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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
D.C. 20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM&#160;8-K/A</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
REPORT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to Section&#160;13 or 15(d)&#160;of the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Date
of Report (date of earliest event reported): August 28, 2007</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SARS
CORPORATION</font></div>
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name of registrant as specified in its charter)</font></div>
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    <div>
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            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Nevada</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">000-51046</font></div>
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          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or other jurisdiction</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">of
      incorporation)</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Commission
      File Number)</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(IRS
      Employer</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">I.D.
      Number)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19119
Northcreek Parkway, Suite 201</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bothell,
WA 98011</font></div>
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of principal executive offices)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
telephone number, including area code: 866-276-7277</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline;" face="Wingdings">o</font>&#160;&#160;Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    </div><br>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
Current Report is amended <font style="DISPLAY: inline; COLOR: #000000">to
report revised disclosures in the security ownership table and footnote (2) and
additional disclosures in certain relationships and related transactions, both
included as Item 2.01, and to file as Exhibit 99.1 - September 30, 2006
consolidated financial statements restated for issuance of common stock during
the year ended December 31, 2004 (the "2004 restatement"), which resulted in,
among other things, increasing paid in capital by $195,000 and increasing
accumulated deficit, for a net effect of zero as of January 1, 2005, December
31, 2005 and September 30, 2006 (see Note 14 Restatement), and as Exhibit 99.3 -
June 30, 2007 and 2006 condensed consolidated financial statements restated for
the 2004 restatement and for recording fees due a related party in connection
with fund-raising activities, which resulted in, among other
things,&#160;increasing amounts due to a related party by $242,000, and
decreasing stockholders equity by the same amount at June 30, 2007 (See Note 12
Restatement).</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
2.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Completion
of Acquisition or Disposition of Assets</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As of the
date of this Report, the Company has 26,466,040<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#160;</font>shares of
common stock outstanding and 1 share of preferred stock
outstanding.&#160;&#160;The following table sets forth certain information
regarding the beneficial ownership of our outstanding shares as of the date of
this Report by (i) each person who is known by us to own beneficially more than
5% of our outstanding shares of common stock, (ii) each of our executive
officers and directors, and (iii) all of our executive officers and directors as
a group.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr bgcolor="#d8e4be">
              <td valign="top" width="25%" style="BORDER-TOP: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
      of Class:</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Name
      and Address of Beneficial Holder:</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      and Nature of Beneficial Ownership:</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Percent
      of Class (6):</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Earnest
      Mathis, Director</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2560
      W. Main Street, Ste. 200</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Littleton,
      CO 80120</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">411,536
      (1)</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1%</font></div>
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Clayton
      Shelver, CEO</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      108<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Ave. NE, Ste. 1908</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bellevue,
      WA 98004</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">377,925</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">David
      Otto</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director
      and Secretary</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      Union Street, Ste. 4500</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Seattle,
      WA 98101</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">5,639,774
      (2)</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">19%</font></div>
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Jeremy
      Johnson, CTO</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      108<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Ave. NE, Ste. 1908</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bellevue,
      WA 98004</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">54,750</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&lt;1%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Cecil
      Whitlock, CFO</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      108<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Ave. NE, Ste. 1908</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bellevue,
      WA 98004</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">419,750
      (3)</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1%</font></div>
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Robert
      Lear, COO</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      108<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Ave. NE, Ste. 1908</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bellevue,
      WA 98004</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">93,075</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&lt;1%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Laurence
      and Artha Shelver</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      108<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Ave. NE, Ste. 1908</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bellevue,
      WA 98004</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,712,607
      (4)</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6%</font></div>
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Capital
      Group Communications, Inc.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1750
      Bridgeway, Suite #A200</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Sausalito,
      CA 94965</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1,753,025
      (5)</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common,
      $.01<font style="DISPLAY: inline; FONT-FAMILY: times new roman">&#160;</font>par
      value</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Constance
      Lautieri</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">601
      108<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
      Ave. NE, Ste. 1908</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Bellevue,
      WA 98004</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">2,284,170
      (6)</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">6%</font></div>
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Total
      Held by Officers and Directors:</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">8,709,417</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">30%</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="25%" style="BORDER-LEFT: black 1pt solid; BORDER-BOTTOM: black 1pt solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Total
      Held by Officers, Directors and Certain Beneficial Owners:</font></div>
              </td>
              <td valign="top" width="26%" style="BORDER-BOTTOM: black 1pt solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black 1pt solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">12,746,612</font></div>
              </td>
              <td valign="top" width="24%" style="BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">42%</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      amount includes a common stock purchase warrant to acquire up to 75,000
      shares at $1.25/share with an expiration date of August 20,
      2010.&#160;&#160;This warrant is held by Mathis Family Partners, Ltd., of
      which Mr. Mathis is a partner.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Of
      the shares of Common Stock held by Mr. Otto, 730,000 shares are held by
      Otto Capital Holdings, Inc., of which Mr. Otto is the President; 492,750
      shares are held by Crimson Capital, LLC, of which Mr. Otto is a member;
      1,288,024 shares are held by Joseph Martin, LLC, of which Mr. Otto is a
      member; 912,500 are held by Saratoga Capital Partners I, Inc., of which
      Mr. Otto is a manager; and 36,500 shares are held by Cambridge Partners,
      LLC, of which Mr. Otto is a member.&#160;&#160;Crimson Capital, LLC also
      owns a common stock purchase warrant to acquire up to 100,000 shares at
      $1.00/share with an expiration date of September 30,
      2011.&#160;&#160;Cambridge Partners, LLC owns a common stock purchase
      warrant to acquire up to 100,000 shares at $1.00/shares with an expiration
      date of September 30, 2011.&#160;&#160;Saratoga Capital Partners I, Inc.
      owns a common stock purchase warrant to acquire up to 1,250,000 shares at
      $1.00/share with an expiration date of September 30, 2011.&#160;&#160;In
      March 2004, the Company entered into an engagement agreement with The Otto
      Law Group, PLLC, of which Mr. Otto is the manager, (the
      &#8220;Engagement&#8221;).&#160;&#160;Pursuant to the engagement, a total of 1,186,000
      shares of common stock are issuable to The Otto Law Group,
      PLLC.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      amount includes a common stock purchase warrant to acquire up to 182,500
      shares of common stock at $1.00/share with an expiration date of October
      31, 2011.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Laurence
      G. Shelver is the father of Clayton Shelver, our Chief Executive
      Officer.&#160;&#160;Additionally, Mr. Shelver is also the holder of the 1
      share of Series A Preferred and receives monthly dividend payments of
      $6,332.73.&#160;&#160;The principal amount of the Series A is $949,908.83,
      interest is 8% per annum, the conversion price is $1/share and will
      automatically convert into common stock upon expiration in August
      2009.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
      Group Communications, Inc. provides public relations services to
      us.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)</font></div>
              </td>
              <td>
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      amount includes a common stock purchase warrant to acquire up to 585,460
      shares of common stock at $1.00/share with an expiration date of January
      1, 2010.&#160;&#160;This amount also includes a common stock purchase
      warrant to acquire up to 363,540 shares of common stock at $1.00/share
      with an expiration date of October 31,
2011.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">
            <tr valign="top">
              <td style="WIDTH: 36pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(7)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of August 28, 2007, there was 26,466,040<font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;</font>shares of common
      stock issued and outstanding.&#160;&#160;The total amount of shares that
      could be issued to certain beneficial owners and management within the
      next 60 days is 2,656,500 shares.&#160;&#160;Based on these amounts, the
      percentage ownership is based on a fully diluted amount of 29,122,540
      shares.</font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
Relationships and Related Transactions</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In March
2004, the Company entered into an engagement agreement with The Otto Law Group,
PLLC, a law firm.&#160;&#160;Pursuant to terms of this engagement agreement,
that has no stated term, and in addition to engaging the firm for legal
services, the Company has agreed to pay to the firm success fees equal to 5% of
cash consideration received and 5% of securities issued in connection with
completion of a financing, merger or acquisition effected or initiated by a
party introduced to the Company by the firm.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.01
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Financial Statements and Exhibits</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Please
see the Exhibit Index immediately following the signature page.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 hereunto
duly authorized.</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td align="left" valign="top" width="44%">
            </td>
            <td align="left" valign="top" width="3%">
            </td>
            <td align="left" valign="top" width="43%">
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="44%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Dated:
      February 19, 2008</font></div>
            </td>
            <td align="left" valign="top" width="3%">
            </td>
            <td align="left" valign="top" width="43%">
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="44%">
            </td>
            <td align="left" valign="top" width="3%">
            </td>
            <td align="left" valign="top" width="43%">
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="44%">
            </td>
            <td align="left" colspan="2" valign="top" width="46%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">SARS
      CORPORATION</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="44%">&#160;</td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="43%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="44%">
            </td>
            <td align="left" valign="top" width="3%">
            </td>
            <td align="left" valign="top" width="43%">
            </td>
          </tr>
          <tr>
            <td valign="top" width="44%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            <td align="left" valign="top" width="3%" style="PADDING-BOTTOM: 2px">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:&#160;&#160;</font></div>
            </td>
            <td align="left" valign="top" width="43%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      Clayton Shelver</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="47%">
            </td>
            <td align="left" valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Clayton
      Shelver</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Executive Officer</font></div>
            </td>
          </tr>
      </table>
    </div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr bgcolor="#86a545">
              <td align="left" valign="top" width="12%" style="BORDER-TOP: #86a545 2px solid; BORDER-LEFT: #86a545 2px solid; BORDER-BOTTOM: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: white; FONT-FAMILY: times new roman">Exhibit
      No.</font></div>
              </td>
              <td align="left" valign="middle" width="2%" style="BORDER-TOP: #86a545 2px solid">&#160;</td>
              <td align="left" valign="top" width="39%" style="BORDER-TOP: #86a545 2px solid; BORDER-BOTTOM: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: white; FONT-FAMILY: times new roman">Description</font></div>
              </td>
              <td align="left" valign="middle" width="2%" style="BORDER-TOP: #86a545 2px solid">&#160;</td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid; BORDER-TOP: #86a545 2px solid; BORDER-BOTTOM: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; COLOR: white; FONT-FAMILY: times new roman">Location</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3.1</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Articles
      of Incorporation</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporated
      by reference to Exhibit 3.0 filed with Form 10-SB12G on February 24,
      1999.</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">3.1.1</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Certificate
      of Amendment to the Articles of Incorporation</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporated
      by Reference to Exhibit 3.0 filed with Form 10-QSB on August 13,
      2007.</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.1</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Agreement
      and Plan of Merger</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporated
      by Refernce to Exhibit 10.1 filed with Form 8-K on August 31,
      2007.</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Audited
      Financial Statements of Business Acquired, as restated.</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Attached.</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
              </td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.2</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Financial
      Statements of Mycom Group, Inc.</font></div>
              </td>
              <td align="left" valign="middle" width="2%">
              </td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporated
      by Refernce to Exhibit 99.2 filed with Form 8-K on August 31,
      2007.</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="39%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
            </tr>
            <tr bgcolor="#d8e4be">
              <td align="left" valign="top" width="12%" style="BORDER-LEFT: #86a545 2px solid; BORDER-BOTTOM: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;99.3&#160;</font></td>
              <td align="left" valign="middle" width="2%" style="BORDER-BOTTOM: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="39%" style="BORDER-BOTTOM: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;Unaudited
      Financial Statements of Business Acquired, as
    restated.&#160;&#160;</font></td>
              <td align="left" valign="middle" width="2%" style="BORDER-BOTTOM: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;</font></td>
              <td align="left" valign="top" width="35%" style="BORDER-RIGHT: #86a545 2px solid; BORDER-BOTTOM: #86a545 2px solid"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;Attached.
      </font></td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; COLOR: #000000">&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; COLOR: #000000">&#160;&#160;&#160;&#160;</font></font></div><br><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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{"company-data": {"conformed-name": "SARS CORP.", "cik": "0001070510", "assigned-sic": "6770", "irs-number": "330677545", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-29836", "film-number": "08625670"}, "business-address": {"street1": "601 108TH AVE NE STE 1908", "city": "BELLEVUE", "state": "WA", "zip": "98004", "phone": "425-943-6140"}, "mail-address": {"street1": "601 108TH AVE NE STE 1908", "city": "BELLEVUE", "state": "WA", "zip": "98004"}, "former-company": [{"former-conformed-name": "MYCOM GROUP INC /NV/", "date-changed": "20000908"}, {"former-conformed-name": "BAD TOYS INC", "date-changed": "19990222"}]}
form8-ka.htm
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K/A
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (date of earliest event reported): August 28, 2007
SARS
CORPORATION
(Exact
name of registrant as specified in its charter)
Nevada
000-51046
33-0677545
(State
      or other jurisdiction
of
      incorporation)
(Commission
      File Number)
(IRS
      Employer
I.D.
      Number)
19119
Northcreek Parkway, Suite 201
Bothell,
WA 98011
(Address
of principal executive offices)
Registrant's
telephone number, including area code: 866-276-7277
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
This
Current Report is amended
to
report revised disclosures in the security ownership table and footnote (2) and
additional disclosures in certain relationships and related transactions, both
included as Item 2.01, and to file as Exhibit 99.1 - September 30, 2006
consolidated financial statements restated for issuance of common stock during
the year ended December 31, 2004 (the "2004 restatement"), which resulted in,
among other things, increasing paid in capital by $195,000 and increasing
accumulated deficit, for a net effect of zero as of January 1, 2005, December
31, 2005 and September 30, 2006 (see Note 14 Restatement), and as Exhibit 99.3 -
June 30, 2007 and 2006 condensed consolidated financial statements restated for
the 2004 restatement and for recording fees due a related party in connection
with fund-raising activities, which resulted in, among other
things, increasing amounts due to a related party by $242,000, and
decreasing stockholders equity by the same amount at June 30, 2007 (See Note 12
Restatement).
Item
2.01                      Completion
of Acquisition or Disposition of Assets
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of the
date of this Report, the Company has 26,466,040
shares of
common stock outstanding and 1 share of preferred stock
outstanding.  The following table sets forth certain information
regarding the beneficial ownership of our outstanding shares as of the date of
this Report by (i) each person who is known by us to own beneficially more than
5% of our outstanding shares of common stock, (ii) each of our executive
officers and directors, and (iii) all of our executive officers and directors as
a group.
Title
      of Class:
Name
      and Address of Beneficial Holder:
Amount
      and Nature of Beneficial Ownership:
Percent
      of Class (6):
Common,
      $.01
par
      value
Earnest
      Mathis, Director
2560
      W. Main Street, Ste. 200
Littleton,
      CO 80120
411,536
      (1)
1%
Common,
      $.01
par
      value
Clayton
      Shelver, CEO
601
      108
th
Ave. NE, Ste. 1908
Bellevue,
      WA 98004
377,925
1%
Common,
      $.01
par
      value
David
      Otto
Director
      and Secretary
601
      Union Street, Ste. 4500
Seattle,
      WA 98101
5,639,774
      (2)
19%
Common,
      $.01
par
      value
Jeremy
      Johnson, CTO
601
      108
th
Ave. NE, Ste. 1908
Bellevue,
      WA 98004
54,750
<1%
Common,
      $.01
par
      value
Cecil
      Whitlock, CFO
601
      108
th
Ave. NE, Ste. 1908
Bellevue,
      WA 98004
419,750
      (3)
1%
Common,
      $.01
par
      value
Robert
      Lear, COO
601
      108
th
Ave. NE, Ste. 1908
Bellevue,
      WA 98004
93,075
<1%
Common,
      $.01
par
      value
Laurence
      and Artha Shelver
601
      108
th
Ave. NE, Ste. 1908
Bellevue,
      WA 98004
1,712,607
      (4)
6%
Common,
      $.01
par
      value
Capital
      Group Communications, Inc.
1750
      Bridgeway, Suite #A200
Sausalito,
      CA 94965
1,753,025
      (5)
6%
Common,
      $.01
par
      value
Constance
      Lautieri
601
      108
th
Ave. NE, Ste. 1908
Bellevue,
      WA 98004
2,284,170
      (6)
6%
Total
      Held by Officers and Directors:
8,709,417
30%
Total
      Held by Officers, Directors and Certain Beneficial Owners:
12,746,612
42%
(1)
The
      amount includes a common stock purchase warrant to acquire up to 75,000
      shares at $1.25/share with an expiration date of August 20,
      2010.  This warrant is held by Mathis Family Partners, Ltd., of
      which Mr. Mathis is a partner.
(2)
Of
      the shares of Common Stock held by Mr. Otto, 730,000 shares are held by
      Otto Capital Holdings, Inc., of which Mr. Otto is the President; 492,750
      shares are held by Crimson Capital, LLC, of which Mr. Otto is a member;
      1,288,024 shares are held by Joseph Martin, LLC, of which Mr. Otto is a
      member; 912,500 are held by Saratoga Capital Partners I, Inc., of which
      Mr. Otto is a manager; and 36,500 shares are held by Cambridge Partners,
      LLC, of which Mr. Otto is a member.  Crimson Capital, LLC also
      owns a common stock purchase warrant to acquire up to 100,000 shares at
      $1.00/share with an expiration date of September 30,
      2011.  Cambridge Partners, LLC owns a common stock purchase
      warrant to acquire up to 100,000 shares at $1.00/shares with an expiration
      date of September 30, 2011.  Saratoga Capital Partners I, Inc.
      owns a common stock purchase warrant to acquire up to 1,250,000 shares at
      $1.00/share with an expiration date of September 30, 2011.  In
      March 2004, the Company entered into an engagement agreement with The Otto
      Law Group, PLLC, of which Mr. Otto is the manager, (the
      "Engagement").  Pursuant to the engagement, a total of 1,186,000
      shares of common stock are issuable to The Otto Law Group,
      PLLC.
(3)
This
      amount includes a common stock purchase warrant to acquire up to 182,500
      shares of common stock at $1.00/share with an expiration date of October
      31, 2011.
(4)
Laurence
      G. Shelver is the father of Clayton Shelver, our Chief Executive
      Officer.  Additionally, Mr. Shelver is also the holder of the 1
      share of Series A Preferred and receives monthly dividend payments of
      $6,332.73.  The principal amount of the Series A is $949,908.83,
      interest is 8% per annum, the conversion price is $1/share and will
      automatically convert into common stock upon expiration in August
      2009.
(5)
Capital
      Group Communications, Inc. provides public relations services to
      us.
(6)
This
      amount includes a common stock purchase warrant to acquire up to 585,460
      shares of common stock at $1.00/share with an expiration date of January
      1, 2010.  This amount also includes a common stock purchase
      warrant to acquire up to 363,540 shares of common stock at $1.00/share
      with an expiration date of October 31,
2011.
(7)
As
      of August 28, 2007, there was 26,466,040
shares of common
      stock issued and outstanding.  The total amount of shares that
      could be issued to certain beneficial owners and management within the
      next 60 days is 2,656,500 shares.  Based on these amounts, the
      percentage ownership is based on a fully diluted amount of 29,122,540
      shares.
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Certain
Relationships and Related Transactions
In March
2004, the Company entered into an engagement agreement with The Otto Law Group,
PLLC, a law firm.  Pursuant to terms of this engagement agreement,
that has no stated term, and in addition to engaging the firm for legal
services, the Company has agreed to pay to the firm success fees equal to 5% of
cash consideration received and 5% of securities issued in connection with
completion of a financing, merger or acquisition effected or initiated by a
party introduced to the Company by the firm.
Item
9.01
              
Financial Statements and Exhibits
Please
see the Exhibit Index immediately following the signature page.
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 hereunto
duly authorized.
Dated:
      February 19, 2008
SARS
      CORPORATION
By:
/s/
      Clayton Shelver
Clayton
      Shelver
Chief
      Executive Officer
Exhibit
      No.
Description
Location
3.1
Articles
      of Incorporation
Incorporated
      by reference to Exhibit 3.0 filed with Form 10-SB12G on February 24,
      1999.
3.1.1
Certificate
      of Amendment to the Articles of Incorporation
Incorporated
      by Reference to Exhibit 3.0 filed with Form 10-QSB on August 13,
      2007.
10.1
Agreement
      and Plan of Merger
Incorporated
      by Refernce to Exhibit 10.1 filed with Form 8-K on August 31,
      2007.
99.1
Audited
      Financial Statements of Business Acquired, as restated.
Attached.
99.2
Financial
      Statements of Mycom Group, Inc.
Incorporated
      by Refernce to Exhibit 99.2 filed with Form 8-K on August 31,
      2007.
99.3
Unaudited
      Financial Statements of Business Acquired, as
    restated.
Attached.