance sheet date are
translated at the exchange rates prevailing at the balance sheet date. The
registered equity capital denominated in the functional currency is translated
at the historical rate of exchange at the time of capital contribution. All
translation adjustments resulting from the translation of the financial
statements into the reporting currency (&#147;US Dollars&#148;) are dealt with as a
separate component within stockholders&#146; equity. Translation adjustments totaled
$83,423 and $146,017 for the three months ended September 30, 2009 and 2008,
respectively and $191,079 and $102,835 for the nine months ended September 30,
2009 and 2008, respectively.</P>
<P style="MARGIN: 0px" align=justify><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 39 -</P>
<P style="MARGIN: 0px"><BR></P>
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</DIV>
<DIV style="WIDTH: 624px">
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<P style="MARGIN: 0px">&nbsp;</P></DIV>
<DIV style="WIDTH: 681px">
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>As of
September 30, 2009 and 2008, the exchange rate was RMB 6.8376 and RMB 6.8551 per
U.S. Dollar, respectively. &nbsp;The average exchange rate for the nine months
ended September 30, 2009 and 2008 was RMB 6.8425 and RMB 6.9989,
respectively.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Management has discussed the development and selection of these
critical accounting policies with the Board of Directors and the Board has
reviewed the disclosures presented above relating to them.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><B>ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">We are a smaller
reporting Company as defined by Rule 12b-2 of the Securities Exchange Act of
1934 and are not required to provide the information under this item.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"><B>ITEM
4.</B></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 76px; LINE-HEIGHT: 13pt"><B>CONTROLS
AND PROCEDURES</B></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Disclosure
Controls and Procedures</B></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>We are
required to maintain disclosure controls and procedures that are designed to
ensure that information required to be disclosed in our reports filed under the
Securities Exchange Act of 1934, as amended, is recorded, processed, summarized
and reported within the time periods specified in the Securities and Exchange
Commission's rules and forms, and that such information is accumulated and
communicated to our management, including our president (also our principal
executive officer) and our chief financial officer (also our principal financial
and accounting officer) to allow for timely decisions regarding required
disclosure. </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In
connection with the audit for the fiscal years ended December 31, 2008, Child,
Van Wagoner &amp; Bradshaw, PLLC (&#147;CVB&#148;), our previous independent registered
public accounting firm, noted matters involving our internal controls that it
considered to be significant deficiencies, and taken together constitute a
material weakness, under the standards of the Public Company Accounting
Oversight Board, or PCAOB. Under the PCAOB standards, a significant deficiency
is a control deficiency, or combination of control deficiencies, that, in the
auditor&#146;s judgment, would adversely affect the ability to initiate, authorize,
record, process, or report external financial data reliably in accordance with
generally accepted accounting principles such that there is more than a remote
likelihood that a misstatement of the annual or interim financial statements
that is more than inconsequential will not be prevented or detected. A material
weakness is a significant deficiency, or combination of significant
deficiencies, that, in the auditor&#146;s judgment, results in more than a remote
likelihood that a material misstatement of the annual or interim financial
statements will not be prevented or detected.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt">The
material weaknesses identified by CVB were as follows:</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify><B>RESTATEMENT ISSUES</B>: The restatement of the December 31,
2008 financials was the result of certain receivable accounts, accounts payable,
accrual expenses, gain on disposal of subsidiary, loss on disposal of subsidiary
and goodwill not being correctly recorded and therefore being adjusted resulting
in the decline of net income by $457,612 from the previously reported net income
of $1,459,260. The net effect was net income of $1,001,648 for the period ending
December 31, 2008.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Our
management has discussed these material weaknesses with our board of directors
and has engaged in the following remediation efforts to ensure that the material
weaknesses do not reoccur: we are adding additional accounting staff with
greater expertise to assist the Company in preparation of its financial
statement in China.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>These
remediation efforts are designed to address the material weakness identified by
Child and to improve and strengthen our overall control environment. We believe
these actions will prevent the material weaknesses from reoccurring. Our
management, including our principal executive officer and principal financial
officer, does not expect that disclosure controls or internal controls over
financial reporting will prevent all errors, even as the aforementioned
remediation measures are implemented and further improved to address all
deficiencies. The design </P>
<P style="MARGIN: 0px" align=justify><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 40 -</P>
<P style="MARGIN: 0px"><BR></P>
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</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">&nbsp;</P></DIV>
<DIV style="WIDTH: 681px">
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>of any
system of controls is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>The
implementation of our remediation plan will require substantial expenditures,
could take a significant period of time to complete, and could distract our
officers and employees from the operation of our business. However, our
management believes that these remediation efforts will be complete by the end
of the 2009 fiscal year.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Our
management has evaluated the effectiveness of the design and operation of our
disclosure controls and procedures as of the date of this report, under the
supervision and with the participation of our president (also our principal
executive officer) and chief financial officer (also our principal financial and
accounting officer), in order to conclude if our disclosure controls and
procedures are effective. Based on the information set forth above, our
management has determined that, as of the date of this report, we do not have
effective disclosure controls and procedures.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>Changes in
Internal Control Over Financial Report</B></P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>In its
Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008 (the
&#147;Annual Report&#148;), our management reported that, as of the date of such report,
our internal control over financial reporting was not effective. In the first
quarter of fiscal 2009, the Company employed <B>an outside consultant to assist
us with the self-assessment required by Section 404 of the Sarbanes-Oxley Act of
2002 of our internal controls and procedures.</B> However, upon review of the
work product, our management determined that the prepared documentation did not
contain sufficient detail. The Company will hire additional consultants to help
management refine such documentation.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify>Based
upon the foregoing, our management has determined that there were no changes in
our internal<B>&nbsp;</B>control over financial reporting, identified in
connection with the evaluation that occurred<B>&nbsp;</B>during our last fiscal
quarter, under the supervision and with the participation of our president (also
our principal executive officer) and chief financial officer (also our principal
financial and accounting officer), that materially affected, or are reasonable
likely to<B>&nbsp;</B>materially affect, our internal control over financial
reporting.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt"><BR>&nbsp;</P>
<P style="MARGIN: 0px" align=center>- 41 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P></DIV>
<DIV style="WIDTH: 681px">
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 13pt"><FONT
style="FONT-SIZE: 11pt"><B>PART II. &nbsp;OTHER INFORMATION</B></FONT></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=center><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify>Item 1.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Legal Proceedings.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>None.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; LINE-HEIGHT: 13pt"
align=justify>Item 1A. </P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Risk Factors (herein incorporated by reference from Annual Report
on Form 10-K filed with the Securities and Exchange Commission on April 14,
2009).</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt"
align=justify>Item 2.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Unregistered Sales of Equity Securities and Use of Proceeds</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;None.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 12.95pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt"
align=justify>Item 3.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Defaults upon Senior Securities</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>None. </P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt"
align=justify>Item 4.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Submission of Matters to a Vote of Security Holders</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>None.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt"
align=justify>Item 5.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Other Information</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>None.</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -20px; LINE-HEIGHT: 15pt"
align=justify>Item 6.</P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 96px; LINE-HEIGHT: 13pt"
align=justify>Exhibits</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 13pt"
align=justify>The following exhibits are filed herewith:</P>
<P style="MARGIN: 0px; LINE-HEIGHT: 13pt" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>3.1 </P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Articles of Incorporation (incorporated by reference from
Registration Statement on Form 10-SB filed with the Securities and Exchange
Commission on October 11, 2000).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>3.2</P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Bylaws (incorporated by reference from Registration Statement on
Form 10-SB filed with the Securities and Exchange Commission on October 11,
2000).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>3.3</P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Amendment to the Articles of Incorporation to change the name of
the Company from Tabatha III, Inc. to Worldwide Manufacturing USA, Inc., filed
with the Colorado Secretary of State on November 4, 2003 (herein incorporated by
reference from Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 14, 2009). </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>3.4</P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Amendment to the Articles of Incorporation to change the name of
the Company from Worldwide Manufacturing USA, Inc. to Worldwide Energy and
Manufacturing USA, Inc., filed with the Colorado Secretary of State on February
4, 2008 (herein incorporated by reference from Annual Report on Form 10-K filed
with the Securities and Exchange Commission on April 14, 2009). </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>4.1 </P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Specimen Common Stock Certificate (incorporated by reference from
Registration Statement on Form 10-SB filed with the Securities and Exchange
Commission on October 11, 2000).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>4.2 </P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Specimen Class A Convertible Preferred Stock Certificate
(incorporated by reference from Registration Statement on Form 10-SB/A filed
with the Securities and Exchange Commission on October 11, 2000).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>10.1</P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Common Stock Purchase Warrant (incorporated by reference from Form
10-KSB filed with the Securities and Exchange Commission on September 27,
2001).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>14.1</P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Code of Ethics (incorporated by reference from Form 10-KSB filed
with the Securities and Exchange Commission on March 31, 2005). </P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify><BR><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 42 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">&nbsp;</P></DIV>
<DIV style="WIDTH: 681px">
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>21.1</P>
<P style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"
align=justify>Subsidiaries of Worldwide Energy and Manufacturing USA, Inc.
(herein incorporated by reference from Annual Report on Form 10-K filed with the
Securities and Exchange Commission on April 14, 2009).</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt"
align=justify>31.1 </P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 13pt"
align=justify>&nbsp;Certification pursuant to Rule 13a-14(a) or 15d-14(a) under
the Securities Exchange Act of 1934, as amended.</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">31.2
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of
1934, as amended.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN-BOTTOM: -17px; TEXT-INDENT: -48px; LINE-HEIGHT: 13pt">32.1
</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 11pt; MARGIN: 0px; TEXT-INDENT: -9px; LINE-HEIGHT: 13pt">&nbsp;&nbsp;Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.</P>
<P style="MARGIN: 0px">&nbsp;</P>
<P style="MARGIN: 0px" align=left><FONT
style="FONT-SIZE: 11pt">32.2&nbsp;&nbsp;&nbsp;&nbsp; Certification pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002.<BR></P></FONT><A name=_Toc245793853></A><A
name=_Toc245793961></A><A name=_Toc245794018></A>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 13px" align=center><BR>- 43 -</P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
</DIV>
<DIV style="WIDTH: 624px">
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px">&nbsp;</P></DIV>
<DIV style="WIDTH: 681px">
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; MARGIN-BOTTOM: 14px; LINE-HEIGHT: 13pt"
align=center><FONT style="FONT-SIZE: 11pt"><B>SIGNATURES</B></FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt"><B>WORLDWIDE ENERGY
AND MANUFACTURING USA, INC.</B></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">By<U>: /S/ JIMMY
WANG</U></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;Jimmy Wang, CEO
and Director (duly authorized officer)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Date: &nbsp;November
13, 2009</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">By<U>: /S/ Jeff
Watson</U></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">&nbsp;Jeff Watson,
Chief Financial Officer (principal financial and accounting officer)</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 11pt; MARGIN: 0px; LINE-HEIGHT: 13pt">Date: &nbsp;November
13, 2009</P>
<P style="MARGIN: 0px" align=justify><BR></P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=justify>&nbsp;</P>
<P style="MARGIN: 0px" align=justify><BR><BR>&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px" align=center>- 44 -</P>
<P
style="MARGIN: 0px"><BR></P></DIV></BODY>
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{"company-data": {"conformed-name": "WORLDWIDE ENERGY & MANUFACTURING USA INC", "cik": "0001111816", "assigned-sic": "3990", "irs-number": "841536519", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "000-31761", "film-number": "091182496"}, "business-address": {"street1": "408 N. CANAL STREET", "street2": "UNIT A & B", "city": "SAN FRANCISCO", "state": "CA", "zip": "94080", "phone": "(650) 794-9865"}, "mail-address": {"street1": "408 N. CANAL STREET", "street2": "UNIT A & B", "city": "SAN FRANCISCO", "state": "CA", "zip": "94080"}, "former-company": [{"former-conformed-name": "WORLDWIDE MANUFACTURING USA INC", "date-changed": "20031114"}, {"former-conformed-name": "TABATHA III INC", "date-changed": "20000413"}]}
wemu3q09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
X
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For
the quarterly period ended September 30, 2009
___
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period
from ____ to ____
WORLDWIDE ENERGY AND MANUFACTURING USA, INC.
(Exact
name of registrant as specified in its charter)
Colorado
0-31761
77-0423745
(State or other jurisdiction of incorporation or
organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
408 N. Canal Street
South San Francisco, CA  94080
(Address of principal executive
offices)
Registrant's telephone number, including area code: (650) 794-9888
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the past 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
                                                     Yes
x
No
¨
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
 Yes
¨
No
¨
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting Company.  See the definitions of "large accelerated filer,"
"accelerated filer" and "smaller reporting Company" in Rule 12b-2 of the
Exchange Act.
Large Accelerated
Filer
¨
Accelerated
Filer
¨
Non-Accelerated
Filer
¨
Smaller
reporting Company
x
Indicate by check
mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the
Exchange Act).      Yes
¨
No
x
Indicate the number
of shares outstanding of each of the issuer's classes of stock, as of the latest
practicable date.
- 1 -
Class of Securities
Shares Outstanding at September 30, 2009
Common Stock, no par value
3,621,611
- 2 -
PART 1 - FINANCIAL
INFORMATION
ITEM
1.
FINANCIAL
STATEMENTS
(a)
The
unaudited condensed consolidated financial statements of registrant for the
three and nine months ended September 30, 2009 and 2008, follow.  The
condensed consolidated financial statements reflect all adjustments which are,
in the opinion of management, necessary to a fair statement of the results for
the interim periods presented.  All such adjustments are of a normal and
recurring nature.
- 3 -
INDEX
PAGE
ITEM 1.
 FINANCIAL STATEMENTS
3
CONDENSED
CONSOLIDATED BALANCE SHEETS
5
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
6
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
7
NOTES TO THE
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
9
ITEM
2.
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
33
ITEM
3.
QUANTITATIVE
AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
40
ITEM
4.
CONTROLS
AND PROCEDURES
40
PART II.
 OTHER INFORMATION
42
SIGNATURES
44
- 4 -
WORLDWIDE ENERGY AND MANUFACTURING USA,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2009 AND DECEMBER 31,
2008
September 30, 2009
December 31, 2008
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
5,067,638
$
5,092,476
Restricted cash
1,417,356
-
Accounts receivables, net of allowances of $281,000
and $46,000, respectively
14,985,055
4,790,506
Notes receivable
354,263
269,507
Inventories
4,926,189
3,754,765
Income tax receivable
186,157
-
Advances to suppliers
539,394
99,824
Other receivables
111,006
185,400
Prepaid and other current assets
401,260
206,770
Total current assets
27,988,318
14,399,248
Property, plant and equipment, net
3,554,610
1,353,539
Intangible assets
1,101,000
1,101,000
Goodwill
285,714
285,714
Investment at cost
51,892
51,892
Deposits paid for contracts in process
-
1,673,084
Long term receivable – related party
253,996
260,973
Other assets
-
7,559
Total assets
$
33,235,530
$
19,133,009
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
14,481,008
$
3,400,253
Accrued expenses
1,029,332
867,291
Line of credit
2,000,000
-
Acquisition cost payable
-
285,714
Tax payable
492,516
364,213
Due to related parties
1,351,276
1,243,024
Customer deposits
175,723
964,998
Total current liabilities
19,529,855
7,125,493
Non-current liabilities
Line of credit
763,285
937,075
Loan payable to stockholders
-
60,024
Total non-current liabilities
763,285
997,099
Total liabilities
20,293,140
8,122,592
Stockholders' equity
Common stock (No Par Value; 100,000,000 shares
authorized; 3,621,611 and 3,493,511 shares issued and outstanding,
respectively)
6,270,399
6,108,379
Retained earnings
5,160,166
3,801,921
Accumulated other comprehensive income
665,510
487,478
Total equity attributable to Worldwide
12,096,075
10,397,778
Non-controlling interest
846,315
612,639
Total stockholders' equity
12,942,390
11,010,417
Total liabilities and stockholders' equity
$
33,235,530
$
19,133,009
See accompanying notes to unaudited
condensed consolidated financial statements
- 5 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2009
2008
2009
2008
Revenue
Sales
$
18,618,508
$
19,102,654
$
39,217,288
$
31,348,064
Cost of goods sold
15,757,244
17,738,721
32,654,832
27,493,975
Gross profit
2,861,264
1,363,933
6,562,456
3,854,089
Operating Expenses
Selling, general and administrative expenses
1,316,386
750,983
3,728,136
2,227,502
Management
and professional fees paid to shareholders (Note 14)
80,000
72,680
260,000
225,680
Stock based compensation
46,800
(15,000)
162,020
95,000
Depreciation
83,485
2,879
246,366
10,713
Total operating expenses
1,526,671
811,542
4,396,522
2,558,895
Net operating income
1,334,593
552,391
2,165,934
1,295,194
Other Income (expenses)
Interest income
3,007
8,267
14,164
12,217
Interest expense
(20,114)
(1,287)
(40,923)
(74,375)
Interest expense paid to shareholders (Note
14)
-
(9,838)
-
(27,284)
Other income (expense)
13,391
5,704
6,399
5,704
Exchange  gain (loss)
97,996
-
103,421
(691)
Total other expenses
94,280
2,846
83,061
(84,429)
Income before income taxes
1,428,873
555,237
2,248,995
1,210,765
Income taxes
(427,497)
(8,514)
(670,121)
(16,813)
Income after taxes
1,001,376
546,723
1,578,874
1,193,952
Net
income(loss) from discontinued operations, net of tax
-
(6,115)
-
2,017
Net income before non-controlling interest
1,001,376
540,608
1,578,874
1,195,969
Net income attributable to non-controlling
interest
(98,019)
-
(220,629)
-
Net income attributable to Worldwide
903,357
540,608
1,358,245
1,195,969
Other comprehensive income
Foreign currency translation, net of
tax
83,423
146,017
191,079
102,835
Comprehensive income (loss) attributable to
non-controlling interest
524
-
(13,047)
-
Total  comprehensive income
$
987,304
$
686,625
$
1,536,277
$
1,298,804
Basic and diluted earnings per share from
continuing operations
$
0.25
$
0.17
$
0.38
$
0.48
Basic and diluted earnings per share from
discontinued operations
$
0.00
$
(0.00)
$
0.00
$
0.00
Basic and diluted earnings per share
$
0.25
$
0.17
$
0.38
$
0.48
Basic and diluted weighted average shares
outstanding
3,621,611
3,170,906
3,578,014
2,471,384
See
accompanying notes to unaudited condensed consolidated financial statements
- 6 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
For the Nine Months
Ended
September 30,
2009
2008
Cash flows from operating activities:
Net income attributable to Worldwide
$
1,358,245
$
1,195,969
Net income attributable to non-controlling
interest
220,629
-
Adjustments
to reconcile net income to net cash used in operating activities:
Depreciation
246,564
74,646
Allowance for bad debts
234,796
(20,000)
Stock based compensation
162,020
95,000
Changes in operating assets and liabilities:
Accounts receivable
(10,250,963)
(2,496,611)
Notes receivable
(84,468)
-
Inventories
(1,167,944)
(1,433,804)
Income tax receivable
(185,921)
(2,375)
Advance to suppliers
(438,754)
(4,847)
Related party payable
6,497
-
Prepaid and other current assets
(198,622)
(277,531)
Accounts payable
11,155,323
1,308,977
Accrued expense and acquisition cost payable
(123,636)
105,196
Tax payable
128,152
14,105
Customer deposits
(789,339)
-
Net cash provided by (used by) operating
activities
272,579
(1,441,275)
Cash flows from investing activities:
Loan to related parties
-
(207,130)
Capital expenditures
(744,218)
(648,887)
Deposits paid for investment in subsidiaries
-
(772,692)
Deposits to restricted account
(1,417,356)
-
Net cash used by investing activities
(2,161,574)
(1,628,709)
Cash flows from financing activities:
Proceeds from issuance of common stock
-
4,578,494
Repayment of loans payable to shareholders
(60,024)
(438,788)
Proceeds from related parties
107,521
-
Net proceeds from line of credit
2,000,000
1,166,786
Repayment of bank loans
(173,790)
-
Net cash flows provided by financing
activities:
1,873,707
5,306,492
Effect of exchange rate changes on cash and cash
equivalents
(9,550)
114,411
Net increase (decrease) in cash and cash
equivalents
(24,838)
2,350,919
Cash and cash equivalents- beginning of
period
5,092,476
2,111,825
Cash and cash equivalents- end of period
$
5,067,638
$
4,462,744
See accompanying notes to unaudited
condensed consolidated financial statements
- 7 -
Supplemental disclosure of non cash
activities:
Cash paid during the period for:
Interest
$
40,923
$
101,659
Income tax
$
390,217
$
35,758
See accompanying notes to unaudited
condensed consolidated financial statements
- 8 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
1.
MANAGEMENT'S
REPRESENTATION OF INTERIM FINANCIAL INFORMATION
The
accompanying unaudited condensed consolidated financial statements have been
prepared by Worldwide Energy and Manufacturing USA, Inc. and subsidiaries
without audit pursuant to the rules and regulations of the Securities and
Exchange Commission.  Certain information and disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted as allowed by such rules
and regulations, and management believes that the disclosures are adequate to
make the information presented not misleading.  These condensed
consolidated financial statements include all of the adjustments, which in the
opinion of management are necessary to a fair presentation of financial position
and results of operations.  All such adjustments are of a normal and
recurring nature. Interim results are not necessarily indicative of results for
a full year. These condensed consolidated financial statements should be
read in conjunction with the audited financial statements at December 31, 2008
as filed in the Company Form 10-K filed with the Commission on April 14, 2009
and the amended 10K/A filed August 19, 2009 and September 1, 2009.
2.
SIGNIFICANT
ACCOUNTING POLICIES
This
summary of significant accounting policies of the Company is presented to assist
in understanding the Company's financial statements.  The financial
statements and notes are representations of the Company's management, which is
responsible for their integrity and objectivity. These accounting policies
conform to generally accepted accounting principles and have been consistently
applied in the preparation of the condensed consolidated financial statements
and the restated December 31, 2008 financials included in the 10-K/A filed on
September 1, 2009.
In June
2009 the FASB established the Accounting Standards Codification ("Codification"
or "ASC") as the source of authoritative accounting principles recognized by the
FASB to be applied by nongovernmental entities in the preparation of financial
statements in accordance with generally accepted accounting principles in the
United States ("GAAP"). Rules and interpretive releases of the Securities and
Exchange Commission ("SEC") issued under authority of federal securities laws
are also sources of GAAP for SEC registrants. Existing GAAP was not intended to
be changed as a result of the Codification, and accordingly the change did not
impact our financial statements. The ASC does change the way the guidance is
organized and presented.
Description
of Business
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide" or "the
Company") is an international manufacturing and engineering firm, concentrating
on PV solar modules and contract manufacturing services, using multiple
factories in China. Worldwide services customers primarily in Europe, South
Korea for our solar modules and United States-based companies for their
outsource of smaller and scale production orders for offshore production in
China. From our inception in 1993 until 2005, we were strictly an intermediary
or "middle man," working with our customers and our subcontractors to assure
that our customers received high quality components on a timely basis that
fulfilled their specific needs. While we still subcontract a significant portion
of our business, since 2005, we have begun the transition to becoming a direct
contract manufacturer, operating several of our own factories.  Recently,
we announced the opening of two additional factories, allowing us to become a
direct manufacturer for solar modules and for power supply units as described
below.
In
February of 2008, Worldwide established a solar division that focuses on
photovoltaic module technology under the brand name of "Amerisolar."  On
February 25, 2008, the Company changed its name from Worldwide Manufacturing
USA, Inc. to Worldwide Energy and Manufacturing USA, Inc. in order to reflect
its expansion into the solar energy industry. The Company issued 300,000
restricted shares for the Amerisolar brand name.
- 9 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Worldwide leased a
129,167 square foot facility in Ningbo, China. The lease term is from July 18,
2008 to July 17, 2013. This facility houses the production operations and
R&D center for the Company's solar division. Operations at this facility
began during the first quarter of 2009.
On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited ("De Hong"), through acquiring 55% of
the outstanding capital stock of De Hong, a China corporation, through
Worldwide's wholly owned subsidiary Intech Electro-Mechanical Products Co.,
Ltd., a Chinese corporation ("Intech"). Shanghai De Hong Electric and Electronic
Company is the holding Company for the operating subsidiary Shanghai
Intech-Detron Electronic Co. ("Detron").  The Company purchased De Hong
based on the fair value of its assets at the time of purchase.
The
terms of the purchase agreement stated that Worldwide would pay a cash
consideration of $1,022,700 dollars for 55% interest in DeHong. Intech paid the
first installment of $714,286 on behalf of Worldwide in September 2008. During
the three months ended March 31, 2009, Worldwide paid $308,414 for the second
installment and the total consideration of the purchase price of $1,022,700 was
paid in full.
The
Company funded the acquisition with some of the proceeds from its sale of
1,055,103 shares of its common stock, or $4,747,970, which took place in June
2008.   Worldwide received 55% control of the operating subsidiary,
Detron.  Detron is a power supply factory in Shanghai, China with design
and R&D capabilities.  This was accounted for as a purchase of Detron,
where Worldwide has operating control. The Company began to consolidate Detron
into the Company's consolidated financial statements beginning on October 1,
2008.
On
August 15, 2008, Worldwide formed a new Company called Nantong Ningbo Solar
factory ("Ningbo Solar"), which is our solar energy research, development and
manufacturing subsidiary. The Company established a factory to provide
installation services to different solar project. The Company also acts as an
agent to import or export the products and services overseas. The Ningbo Solar
factory began operations during the first quarter of 2009.
On
November 14, 2005, Worldwide established a die-casting and machining presence
through leasing an existing facility from a former supplier, and initially
investing approximately $500,000 to upgrade the equipment and manufacturing
buildings. In this transaction, we acquired assets, the expertise of the
employees, the managers of the factories, and a portion of the existing
customers of those factories. In the third quarter of 2005, we also established
an electronics manufacturing factory.
As of
December 31, 2008 we own and operate four factories that we now use for the
manufacturing of certain product lines that we historically had to subcontract,
and we are using the services of approximately 40 subcontractors to manufacture
those product lines for which we do not have our own manufacturing
capabilities.
- 10 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Principles
of Consolidation
The
accompanying consolidated financial statements include Worldwide Energy and
Manufacturing USA, Inc., a Colorado corporation and a public company, its
operating subsidiary, Worldwide USA, a California corporation, and six
subsidiary companies, Shanghai Intech Electro-Mechanical Products Co.,
Ltd.("Intech"), Shanghai Intech Precision Mechanical Products Ltd("Die Cast").,
Shanghai Intech-Detron Electric and Electronic Company Limited ("Detron"),
Ningbo Solar Factory ("Ningbo Solar"), Nantong Solar Factory ("Nantong") and
Shanghai De Hong Electric and Electronic Company Limited ("De Hong"), owned by
Worldwide USA.
Effective
January 1, 2009, the Consolidation Topic, ASC 810-10-45-16, revised the
accounting treatment for non-controlling minority interests of partially-owned
subsidiaries.  Non-controlling minority interests represent the
portion of earnings that is not within the parent Company's control. These
amounts are now required to be reported as equity instead of as a liability on
the balance sheet.  This change resulted in a $612,639
reclassification from other long-term liabilities to shareholders' equity on the
December 2008 consolidated balance sheet and is primarily related to the
$1,022,700 investment in Shanghai De Hong Electric and Electronic Company
Limited ('De Hong").  Additionally, this statement requires net income from
non-controlling minority interests to be shown separately on the consolidated
statements of income and other comprehensive income.  These amounts
are $98,019 and $220,629 for the three and nine month periods respectively
ending September 30, 2009, and shown separately in the unaudited consolidated
statement of income and other comprehensive income. All significant intercompany
balances and transactions have been eliminated in consolidation.
The
Company also consolidates any variable interest entities (VIEs), of which it is
the primary beneficiary, as defined.  The Company does not have any VIEs
that need to be consolidated at this time. When the Company does not have a
controlling interest in an entity, but exerts a significant influence over the
entity, the Company would apply the equity method of accounting.
Comprehensive
Income
The
Company reports comprehensive income in accordance with FASB ASC Topic 220
"Comprehensive Income," which established standards for reporting and displaying
comprehensive income and its components in a financial statement that is
displayed with the same prominence as other financial statements.
The
accumulated other comprehensive income on the consolidated balance sheets at
September 30, 2009 and December 31, 2008 are summarized as follows:
September 30, 2009
December 31, 2008
Accumulated
Other Comprehensive Income
Foreign
Currency Translation Adjustment
$
665,510
$
487,478
Total
$
665,510
$
487,478
- 11 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Comprehensive
Income (continued)
The
components of comprehensive income on the statements of income and comprehensive
income for the three and nine month periods ended September 30, 2009 and 2008
are summarized as follows:
For the Three Months Ended September 30,
For the Nine Months Ended September
30,
2009
2008
2009
2008
Other
Comprehensive Income
Net Income
attributable to Worldwide
$
903,357
$
540,608
$
1,358,245
$
1,195,969
Foreign
Currency Translation Adjustment
83,423
146,017
191,079
102,835
Comprehensive
Income (Loss) attributable to Non-Controlling Interest
524
-
(13,047)
-
Total
Comprehensive Income
$
987,304
$
686,625
$
1,536,277
$
1,298,804
Accounts Receivable
Trade
accounts receivables are recorded at the invoiced amount and do not bear
interest. Amounts collected on trade accounts receivables are included in net
cash provided by operations activities in the consolidated cash flow statements.
The Company maintains an allowance for doubtful accounts for estimated losses
inherent in its accounts receivable portfolio. In establishing the required
allowance, management considers historical losses, current receivables aging
reports and existing industry and People's Republic of China ("PRC") economic
data. The Company reviews its allowances every month. Past due invoices over 90
days that exceed a specific amount are reviewed individually for collectability.
During the nine month period ended September 30, 2009, a total amount of $9,610
was charged off against the allowance after all means of collection were
exhausted and the potential for recovery was considered remote.
Property and equipment
Property, plant and equipment are stated at cost. Depreciation is
computed over the estimated useful lives of the related asset type using the
straight-line method for financial statement purposes. Maintenance and repairs
are expensed as incurred and the costs of additions and betterments that
increase the useful lives of the assets are capitalized. When property or
equipment is disposed, the cost and related accumulated depreciation and
amortization are removed from the accounts and any gain or loss is included in
other income or expenses.  We evaluate the
- 12 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Property and
equipment (continued)
the
recoverability of property, plant and equipment and intangible assets in
accordance with FASB ASC Topic 360, "
Property, Plant, and Equipment
," and
FASB ASC Topic 205, "
Presentation of Financial Statements
." We test for
impairment losses on long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than then assets' carrying amounts. An impairment loss
is recognized in the event the carrying value of these assets exceeds the fair
value of the applicable assets. Impairment evaluations involve management
estimates of asset useful lives and future cash flows. Actual useful lives and
cash flows could be different from those estimated by management, which could
have a material effect on our operating results and financial position.  As
of September 30, 2009, management determined that there was no such
impairment.
The estimated service lives of property and equipment are as
follows:
Buildings
and leasehold improvements
7 to 40 years
Machinery
and equipment
5
years
Transportation
vehicles
5
years
Furniture
and fixtures
7
years
Computers
and computer software
3
years
Construction
in-progress
Plant
and production lines currently under development are accounted for as
construction-in-progress. Construction-in-progress is recorded at acquisition
cost, including land rights cost, development expenditure, professional fees and
the interest expenses capitalized during the course of construction for the
purpose of financing the project. Upon completion and readiness for use of the
project, the cost of construction-in-progress is to be transferred to fixed
assets, at which time depreciation will commence. As of September 30, 2009, the
Company has incurred and capitalized into construction-in-progress $1,522,818 of
construction costs. This construction in progress includes $1,082,644 for the
building of a new solar factory and $440,174 for a new building and die cast
machinery. The Company had no capitalized interest and to date has funded this
construction through operations without the use of outside
financing.  The estimated additional cost to be incurred in 2009 is
$400,000 and the total cost of the project will be $4,500,000.  Upon
completion of the construction in progress, the Company will record to property
and equipment and beginning to depreciate over the useful life.
Long-Lived
Assets
The
Company's long-lived assets and other assets are reviewed for impairment in
accordance with the guidance of the FASB ASC 360-10, Property, Plant, and
Equipment, whenever events or changes in circumstances indicate that the
carrying amount of the asset may not be recoverable. Recoverability of an asset
to be held and used is measured by a comparison of the carrying amount of an
asset to the future undiscounted cash flows expected to be generated by the
asset. If such asset is considered to be impaired, the impairment to be
recognized is measured by the amount by which the carrying amount of the asset
exceeds its fair value. Fair value is determined through various valuation
techniques including discounted cash flow models, quoted market values and
third-party independent appraisals, as considered necessary. Through September
30, 2009, the Company had not experienced impairment losses on its long-lived
assets. However, there can be no assurances that demand for the Company's
products or services will continue, which could result in an impairment of
Long-Lived assets in the future.
- 13 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Inventories
Inventories are stated at lower of cost or market and consist of
materials, labor and overhead. The Company determines the cost of inventory by
the first-in, first-out method. The Company evaluates inventories for excess
quantities and obsolescence. This evaluation includes analyses of sales levels
by product and projections of future demand. In order to state the inventory at
lower of cost or market, the Company maintains reserves against its inventory.
If future demand or market conditions are less favorable than the Company's
projections, a write-down of inventory may be required, and would be reflected
in cost of goods sold in the period the revision is made. Inventories consist of
raw material, work in progress and finished goods of manufactured
products.
Revenue
Recognition
The
Company recognizes revenues in accordance with the guidelines of the Securities
and Exchange Commission ("SEC") Staff Accounting Bulletin ("SAB") No. 104
"Revenue Recognition".  The Company recognizes revenue from product sales
when the orders are completed and shipped, provided that collection of the
resulting receivable is reasonably assured.  Amounts billed to customers
are recorded as sales while the shipping costs are included in cost of sales.
Returns of defective custom parts may only be exchanged for replacement parts
within 30 days of the invoice date.  Returns of defective parts, may be
exchanged for replacement parts or for a refund.  Revenue from
non-refundable customer tooling deposits is recognized when the materials are
shipped or when the deposit is forfeited, whichever is earlier.  During the
current quarter, industry conditions and market forces have necessitated the
Company to extend their payment terms in the marketplace; however, this change
in terms does not prohibit the Company from recognizing revenue in accordance
with SAB No. 104.
Cash
and Cash Equivalents
For
purposes of the statement of cash flows, the Company considers all highly liquid
debt instruments purchased with a maturity of three months or less to be cash
equivalents.  A substantial amount of the Company's cash is held in bank
accounts in the People's Republic of China and is not protected by the Federal
Deposit Insurance Corporation (FDIC) insurance or any other similar insurance.
Accounts held at U.S. financial institutions are insured by the FDIC up to
$250,000. As of September 30, 2009 the Company's cash balance held at U.S banks
was $2,762,295 which was $2,262,295 in excess of the insured amounts. Given the
current economic environment and the financial conditions of the banking
industry there is a risk that deposits may not be readily available or covered
by such insurance. The Company has had no loss on excess cash in domestic or
foreign banks in past years.
Income tax
The
Company is subject to income taxes in the U.S. and China. Significant judgment
is required in evaluating our uncertain tax positions and determining our
provision for income taxes. In accordance with FASB ASC Topic 740,
"Income
Taxes,"
we provide for the recognition of deferred tax assets if realization
of such assets is more likely than not.
- 14 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Income tax (continued)
Taxation on profits earned in the PRC has been calculated on the
estimated assessable profits for the year at rates of taxation prevailing in the
municipalities in the PRC in which the Company operates.
The Company does not accrue United States income tax on unremitted
earnings from foreign operations, as it is the Company's intention to invest
these earning in the foreign operations indefinitely.
Under
the Provisional Regulations of The People's Republic of China Concerning Income
Tax on Enterprises promulgated by the State Council which came into effect on
January 1, 1994, income tax is payable by a Wholly Foreign Owned Enterprises at
a rate of 15% of their taxable income. Preferential tax treatment may, however,
be granted pursuant to any law or regulations from time to time promulgated by
the State Council. On March 16, 2007, The People's Republic of China enacted a
new Enterprise Income Tax Law for the purpose of unifying the tax treatment of
domestic and foreign enterprises. This new law eliminates the preferential tax
treatment for new Wholly Foreign Owned Enterprises but allows previously granted
exemptions to stay in place through 2012, with the exception that the statutory
tax rate will increase by 2% per year from 15% in 2006 to 25% by 2012. The
Company did not have any subsidiaries that qualified for any preferred tax
treatment.  For income tax purposes, we use 39% blended rate (US Federal
and state) for US operations an approximately 10% to 25%, based on the
municipality in which the subsidiary resides, for China based operations. These
rates are applied to Net Income before Income Taxes.
Goodwill
The
Company evaluates goodwill and other intangible assets in accordance with FASB
ASC Topic 350, "
Intangibles — Goodwill and Other."
Goodwill is recorded
at the time of an acquisition and is calculated as the difference between the
total consideration paid for an acquisition and the fair value of the net
tangible and intangible assets acquired. Accounting for acquisitions requires
extensive use of accounting estimates and judgments to allocate the purchase
price to the fair value of the net tangible and intangible assets acquired,
including in-process research and development ("IPR&D"). Goodwill and
intangible assets deemed to have indefinite lives are not amortized, but are
subject to annual impairment tests. If the assumptions and estimates used to
allocate the purchase price are not correct, or if business conditions change,
purchase price adjustments or future asset impairment charges could be required.
The value of our intangible assets, including goodwill, could be impacted by
future adverse changes such as: (i) any future declines in our operating
results, (ii) a decline in the valuation of technology Company stocks,
including the valuation of our common stock, (iii) a significant slowdown
in the worldwide economy or (iv) any failure to meet the performance
projections included in our forecasts of future operating results. In accordance
with FASB ASC Topic 350, the Company tests goodwill for impairment on an annual
basis or more frequently if the Company believes indicators of impairment exist.
Impairment evaluations involve management estimates of asset useful lives and
future cash flows. Significant management judgment is required in the forecasts
of future operating results that are used in the evaluations. It is possible,
however, that the plans and estimates used may be incorrect. If our actual
results, or the plans and estimates used in future impairment analysis, are
lower than the original estimates used to assess the recoverability of these
assets, we could incur additional impairment charges in a future period.
- 15 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Goodwill
(Continued)
The
Company performs its annual impairment review of goodwill in December, and when
a triggering event occurs between annual impairment tests. The Company recorded
no impairment loss for December 31, 2008 or for the period ending September 30,
2009.
Non-Cash
Equity Transactions
Shares
of equity instruments issued for non-cash consideration are recorded at the fair
value of the consideration received based on the market value of services to be
rendered, or at the value of the stock given, considered in reference to
contemporaneous cash sale of stock.
Estimates
The
preparation of these consolidated financial statements in accordance 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 dates of the consolidated financial statements and the
reported amounts of net sales and expenses during the reported periods.
 Actual results may differ from those estimates and such differences may be
material to the financial statements.  The more significant estimates and
assumptions by management include among others:  useful lives and residual
values of fixed assets, valuation of inventories and accounts receivable, stock
based compensation, purchase price allocation, and goodwill and intangible
assets impairment tests. The current economic environment has increased the
degree of uncertainty inherent in these estimates and assumptions.
Foreign
Currency Transactions and Translation
The
Company's principal country of operations is The People's Republic of China. The
financial position and results of operations of the Company are determined using
the local currency ("Renminbi" or "Yuan") as the functional currency. The
results of operations denominated in foreign currency are translated at the
average rate of exchange during the reporting period.
Assets
and liabilities denominated in foreign currencies at the balance sheet date are
translated at the exchange rates prevailing at the balance sheet date. The
registered equity capital denominated in the functional currency is translated
at the historical rate of exchange at the time of capital contribution. All
translation adjustments resulting from the translation of the financial
statements into the reporting currency ("US Dollars") are dealt with as a
separate component within stockholders' equity. Translation adjustments net of
tax totaled $83,423 and $146,017, for the three months ended September 30, 2009
and 2008, respectively and $191,079 and $102,835, for the nine months ended
September 30, 2009 and 2008, respectively.
As of
September 30, 2009 and 2008, the exchange rate was RMB 6.8376 and RMB 6.8551 per
U.S. Dollar, respectively.  The average exchange rate for the nine months
ended September 30, 2009 and 2008 was RMB 6.8425 and RMB 6.9989,
respectively.
- 16 -
WORLDWIDE
ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Fair Value
Measurements
Effective April 1,
2009, the FASB ASC Topic 825,
Financial Instruments
,
requires
disclosures about fair value of financial instruments in
quarterly reports as well as in annual reports.  For Worldwide, this
statement applies to certain investments and long-term debt.
The FASB ASC Topic
820,
Fair Value Measurements and Disclosures
, clarifies the definition of
fair value for financial reporting, establishes a framework for measuring fair
value and requires additional disclosures about the use of fair value
measurements.
Various inputs are
considered when determining the fair value of the Company's investments and
long-term debt.  The inputs or methodologies used for valuing
securities are not necessarily an indication of the risk associated with
investing in these securities.  These inputs are summarized in the
three broad levels listed below.
·
Level
1 – observable market inputs that are unadjusted quoted prices for identical
assets or liabilities in active markets.
·
Level
2 – other significant observable inputs (including quoted prices for similar
securities, interest rates, credit risk, etc…).
·
Level
3 – significant unobservable inputs (including the Company's own assumptions in
determining the fair value of investments).
The
Company adoption of FASB ASC Topic 825 did not have a material impact on the
Company's consolidated financial statements.
The
carrying value of financial assets and liabilities recorded at fair value is
measured on a recurring or nonrecurring basis. Financial assets and liabilities
measured on a non-recurring basis are those that are adjusted to fair value when
a significant event occurs. The Company had no financial assets or liabilities
carried and measured on a nonrecurring basis during the reporting periods.
Financial assets and liabilities measured on a recurring basis are those that
are adjusted to fair value each time a financial statement is prepared. The
Company's had no financial assets and/or liabilities carried at fair value on a
recurring basis at September 30, 2009.
As of
September 30, 2009 and December 31, 2008 the fair value of cash, accounts
receivable, other receivables, accounts payable, commercial notes payable, lines
of credit and accrued expenses approximated carrying value due to the short
maturity of the instruments, quoted market prices, or interest rates, which
fluctuate with market rates.
- 17 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Fair Value
Measurements (Continued)
The
availability of inputs observable in the market varies from instrument to
instrument and depends on a variety of factors including the type of instrument,
whether the instrument is actively traded, and other characteristics particular
to the transaction. For many financial instruments, pricing inputs are readily
observable in the market, the valuation methodology used is widely accepted by
market participants, and the valuation does not require significant management
discretion. For other financial instruments, pricing inputs are less observable
in the market and may require management judgment.
Basic and diluted
earnings per share
Basic
earnings per share are based on the weighted-average number of shares of common
stock outstanding.  Diluted earnings per share is based on the
weighted-average number of shares of common stock outstanding adjusted for the
effects of common stock that may be issued as a result of the following types of
potentially dilutive instruments:
·
Warrants,
·
Employee stock options, and
·
Other equity awards, which include long-term incentive awards.
The FASB ASC Topic
260,
Earnings Per Share
, requires Worldwide to include additional shares
in the computation of earnings per share, assuming dilution.
Diluted earnings per share
are based on the assumption that all dilutive options were converted or
exercised. Dilution is computed by applying the treasury stock method. Under
this method, options are assumed to be exercised at the time of issuance, and as
if funds obtained thereby were used to purchase common stock at the average
market price during the period.
Basic and diluted earnings
per share are the same as there was no dilutive effect of the warrants and stock
options for the three and nine months ended September 30, 2009 and 2008.
- 18 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Concentrations,
Risks, and Uncertainties
All of
the Company's manufacturing is located in the Peoples Republic of China
("PRC").  There can be no assurance that the Company will be able to
successfully continue to manufacture its products and failure to do so would
have a material adverse effect on the Company's financial position, results of
operations and cash flows. Also, the success of the Company's operations is
subject to numerous contingencies, some of which are beyond management's
control. These contingencies include general economic conditions, price of raw
material, competition, governmental and political conditions, and changes in
regulations. Because the Company is dependent on foreign trade in PRC, the
Company is subject to various additional political, economic and other
uncertainties. Among other risks, the Company's operations will be subject to
risk of restrictions on transfer of funds, domestic and international customs,
changing taxation policies, foreign exchange restrictions, and political and
governmental regulations.
The
Company operates in China, which may give rise to significant foreign currency
risks from fluctuations and the degree of volatility of foreign exchange rates
between U.S. dollars and the Chinese currency RMB.
At
September 30, 2009, one customer accounted for more than 10% of the Company's
accounts receivable, with a total amount of $8,851,808, representing 59.1% of
total accounts receivable in aggregate. This accounts receivable includes sales
with extended payment terms due to market conditions and competitive pressures.
At September 30, 2008, three customers individually accounted for more than 10%
of the Company's accounts receivable, these customers' total accounts receivable
amounts to $2,830,204, representing 48.0% of total accounts receivable in
aggregate.
At
September 30, 2009, one customer accounted for more than 10% of our quarterly
sales with a sales mount of $10,859,160 or 58.3% of sales.  At September
30, 2008, two customers individually accounted for greater than 10% of quarterly
sales with a total sales volume in the quarter of $14,390,132, or 75.3%.
At
September 30, 2009, one supplier accounted for more than 10% of our Cost of
Goods Sold for the quarter.  Purchases from this supplier totaled
$9,036,295 or 57.3% of the quarterly Cost of Goods Sold.  Market conditions
have allowed the Company to negotiate extended payment periods from this
supplier.  At September 30, 2008, one supplier accounted for greater than
10% of our Cost of Goods Sold in the period at $2,436,595 or 13.7% of the
quarterly Cost of Goods sold.
Payments of dividends may be subject to some restrictions due to
the fact that the operating activities are conducted in subsidiaries residing in
the Peoples Republic of China.
As part
of the production process, the Company may be required by its suppliers to
advance funds under short-term agreements for tooling and other pre-production
costs.  The advances are generally unsecured and may carry interest at the
prevailing market rate for short-term instruments.  Such tooling is in most
cases, either owned by the supplier or our customers and is generally of value
primarily for the specific needs of the Company's customers.  At September
30, 2009, the Company has made advances to its suppliers of $539,394 for
materials and inventory.  The Company in turn requires its customers to
provide a non-refundable down payment to offset such startup costs.  As of
September 30, 2009, the Company has customer deposits of $175,723. In the
event that a supplier is unable to fulfill its production agreements with the
Company, management believes that other suppliers can be found for the Company's
products.  However, a change in suppliers would cause a delay in the
production process, and could result in loss of tooling deposits and other
supplier advances, which could negatively affect the Company's operating
results.
- 19 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
2.
SIGNIFICANT
ACCOUNTING POLICIES (CONTINUED)
Concentrations, Risks,
and Uncertainties (continued)
The
Company sells its goods and services internationally, with the majority of its
revenue currently being derived from customers in the United States and Europe.
 As such, the Company is susceptible to credit risk on accounts and notes
receivable from customers.  Generally, the Company does not obtain security
from its customers in support of accounts receivable.
Subsequent
Events
In
May 2009, the FASB issued accounting guidance now codified as FASB ASC
Topic 855, "
Subsequent Events,"
which establishes general standards of
accounting for, and disclosures of, events that occur after the balance sheet
date but before financial statements are issued or are available to be issued.
FASB ASC Topic 855 is effective for interim or fiscal periods ending after
June 15, 2009. The Company has evaluated subsequent events for the period
from September 30, 2009, the date of these financial statements, through
November 13, 2009, which represents the date these financial statements are
being filed with the Commission. Pursuant to the requirements of FASB ASC Topic
855, there were no events or transactions occurring during this subsequent event
reporting period that require recognition or disclosure in the financial
statements. With respect to this disclosure, the Company has not evaluated
subsequent events occurring after November 13, 2009.
Stock Based Compensation
For
purposes of determining the variables used in the calculation of stock
compensation expense under the provisions of FASB ASC Topic 505, "
Equity
"
and FASB ASC Topic 718, "
Compensation — Stock Compensation,"
we perform
an analysis of current market data and historical Company data to calculate an
estimate of implied volatility, the expected term of the option and the expected
forfeiture rate. With the exception of the expected forfeiture rate, which is
not an input, we use these estimates as variables in the Black-Scholes option
pricing model. Depending upon the number of stock options granted, any
fluctuations in these calculations could have a material effect on the results
presented in our condensed consolidated statement of income and other
comprehensive income. In addition, any differences between estimated forfeitures
and actual forfeitures could also have a material impact on our financial
statements
.
Share-based
compensation costs that have been included in operating expenses amounted to
$162,020 and $95,000 for the nine months ended September 30, 2009 and 2008,
respectively.  For the three month period ending September 30, 2009 and
September 3, 2008, stock based compensation was $46,800 and ($15,000),
respectively.
Recently Enacted
Accounting Standards
Accounting Standards Update ("ASU") ASU No. 2009-05 (ASC Topic
820), which amends Fair
Value
Measurements and Disclosures - Overall, ASU No. 2009-13 (ASC Topic 605),
Multiple Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985),
Certain Revenue Arrangements that include Software Elements, and various other
ASU's No. 2009-2 through ASU No. 2009-15 which contain technical corrections to
existing guidance or affect guidance to specialized industries or entities were
recently issued. These updates have no current applicability to the Company, or
their effect on the financial statements would not have been significant.
- 20 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
3.
COMMITMENTS AND CONTINGENCIES
The
Company leases its office spaces and certain vehicles and equipment under
non-cancelable operating leases.  Minimum future rental payments under
non-cancelable operating leases with remaining terms in excess of one year as of
December 31, 2008, in the aggregate and for each of the five succeeding fiscal
years are as follows:
Year ended
December 31
2009
$
154,302
2010
526,253
2011
494,713
2012
498,663
2013
320,603
Total minimum
future rental payment
$
1,994,534
Total
rent and lease expense was $338,784 and $158,448 for the nine months ended
September 30, 2009 and 2008, respectively.
Total
rent and lease expense was $112,331 and $65,098 for the three months ended
September 30, 2009 and 2008, respectively.
The
Company has various purchase commitments for materials, supplies and services
incident to the ordinary conduct of business, generally for quantities required
for the Company's business and at prevailing market prices. No material annual
loss is expected from these commitments.
The
Company has advances to several material and inventory suppliers in the amount
of $539,394 which will be offset against future purchases from those
suppliers.
The
company has a contingency associated with our capital raises done in 2008
requiring certain milestones to be met. The contingency states:  "If (a)
the Company fails to report at least $2,500,000 in EBITDA less noncash
expenditures for the fiscal year ending December 31, 2009, as disclosed in the
Company's Form 10-K for the fiscal year ending December 31, 2009 ("2009
Milestone"), the date of disclosure of such 2009 Milestone ("2009 Milestone
Date") and such 10-K, and (b) if the average of the ten closing prices for each
of the ten trading days immediately following the 2009 Milestone Date is less
than the lesser of the Per Share Purchase Price and the 2008 Milestone Price,
which is $4.50 ("2009 Milestone Price"), then, within 13 Trading Days of the
2009 Milestone Date, the Company shall issue to each Purchaser a number of
shares of Common Stock equal to the difference between (i) the number of shares
of Common Stock issued to such Purchaser on the Closing Date along with any 2008
Milestone Shares issued pursuant to the 2008 Milestone Date, which are
none,  and (ii) the number of shares of Common Stock that would otherwise
have been issuable to such Purchaser on the closing date if the Per Share
Purchase Price was equal to the 2009 Milestone Price."
("2009 Milestone Shares")." 
Jimmy and Mindy Wang have deposited into an escrow account 1,620,954 shares of
common stock to satisfy the issuance of any shares related to the 2009 Milestone
Shares.
The
Company is not involved in any legal matters except for the Other Receivable
listed in Note 6 and those arising in the normal course of business. While
incapable of estimation, in the opinion of the management, the individual
regulatory and legal matters in which it might involve in the future are not
expected to have a material adverse effect on the Company's financial position,
results of operations, or cash flows.
- 21 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
4.
ACCOUNTS RECEIVABLE
Accounts receivable by major categories are summarized as
follows:
September 30
,
2009
December 31, 2008
Accounts
Receivable – pledged to banks
$
7,672,948
$
3,385,298
Accounts
Receivable – not pledged
7,592,845
1,450,842
15,265,793
4,836,140
Less:
allowances for doubtful accounts
(280,738)
(45,634)
Total
$
14,985,055
$
4,790,506
Under
the terms of a revolving line of credit agreement with Bank of the West
indicated in Note 13, the revolving line of credit is secured by 70% of accounts
receivable and all business assets of Worldwide USA and guaranteed by certain of
its officers.
5.
INVENTORIES
Inventories by major categories are summarized as follows:
September 30
,
2009
December 31, 2008
Raw
materials
$
872,268
$
752,249
Work in
progress
353,447
1,107,857
Finished
goods
2,808,705
1,914,021
Finished goods
– pledged to the bank
911,178
-
4,945,598
3,774,127
Less:
allowances for slowing moving items
(19,409)
(19,362)
Total
$
4,926,189
$
3,754,765
Under
the terms of a revolving line of credit agreement with Bank of the West
indicated in Note 13, the revolving line of credit is secured by 50% of
inventories and all business assets of of Worldwide USA and guaranteed by
certain of its officers.
- 22 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
6.
OTHER RECEIVABLE
The
Company has other receivables of $111,006 due from a supplier. In the China
legal system we have received a judgment for the total amount in May 2009.
 The supplier appealed the judgment, but the original decision was upheld
in August 2009.  Management believes we will be able to collect this amount
by the end of the first half of 2010.
7.
INCOME TAX
Our statutory federal
income tax is 34% and our state income tax rate is 9.3%. The Company has no
amounts of federal tax due in the periods presented. The provision for income
taxes consists of the following:
For The Nine Months Ended
For The Three Months Ended
September 30,
September 30,
2009
2008
2009
2008
Current income
tax expense in China
$
134,835
$
16,813
$
65,380
$
8,514
U.S Federal
Tax
463,023
-
304,633
-
State and local
income taxes currently paid or payable U.S
72,263
-
57,484
-
Income tax
expense
$
670,121
$
16,813
$
427,497
$
8,514
8.
PROPERTY AND EQUIPMENT
The Company has $16,709 property and equipment located in the
United States for period ending September 30, 2009.  For period ending
December 31, 2008, $22,437 of property plant and equipment was located in the
United States.  Property and equipment for September 30, 2009 was
$3,537,901 in the PRC. For the period ending December 31, 2008, $1,331,102 of
the Company's property and equipment was located in the PRC. The Company's
property and equipment consisted of the following at September 30, 2009 and
December 31, 2008:
- 23 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
8.
PROPERTY AND EQUIPMENT (Continued)
September 30, 2009
December 31, 2008
Vehicles
$
415,923
$
248,112
Furniture and fixtures
259,478
100,346
Equipment
1,742,999
1,107,151
Software
37,266
37,237
Others
55,496
57,669
Leasehold improvements
668,332
-
3,179,494
1,550,515
Less: accumulated depreciation
(1,147,702)
(627,791)
2,031,792
922,724
Construction in progress
1,522,818
430,815
Total
$
3,554,610
$
1,353,539
9.
INTANGIBLE
ASSETS
The  1,101,000 or $3.67 per share. The "AMERISOLAR" modules
are backed by ISO 9001:2000 and ISO 14000 environmental quality
Intangible assets consist of the brand name "Amerisolar". The
brand name "Amerisolar" was purchased on February 25, 2008 from a third party in
exchange for 300,000 shares of the Company's restricted stock. The Company
valued the stock at $3.67 per share for stated value of $1,101,000 which
represents a 25% discount to the closing price of $4.60 on February 25, 2008.
The "AMERISOLAR" modules are backed by ISO 9001:2000 and ISO
14000 environmental quality certifications.
The brand name is carried at cost and is not being amortized as
management has determined the asset has an indefinite useful life. If no legal,
regulatory, contractual, competitive, economic or other factors limit the useful
life of the asset it shall be considered to be indefinite.  In recording of
the brand name is was determined that the expected useful life is indefinite and
cash flows from the brand name are expected to contribute to the Company over an
indefinite period of time.  No impairment has been recognized during the
nine-month periods ended September 30, 2009 and 2008.
10.
INVESTMENT AT COST
On June 24, 2008, the Company paid $51,892 for an Investment in
Tomii International representing approximately 19% equity interest in Tomii
International; Tomii International is a privately held Company that is a
development stage entity with no significant operations. The Company's
accounting for this Investment on the cost basis - management has determined
there is no impairment on investment as of September 30, 2009.
11.
RESTRICTED CASH
During the nine months ended September 30, 2009, the Company paid
$2,500,000 and deposited this amount in an escrow account in the Bank of China
for the incorporation of the subsidiary of Nantong Ningbo Solar factory located
in China for the purpose of registered capital and working capital.
  The fund has been transferred to a cash account accessible by the
division specifically for facility start-up costs. The Chinese government
requires us to have registered capital in order to complete the project.
 Total spending as of September 30, 2009 is $1,082,644 and has been used
for land purchase and initial construction expenses.  The factory will be
completed in April, 2010.
- 24 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
12.
GOODWILL
On
October 14, 2008, Worldwide Energy and Manufacturing USA, Inc. completed the
acquisition of 55% of Shanghai De Hong Electric and Electronic Company Limited
("De Hong") through acquiring 55% of the outstanding capital stock of De Hong, a
China corporation. After the completion of the acquisition, it changed its name
to Shanghai Intech-Tron Electron-Electric Co., Ltd ("Intech-Tron"). The terms of
the Purchase Agreement dated February 3, 2008 was that Worldwide USA paid cash
consideration of $1,022,700 for 55% interest in DeHong. Intech paid the first
installment of $714,286 on behalf of Worldwide in September 2008. During the
three months ended March 31, 2009, Worldwide paid $308,414 for the second
installment and the total consideration of the investment of $1,022,700.
 This was accounted for as a purchase of Detron, where Worldwide has
operating control. Detron was consolidated into the consolidated financial
statements of Worldwide as of October 1, 2008.
Detron's assets are comprised of mostly currents assets where only
$158,520 were related to equipment or fixed assets. The Company determined fair
value by taking the net tangible assets (less all allowance for receivables and
inventory which Worldwide subsidiaries had verified through on-site observation
and valuation) and discounted all currents liabilities which were determined to
be owed and current based on Company records (invoices) providing $1,326,214 in
net tangible assets of which $729,421 or 55% (Worldwide's ownership) was
determined to be fair value for Detron's assets. The Company paid $1,022,700 for
these assets of which $285,714 was allocated to goodwill.
Cash
$
411,316
Accounts
Receivable
1,929,314
Note
receivable
226,877
Inventories
774,295
Advances to
suppliers
21,703
Prepaid and
other current assets
231,967
Property, plant
and equipment, net
158,520
Other
assets
11,059
Goodwill
285,714
Trade
payables
(962,839)
Accrued
expenses
(422,943)
Income taxes
payable
(29,717)
Related parties
payable
(1,015,773)
45% Minority
Interest
(596,793)
55% Net assets
acquired
$
1,022,700
- 25 -
WORLDWIDE
ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
13.
LINE OF CREDIT
As of
September 30, 2009, the Company has the following line of credit
Banker
Amount of the
credit line
Loan
period
Interest
rate
Secured
by
September 30, 2009
Bank of the
West
$
$2,000,000
5/20/2008 - 5/20/2010
4%
70%
Accounts receivable + 50% inventory
$
2,000,000
Bank of the
West
$
$1,025,000
5/20/2008 - 6/01/2011
4%
70%
Accounts receivable + 50% inventory
$
763,285
Total
loans
$
2,763,285
Less: long term
portion
(763,285)
$
2,000,000
For maturities of
long-term loans are as follows as of September 30, 2009
22009
-
22010
2,000,000
22011
763,285
$
2,763,285
On May 20, 2008 the Company paid off its line of credit with Well
Fargo in the amount of $960,000 and established a new line of credit facility
with Bank of the West. Under the terms of the revolving line of credit agreement
with Bank of the West, dated May 20, 2008, the Company could borrow up to
$3,025,000 at a rate of 5.0%. This rate is subject to change based on the prime
rate which was 3.25% as of September 30, 2009.  The interest rate as of
September 30, 2009 was 4% for both lines of credit. The revolving line of credit
is secured by the assets of the Company and guaranteed by certain of its
officers. Payments on the lines of credit are due monthly and payment varies
according to the balance outstanding and interest rate.
The Company can borrow up to $2,000,000 and $1,025,000 within two
credit lines. The maturity date of these two credit lines is May 20, 2010 and
June 1, 2011 respectively. The balance outstanding under both lines of credit as
of September 30, 2009 is $2,000,000 and $763,285, respectively. The Company has
approximately $261,715 available under both lines of credit combined. The
Company was in compliance with bank covenants at September 30, 2009.
- 26 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL TATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
14.
STOCK
TRANSACTIONS
On January 2, 2009, a consultant returned 4,000 shares to the
Company for the work that was not performed. There was a $14,680 reduction in
stock based compensation and additional paid in capital with this
transaction.
On
March 6, 2009, the Company issued 120,000 shares of its common stock to
consultants, valued at $187,200, for the consulting services to be performed
during 2009. The Company will amortize the consultancy fee of $187,200 over the
12-month term of the agreement from January 1, 2009 to December 31, 2009. A
compensation expense of $15,600 will be recorded each month during the term of
the agreement. Total compensation expense under this agreement for the three and
nine month period ending September 30, 2009 was $46,800 and $140,400,
respectively.  Total remaining stock based compensation to be expensed in
the future total $46,800 as of September 30, 2009.
On
March 20, 2009, the Company issued 8,000 shares of its common stock in exchange
for one unit of JK Advisors Fund LLC, which was distributed to the shareholders
of the fund. On June 23, 2009 the Company and JK advisors mutually agreed to
cancel the transaction with no penalties or fees for either party.
On June 23, 2009 the Company issued a total of 12,100 restricted
shares for services consisting of 1) 5,000 shares being issued to its outside
independent Board of Directors, 2) 4,000 shares being issued for legal services
and 3,100 shares being issued to employees in China. The shares had a fair
market value of $3.00 which was determined by taking the bid price of $4.63 and
discounting by 35% due to the restricted nature, the low trading volume and wide
fluctuations in stock price. The Company recorded $36,300 stock-based
compensation expense for these transactions during the period ending June 30,
2009.
15.
PENSION
PLAN AND STOCK OPTION PLAN
The
Company established a stock option plan on April 1, 2004 for the benefit of all
full-time employees. The Company approved the plan to issue up to 300,000 shares
of common stock.  The stock option plan provides employees, consultants and
directors the opportunity to purchase shares.  The exercise price of an
incentive stock option granted under this plan must be equal to or greater than
the fair market value of the shares of the Company's common stock on the date
the option is granted.  The exercise price of a non-qualified option
granted under this plan must be equal to or greater than 85% of the fair market
value of the shares of the common stock on the date the option is granted.
 An incentive stock option granted to an optionee owning more than 10% of
the voting stock must have an exercise price equal to or greater than 110% of
the fair market value of our common stock on the date the option is granted. On
April 1, 2004, the Board granted options to purchase 109,213 shares at an
exercise price of $6.00 per share. As of September 30, 2009 no stock options
have been exercised.
- 27 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
16.
RELATED PARTY TRANSACTIONS
(1) Long term receivable –
related party
September 30,
December 31,
2009
2008
(unaudited)
Mr. Ding
Honglin – Mr. Ding is the General Manager of Shanghai Intech Precision
Machinery Co. Ltd – Loan to accommodate partnership separation
$
253,996
$
260,973
The
amounts due from related party are unsecured, interest free and have no fixed
repayment dates.
(2) Due to a related
party
September 30,
December 31,
2009
2008
(unaudited)
Shanghai Jinde
Electro-Mechanical Co. Ltd, the shareholder of Shanghai Intech-Tron
Electron-Electric Co., Ltd advanced to Detron for working capital
purposes.
$
1,351,276
$
1,243,024
The
amounts due to a related party are unsecured, interest free and have no fixed
repayment dates.
(3) Loan payable to
stockholders
September30,
December 31,
2009
2008
(unaudited)
Mr. Jimmy Wang
and Mrs. Mindy Wang, principal stockholders, executive officers and
members of the Board of Directors of the Company
$
-
$
60,024
The loan payable was
for working capital purposes and was fully paid during the nine months ending
September 30, 2009.
- 28 -
WORLDWIDE
ENERGY AND MANUFACTURING USA, INC. AND SUBSIDIARIES
NOTES TO THE
UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
17.
EARNINGS PER SHARE
FASB
ASC Topic 260,
Earnings Per Share
, requires a reconciliation of the
numerator and denominator of the basic and diluted earnings per share (EPS)
computations.
For the
three and nine months ended September 30, 2009 and the same period in 2008, the
following were included as potential dilutive shares. Employee stock options of
109,213 with an exercise price of $6.00.  Class A warrants
to
purchase 722,221 common shares at an exercise price of $7.00 and Class B
warrants to purchase 388,888 shares at an exercise price of $9.00 of common
stock.  Due to the exercise price being in excess of the estimated fair
market value of the Company's stock, using the treasury stock method, all
potential dilutive shares were deemed to be anti-dilutive.
The following table
sets forth the computation of basic and diluted net income per share:
For The Three Months Ended
For The Nine Months Ended
September 30,
September 30,
2009
2008
2009
2008
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Net income
attributable to the common stockholders
$
903,357
$
540,608
$
1,358,245
$
1,195,969
Basic weighted
average outstanding shares of common stock
3,621,611
3,170,906
3,578,014
2,471,384
Dilutive effect
of options and warrants
-
-
-
-
Diluted
weighted average common stock and common stock equivalents
3,621,611
3,170,906
3,578,014
2,471,384
Earnings per
share:
Basic
$
0.25
$
0.17
$
0.38
$
0.48
Diluted
$
0.25
$
0.17
$
0.38
$
0.48
- 29 -
18.
OPERATING
RISK
Interest rate
risk
The interest rates and terms of repayment of bank lines of credit
are disclosed in Note 13. Other financial assets and liabilities do not have
material interest rate risk.
Credit risk
The
Company is exposed to credit risk from its cash in bank and accounts receivable.
 The credit risk on cash in banks is limited because the counterparties are
recognized financial institutions.  Accounts receivable are subjected to
credit evaluations and as such are inherently subject to credit risk.  An
allowance has been made for estimated irrecoverable amounts which have been
determined by reference to past default experience and the current economic
environment.
Foreign currency risk
Most of
the transactions of the Company were settled in Renminbi and Euros.  Thus,
the Company has significant foreign currency risk exposure.
Company's operations are substantially in foreign
countries
.
Substantially all of the Company's products are manufactured in
China. The Company's operations are subject to various political, economic, and
other risks and uncertainties inherent in China. Among other risks, the
Company's operations are subject to the risks of restrictions on transfer of
funds, export duties, quotas, and embargoes, domestic and international customs
and tariffs, changing taxation policies, foreign exchange restrictions and
political conditions and governmental regulations.
19.
SEGMENT
INFORMATION
The
Company's operations are classified into two principal reportable segments that
provide different products or services.  These two segments are contract
manufacturing and solar. Worldwide USA contract manufacturing division
purchases and sells a wide variety of manufactured goods from China procured by
its subsidiaries or contractors in China to a wide range of customers from
different industries. Our solar module division procures and manufactures solar
modules for sale to the solar industry. Our solar industry represents 83% of our
business. Although both segments are involved in manufacturing they serve
different customers and are managed separately requiring specialized expertise.
We determine our operating segments in accordance with FASB ASC Topic 280,
"Segment Reporting"
Our CEO has been identified as the chief operating
decision maker as defined by FASB ASC Topic 280.
- 30 -
WORLDWIDE ENERGY AND MANUFACTURING USA, INC. AND
SUBSIDIARIES
NOTES
TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR
THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
19.
SEGMENT
INFORMATION (CONTINUED)
Segmental
Data – Three months ended September 30, 2009 and September 30, 2008
Reportable
Segments
(amounts in thousands)
September 30, 2009
September 30, 2008
Solar
Contract Mfg
Total
Solar
Contract Mfg
Disc. Op.
Total
External revenue
15,533
3,086
18,619
15,776
3,327
19,103
Costs of goods
(13,734)
(2,023)
(15,757)
(15,338)
(2,401)
(17,739)
Gross profit
1,798
1,063
2,861
438
926
1,364
G/A Expenses
(515)
(801)
(1,316)
(231)
(520)
(751)
Operating profit
1,225
110
1,335
207
346
552
Interest income
1
2
3
-
8
8
Interest expenses
-
(20)
(20)
-
(1)
(1)
Depreciation
(35)
(48)
(83)
-
(3)
(3)
Net profit after tax
827
174
1,001
207
340
547
Expenditures for long-lived assets
(494)
(9)
(503)
-
(475)
(475)
In our solar division, Europe represented approximately 90.9% and
South Korea represented approximately 8.8% of our sales in the three months
ended September 30, 2009. For the three-month period ending September 30, 2008
Europe represented 61.0% of our business with South Korea representing 39.0% of
our total solar sales. For our contract manufacturing business, the United
States represents approximately 35.8% and China represents 64.0% of sales for
the three-month period ending September 30, 2009.  For the 2008, the United
States represented 48.5% and China 48.1% of that division's sales.
- 31 -
Segmental
Data – Nine months ended September 30, 2009 and September 30, 2008
Reportable
Segments
(amounts in thousands)
Solar
Contract Mfg
Total
Solar
Contract Mfg
Disc. Op.
Total
External revenue
29,433
9,784
39,217
21,567
9,768
13
31,348
Costs of goods
(26,330)
(6,325)
(32,655)
(20,416)
(7,078)
(27,494)
Gross profit
3,591
2,971
6,562
1,151
2,703
3,854
G/A Expenses
(1,964)
(1,764)
(3,728)
(719)
(1,509)
(2,228)
Operating profit
1,915
251
2,166
432
863
1,295
Interest income
2
12
14
-
12
12
Interest expenses
-
(41)
(41)
-
(74)
(74)
Depreciation
(91)
(155)
(246)
(4)
(7)
(11)
Net profit after tax
1,469
110
1,579
424
761
9
1,194
Expenditures for long-lived assets
(641)
(103)
(744)
(173)
(475)
(648)
In our solar division, Europe represented approximately 84.2% of
our sales and South Korea represented 14.6% of our sales for the nine-month
period ended September 30, 2009. For the nine-month period ending September 30,
2008, Europe represented 62.8% of our business with South Korea representing
32.5% of our total sales. For our contract manufacturing business in the
nine-month period ending September 30, 2009, the United States represents
approximately 41.5% and China represents approximately 57.1%.  For 2008,
the United States represented 54.8% and China 42.1.
- 32 -
ITEM
 2.
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
DISCLAIMER REGARDING
FORWARD LOOKING STATEMENTS
Certain
statements in this Form 10-Q, which are not statements of historical fact, are
what are known as "forward-looking statements," which are basically statements
about the future. For that reason, these statements involve risk and uncertainty
since no one can accurately predict the future. Words such as "plans,"
"intends," "hopes," "seeks," "anticipates," "expects," and the like, often
identify such forward looking statements, but are not the only indication that a
statement is a forward-looking statement. Such forward-looking statements
include statements concerning our plans and objectives with respect to our
present and future operations, and statements which express or imply that such
present and future operations will or may produce revenues, income or profits.
These and other factors may cause our actual results to differ materially from
any forward-looking statement.  We caution you not to place undue reliance
on these forward-looking statements.  Although we base these
forward-looking statements on our expectations, assumptions, and projections
about future events, actual events and results may differ materially, and our
expectations, assumptions, and projections may prove to be inaccurate. The
forward-looking statements speak only as of the date hereof, and we expressly
disclaim any obligation to publicly release the results of any revisions to
these forward-looking statements to reflect events or circumstances after the
date of this filing.
Overview
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide", "the
Company", "we", "us" or "our") is a manufacturing engineering firm an
international manufacturing and engineering firm, concentrating on PV solar
modules and contract manufacturing services, using multiple factories in China.
Worldwide services customers primarily in Europe and South Korea with respect to
our solar modules and United States-based companies that outsource their smaller
scale production orders for offshore production in China. From our inception in
1993 until 2005, we were strictly an intermediary or "middle man," working with
our customers and our subcontractors to assure that our customers received high
quality components on a timely basis that fulfilled their specific needs. While
we still subcontract a significant portion of our business, since 2005, we have
begun the transition to becoming a direct contract manufacturer, operating
several of our own factories. This trend will continue if the right
opportunities arise. Recently, we announced two additional factories allowing us
to become a direct manufacturer for solar modules and for power supply units as
described below:
On
October 14, 2008, Worldwide completed the acquisition of 55% of Shanghai De Hong
Electric and Electronic Company Limited ("De Hong") through acquiring 55% of the
outstanding capital stock of De Hong, a China corporation, through Worldwide's
wholly owned subsidiary Intech Electro- Mechanical Products Co., Ltd., a Chinese
corporation ("Intech"). The Company funded the acquisition with the sale of
1,055,103 shares of its common stock, or $4,747,970 on June 23, 2008 and an
additional sale of 56,007 shares of common stock, $252,027 on July 24, 2008.
 Shanghai De Hong Electric and Electronic Company is the holding Company
for the operating subsidiary Shanghai Intech-Detron Electronic Co. ("Detron").
Therefore, Worldwide received 55% control of the operating subsidiary Shanghai
Intech-Detron Electric and Electronic Company Limited ("Detron"). Detron is a
power supply factory in Shanghai, China with design and R & D capabilities.
Under the terms of the purchase agreement dated February 3, 2008, Worldwide paid
cash consideration of $1,022,700 for a 55% interest in De Hong. Intech paid the
first installment of $714,286 on behalf of Worldwide in September, 2008. On
March 31, 2009, Worldwide paid $308,414 for the second installment, such that
the total consideration of the investment is $1,022,700.
On
August 15, 2008, the Company formed a new Company called Nantong Ningbo Solar
Factory ("Ningbo Solar"), which is the solar energy research and development
manufacturer. The Company established a factory to provide installation services
to different solar projects. The Company also acts as agent to import or export
the products and services overseas.
- 33 -
On
November 10, 2008 the Company announced the establishment of a new solar module
production and R&D facility. We leased a 128,000-square-foot facility in
Ningbo, China. This facility houses the Company's research center and part of
its photovoltaic (PV) manufacturing operations. We believe the establishment of
this facility will help to improve margins for our solar modules. The Company
will focus its efforts on the solar module industry both at present as well as
in the future. The trend for the future for Worldwide will be to continue to
expand and seek opportunities to increase market share in the solar module
industry.
The city of Ningbo is about two hours away from downtown Shanghai.
The production capacity of the factory is between 60 to 80 megawatts per year,
depending on staffing.
Despite
these additions and enlarging our capability as a direct manufacturer for
several products lines we are still constrained in our growth for a number of
reasons. Many Fortune 500 and other large companies either cannot, or choose
not, to work with contract manufacturers preferring to go directly to the source
that can manufacture the product and thereby avoid the additional expense of the
middleman. This is particularly true for very large orders, where the added cost
of the middleman can have a material impact on the customers' bottom line. As a
result, our revenues have for the most part, but not entirely, been limited to
smaller scale production orders primarily (but not entirely) placed by companies
that are not among the largest companies in the United States or elsewhere.
Additionally, as a middleman we must share any potential gross profit with the
subcontracting factory. Therefore, our customers are generally smaller, the
orders they place are generally smaller and the income and profit we can
generate from those orders is of necessity limited because we are not directly
manufacturing the products. On the other hand, when we subcontract the actual
manufacturing of our customers' products and components, we do not need to hire
factory employees, purchase materials, purchase and maintain manufacturing
equipment or incur the costs of the manufacturing facilities. To some extent,
these costs are built into the price charged by our subcontractors, but if we do
not place orders, we do not incur those costs.
Our
management has carefully considered these factors and during 2004 made the
strategic decision to move our Company away from our historical complete
reliance on subcontractors. The future trend of these decisions is to control
our entire production process and improve profit margins. At the beginning of
2005 we did not own any of our own factories and used as our suppliers of
materials and labor approximately 100 factories in China, mostly in Shanghai or
the surrounding area. Since 2005 we have acquired an electronics factory, and
acquired a die-casting and machining factory through the leasing of an existing
facility from a former vendor. Then the Company made an initial investment of
approximately $500,000 to upgrade the equipment and manufacturing buildings.
 The Company also recently announced the acquisition of a power supply
company with designing and R&D capabilities and the establishment of a solar
module factory on November 10, 2008.  In these transactions we acquired
assets, the expertise of the employees, the managers of the factories, and a
portion of the existing customers of those factories with the exception of the
solar module factory which we established on our own. As a result, as of
November 10, 2008, we own and operate four factories that we now use for the
manufacture of certain product lines that we historically had to subcontract,
and we are using the services of approximately 40 subcontractors to manufacture
those product lines for which we do not have our own manufacturing
capabilities.
The
establishment of these factories, including asset purchases and factory
upgrades, was funded by three separate sources. The earlier acquisitions of the
die cast and electronic factory primarily was financed by loans from Jimmy and
Mindy Wang, our principal stockholders and executive officers, as well as
increased lines of credit. Our credit line increased to $3,025,000 with Bank of
the West from a $2,250,000 line with Wells Fargo during 2008.  The power
supply company and the establishment of the new solar module factory were funded
by two equity transactions dated June 23 and July 24, 2008 where the Company
raised approximately $5,000,000. In the future, we expect to continue to acquire
or newly-establish factories that will give us the capability to manufacture
those product lines our management believes are the most profitable.
With
the continuing transition into direct manufacturing and the renewable energy
field, we expect to continue to increase sales outside the United States, and in
particular, increase the number of customers in PRC, other Asian markets and
Europe. Our costs to establish and improve these factories will increase along
with sales and profits.
- 34 -
Through
the development of our product mix, which consists of solar modules, casting,
machining and stamping, electronics and fiber optics products lines, our
business has become more diverse. In the past, foundry and machining and
stamping accounted for more than 90% of our business. This percentage has
decreased since forming our own factories along with our new energy division
which now represents approximately 83% and 75% of our sales volume for the three
months and nine months ending September 30, 2009, respectively.  With
greater market penetration, and the market expanding, the solar content of our
overall business is expected to increase.
Generally, our operating results have been, and will continue to
be, affected by a number of factors, and uncertainties including the
following:
·
Our customers may cancel or delay orders or change production
quantities;
·
Our operating results vary significantly from period to period due
to the mix of the manufacturing services we are providing, the number and size
of new manufacturing programs, the degree to which we utilize our manufacturing
capacity, seasonal demand, shortages of components and other factors
·
Integration of acquired businesses and facilities; and
·
Managing growth and changes in our operations.
We also are subject to other risks, including
risks associated with operating in foreign countries, changes in our tax rates,
and fluctuations in currency exchange rates.
Results of
Operations
Net
sales for the three months ending September 30, 2009 were $18,618,508 compared
to net sales of $19,102,654 for the same period in 2008. This decrease of
$484,146, or 2.5% is due to a drop in market level pricing on Solar Modules (our
MW shipments actually increased by approximately 2.99 MW when comparing these
periods) and by the decreased volume from our Contract Manufacturing division.
 We have seen significant market price deterioration in the last several
months on PV solar Modules, but in the last several weeks, we have seen a
stabilization of pricing and expect this to continue through second quarter
2010. Lower volume in our Contract Manufacturing division is brought about by
lower overall consumption by our customers due to the current global economic
conditions and as the economy recovers, we expect our sales volume to
correspondingly increase.  The Company continues to focus on the sales and
marketing of its solar modules by establishing sales teams in China, United
States and European countries.  Solar module revenues comprise
approximately 83.4% of the Company's gross sales in the three-month period
ending September 30, 2009 compared to 82.6% in the same period of 2008.
Net
sales for the nine-month period ending September 30, 2009 was $39,217,288
compared to sales of $31,348,064 in the nine-month period ending September 30,
2008.  The increase of $7,869,224 or approximately 25.1% was the result of
an increase in shipments from the Solar division. The Company continues to focus
on market penetration for its PV Solar Modules and expect sales to increase.
 Solar module revenues comprise approximately 75.1% of the Company's gross
sales in the nine-month period ending September 30, 2009 compared to 68.8 % in
the same period of 2008.
Gross
profit increased by $1,497,331, or 109.8% from $1,363,933 in the quarter ending
September 30, 2008 to $2,861,264 for the three months ending September 30, 2009.
 The gross profit from solar module sales was $1,797,729 for the three
months ended September 30, 2009 compared to $437,595 in the same period of 2008.
This represents an increase of $1,360,134 in gross profit for our energy
division or approximately 310% and is due to lower material costs for module
production.  As stated before, the supply chain for PV solar modules has
experienced market dynamics and significant price pressures, although current
levels seem to have stabilized.  The gross profit for contract
manufacturing for the three months ended September 30, 2009 was $1,063,535
compared to $926,338 in the same period of 2008, an increase of $137,197 or
14.9% and is due to cost reduction programs and the inclusion of the higher
margin electronics sales at Detron.
- 35 -
For the
nine months ending September 30, 2009 gross profit was $6,562,456 compared to
gross profit of $3,854,089 in the same period in 2008. This represents an
increase of $2,708,367 or 70.3%.  The gross profit for the nine months
ended September 30, 2009 for the solar division was $3,590,782 compared to
$1,151,325 in the same period of 2008. This represents an increase of $2,439,457
in gross profit in the nine months ending September 30, 2009 or an approximate
increase of 211.8% due to robust sales and material cost reductions compared to
2008.  The gross profit for contract manufacturing for the nine months
ended September 30, 2009 was $2,971,674 compared to $2,702,764 in the same
period of 2008, an increase of $268,411 or approximately 9.9% due to the
inclusion of higher margin electronics sales at Detron and cost reduction
efforts at all manufacturing facilities.
Cost of
goods sold for the three months ended September 30, 2009 was $15,757,244
compared to $17,738,721 for the same period in 2008.  The decrease is
$1,981,477 or approximately 11.2% was primarily due to the softer sales from
both of our divisions and heavy reductions in the cost of materials for solar
modules.  The cost of goods for solar modules for quarter ending September
30, 2009 was $13,734,458 compared to $15,338,086 for the same period in 2008.
The decrease of $1,603,628 reflects the economies achieved by our procurement
teams in sourcing the solar components.  The costs of goods sold for
Contract Manufacturing was $2,022,786 for the quarter ending September 30, 2009
compared to cost of goods sold of $2,400,635, a $377,849 reduction, due to lower
sales volume and aggressive cost reduction measures coming to fruition.
Cost of
goods sold for the nine months ended September 30, 2009 was $32,654,832 compared
to $27,493,975 for the same period in 2008, an increase of $5,160,857 or
approximately 18.8%.  The cost of goods for the energy division for nine
months ending September 30, 2009 was $26,330,403 compared to $20,416,103 for the
same period in 2008. The increase of $5,914,300 or 29% was due to the higher
sales.  The costs of goods sold for contract manufacturing was $6,324,529
for the nine months ending September 30, 2009 compared to cost of goods sold of
$7,077,874 in the same period of 2008, a reduction of approximately 10.6% due to
the inclusion of higher margin business at Detron and cost reduction efforts.
The
gross margin was 15.4% for the three months ending September 30, 2009 compared
to 7.1% in the same period in 2008.  The gross margin for our Solar
Division for the quarter ending September 30, 2009 was approximately 11.6%
compared to 2.8% for the same period in 2008.  This increase is due to the
before mentioned cost reductions.  The gross margin for contract
manufacturing for the quarter ending September 30, 2009 was 34.5% compared to
27.8% in the same period in 2008. The improvement of gross margin in contract
manufacturing was due to improved margins at the Electro Mechanical division and
the inclusion of Detron.
The
gross margin was 16.7% for the nine months ending September 30, 2009 compared to
12.3% in the same period in 2008.  Gross margin for Solar for the period
increased from 5.3% to 12.2% due to material cost reductions and economies
brought about with higher sales volume, both in sales value and Mega-Watts
shipped.  Gross margin for Contract Manufacturing increased from 27.7% to
30.4 % due to aforementioned cost reduction programs and higher margin business
from Detron.
In the
nine month period ending September 30, 2009 there was stock based compensation
of $162,020 compared to $95,000 for stock based compensation in 2008. Further
the Company had depreciation expense of $246,366 in the nine month period ending
September 30, 2009 compared to $10,713 in the same period of 2008, due to the
greater amount of depreciable assets owned by the Company.
Net
income before tax for the three months ending September 30, 2009 was $1,428,873
compared to a net income before tax of $555,237 for the three months ended
September 30, 2008. The increase of $873,636 or approximately 157.3% is
primarily due to the higher gross profit driven by our material cost reductions.
For the
nine-month period ending September 30, 2009, net income before tax was
$2,248,995 compared to net income of $1,210,765 in the same period in 2008. The
increase of $1,038,230 or approximately 85.7%, was the result of increase sales
for our solar modules and increased gross profit from cost reductions.  Net
income after tax for the three months ending September 30, 2009 was $1,001,376
compared to a net profit of $546,723 for the three
- 36 -
months
ended September 30, 2008. The increase of $454,653 or approximately 83.2% was
driven by greater profitability of both the Solar and Contract Manufacturing
divisions.
Net
income after tax for the nine months ending September 30, 2009 was $1,578,874
compared to a net profit of $1,193,952 for the nine months ended September 30,
2008. The increase of $384,922 or approximately 32.2% was the result of greater
gross margins across the corporation.
Selling, general and administration expenses for the three months
ended September 30, 2009, totaled $1,316,386 compared to $750,983 in the same
quarter in 2008, an increase of $565,403 or approximately 75.3%. Sales, general
and administration expenses were $514,516 for three month period ending
September 30, 2009 compared to $231,008 in the same period in 2008 an increase
of $283,508 or 122.7% for our solar module division as this division continues
to grow its sales and marketing efforts. Sales, general and administration
expenses for the three months ended September 30, 2009 for our contract
manufacturing division was $801,870 compared to $519,975 in the same period of
2008. The increase of $281,895 or 54.2% was due primarily to the inclusion of
Detron.
For the
nine-month period ending September 30, 2009 sales, general and administration
expenses was $3,728,136 compared to $2,227,502 in the same period in 2008, an
increase of $1,500,634 or approximately 67.4%.  Sales, general and
administration expenses were $1,964,547 for nine month period ending September
30, 2009 compared to $718,575 in the same period in 2008 an increase of
$1,245,972 or 172.0% for our solar module division as this division continues to
grow. Sales, general and administration expenses for the nine-month period ended
September 30, 2009 for our contract manufacturing division was $1,763,589
compared to $1,508,927 in the same period of 2008. The increase of $254,662 or
16.9% was due primarily to the increase of Detron. We do not anticipate
significant increases in sales, general and administration expenses other than
those directly attributed to increases in sales such as marketing and sales
commissions.
LIQUIDITY
AND CAPITAL RESOURCES
The
following is a summary of Worldwide's cash flows from (used in) operating,
investing, and financing activities during the periods indicated:
Nine months ended September 30,
2009
2008
Cash at
Beginning of Period
$
5,092,476
$
2,111,825
Net Cash
provided by (used by) Operating Activities
272,579
(1,441,275)
Net Cash used
by Investing Activities
(2,161,574)
(1,628,709)
Net Cash
provided by Financing Activities
1,873,707
5,306,492
Effect of
Exchange Rate Changes on Cash
(9,550)
114,411
Cash at End of
Period
$
5,067,638
$
4,462,744
In 2008
our credit line was increased by approximately $775,000 from a line of
credit in the amount of $2.25 million with Golden Gate Bank to $3.025 million,
as a result of securing two new credit lines with Bank of the West, one for
$1,025,000 and the other for $2,000,000. The credit line with Golden Gate Bank
was subsequently closed. These revolving lines of credit are secured by the
assets of the Company and guaranteed by its officers. The maturity date of these
two credit lines is May 20, 2010 and June 1, 2011, respectively. The balance
outstanding on the first line of credit as of September 30, 2009 is $2,000,000,
and $0 is still available for use. Additionally, the second line of credit has a
balance outstanding of $763,285 and $261,715 is still available for use as of
September 30, 2009.
For the
nine-month period ending September 30 2009, net cash provided by operations was
$272,579 compared to net cash used by September 30, 2008 of $1,441,275. The
major factor for the increase in net cash provided by operations was the
increase in profitability of the Company. Net cash used in investing was
$
2,161,574
in the nine-
- 37 -
month
period ending September 30, 2009, compared to net cash used of $1,628,709 in the
same period of 2008. This increase was the result of our acquisition of
property, plant and equipment and the construction in progress of our new solar
module factory and the transfer of $1,417,356 into a restricted account for the
start-up of the new solar factory. The Company anticipates further growth in
2009 as the economy is anticipated to improve. If such growth materializes we
will finance this growth through Company profitability as well as outside
sources of funding if required. Net cash flows provided by financing activities
in the nine-month period ending September 30, 2009 was $1,873,707 compared to
$5,306,492 in 2008.
As the
company continues to grow our Solar division, we must follow industry trends in
regards to extended payment terms to our customers.  Typically these market
conditions affect the whole supply chain and as extended terms are offered to
consumers, favorable terms can be negotiated with the supplier base. Our current
cash position allows flexibility to accommodate these market conditions.
The
Company raised approximately, $4,747,970 on June 23, 2008 and an additional
$252,027 on July 24, 2008 for gross proceeds of approximately $5 million, or net
proceeds of $4,650,139 after offering expenses. The Company issued 1,111,109
restricted common shares along with warrants to purchase an additional 1,111,109
shares with 722,221 warrants having an exercise price of $7.00 and 388,888 of
those warrants having an excise price of $9.00. These funds were used to expand
our energy division through the establishment of a new solar module factory
announced on November 10, 2008 along the acquisition of a power supply Company
with design and R&D capabilities.  Additionally, these funds will be
used to provide additional working capital for the solar module factory to
purchase raw materials and to expand the solar module business segment.
 However, certain contingencies are associated with this sale:
"If (a)
the Company fails to report at least $2,500,000 in EBITDA less noncash
expenditures for the fiscal year ending December 31, 2009, as disclosed in the
Company's Form 10-K for the fiscal year ending December 31, 2009 ("2009
Milestone"), the date of disclosure of such 2009 Milestone ("2009 Milestone
Date") and such 10-K, and (b) if the average of the ten closing prices for each
of the ten trading days immediately following the 2009 Milestone Date is less
than the lesser of the Per Share Purchase Price and the 2008 Milestone Price,
which is$4.50 ("2009 Milestone Price"), then, within 13 Trading Days of the 2009
Milestone Date, the Company shall issue to each Purchaser a number of shares of
Common Stock equal to the difference between (i) the number of shares of Common
Stock issued to such Purchaser on the Closing Date along with any 2008 Milestone
Shares issued pursuant to the 2008 Milestone Date, which are none,  and
(ii) the number of shares of Common Stock that would otherwise have been
issuable to such Purchaser on the closing date if the Per Share Purchase Price
was equal to the 2009 Milestone Price."
Jimmy and Mindy Wang have deposited into an escrow
account 1,620,954 shares of common stock to satisfy the issuance of any shares
related to the 2009 Milestone Shares.
PLAN OF
OPERATION
The
Company will continue to focus on the expansion of its renewable energy division
by the continued development of its newly established solar factory in Ningbo,
China as well as the continued quality enhancements of its solar module brand,
"Amerisolar".  Additionally, we intend to develop the U.S. solar module
market and plan to expand our operation in this market. We believe that the
renewable energy division offers the Company its greatest growth and profit
potential in both the present and foreseeable future. The Company presently has
enough liquidity to meet its expansion plans. However, depending on growth the
Company may need additional funding in the future.
Off-Balance Sheet Arrangements
We do not have any
off-balance sheet arrangements that are currently material or reasonably likely
to be material to our financial position or results of operations.
Contractual Obligations
The 1st
"Rights for Construction" for our Nantong facility was issued on December 19,
2008 to Worldwide Energy and Manufacturing USA by the Department of Interior of
Jiangsu Province, China.
- 38 -
There
was an official agreement between the Department of Civil Engineering (in
building and constructions) for the city of Nantong and Worldwide Manufacturing
Solar Division located in Nantong dated May 27, 2009 in detailing of the
construction for the PV solar module manufacturing facility.  Agreement
details:
1)
Land
usages and rights
2)
Fees
and application process
3)
Date
of Completions
4)
All
and other related subjects
An amendment
subsequently followed in further requirements and commitments of both parties
were executed on May 29, 2009.
Critical
Accounting Policies and Estimates
This
discussion and analysis of financial condition and results of operations is
based on our consolidated financial statements, which have been prepared in
accordance with U.S. generally accepted accounting principles. The preparation
of these financial statements requires us to make estimates and judgments that
affect the reported amounts of assets, liabilities, revenues and expenses and
related disclosures. On an on-going basis, we evaluate our estimates, including
those related to property, plant and equipment, inventories, revenue
recognition, inventories, accounts receivable and foreign currency transactions
and translation. We base our estimates on historical experience and on various
other market-specific assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources.  Actual results, however, may differ significantly from
these estimates.
We
believe the following critical accounting policies reflect the more significant
judgments and estimates used in the preparation of our consolidated financial
statements:
Revenue Recognition
We
recognize revenues in accordance with the guidelines of the Securities and
Exchange Commission ("SEC") Staff Accounting Bulletin ("SAB") No. 104 "Revenue
Recognition". We recognize revenue from product sales when the orders are
completed and shipped, provided that collection of the resulting receivable is
reasonably assured. Amounts billed to customers are recorded as sales while the
shipping costs are included in cost of sales. Returns on defective custom parts
may only be exchanged for replacement parts within 30 days of the invoice date.
Returns on defective parts, which can be resold, may be exchanged for
replacement parts or for a refund.  Revenue from non-refundable customer
tooling deposits is recognized when the materials are shipped or when the
deposit is forfeited, whichever is earlier.
Foreign
Currency Transactions and Translation
The
Company's principal country of operations is The People's Republic of China. The
financial position and results of operations of the Company are determined using
the local currency ("Renminbi" or "Yuan") as the functional currency. The
results of operations denominated in foreign currency are translated at the
average rate of exchange during the reporting period.
Assets
and liabilities denominated in foreign currencies at the balance sheet date are
translated at the exchange rates prevailing at the balance sheet date. The
registered equity capital denominated in the functional currency is translated
at the historical rate of exchange at the time of capital contribution. All
translation adjustments resulting from the translation of the financial
statements into the reporting currency ("US Dollars") are dealt with as a
separate component within stockholders' equity. Translation adjustments totaled
$83,423 and $146,017 for the three months ended September 30, 2009 and 2008,
respectively and $191,079 and $102,835 for the nine months ended September 30,
2009 and 2008, respectively.
- 39 -
As of
September 30, 2009 and 2008, the exchange rate was RMB 6.8376 and RMB 6.8551 per
U.S. Dollar, respectively.  The average exchange rate for the nine months
ended September 30, 2009 and 2008 was RMB 6.8425 and RMB 6.9989,
respectively.
Management has discussed the development and selection of these
critical accounting policies with the Board of Directors and the Board has
reviewed the disclosures presented above relating to them.
ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller
reporting Company as defined by Rule 12b-2 of the Securities Exchange Act of
1934 and are not required to provide the information under this item.
ITEM
4.
CONTROLS
AND PROCEDURES
Disclosure
Controls and Procedures
We are
required to maintain disclosure controls and procedures that are designed to
ensure that information required to be disclosed in our reports filed under the
Securities Exchange Act of 1934, as amended, is recorded, processed, summarized
and reported within the time periods specified in the Securities and Exchange
Commission's rules and forms, and that such information is accumulated and
communicated to our management, including our president (also our principal
executive officer) and our chief financial officer (also our principal financial
and accounting officer) to allow for timely decisions regarding required
disclosure.
In
connection with the audit for the fiscal years ended December 31, 2008, Child,
Van Wagoner & Bradshaw, PLLC ("CVB"), our previous independent registered
public accounting firm, noted matters involving our internal controls that it
considered to be significant deficiencies, and taken together constitute a
material weakness, under the standards of the Public Company Accounting
Oversight Board, or PCAOB. Under the PCAOB standards, a significant deficiency
is a control deficiency, or combination of control deficiencies, that, in the
auditor's judgment, would adversely affect the ability to initiate, authorize,
record, process, or report external financial data reliably in accordance with
generally accepted accounting principles such that there is more than a remote
likelihood that a misstatement of the annual or interim financial statements
that is more than inconsequential will not be prevented or detected. A material
weakness is a significant deficiency, or combination of significant
deficiencies, that, in the auditor's judgment, results in more than a remote
likelihood that a material misstatement of the annual or interim financial
statements will not be prevented or detected.
The
material weaknesses identified by CVB were as follows:
RESTATEMENT ISSUES
: The restatement of the December 31,
2008 financials was the result of certain receivable accounts, accounts payable,
accrual expenses, gain on disposal of subsidiary, loss on disposal of subsidiary
and goodwill not being correctly recorded and therefore being adjusted resulting
in the decline of net income by $457,612 from the previously reported net income
of $1,459,260. The net effect was net income of $1,001,648 for the period ending
December 31, 2008.
Our
management has discussed these material weaknesses with our board of directors
and has engaged in the following remediation efforts to ensure that the material
weaknesses do not reoccur: we are adding additional accounting staff with
greater expertise to assist the Company in preparation of its financial
statement in China.
These
remediation efforts are designed to address the material weakness identified by
Child and to improve and strengthen our overall control environment. We believe
these actions will prevent the material weaknesses from reoccurring. Our
management, including our principal executive officer and principal financial
officer, does not expect that disclosure controls or internal controls over
financial reporting will prevent all errors, even as the aforementioned
remediation measures are implemented and further improved to address all
deficiencies. The design
- 40 -
of any
system of controls is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions.
The
implementation of our remediation plan will require substantial expenditures,
could take a significant period of time to complete, and could distract our
officers and employees from the operation of our business. However, our
management believes that these remediation efforts will be complete by the end
of the 2009 fiscal year.
Our
management has evaluated the effectiveness of the design and operation of our
disclosure controls and procedures as of the date of this report, under the
supervision and with the participation of our president (also our principal
executive officer) and chief financial officer (also our principal financial and
accounting officer), in order to conclude if our disclosure controls and
procedures are effective. Based on the information set forth above, our
management has determined that, as of the date of this report, we do not have
effective disclosure controls and procedures.
Changes in
Internal Control Over Financial Report
In its
Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008 (the
"Annual Report"), our management reported that, as of the date of such report,
our internal control over financial reporting was not effective. In the first
quarter of fiscal 2009, the Company employed
an outside consultant to assist
us with the self-assessment required by Section 404 of the Sarbanes-Oxley Act of
2002 of our internal controls and procedures.
However, upon review of the
work product, our management determined that the prepared documentation did not
contain sufficient detail. The Company will hire additional consultants to help
management refine such documentation.
Based
upon the foregoing, our management has determined that there were no changes in
our internal
control over financial reporting, identified in
connection with the evaluation that occurred
during our last fiscal
quarter, under the supervision and with the participation of our president (also
our principal executive officer) and chief financial officer (also our principal
financial and accounting officer), that materially affected, or are reasonable
likely to
materially affect, our internal control over financial
reporting.
- 41 -
PART II.  OTHER INFORMATION
Item 1.
Legal Proceedings.
None.
Item 1A.
Risk Factors (herein incorporated by reference from Annual Report
on Form 10-K filed with the Securities and Exchange Commission on April 14,
2009).
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3.
Defaults upon Senior Securities
None.
Item 4.
Submission of Matters to a Vote of Security Holders
None.
Item 5.
Other Information
None.
Item 6.
Exhibits
The following exhibits are filed herewith:
3.1
Articles of Incorporation (incorporated by reference from
Registration Statement on Form 10-SB filed with the Securities and Exchange
Commission on October 11, 2000).
3.2
Bylaws (incorporated by reference from Registration Statement on
Form 10-SB filed with the Securities and Exchange Commission on October 11,
2000).
3.3
Amendment to the Articles of Incorporation to change the name of
the Company from Tabatha III, Inc. to Worldwide Manufacturing USA, Inc., filed
with the Colorado Secretary of State on November 4, 2003 (herein incorporated by
reference from Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 14, 2009).
3.4
Amendment to the Articles of Incorporation to change the name of
the Company from Worldwide Manufacturing USA, Inc. to Worldwide Energy and
Manufacturing USA, Inc., filed with the Colorado Secretary of State on February
4, 2008 (herein incorporated by reference from Annual Report on Form 10-K filed
with the Securities and Exchange Commission on April 14, 2009).
4.1
Specimen Common Stock Certificate (incorporated by reference from
Registration Statement on Form 10-SB filed with the Securities and Exchange
Commission on October 11, 2000).
4.2
Specimen Class A Convertible Preferred Stock Certificate
(incorporated by reference from Registration Statement on Form 10-SB/A filed
with the Securities and Exchange Commission on October 11, 2000).
10.1
Common Stock Purchase Warrant (incorporated by reference from Form
10-KSB filed with the Securities and Exchange Commission on September 27,
2001).
14.1
Code of Ethics (incorporated by reference from Form 10-KSB filed
with the Securities and Exchange Commission on March 31, 2005).
- 42 -
21.1
Subsidiaries of Worldwide Energy and Manufacturing USA, Inc.
(herein incorporated by reference from Annual Report on Form 10-K filed with the
Securities and Exchange Commission on April 14, 2009).
31.1
Certification pursuant to Rule 13a-14(a) or 15d-14(a) under
the Securities Exchange Act of 1934, as amended.
31.2
Certification
pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of
1934, as amended.
32.1
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
32.2     Certification pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002.
- 43 -
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
WORLDWIDE ENERGY
AND MANUFACTURING USA, INC.
By
: /S/ JIMMY
WANG
Jimmy Wang, CEO
and Director (duly authorized officer)
Date:  November
13, 2009
By
: /S/ Jeff
Watson
Jeff Watson,
Chief Financial Officer (principal financial and accounting officer)
Date:  November
13, 2009
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