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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>_____________________________</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
        TO SECTION 13 OR 15(d) OF THE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        EXCHANGE ACT OF 1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Date
        of
        earliest event reported)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>September
        30, 2005</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>____________________________</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CYBER
        MERCHANTS EXCHANGE, INC. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>California</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
        or
        other Jurisdiction of Incorporation or Organization)</font></div>
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      <div>
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            <tr>
              <td valign="top" width="27%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>001-15643</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  File Number)</font></div>
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              <td valign="top" width="23%">&#160;</td>
              <td valign="top" width="23%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="27%">&#160;</td>
              <td valign="top" width="23%">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>936A
                  Beachland Boulevard, Suite 13 </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Vero
                  Beach, FL 32963 </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of Principal Executive Offices and zip code)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(772)
        231-7544</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant's
        telephone</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">number,
        including area code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4349
        Baldwin Avenue, Suite A</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>El
        Monte, CA 91731</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        Name or Former Address, if Changed Since Last Report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Safe
        Harbor Statement under the Private Securities Litigation Reform Act of
        1995</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
        included in this Form 8-K may contain forward-looking statements within the
        meaning of Section 27A of the Securities Act and Section 21E of the Securities
        Exchange Act of 1934, as amended (the "Exchange Act"). This information may
        involve known and unknown risks, uncertainties and other factors which may
        cause
        the Company's actual results, performance or achievements to be materially
        different from future results, performance or achievements expressed or implied
        by any forward-looking statements. Forward-looking statements, which involve
        assumptions and describe the Company's future plans, strategies and
        expectations, are generally identifiable by use of the words "may," "will,"
        "should," "expect," "anticipate," "estimate," "believe," "intend" or "project"
        or the negative of these words or other variations on these words or comparable
        terminology. These forward-looking statements are based on assumptions that
        may
        be incorrect, and there can be no assurance that these projections included
        in
        these forward-looking statements will come to pass. The Company's actual
        results
        could differ materially from those expressed or implied by the forward-looking
        statements as a result of various factors. Except as required by applicable
        laws, the Company undertakes no obligation to update publicly any
        forward-looking statements for any reason, even if new information becomes
        available or other events occur in the future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        3.02 Unregistered Sales of Equity Securities</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of the Closing (as defined in Item 5.01) of the transactions under the
        Amended SPA (as defined in Item 5.01), the Company issued 7,104,160 shares
        of
        its common stock to KI Equity Partners II, LLC (&#8220;KI Equity&#8221;) in exchange for the
        payment of the $415,000 purchase price by KI Equity. The above shares of
        common
        stock were issued under an exemption from registration under Section 4(2)
        of the
        Securities Act of 1933, as amended (&#8220;Securities Act&#8221;). As such, the shares of
        common stock issued to KI Equity will be restricted shares, and the holder
        thereof may not sell, transfer or otherwise dispose of such shares without
        registration under the Securities Act or an exemption therefrom. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.01 Changes in Control of Registrant.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of August 25, 2005, Cyber Merchants Exchange Inc., a California corporation,
        (the &#8220;Company&#8221;) entered into an Amended and Restated Securities Purchase
        Agreement (the &#8220;Amended SPA&#8221;) with KI Equity and Frank Yuan, Chairman of the
        Board and Chief Executive Officer of the Company (&#8220;Yuan&#8221;). The Amended SPA
        amends and restates a Securities Purchase Agreement (the &#8220;Original SPA&#8221;) that
        the Company entered on November 19, 2004 with Keating Reverse Merger Fund,
        LLC
        (&#8220;KRM Fund&#8221;) and Yuan. The Amended SPA provides for the purchase of 7,104,160
        shares of the Company&#8217;s common stock by KI Equity for $415,000 (&#8220;Share
        Purchase&#8221;). The Amended SPA further released KRM Fund from any and all
        obligations under the Original SPA.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        foregoing transactions were approved by the Company&#8217;s Board of Directors and
        were approved by the Company&#8217;s shareholders of the Company on May 16, 2005.
</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        closing of the transactions under the Amended SPA occurred on September 30,
        2005
        (&#8220;Closing&#8221;), and, at the Closing, the Company issued 7,104,160 shares of its
        common stock to KI Equity in exchange for the payment of the $415,000 purchase
        price by KI Equity. Immediately following the Closing, the Company has 8,119,040
        shares of common stock outstanding. KI Equity owns 7,104,160 shares of the
        Company&#8217;s common stock, or 87.5% of the outstanding shares. The remaining
        shareholders of the Company own 1,014,880 shares, or&#160; 12.5% of the
        outstanding shares.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        proceeds of the Share Purchase will be used to satisfy any unpaid liabilities
        that were assumed by ASAP Show, Inc. (&#8220;ASAP&#8221;) pursuant to a Transfer and
        Assumption Agreement between the Company, ASAP and Frank S. Yuan (&#8220;Yuan&#8221;) dated
        effective May 31, 2005 (&#8220;Transfer Agreement&#8221;). After all assumed liabilities are
        paid, any remaining funds will be transferred to ASAP, less $50,000 which
        the
        Company will be held in reserve for a period of six months following the
        Closing
        to satisfy any claims for indemnity which the Company may have against ASAP
        or
        Yuan under the Transfer Agreement or that the Company or KI Equity may have
        against Yuan under the Amended SPA. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of the Closing, the Company&#8217;s existing officers and directors resigned, and
        Kevin R. Keating became the sole director, President, Treasurer and Secretary
        of
        the Company. As a result of the Closing, there has been a change in a majority
        of the Company&#8217;s directors which change of control was approved by the Company&#8217;s
        stockholders at the annual meeting of stockholders held on May 16, 2005.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
        is
        expected that Mr. Keating will appoint additional members to the Company&#8217;s board
        of directors to fill certain vacancies. Any future appointments to the Company&#8217;s
        board of directors by Mr. Keating will be disclosed in a current report on
        Form
        8-K which will be filed with the SEC.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; 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 not entered into any agreements to
        compensate, nor has it paid any compensation to, Mr. Keating for any services
        rendered or to be rendered by him as an officer or director of the Company.
        However, it is expected that Mr. Keating will be compensated for his services
        rendered and to be rendered to the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of the Closing, the principal executive office of the Company was moved
        to
        936A Beachland Boulevard, Suite 13, Vero Beach, FL 32963.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        the
        Company&#8217;s knowledge, neither Mr. Keating nor any of his affiliates currently
        beneficially owns any equity securities or rights to acquire any securities
        of
        the Company, and no such person has been involved in any transaction with
        the
        Company or any of its directors, executive officers or affiliates that is
        required to be disclosed pursuant to the rules and regulations of the Securities
        and Exchange Commission other than with respect to the transactions that
        have
        been described herein. To the Company&#8217;s knowledge, Mr. Keating is not currently
        a director of, nor does he hold any position with, the Company, nor does
        he have
        a familial relationship with any director or executive officer of the Company.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; 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; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        than the transactions and agreements disclosed in this Form 8-K, the Company
        knows of no arrangements which may result in a change in control of the
        Company.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.02 Departure of Directors or Principal Officers; Election of Directors;
        Appointment of Principal Officers.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of the Closing, Frank S. Yuan resigned as Chairman, Chief Executive Officer,
        President and Chief Financial Officer, James Vandeberg resigned as a Director,
        Deborah Shamaley resigned as a Director, Charles Rice resigned as a Director,
        and Luz Jimenez resigned as Treasurer and Secretary. These resignations were
        not
        as a result of any disagreement between the Company and any of the resigning
        officers and directors. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        as of the Closing, the following table sets forth the names, positions and
        ages
        of executive officers and directors of the Company. All directors serve until
        the next annual meeting of stockholders or until their successors are elected
        and qualify. Officers are elected by the board of directors and their terms
        of
        office are, except to the extent governed by employment contract, at the
        discretion of the board of directors. There is no family relationship between
        any director, executive officer or person nominated or chosen by the Company
        to
        become a director or executive officer.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="top" width="19%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Age</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position</strong></font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="13%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Term
                  </strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="19%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kevin
                  R. Keating (1)</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President,
                  Treasurer, Secretary and Director</font></div>
              </td>
              <td valign="top" width="2%">&#160;</td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1
                  Year</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td style="WIDTH: 18pt">&#160;</td>
                <td style="WIDTH: 18pt">&#160;</td>
                <td>&#160;</td>
              </tr>

          </table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td style="WIDTH: 18pt">&#160;</td>
                <td style="WIDTH: 18pt">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
                    </font></div>
                </td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                    Keating became President, Secretary, Treasurer, and a director
                    effective
                    as of the Closing. </font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Keating, sole Director, President, Secretary and Treasurer of the Company,
        is an
        investment executive and for the past nine years has been the Branch Manager
        of
        the Vero Beach, Florida, office of Brookstreet Securities Corporation.
        Brookstreet is a full-service, national network of independent investment
        professionals. Mr. Keating services the investment needs of private clients
        with
        special emphasis on equities. For more than 35 years, he has been engaged
        in
        various aspects of the investment brokerage business. Mr. Keating began his
        Wall
        Street career with the First Boston Company in New York in 1965. From 1967
        through 1974, he was employed by several institutional research boutiques
        where
        he functioned as Vice President Institutional Equity Sales. From 1974 until
        1982, Mr. Keating was the President and Chief Executive Officer of Douglas
        Stewart, Inc., a New York Stock Exchange member firm. Since 1982, he has
        been
        associated with a variety of firms as a registered representative servicing
        the
        needs of individual investors. Mr. Keating is also the manager and sole member
        of Vero Management, LLC, which provides management and administrative services
        to public companies. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.06 Change in Shell Company Status </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
        completion of the transactions under the Transfer Agreement and the Company&#8217;s
        distribution of all of the outstanding shares of common stock of ASAP to
        the
        Company&#8217;s shareholders of record on August 18, 2005 on a pro rata basis (the
        "Distribution"), the Company has no material assets, liabilities or ongoing
        operations. The Company believes it is a &#8220;shell company&#8221; as defined under the
        rules and regulations promulgated by the U.S. Securities and Exchange Commission
        and will have to comply with the newly enacted rules and regulations affecting
        shell companies.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; 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; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nevertheless,
        the Company&#8217;s management believes that it may be able to recover some value for
        its stockholders by the adoption and implementation of a plan to seek,
        investigate and, if the results of such investigation warrant, effect a business
        combination with a suitable privately held company that has both business
        history and operating assets. The Company&#8217;s potential success will be primarily
        dependent on the efforts and abilities of its new management team, who will
        have
        virtually unlimited discretion in searching for, negotiating and entering
        into a
        business combination transaction.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
        believes that the selection of a business opportunity will be complex and
        extremely risky. Because of general economic conditions, rapid technological
        advances being made in some industries and shortages of available capital,
        our
        new management team believes that there are numerous privately held companies
        seeking the perceived benefits of becoming a publicly held corporation. Such
        perceived benefits may include facilitating debt financing or improving the
        terms on which additional equity may be sought, providing liquidity for the
        principals of the business, creating a means for providing stock incentives
        or
        similar benefits to key employees, providing liquidity for all stockholders
        and
        other factors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Potential
        business opportunities may occur in many different industries and at various
        stages of development, all of which will make the task of comparative
        investigation and analysis extremely difficult and complex. The Company&#8217;s new
        management team believes it will only be able to participate in one business
        venture. This lack of diversification should be considered a substantial
        risk
        because it will not allow us to offset potential losses from one venture
        against
        gains from another.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
        believes the Company will offer owners of a suitable privately held company
        the
        opportunity to acquire a controlling ownership interest in a public
        company:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                  less time than would be required for a traditional initial public
                  offering
                  (&#8220;IPO&#8221;);</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                  less out-of-pocket cost than would be required for a traditional
                  IPO;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
                  a greater degree of certainty that the transaction will ultimately
                  close.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nevertheless,
        the owners of any target company that we select will incur significant costs
        and
        expenses, including the costs of preparing the required business combination
        agreements and related documents, the costs of preparing a Current Report
        on
        Form 8-K describing the business combination transaction and the costs of
        preparing the documentation associated with future reporting under the Exchange
        Act.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; 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; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
        the
        Company&#8217;s management team believes that it will be able to enter into a business
        combination, there can be no assurance as to how much time will elapse before
        a
        business combination is effected, if ever.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        event that a business combination is consummated, it is likely that the
        Company&#8217;s present stockholders will own only a small minority interest in the
        combined companies. In addition, as part of the terms of an acquisition
        transaction, the Company&#8217;s current officers and directors will ordinarily resign
        and be replaced by new officers and directors selected by the target company.
        Management does not intend to obtain shareholder approval prior to consummating
        any acquisition other than a statutory merger. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01 Other Events</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Other
        Information</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
        OWNERSHIP OF </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTAIN
        BENEFICIAL OWNERS AND MANAGEMENT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth certain information regarding the Company&#8217;s common
        stock beneficially owned on September 30, 2005, immediately after giving
        effect
        to the Closing for (i) each shareholder we know to be the beneficial owner
        of 5%
        or more of the Company&#8217;s outstanding common stock, (ii) each of the Company&#8217;s
        executive officers and directors, and (iii) all executive officers and directors
        as a group. In general, a person is deemed to be a "beneficial owner" of
        a
        security if that person has or shares the power to vote or direct the voting
        of
        such security, or the power to dispose or to direct the disposition of such
        security. A person is also deemed to be a beneficial owner of any securities
        of
        which the person has the right to acquire beneficial ownership within 60
        days.
        To the best of the Company&#8217;s knowledge, all persons named have sole voting and
        investment power with respect to such shares, except as otherwise noted.
        Except
        as set forth in this Report, there are not any pending or anticipated
        arrangements that may cause a change in control of the Company. At September
        30,
        2005, immediately after giving effect to the Closing, 8,119,040 shares of
        the
        Company&#8217;s common stock were outstanding.</font></div>
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        <table border="1" cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td valign="bottom" width="28%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name</font></div>
              </td>
              <td valign="bottom" width="25%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number
                  of Shares Beneficially </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Owned</font></div>
              </td>
              <td valign="bottom" width="27%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percent
                  of Shares</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kevin
                  R. Keating</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">936A
                  Beachland Boulevard, Ste. 13</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vero
                  Beach, Florida 32963</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0
                  (1)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="27%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KI
                  Equity Partners II, LLC</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c/o
                  Timothy J. Keating, Manager</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5251
                  DTC Parkway, Suite 1090</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Greenwood
                  Village, Colorado 80111</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7,104,160
                  (2)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td valign="top" width="27%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">87.5%</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="28%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  Executive Officers and Directors as a group</font></div>
              </td>
              <td valign="top" width="25%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td valign="top" width="27%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0%</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kevin
        R.
        Keating is the father of Timothy J. Keating. Timothy J. Keating is the manager
        of KI Equity Partners II, LLC. Kevin R. Keating is not affiliated not affiliated
        with and has no equity interest in KI Equity Partners II, LLC and disclaims
        any
        beneficial interest in the shares of the Company&#8217;s common stock owned by KI
        Equity Partners II, LLC. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Timothy
        J. Keating is the manager of KI Equity Partners II, LLC and has sole voting
        and
        disposition power over the shares of the Company&#8217;s common stock owned by KI
        Equity Partners II, LLC. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; 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; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTAIN
        RELATIONSHIPS AND RELATED TRANSACTIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kevin
        R.
        Keating, is the father of the principal member of Keating Investments, LLC.
        Keating Investments, LLC is the managing member of KI Equity Partners II,
        LLC,
        which is the majority stockholder of the Company. Keating Investments, LLC
        is
        also the managing member and 90% owner of Keating Securities, LLC, a registered
        broker-dealer. Kevin R. Keating is not affiliated with and has no equity
        interest in Keating Investments, LLC, KI Equity Partners II, LLC or Keating
        Securities, LLC and disclaims any beneficial interest in the shares of the
        Company&#8217;s common stock owned by KI Equity Partners II, LLC. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
        conflicts of interest exist and may continue to exist between the Company
        and
        its officers and directors due to the fact that Mr. Kevin R. Keating has
        other
        business interests to which he devotes his primary attention. Mr. Keating
        may
        continue to do so notwithstanding the fact that management time should be
        devoted to the business of the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certain
        conflicts of interest may exist between the Company and its management, and
        conflicts may develop in the future. The Company has not established policies
        or
        procedures for the resolution of current or potential conflicts of interests
        between the Company, its officers and directors or affiliated entities. There
        can be no assurance that management will resolve all conflicts of interest
        in
        favor of the Company, and conflicts of interest may arise that can be resolved
        only through the exercise by management their best judgment as may be consistent
        with their fiduciary duties. Management will try to resolve conflicts to
        the
        best advantage of all concerned, but there may be times when an acquisition
        opportunity is given to another entity to the disadvantage of the Company&#8217;s
        stockholders and for which there will be no recourse. Keating Securities,
        LLC,
        an affiliate of Keating Investments, LLC, the managing member of our controlling
        stockholder, will act as a financial advisor in connection with&#160;any
        reverse
        merger transaction for which it will earn a cash and/or equity fee.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; 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 not entered into any agreements to
        compensate, nor has it paid any compensation to, Mr. Keating for any services
        rendered or to be rendered by him as an officer or director of the Company.
        However, it is expected that Mr. Keating will be compensated for his services
        rendered and to be rendered to the Company, and that Mr. Keating may determine,
        or participate in the determination of, such compensation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; 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>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        than the above transactions or otherwise set forth in this Report or in any
        reports filed by the Company with the SEC, we have not entered into any material
        transactions with any director, executive officer, and nominee for director,
        beneficial owner of five percent or more of our common stock, or family members
        of such persons. We are not a subsidiary of any company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01 Financial Statements and Exhibits.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Financial
                  statements of business acquired</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  None</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Pro
                  forma financial information</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  None</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Exhibits</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                  None</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; 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; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, Cyber Merchants
        Exchange, Inc. has duly caused this report to be signed on its behalf by
        the
        undersigned hereunto duly authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

            <tr valign="top" bgcolor="#ffffff">
              <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td colspan="2">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CYBER
                  MERCHANTS EXCHANGE , INC.</strong></font></div>
              </td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;October
                4, 2005</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;Kevin
                R. Keating</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
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              <td align="left">
                <hr style="COLOR: #000000" align="left" noshade size="1" width="80%"><font size="2">Kevin
                R. Keating, President and Sole Director</font></td>
            </tr>
            <tr valign="top" bgcolor="#ffffff">
              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td>&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
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          </div>
          <div id="PN">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
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{"company-data": {"conformed-name": "CYBER MERCHANTS EXCHANGE INC", "cik": "0001066961", "assigned-sic": "7389", "irs-number": "954597370", "state-of-incorporation": "CA", "fiscal-year-end": "0531"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-15643", "film-number": "051120320"}, "business-address": {"street1": "600 S LAKE AVE", "street2": "STE 405", "city": "PASADENA", "state": "CA", "zip": "91106", "phone": "6267935000"}, "former-company": {"former-conformed-name": "WORLD WIDE MAGIC NET INC", "date-changed": "19980727"}}
Unassociated Document
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        D.C. 20549
_____________________________
FORM
        8-K
CURRENT
        REPORT
PURSUANT
        TO SECTION 13 OR 15(d) OF THE
SECURITIES
        EXCHANGE ACT OF 1934
Date
        of
        Report:
(Date
        of
        earliest event reported)
September
        30, 2005
____________________________
CYBER
        MERCHANTS EXCHANGE, INC.
(Exact
        name of registrant as specified in charter)
California
(State
        or
        other Jurisdiction of Incorporation or Organization)
001-15643
(Commission
                  File Number)
95-4597370
(IRS
                  Employer Identification No.)
936A
                  Beachland Boulevard, Suite 13
Vero
                  Beach, FL 32963
(Address
                  of Principal Executive Offices and zip code)
(772)
        231-7544
(Registrant's
        telephone
number,
        including area code)
4349
        Baldwin Avenue, Suite A
El
        Monte, CA 91731
(Former
        Name or Former Address, if Changed Since Last Report)
Safe
        Harbor Statement under the Private Securities Litigation Reform Act of
        1995
Information
        included in this Form 8-K may contain forward-looking statements within the
        meaning of Section 27A of the Securities Act and Section 21E of the Securities
        Exchange Act of 1934, as amended (the "Exchange Act"). This information may
        involve known and unknown risks, uncertainties and other factors which may
        cause
        the Company's actual results, performance or achievements to be materially
        different from future results, performance or achievements expressed or implied
        by any forward-looking statements. Forward-looking statements, which involve
        assumptions and describe the Company's future plans, strategies and
        expectations, are generally identifiable by use of the words "may," "will,"
        "should," "expect," "anticipate," "estimate," "believe," "intend" or "project"
        or the negative of these words or other variations on these words or comparable
        terminology. These forward-looking statements are based on assumptions that
        may
        be incorrect, and there can be no assurance that these projections included
        in
        these forward-looking statements will come to pass. The Company's actual
        results
        could differ materially from those expressed or implied by the forward-looking
        statements as a result of various factors. Except as required by applicable
        laws, the Company undertakes no obligation to update publicly any
        forward-looking statements for any reason, even if new information becomes
        available or other events occur in the future.
Item
        3.02 Unregistered Sales of Equity Securities
Effective
        as of the Closing (as defined in Item 5.01) of the transactions under the
        Amended SPA (as defined in Item 5.01), the Company issued 7,104,160 shares
        of
        its common stock to KI Equity Partners II, LLC ("KI Equity") in exchange for the
        payment of the $415,000 purchase price by KI Equity. The above shares of
        common
        stock were issued under an exemption from registration under Section 4(2)
        of the
        Securities Act of 1933, as amended ("Securities Act"). As such, the shares of
        common stock issued to KI Equity will be restricted shares, and the holder
        thereof may not sell, transfer or otherwise dispose of such shares without
        registration under the Securities Act or an exemption therefrom.
Item
        5.01 Changes in Control of Registrant.
Effective
        as of August 25, 2005, Cyber Merchants Exchange Inc., a California corporation,
        (the "Company") entered into an Amended and Restated Securities Purchase
        Agreement (the "Amended SPA") with KI Equity and Frank Yuan, Chairman of the
        Board and Chief Executive Officer of the Company ("Yuan"). The Amended SPA
        amends and restates a Securities Purchase Agreement (the "Original SPA") that
        the Company entered on November 19, 2004 with Keating Reverse Merger Fund,
        LLC
        ("KRM Fund") and Yuan. The Amended SPA provides for the purchase of 7,104,160
        shares of the Company's common stock by KI Equity for $415,000 ("Share
        Purchase"). The Amended SPA further released KRM Fund from any and all
        obligations under the Original SPA.
The
        foregoing transactions were approved by the Company's Board of Directors and
        were approved by the Company's shareholders of the Company on May 16, 2005.
The
        closing of the transactions under the Amended SPA occurred on September 30,
        2005
        ("Closing"), and, at the Closing, the Company issued 7,104,160 shares of its
        common stock to KI Equity in exchange for the payment of the $415,000 purchase
        price by KI Equity. Immediately following the Closing, the Company has 8,119,040
        shares of common stock outstanding. KI Equity owns 7,104,160 shares of the
        Company's common stock, or 87.5% of the outstanding shares. The remaining
        shareholders of the Company own 1,014,880 shares, or  12.5% of the
        outstanding shares.
The
        proceeds of the Share Purchase will be used to satisfy any unpaid liabilities
        that were assumed by ASAP Show, Inc. ("ASAP") pursuant to a Transfer and
        Assumption Agreement between the Company, ASAP and Frank S. Yuan ("Yuan") dated
        effective May 31, 2005 ("Transfer Agreement"). After all assumed liabilities are
        paid, any remaining funds will be transferred to ASAP, less $50,000 which
        the
        Company will be held in reserve for a period of six months following the
        Closing
        to satisfy any claims for indemnity which the Company may have against ASAP
        or
        Yuan under the Transfer Agreement or that the Company or KI Equity may have
        against Yuan under the Amended SPA.
Effective
        as of the Closing, the Company's existing officers and directors resigned, and
        Kevin R. Keating became the sole director, President, Treasurer and Secretary
        of
        the Company. As a result of the Closing, there has been a change in a majority
        of the Company's directors which change of control was approved by the Company's
        stockholders at the annual meeting of stockholders held on May 16, 2005.
It
        is
        expected that Mr. Keating will appoint additional members to the Company's board
        of directors to fill certain vacancies. Any future appointments to the Company's
        board of directors by Mr. Keating will be disclosed in a current report on
        Form
        8-K which will be filed with the SEC.
As
        of the
        date of this Report, the Company has not entered into any agreements to
        compensate, nor has it paid any compensation to, Mr. Keating for any services
        rendered or to be rendered by him as an officer or director of the Company.
        However, it is expected that Mr. Keating will be compensated for his services
        rendered and to be rendered to the Company.
Effective
        as of the Closing, the principal executive office of the Company was moved
        to
        936A Beachland Boulevard, Suite 13, Vero Beach, FL 32963.
To
        the
        Company's knowledge, neither Mr. Keating nor any of his affiliates currently
        beneficially owns any equity securities or rights to acquire any securities
        of
        the Company, and no such person has been involved in any transaction with
        the
        Company or any of its directors, executive officers or affiliates that is
        required to be disclosed pursuant to the rules and regulations of the Securities
        and Exchange Commission other than with respect to the transactions that
        have
        been described herein. To the Company's knowledge, Mr. Keating is not currently
        a director of, nor does he hold any position with, the Company, nor does
        he have
        a familial relationship with any director or executive officer of the Company.
Other
        than the transactions and agreements disclosed in this Form 8-K, the Company
        knows of no arrangements which may result in a change in control of the
        Company.
Item
        5.02 Departure of Directors or Principal Officers; Election of Directors;
        Appointment of Principal Officers.
Effective
        as of the Closing, Frank S. Yuan resigned as Chairman, Chief Executive Officer,
        President and Chief Financial Officer, James Vandeberg resigned as a Director,
        Deborah Shamaley resigned as a Director, Charles Rice resigned as a Director,
        and Luz Jimenez resigned as Treasurer and Secretary. These resignations were
        not
        as a result of any disagreement between the Company and any of the resigning
        officers and directors.
Effective
        as of the Closing, the following table sets forth the names, positions and
        ages
        of executive officers and directors of the Company. All directors serve until
        the next annual meeting of stockholders or until their successors are elected
        and qualify. Officers are elected by the board of directors and their terms
        of
        office are, except to the extent governed by employment contract, at the
        discretion of the board of directors. There is no family relationship between
        any director, executive officer or person nominated or chosen by the Company
        to
        become a director or executive officer.
Name
Age
Position
Term
Kevin
                  R. Keating (1)
65
President,
                  Treasurer, Secretary and Director
1
                  Year
(1)
Mr.
                    Keating became President, Secretary, Treasurer, and a director
                    effective
                    as of the Closing.
Mr.
        Keating, sole Director, President, Secretary and Treasurer of the Company,
        is an
        investment executive and for the past nine years has been the Branch Manager
        of
        the Vero Beach, Florida, office of Brookstreet Securities Corporation.
        Brookstreet is a full-service, national network of independent investment
        professionals. Mr. Keating services the investment needs of private clients
        with
        special emphasis on equities. For more than 35 years, he has been engaged
        in
        various aspects of the investment brokerage business. Mr. Keating began his
        Wall
        Street career with the First Boston Company in New York in 1965. From 1967
        through 1974, he was employed by several institutional research boutiques
        where
        he functioned as Vice President Institutional Equity Sales. From 1974 until
        1982, Mr. Keating was the President and Chief Executive Officer of Douglas
        Stewart, Inc., a New York Stock Exchange member firm. Since 1982, he has
        been
        associated with a variety of firms as a registered representative servicing
        the
        needs of individual investors. Mr. Keating is also the manager and sole member
        of Vero Management, LLC, which provides management and administrative services
        to public companies.
Item
        5.06 Change in Shell Company Status
Following
        completion of the transactions under the Transfer Agreement and the Company's
        distribution of all of the outstanding shares of common stock of ASAP to
        the
        Company's shareholders of record on August 18, 2005 on a pro rata basis (the
        "Distribution"), the Company has no material assets, liabilities or ongoing
        operations. The Company believes it is a "shell company" as defined under the
        rules and regulations promulgated by the U.S. Securities and Exchange Commission
        and will have to comply with the newly enacted rules and regulations affecting
        shell companies.
Nevertheless,
        the Company's management believes that it may be able to recover some value for
        its stockholders by the adoption and implementation of a plan to seek,
        investigate and, if the results of such investigation warrant, effect a business
        combination with a suitable privately held company that has both business
        history and operating assets. The Company's potential success will be primarily
        dependent on the efforts and abilities of its new management team, who will
        have
        virtually unlimited discretion in searching for, negotiating and entering
        into a
        business combination transaction.
Management
        believes that the selection of a business opportunity will be complex and
        extremely risky. Because of general economic conditions, rapid technological
        advances being made in some industries and shortages of available capital,
        our
        new management team believes that there are numerous privately held companies
        seeking the perceived benefits of becoming a publicly held corporation. Such
        perceived benefits may include facilitating debt financing or improving the
        terms on which additional equity may be sought, providing liquidity for the
        principals of the business, creating a means for providing stock incentives
        or
        similar benefits to key employees, providing liquidity for all stockholders
        and
        other factors.
Potential
        business opportunities may occur in many different industries and at various
        stages of development, all of which will make the task of comparative
        investigation and analysis extremely difficult and complex. The Company's new
        management team believes it will only be able to participate in one business
        venture. This lack of diversification should be considered a substantial
        risk
        because it will not allow us to offset potential losses from one venture
        against
        gains from another.
Management
        believes the Company will offer owners of a suitable privately held company
        the
        opportunity to acquire a controlling ownership interest in a public
        company:
·
In
                  less time than would be required for a traditional initial public
                  offering
                  ("IPO");
·
For
                  less out-of-pocket cost than would be required for a traditional
                  IPO;
                  and
·
With
                  a greater degree of certainty that the transaction will ultimately
                  close.
Nevertheless,
        the owners of any target company that we select will incur significant costs
        and
        expenses, including the costs of preparing the required business combination
        agreements and related documents, the costs of preparing a Current Report
        on
        Form 8-K describing the business combination transaction and the costs of
        preparing the documentation associated with future reporting under the Exchange
        Act.
While
        the
        Company's management team believes that it will be able to enter into a business
        combination, there can be no assurance as to how much time will elapse before
        a
        business combination is effected, if ever.
In
        the
        event that a business combination is consummated, it is likely that the
        Company's present stockholders will own only a small minority interest in the
        combined companies. In addition, as part of the terms of an acquisition
        transaction, the Company's current officers and directors will ordinarily resign
        and be replaced by new officers and directors selected by the target company.
        Management does not intend to obtain shareholder approval prior to consummating
        any acquisition other than a statutory merger.
Item
        8.01 Other Events
Other
        Information
SECURITY
        OWNERSHIP OF
CERTAIN
        BENEFICIAL OWNERS AND MANAGEMENT
The
        following table sets forth certain information regarding the Company's common
        stock beneficially owned on September 30, 2005, immediately after giving
        effect
        to the Closing for (i) each shareholder we know to be the beneficial owner
        of 5%
        or more of the Company's outstanding common stock, (ii) each of the Company's
        executive officers and directors, and (iii) all executive officers and directors
        as a group. In general, a person is deemed to be a "beneficial owner" of
        a
        security if that person has or shares the power to vote or direct the voting
        of
        such security, or the power to dispose or to direct the disposition of such
        security. A person is also deemed to be a beneficial owner of any securities
        of
        which the person has the right to acquire beneficial ownership within 60
        days.
        To the best of the Company's knowledge, all persons named have sole voting and
        investment power with respect to such shares, except as otherwise noted.
        Except
        as set forth in this Report, there are not any pending or anticipated
        arrangements that may cause a change in control of the Company. At September
        30,
        2005, immediately after giving effect to the Closing, 8,119,040 shares of
        the
        Company's common stock were outstanding.
Name
Number
                  of Shares Beneficially
Owned
Percent
                  of Shares
Kevin
                  R. Keating
936A
                  Beachland Boulevard, Ste. 13
Vero
                  Beach, Florida 32963
0
                  (1)
0%
KI
                  Equity Partners II, LLC
c/o
                  Timothy J. Keating, Manager
5251
                  DTC Parkway, Suite 1090
Greenwood
                  Village, Colorado 80111
7,104,160
                  (2)
87.5%
All
                  Executive Officers and Directors as a group
0
0%
(1)
Kevin
        R.
        Keating is the father of Timothy J. Keating. Timothy J. Keating is the manager
        of KI Equity Partners II, LLC. Kevin R. Keating is not affiliated not affiliated
        with and has no equity interest in KI Equity Partners II, LLC and disclaims
        any
        beneficial interest in the shares of the Company's common stock owned by KI
        Equity Partners II, LLC.
(2)
Timothy
        J. Keating is the manager of KI Equity Partners II, LLC and has sole voting
        and
        disposition power over the shares of the Company's common stock owned by KI
        Equity Partners II, LLC.
CERTAIN
        RELATIONSHIPS AND RELATED TRANSACTIONS
Kevin
        R.
        Keating, is the father of the principal member of Keating Investments, LLC.
        Keating Investments, LLC is the managing member of KI Equity Partners II,
        LLC,
        which is the majority stockholder of the Company. Keating Investments, LLC
        is
        also the managing member and 90% owner of Keating Securities, LLC, a registered
        broker-dealer. Kevin R. Keating is not affiliated with and has no equity
        interest in Keating Investments, LLC, KI Equity Partners II, LLC or Keating
        Securities, LLC and disclaims any beneficial interest in the shares of the
        Company's common stock owned by KI Equity Partners II, LLC.
Certain
        conflicts of interest exist and may continue to exist between the Company
        and
        its officers and directors due to the fact that Mr. Kevin R. Keating has
        other
        business interests to which he devotes his primary attention. Mr. Keating
        may
        continue to do so notwithstanding the fact that management time should be
        devoted to the business of the Company.
Certain
        conflicts of interest may exist between the Company and its management, and
        conflicts may develop in the future. The Company has not established policies
        or
        procedures for the resolution of current or potential conflicts of interests
        between the Company, its officers and directors or affiliated entities. There
        can be no assurance that management will resolve all conflicts of interest
        in
        favor of the Company, and conflicts of interest may arise that can be resolved
        only through the exercise by management their best judgment as may be consistent
        with their fiduciary duties. Management will try to resolve conflicts to
        the
        best advantage of all concerned, but there may be times when an acquisition
        opportunity is given to another entity to the disadvantage of the Company's
        stockholders and for which there will be no recourse. Keating Securities,
        LLC,
        an affiliate of Keating Investments, LLC, the managing member of our controlling
        stockholder, will act as a financial advisor in connection with any
        reverse
        merger transaction for which it will earn a cash and/or equity fee.
As
        of the
        date of this Report, the Company has not entered into any agreements to
        compensate, nor has it paid any compensation to, Mr. Keating for any services
        rendered or to be rendered by him as an officer or director of the Company.
        However, it is expected that Mr. Keating will be compensated for his services
        rendered and to be rendered to the Company, and that Mr. Keating may determine,
        or participate in the determination of, such compensation.
Other
        than the above transactions or otherwise set forth in this Report or in any
        reports filed by the Company with the SEC, we have not entered into any material
        transactions with any director, executive officer, and nominee for director,
        beneficial owner of five percent or more of our common stock, or family members
        of such persons. We are not a subsidiary of any company.
Item
        9.01 Financial Statements and Exhibits.
(a)
Financial
                  statements of business acquired
.
                  None
(b)
Pro
                  forma financial information
.
                  None
(c)
Exhibits
.
                  None
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, Cyber Merchants
        Exchange, Inc. has duly caused this report to be signed on its behalf by
        the
        undersigned hereunto duly authorized.
CYBER
                  MERCHANTS EXCHANGE , INC.
Date: October
                4, 2005
By:
/s/ Kevin
                R. Keating
Kevin
                R. Keating, President and Sole Director