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      <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: 18pt; COLOR: #000000; 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: 18pt; COLOR: #000000; 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; COLOR: #000000; 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="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <hr style="COLOR: black" align="center" noshade size="2" width="15%">
      </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: 18pt; 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="center">
        <div>
          <hr style="COLOR: black" align="center" noshade size="2" width="15%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; 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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 OR 15(d) of The 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="left"><br></div>
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            <tr>
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                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Date
                  of Report (Date of earliest event reported): </font></div>
              </td>
              <td valign="top" width="43%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">February
                  28, 2006</font></div>
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        </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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        HOLDINGS, INC. </strong></font>
        <div>
          <hr style="COLOR: black" align="left" noshade size="2" width="100%">
        </div>
      </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; COLOR: #000000; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its charter)</font></div>
      <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"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

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              <td valign="bottom" width="27%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Delaware</font></div>
              </td>
              <td valign="bottom" width="27%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">000-33339</font></div>
              </td>
              <td valign="bottom" width="27%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">20-4397836</font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="27%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">of
                  incorporation)</font></div>
              </td>
              <td valign="top" width="27%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">(Commission
                  File Number)</font></div>
              </td>
              <td valign="top" width="27%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
            </tr>

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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">1585
        Bethel Road, 1st Floor, Columbus, Ohio 43220</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; COLOR: #000000; FONT-FAMILY: Times New Roman">(Address
        of principal executive offices) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">(Zip
        Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
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                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Registrant&#8217;s
                  telephone number, including area code</font></div>
              </td>
              <td valign="top" width="43%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">(614)
                  451-5030</font></div>
              </td>
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      </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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Nicklebys.com,
        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; COLOR: #000000; FONT-FAMILY: Times New Roman">650
        South Cherry Street, Suite 310, Denver, Colorado 80246</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; COLOR: #000000; FONT-FAMILY: Times New Roman">(formerly
        3179 South Peoria Court, Aurora, Colorado 80014)</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; COLOR: #000000; 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="center"><br></div>
      <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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Check
        the appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; 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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Soliciting
        material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; 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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; 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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Entry
        into a Material Definitive Agreement.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 28, 2006, concurrent with the closing of the Merger (as defined
        in Item
        2.01 below), FIIC Holdings, Inc. (within this Item&#160;1.01, the &#8220;Registrant&#8221;
or &#8220;FIIC&#8221;) entered into a securities purchase agreement with Oceanus Value Fund,
        L.P. (&#8220;Oceanus&#8221;), pursuant to which it issued a $350,000 Senior Secured
        Convertible Promissory Note bearing annual interest at 12% (the &#8220;NBYS Note&#8221;) and
        a warrant to purchase 890,995 shares of the Registrant&#8217;s common stock (the &#8220;NBYS
        Warrant&#8221;). The Registrant issued the NBYS Note and NBYS Warrant in exchange for
        the $350,000 Senior Secured Promissory Note previously issued by FIIC, Inc.
        to
        Oceanus in November 2005. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">We
        refer collectively to the issuance of the FIIC Note and the issuance of the
        NBYS
        Note and NBYS Warrant as the Bridge Financing. Immediately subsequent to
        execution of the securities purchase agreement and the issuance of the NBYS
        Note, the parties executed an amendment to the securities purchase agreement,
        extending the term of the NBYS Note, providing for partial repayment of the
        NBYS
        Note and releasing certain pledge agreements entered into in support of the
        NBYS
        Note.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        principal balance of $92,000 due on the amended NBYS Note is due and payable
        on
        the earlier of May 29, 2006 or the Registrant&#8217;s receipt of equity or debt
        financing in excess of $500,000. If the Registrant receives such financing
        prior
        to May 29, 2006, the Registrant must pay Oceanus the lesser of 50% of the
        amount
        of the financing or the balance owed on the note, including interest.
        Alternately, Oceanus may elect to convert the NBYS Note to shares of the
        Registrant&#8217;s common stock at any time at a rate of $1.00 per share, including
        accrued and unpaid interest. If the note remains unpaid and unconverted at
        such
        time that the closing price for the Registrant&#8217;s common stock equals or exceeds
        $3.00 per share for 20 consecutive trading days on the OTCBB, the trading
        volume
        for the common stock has been at least $250,000 per day for the 20 consecutive
        trading day period, and the shares allocated for the conversion are freely
        tradeable pursuant to an effective registration statement or Rule 144(k),
        then
        the note shall automatically convert at a rate of $3.00 per share.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        conjunction with the execution of the securities purchase agreement, the
        Registrant also executed a security agreement in favor of Oceanus pledging
        all
        of its existing and hereafter acquired assets, including its license for
        the
        FIIC Database Content and Technology, as security for the NBYS Note and FIIC,
        Inc. provided a subsidiary guaranty. In addition, 10 former FIIC, Inc.
        stockholders, including certain directors, officers and affiliates of the
        Registrant, executed pledge agreements guarantying the obligations under
        the
        NBYS Note with an aggregate 4,761,000 shares of their common stock of the
        Registrant received in the Merger. However, pursuant to the terms of the
        amendment, all but one of these agreements were immediately
        released.&#160;571,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        shares held by James W France, Jr., the Registrant&#8217;s President, Chief Executive
        Officer and director, remain subject to a pledge agreement.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Upon
        completion of the Merger and the execution of the securities purchase agreement,
        the Registrant also triggered its assumed obligation to issue FIIC, Inc.&#8217;s
        bridge financing consultant, Bridgewater Capital Corporation, a warrant to
        purchase 35,000 shares of the Registrant&#8217;s common stock at $1.00 per
        share.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        2.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Completion
        of Acquisition or Disposition of Assets.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>OVERVIEW</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        Holdings, Inc. (&#8220;FIIC&#8221;), which operates through its wholly-owned subsidiary
        FIIC, Inc., </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">is
        an organizational stage company in the process of establishing itself as
        an
        insurance holding company. To conduct its business, FIIC is forming and
        capitalizing three affiliated operating entities, including a Risk Retention
        Group to write insurance policies, an Agency Captive insurance company to
        provide reinsurance, and a Master Group Agency providing operations services
        to
        the other two insurance entities. FIIC has an exclusive license to access
        and
        use a proprietary set of underwriting data and standards, known as the FIIC
        Underwriting Data and Standards, and an associated web-based interface,
        collectively known as the FIIC Database Content and Technology. Through the
        planned insurance entities, FIIC intends to use this proprietary information
        and
        technology to underwrite a new form of insurance policy, designated as an
        Investor Protection policy, designed and intended to bolster investment in
        new
        and growing businesses by insuring businesses, which will then name their
        investors as beneficiaries, against certain kinds of business failure. FIIC&#8217;s
        objective is to provide a stable investment environment for small business
        investors through the strict application of its underwriting
        criteria.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        July 19, 2005, Nicklebys.com, Inc. (within this Item&#160;2.01, the &#8220;Registrant&#8221;
or &#8220;Nicklebys&#8221;), the Registrant&#8217;s wholly-owned subsidiary Nicklebys Acquisition
        Corp. (&#8220;Merger Sub&#8221;) and certain existing stockholders of the Registrant entered
        into an Agreement and Plan of Merger (the &#8220;Merger Agreement&#8221;) with FIIC, Inc.,
        pursuant to which the Merger Sub would merge with and into FIIC, Inc., with
        FIIC, Inc. being the surviving corporation (the &#8220;Merger&#8221;). Upon closing of the
        Merger on February 28, 2006, FIIC, Inc. became a wholly-owned subsidiary
        of the
        Registrant, the Registrant changed its name to FIIC Holdings, Inc. and
        reincorporated in the State of Delaware.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>PRINCIPAL
        TERMS OF THE MERGER</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Immediately
        prior to the Merger, the Registrant effectuated a 1-for-2.00317 reverse stock
        split of its common stock. At the Effective Time of the Merger (as defined
        in
        the Merger Agreement), Merger Sub was merged with and into FIIC, Inc., the
        separate existence of Merger Sub ceased, and FIIC, Inc. continued as the
        surviving corporation at the subsidiary level. The Registrant issued shares
        of
        its common stock on a one-for-one basis to the stockholders of FIIC, Inc.
        in
        exchange for 100% of the issued and outstanding shares of common stock of
        FIIC,
        Inc. Additionally, the Registrant assumed all outstanding warrants to purchase
        shares of FIIC, Inc.&#8217;s common stock and notes convertible into shares of FIIC,
        Inc.&#8217;s common stock on the same terms and conditions as previously issued by
        FIIC, Inc. The Registrant also issued a new convertible senior secured
        promissory note in exchange for FIIC, Inc.&#8217;s existing outstanding senior secured
        promissory note from its November 2005 Bridge Financing (see Item 1.01 above
        and
&#8220;The Bridge Financing&#8221; below) and executed an amendment to the related
        securities purchase agreement. Further to the Merger, the Registrant assumed
        the
        FIIC 2005 Stock Option, Deferred Stock and Restricted Stock Plan (the &#8220;FIIC 2005
        Plan&#8221;) as its stock option plan. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Further
        to the Merger, the Registrant also canceled 500,000 shares of its pre-split
        common stock held by </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">shareholders
        Scott Thornock, Bruce Capra, Paul Zueger, Michael Tanner, and James Watson
        (collectively, the &#8220;NBYS Canceling Shareholders&#8221;), who received aggregate cash
        consideration of $200,000 from FIIC, Inc. for the cancellation of these shares.
        The Registrant distributed the remaining Nicklebys&#8217; assets held prior to the
        Merger to Mr. Capra, in exchange for cancellation of a certain debt owed
        to Mr.
        Capra by Nicklebys prior to the effective date of the Merger Agreement. These
        assets, all of which were works of art which Nicklebys failed to sell during
        the
        liquidation of its inventory, have been deemed unsaleable on Nicklebys&#8217;
financial statements. FIIC, Inc. also has provided the Registrant approximately
        $87,000 for the satisfaction of Nicklebys&#8217; remaining pre-Merger liabilities, and
        shall cover up to an additional $13,000 of Nicklebys&#8217; closing costs post-Merger.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Immediately
        after the closing of the Merger, the Registrant reincorporated from the State
        of
        Colorado to the State of Delaware and changed its corporate name to FIIC
        Holdings, Inc.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Immediately
        prior to the closing of the Merger, FIIC, Inc. had outstanding 12,668,377
        shares
        of common stock, warrants to purchase 2,291,384 shares of common stock and
        notes
        convertible into at least 1,661,538 shares of common stock. Immediately after
        the closing of the Merger and the amended Bridge Financing, the Registrant
        has
        13,866,983 outstanding shares of common stock, warrants to purchase 3,217,379
        shares of common stock, and notes convertible into at least 1,753,538 shares
        of
        common stock.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        shares of common stock of the Registrant are now listed for quotation on
        the
        Over-the-Counter Bulletin Board under the symbol &#8220;FIIH.OB&#8221; to reflect the recent
        corporate name change.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>THE
        SHARE CANCELLATION</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Concurrent
        with the execution of the Merger Agreement, FIIC, Inc. and the NBYS Canceling
        Shareholders entered into an Escrow and Share Cancellation Agreement dated
        July
        19, 2005 whereby the NBYS Canceling Shareholders agreed to cancel an aggregate
        500,000 pre-split shares of the Registrant&#8217;s outstanding common stock held by
        them on the effective date of the Merger. Mr. Thornock and Mr. Capra were
        directors, officers and principal shareholders of the Registrant and Mr.
        Zueger
        was a director of the Registrant prior to the closing of the Merger.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        NBYS Canceling Shareholders deposited the stock certificates representing
        the
        shares to be cancelled (the &#8220;Cancellation Shares&#8221;) with a designated escrow
        agent and FIIC, Inc. deposited the $200,000 aggregate cash consideration
        with
        the escrow agent prior to the closing date of the Merger. On the closing
        date of
        the Merger, the escrowed Cancellation Shares were deemed automatically cancelled
        and the escrow agent distributed the $200,000, of which Thornock received
        the
        sum of $55,000, Capra received the sum of $27,500, Zueger received the sum
        of
        $7,500, Tanner received the sum of $55,000 and Watson received the sum of
        $55,000.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>DISTRIBUTION
        OF ASSETS AND LIABILITIES</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        connection with the closing of the Merger, Nicklebys distributed all of its
        remaining pre-closing assets to Mr. Capra in exchange for cancellation of
        a
        certain debt owed to Mr.&#160;Capra by Nicklebys prior to the effective date of
        the Merger Agreement. These assets, all of which were works of art which
        Nicklebys failed to sell during the liquidation of its inventory, have been
        deemed unsaleable on Nicklebys&#8217; financial statements.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC,
        Inc. also provided Nicklebys with approximately $87,000 to satisfy its
        pre-closing liabilities, including its remaining outstanding promissory notes
        totaling $13,000, including accrued interest, in favor of Mr. Thornock, Mr.
        Tanner, Mr. Capra and Mr. Watson, all of which were entered to obtain funds
        necessary to pay for professional services in support of the Merger. FIIC
        shall
        provide up to an additional $13,000 to satisfy Nicklebys&#8217; closing costs
        post-Merger.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>THE
        BRIDGE FINANCING</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        August 2005, FIIC, Inc. entered a consulting agreement with Bridgewater for
        general business advisory and consulting services, including assisting FIIC,
        Inc. to locate and secure bridge financing. Subsequently, Bridgewater introduced
        FIIC, Inc. to Oceanus and assisted in bridge financing negotiations. In November
        2005, FIIC, Inc. executed a note purchase agreement with Oceanus under which
        it
        issued a $350,000 Senior Secured Promissory Note bearing annual interest
        at 12%
        (the &#8220;FIIC Note&#8221;). </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 28, 2006, concurrent with the closing of the Merger, the Registrant
        entered into a securities purchase agreement with Oceanus, pursuant to which
        it
        issued the NBYS Note and NBYS Warrant (as defined in Item 1.01) in exchange
        for
        the FIIC Note, and immediately subsequently amended the terms of the securities
        purchase agreement to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">extend
        the term of the NBYS Note, provide for partial repayment of the NBYS Note
        and
        release certain pledge agreements entered into in support of the NBYS
        Note.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">For
        additional details about the Bridge Financing, see Item 1.01 above.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>THE
        PRIVATE PLACEMENT</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        October 2004, in anticipation of the formation of FIIC and the launch of
        its
        operations, FIIC, Inc. engaged a placement agent in connection with a planned
        $2,500,000 private placement (the &#8220;Private Placement&#8221;) of its common stock to be
        conducted concurrent with the Merger process. In this capacity, the Placement
        Agent agreed to seek commitments from investors to purchase FIIC&#8217;s securities.
        The Placement Agent agreed to act as FIIC, Inc.&#8217;s agent and not on an
        underwritten basis. The shares of common stock are to be offered only to
        &#8220;accredited investors&#8221; as defined in Regulation D under the Securities Act of
        1933. In exchange for the Placement Agent&#8217;s services, FIIC, Inc. agreed to pay a
        non-refundable retainer fee of $12,500 and a transaction fee equal to 10%
        of the
        aggregate gross proceeds received by FIIC from the sale of the securities
        in the
        Private Placement, less the retainer fee. FIIC, Inc. also agreed to issue
        the
        Placement Agent warrants to purchase a number of shares of FIIC, Inc.&#8217;s common
        stock equal to 10% of the number of shares sold in the Private Placement
        any
        time within five years of the completion of the Private Placement. Pursuant
        to
        the Merger Agreement, if FIIC, Inc. did not complete the Private Placement
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">prior
        to the closing of the Merger, the Registrant agreed to conduct and complete
        the
        Private Placement post-Merger, and assumed FIIC, Inc.&#8217;s obligations to the
        Placement Agent. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        ultimately launched the Private Placement concurrent with the closing of
        the
        Merger. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        anticipates that the net proceeds from the Private Placement, assuming the
        sale
        of securities for an aggregate $2.5 million, will be approximately $2.2 million
        after deducting placement agent commissions and other anticipated offering
        expenses, although the actual net proceeds will depend upon the actual number
        of
        securities sold by FIIC and the actual offering expenses it incurs. FIIC
        intends
        to use the net proceeds from the Private Placement to repay its outstanding
        short-term debt and to fund the working capital reserve account required
        to
        obtain a license from the Washington, D.C. Department of Insurance and
        Securities Regulation, in support of its planned application to establish
        a Risk
        Retention Group, or RRG. FIIC must successfully establish an RRG and obtain
        a
        license for the RRG before it can launch its insurance operations. Any funds
        received beyond those needed to repay debt and fund the regulatory working
        capital reserve will be used for general corporate purposes, including working
        capital, marketing and expanding FIIC&#8217;s technical employee base. FIIC may also
        use a portion of the net proceeds for the acquisition of complementary
        businesses, technologies or products. There are no contracts or agreements
        to do
        so, however.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">THIS
        CURRENT REPORT IS NOT AN OFFER OF SECURITIES FOR SALE. ANY SECURITIES SOLD
        IN
        THE PRIVATE PLACEMENT WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
        1933,
        AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT TO AN
        EXEMPTION FROM SUCH REGISTRATION.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;S
        BUSINESS</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Overview</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        Holdings, Inc. is an organizational stage company in the process of establishing
        itself as an insurance holding company. To conduct its business, FIIC, though
        its operating subsidiary FIIC, Inc., is forming and capitalizing three
        affiliated operating entities, including a Risk Retention Group to write
        insurance policies, an Agency Captive insurance company to provide reinsurance,
        and a Master Group Agency providing operations services to the other two
        insurance entities. FIIC has an exclusive license to access and use a
        proprietary set of underwriting data and standards, known as the FIIC
        Underwriting Data and Standards, and an associated web-based interface,
        collectively known as the FIIC Database Content and Technology. Through the
        planned insurance entities, FIIC intends to use this proprietary information
        and
        technology to underwrite a new form of insurance policy, designated as an
        Investor Protection policy, designed and intended to bolster investment in
        new
        and growing businesses by insuring businesses, which will then name their
        investors as beneficiaries, against certain kinds of business failure. FIIC&#8217;s
        objective is to provide a stable investment environment for small business
        investors through the strict application of its underwriting criteria. FIIC
        anticipates that it will primarily generate revenues from insurance premiums,
        but also anticipates generating revenues through sublicensing fees, agreements
        with strategic partners and sponsorships.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        plans to market its Investor Protection policy via the internet as a
        business-to-business and business-to-client product, through direct sales
        agents, and through certain professional advisors. FIIC intends to provide
        each
        insured business and its investors a personalized, interactive experience
        during
        the insurance process, affording access to relevant data and research, updates
        on the status of current insured investments, and notification regarding
        various
        additional business opportunities. FIIC plans to provide regular reports
        on each
        insured business entity to investors</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; COLOR: #000000; FONT-FAMILY: Times New Roman">in
        that entity regularly through its website.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Market
        Opportunity</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        average from 1990-2002, 120,000 new businesses started in the United States
        per
        year, 73% of which were small businesses as defined by the regulations of
        the
        Small Business Administration (the &#8220;SBA&#8221;). Although varied slightly by Standard
        Industrial Classification code (&#8220;SIC code&#8221;), a &#8220;small business&#8221; generally has
        $500,000 or less in annual revenues and 500 or fewer employees. According
        to the
        U.S. Census Bureau Statistical Abstract of the United States (2000), business
        failures among new small businesses historically averaged 9 to 11%, while
        business failures among existing corporations averaged 1.03 to 1.22%. However,
        the potential for business failure, especially among new businesses, often
        makes
        it difficult for such businesses to obtain adequate working capital, in effect
        furthering their potential for failure. Although investment in small businesses
        grew rapidly from 1995 to 2000, due primarily to investment of large amounts
        of
        venture capital, this trend has reversed. After the unfortunate events of
        September 11, 2001 and the various scandals that have rocked the public markets
        in recent years, venture capital investment dropped significantly from 2000
        to
        2001 and continued to decline in subsequent years. Generally, investors of
        both
        equity and debt capital have become increasingly reluctant to invest in new
        or
        developing businesses, crippling the ability of entrepreneurs and growth
        business alike to attract needed capital. In addition, the SBA has significantly
        limited its small business funding over the last two years. During January
        2004,
        it was widely reported that Congress&#8217;s inadequate funding of the SBA had caused
        the SBA to reject over 1,000 pending small business applications, representing
        just a single month&#8217;s worth of applications and about $600 million of requested
        capital.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Investor
        Protection Policy</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        believes that the risk assessment and investment protection needs of the
        financial community are not currently being adequately addressed, and seeks
        to
        leverage the demand within current investment community for better investment
        risk management. FIIC aims to create a less risky approach to investment
        in new
        and developing businesses by lessening the risk of capital loss by investors
        due
        to a business failure. Over the course of the last decade, James W. France,
        FIIC&#8217;s founder, President and Chief Executive Officer, has developed the concept
        for an Investor Protection Policy, designed and intended to provide a stable
        investment environment for small business investors in the form of a contract
        liability insurance policy covering the investment exposure of outside investors
        in operational start-up or developing small businesses against certain kinds
        of
        business failure. The ability to purchase an Investor Protection policy shall
        be
        offered to new and existing businesses, where the business and the potential
        outside investors meet the necessary parameters of the FIIC Underwriting
        Data
        and Standards. Although the business seeking investment shall be the
        policyholder, the terms and conditions of the policy shall obligate the
        purchasing business to assign certain policyholder rights to each qualified
        outside investor, subject to a contractual agreement between the business
        and
        the investor upon which issuance of the policy is contingent. In the event
        of a
        covered business failure, the insured investors would receive the payout
        under
        the policy, without having to wait to determine the post-failure value and
        return, if any, of their investment.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        believes that the availability of its Investor Protection policy should
        encourage hesitant investors to actively engage in investment in small
        businesses, thereby bolstering investment in new and growing businesses and
        making increased capital more readily available to such businesses. FIIC
        believes that, if successful, the availability of the Investor Protection
        policy
        and FIIC&#8217;s user-friendly online underwriting process will assist new and growing
        businesses in developing a stronger relationship with their funding sources,
        in
        part by enabling faster funding decisions within the investment community.
        Further, FIIC will seek to promote market confidence by assisting investors
        in
        becoming better prepared when considering business opportunities.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        Database Content and Technology</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        has an exclusive license from its affiliate FIIC Research &amp; Development, LLC
        (&#8220;FIIC LLC&#8221;) to access and use a proprietary set of underwriting data and
        standards, known as the FIIC Underwriting Data and Standards, and an associated
        web-based interface, collectively known as the FIIC Database Content and
        Technology, designed to support for the underwriting process for insuring
        new
        capital invested in new and growing businesses by qualified outside investors.
        Through its planned insurance subsidiaries, FIIC intends to use this proprietary
        information and technology to underwrite its Investor Protection
        policies.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        LLC was formed in 2000 to determine the feasibility of developing and offering
        an Investor Protection Policy, and eventually developed the FIIC Database
        Content and Technology, including the FIIC Underwriting Data and Standards.
        The
        FIIC Database Content and Technology includes a specially-designed, proprietary
        database of SIC classified companies, developed from multiple public sources,
        that identifies the success and failure rates of U.S. businesses since 1984.
        This information is the source for FIIC LLC&#8217;s development of business mortality
        tables organized by SIC Code, which form the actuarial basis for the FIIC
        Underwriting Data and Standards that will be central to FIIC&#8217;s planned
        underwriting process. In addition, the FIIC LLC Database Content and Technology
        includes software incorporating funding strategies and industry and segment
        specific risk assessment developed for consistent application of the FIIC
        Underwriting Data and Standards; a web interface for completion and processing
        of customer and investor applications and interaction with the policy sales
        force; and sample forms of policies, application questionnaires and promotional
        materials, all designed and intended to make most efficient use of the FIIC
        Database Content and Technology and resulting FIIC Underwriting Data and
        Standards and the supporting software functions.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        March 2005, FIIC LLC granted FIIC, Inc. a perpetual, worldwide license for
        access to and use of the FIIC Database Content and Technology, along with
        the
        right to sublicense the technology in limited circumstances. FIIC LLC is
        obligated to maintain and continue to develop the FIIC Database Content and
        Technology, while FIIC will adapt the licensed data and technology to serve
        its
        marketing and underwriting needs as they evolve. As FIIC gains additional
        information about various industries, business success or failure rates,
        and the
        factors influencing such rates, it will share this information with FIIC
        LLC to
        assist in the maintenance and updating of the underlying database.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Insurance
        Entities</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">To
        conduct its business, FIIC is forming and capitalizing three operating insurance
        entities:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Federated
                  Investors Insurance Company Risk Retention Group (&#8220;FIIC RRG&#8221;) shall write
                  the Investor Protection policies;</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Federated
                  Insurance Captive (&#8220;FIC&#8221;), an agency captive insurance company, shall
                  provide reinsurance coverage to FIIC RRG;
                  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">&#160;</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; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Federated
                  Group Agency (&#8220;FGA&#8221;), a master group agency, shall provide operations
                  services to FIIC RRG and FIC.</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">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Federated
        Investors Insurance Company Risk Retention Group</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        RRG will be incorporated, domiciled and licensed in the District of Columbia
        and
        will be owned by its policyholders, the businesses purchasing the Investor
        Protection policies. Although the business seeking investment shall be the
        policyholder, the purchasing business will be obligated to assign certain
        policyholder rights to the each qualified outside investor, subject to a
        contractual agreement between the business and the investor upon which issuance
        of the policy is contingent.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Risk
        Retention Groups are insurance companies formed and operated pursuant to
        the
        federal Liability Risk Retention Act of 1986 (the &#8220;RRG Act&#8221;). The RRG Act allows
        homogeneous groups to establish insurance companies to write liability coverage
        for businesses that fall within the definition of those groups, as long as
        the
        RRG policyholders become owners of the RRG insurance company. Thus, FIIC
        RRG
        will assess a 10% subscription fee on each annual premium paid by the
        policyholders, and classify such fee as a capital contribution; thus ensuring
        that all policyholders are also owners of the Company.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Camelback
        Captive and Risk Management Services, Inc. (&#8220;Camelback&#8221;), a non-affiliated
        company specializing in the management of risk retention groups and captive
        reinsurance companies, will initially be responsible for the day to day
        management of FIIC RRG pursuant to a management agreement. To fund its required
        working capital reserve with the District of Columbia Department of Insurance
        and Securities Regulation (&#8220;D.C. DISR&#8221;), FIIC will initially provide RRG with
        $100,000 of cash and $400,000 in the form of a surplus note to be repaid
        over a
        five-year period, subject to the approval of the District of Columbia
        regulators. FIC will provide initial reinsurance support for FIIC RRG, as
        described below, and any additional reinsurance support required will be
        sought
        from other reinsurers approved by the District of Columbia.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Federated
        Insurance Captive</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIC
        will provide reinsurance to FIIC RRG, written initially on a quote-share
        basis,
        meaning that 50% of the net commissions on premiums collected shall be ceded
        to
        FIC from RRG, with FIIC RRG assuming 50% and FIC assuming 50% of the risk
        on the
        policy. FIC shall also be incorporated and domiciled in the District of
        Columbia, and will be wholly owned and operated by FGA. To fund its required
        working capital reserve with the D.C. DISR, FIIC will initially provide FIC
        with
        $100,000 of cash and $300,000 in the form of a surplus note to be repaid
        over a
        five-year period, subject to the approval of the District of Columbia
        regulators. Camelback will also initially be responsible for the day to day
        management of FIC pursuant to a management agreement.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Federated
        Group Agency</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FGA
        was incorporated in Ohio in December 2005, is domiciled in Columbus, Ohio,
        and
        will wholly own and operate FIC. FGA will provide operations support for
        FIIC
        RRG and FIC, in conjunction with the management efforts of Camelback. FGA
        will
        provide operational support for the sales, underwriting, policy-issuance,
        accounting, field personnel and claims functions. FIIC intends that FGA&#8217;s key
        employees shall all have experience in corporate financial planning, investment
        banking, risk management or asset management.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Initial
        Target Market</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Research
        into the potential marketability of the FIIC Investor Protection policy has
        centered on identifying the annual numbers of newly formed business corporations
        that actually commence operation, as opposed to newly formed businesses overall.
        Further, based on the significant business failure rate between businesses
        in
        their first year versus longer existing businesses, FIIC anticipates that
        by
        insuring a mix of new corporations and existing corporations on a 50/50 basis
        actual failures producing claims should only represent approximately 2% of
        all
        businesses insured by FIIC RRG.</font></div>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </div>
        </div>
        <div id="HDR">
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          </div>
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      </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Of
        the annual average 120,000 new businesses started in the United States in
        1997,
        the Midwest region surrounding Ohio yielded slightly more than 21,000 new
        businesses. FIIC initially intends to target its sales efforts to new and
        developing small businesses in Ohio. FIIC aims to underwrite approximately
        0.4%,
        0.8% and 1.0% of the historical new business starts in Ohio during its first
        three operations years at an average premium of 10% over the amount insured
        and
        an average total investment of $250,000. FIIC anticipates initially expanding
        its business beyond Ohio into a 5-state region around Ohio, including
        Pennsylvania, Indiana, Missouri, Kentucky, and Illinois, and potentially
        two
        western states, as soon as it has initiated operations and has adequate reserves
        to allow sufficient underwriting in these markets. FIIC believes its business
        will grow primarily through increasing market penetration, eventually attracting
        later stage businesses seeking capital as well, and through development on
        additional product offerings viable for financial institutions.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Marketing
        Strategy</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        plans to market its Investor Protection policy via the internet as a
        business-to-business and business-to-client product, as well as through direct
        sales agents and by creating and leveraging relationships with various business
        advisors. FIIC will also reach out to entrepreneurs and investors to educate
        them about the availability and benefits of the Investor Protection
        policy.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Corporate
        Website</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        product-focused website will be the home page for the application for the
        Investor Protection policy. This website will provide access to a demonstration
        of the FIIC application and underwriting process and a detailed description
        of
        the Investor Protection policy. FIIC also plans to offer monthly informational
        features on this website, including updated financial news, announcements
        of
        periodic updates of FIIC&#8217;s product or service offerings and links to and
        information on FIIC&#8217;s strategic partners who can provide support services to
        businesses or their investors. By tracking the visits and inquiries made
        via
        this website, FIIC also intends to collect data from investors and businesses
        that it hopes will further facilitate its understanding of the investment
        community&#8217;s current and potential needs.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Direct
        Sales</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        may also take on commissioned insurance sales agents who have producer insurance
        licenses and experience in dealing with the insurance needs of business clients.
        Although approached by a sales agent, the application and underwriting process
        for such sales will still rely on use on FIIC&#8217;s centralized on-line
        process.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Press
        Releases</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        intends to use press releases to generate website traffic and inquiries
        regarding the Investor Protection policies. Press releases will be issued
        as the
        company reaches certain milestones, enters agreements with new strategic
        partners and roles out new reference information and useful links on its
        websites.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Application
        and Underwriting Process</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Application
        Process</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        application will be readily available for review and completion on its website.
        The application for the Investor Protection policy will provide basic data
        about
        the applicant business, information concerning the adequacy of the business
        venture&#8217;s planning and funding to date, and will require representations of both
        management and the investors or other funding source regarding the anticipated
        financing structure. </font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">When
        the applicant finishes the on-line application, including a Due Diligence
        Questionnaire about the business and its industry, the website will also
        request
        submission of a Business Plan, Management Plan, Marketing Plan and Capital
        Plan
        including Pro Forma Financials, either electronically or in hard copy. Any
        other
        related documents regarding the investment or other funding relationship,
        including all material contracts, agreements, organizational documents, and
        related materials of the entity to be insured, must also be filed with FIIC
        as
        exhibits to the policy application.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Upon
        submission of the application and acceptance of a nominal application fee
        payment, FIIC anticipates that the website technology will be programmed
        to
        automatically pull appropriate credit bureau reports and Dun &amp; Bradstreet
        information on the business and its primary owner/operator. Further, FIIC
        anticipates that the website will trigger the licensed software from FIIC
        LLC to
        access the database of business failure data, generate several statistics
        based
        on the appropriate SIC code, including the failure rate of the applicant&#8217;s
        industry currently and the failure rate of the businesses within the specific
        SIC code currently and over time (up to 10 previous years). The licensed
        programming should then report out this data via e-mail to the FGA
        administration screen and by e-mail to the applicant. Subsequently, the licensed
        technology shall reduce all input and generated data points on the applicant
        company into four areas (basically covering business, management, marketing,
        and
        capital planning), which will be used by the underwriting committee to rate
        the
        business and approve or disapprove of issuing the policy.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Underwriting</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">After
        receipt of all requested documents a screener will review the completed
        application and determine if anything is missing or too weak to be reviewed
        further. If such information is necessary, the screener will contact the
        applicant by e-mail with any follow-on requests. If the application is adequate,
        FIIC intends to have the screener electronically send the various parts of
        the
        application to the appropriate individual underwriters. The four areas of
        gathered information (Business, Management, Marketing and Capital Plans)
        will be
        reviewed by in-house underwriters in each respective area of expertise. The
        underwriter(s) will then complete an underwriting criteria document and score
        the applicant. After all the underwriting scores are posted, the underwriters
        will use the Scoring, matching against mortality data and business judgment
        to
        set a final premium, with sign-off by the Underwriting Committee. However,
        if
        the Underwriting Committee determines the risks are too high, the applicant
        will
        be turned down at this point. Rejected applicants will receive an e-mail
        communication describing the underwriting evaluation summary with all pertinent
        information and explain why a rejection occurred. FGA will also make
        recommendations to the business to take appropriate steps to re-apply for
        future
        qualification.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">If
        the application is approved, FIIC will send an e-mail report to the applicant
        and the website&#8217;s status board will be updated to show the approval. The
        applicant may then request a draft policy be provided for its use in
        communicating the nature and benefits of the policy to the potential investors.
        In order to qualify as a beneficiary under the policy, the investor(s) must
        enter the website and fill out an investor application, which will then be
        linked to the application of the business. From this application, FGA will
        determine if an investor(s) is or is not an accredited investor. FIIC may
        provide non-accredited investors as beneficiaries under an Investor Protection
        policy with coverage for up to $10,000 in one business, and intends to provide
        accredited investors coverage for up to $50,000 per business. If an investor
        wants to invest more he or she will have the opportunity to appeal to the
        Underwriting Committee via the website.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        intends to audit the underwriting system regularly to ensure continued and
        consistent compliance with its standards. The computer system licensed from
        FIIC
        LLC self-audits to flag questionable data as part of the underwriting
        process.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Policy
        Issuance, Closing and Follow-Up</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Upon
        satisfactory completion of both the business application and all investor
        applications, the investment is approved for a closing under the Investor
        Protection policy. Just prior to closing, FGA will electronically issue to
        the
        business the unsigned policies and subscription agreement to purchase its
        stock
        in FIIC RRG. FIIC will require that a licensed FGA representative be present
        at
        the closing of the investment transaction and that FGA receives the first
        year
        premium on the Investor Protection policy and the first year Subscription
        Fee
        from the business prior to the closing. FGA should also receive at this time
        final copies of all pertinent investor/business contracts. Upon closing of
        the
        investment and the policy issuance, the business applicant shall become an
        insured party and a shareholder-owner in FIIC RRG, while their investors
        become
        the beneficiaries of the policy.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">After
        closing of the policy and funding of the investment, the ongoing review and
        field audit team activity will begin at the end of each quarter. The field
        audit
        team review of quarterly financial results will be used to set up a due
        diligence profile. Any critical questions are reviewed with insured business,
        including a customer visit by an agent or representative to discuss any
        potential problem areas, and this information will be given to the FGA field
        audit team for their review and action. If there are any significant concerns,
        the field audit team will contact the client and offer to consult in those
        areas
        where there are problems. This consulting is at no cost to the client, and
        will
        be covered as part of the paid insurance premium. Depending on the nature
        and
        complexity of the problem, the field audit team might recommend that a third
        party consultant be engaged on a fee basis to correct the problem. Targets
        will
        be set to remove any deficiencies, and if necessary, FIIC will assist the
        company in evaluating a potential recapitalization or bankruptcy.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Prior
        to the end of the fourth quarter after closing, the field audit team will
        prepare a recommendation to the Underwriting Committee incorporating
        recommendations from the independent agent or consultant(s). This recommendation
        will include a suggested renewal premium if the recommendation is to renew.
        If
        the recommendation is not to renew, the Underwriting Committee shall write
        the
        client with its decision, including a statement of the deficiencies that
        were
        found and the corrective actions recommended. It will also recommend that
        a
        consultant assist the client to remove those deficiencies if
        appropriate.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">If
        approved for renewal by the Underwriting Committee, then FIIC will notify
        the
        business in writing. If the premium is lowered at renewal, the committee
        will
        explain its views to the client on improvements made during the year. If
        the
        premium is raised for the next year, any deficiencies contributing to the
        increase in premium will be noted. The renewal approval letter will also
        explain
        the renewal process to the client and the client will be asked to comment
        on its
        experience.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Claims</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        projects that claims on Investor Protection policies will be incurred at
        the
        rate of two percent (2%) of the total number of businesses insured (2% of
        policyholders). FIIC anticipates all claims will be settled on a quota-share
        basis with the reinsurers, split according to the quota share at time of
        premium
        recognition. In a quota share arrangement, the reinsurer accepts a stated
        percentage of each and every risk within a defined category of policies on
        a pro
        rata basis at a fixed and certain level of participation. FIIC intends to
        set
        conservative reserve levels in an effort to assure its ability to pay all
        claims. FIIC intends to maintain reserves of at least 15% of the collected
        premiums, to be adjusted regularly based on actual claims experience. The
        premium to surplus ratio will not exceed 2:1 unless approved by the appropriate
        regulatory agency.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Competition</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        offering of investor protection insurance products is relatively new. Although
        conventional products are currently offered, including on-line, FIIC is not
        aware of any similar business insurance product to the Investor Protection
        policy. Although various credit unions may insure their members&#8217; use of
        proceeds, credit union insurance covers only one SIC code. FIIC&#8217;s product will
        be insuring multiple SIC codes. Other instruments such as surety bonds and
        letters of credit are useful instruments yet hardly any business averaging
        a
        $250,000 investment level, FIIC&#8217;s target investment level, qualifies for these
        instruments. FIIC is aware of two offerings that packaged more common and
        basic
        financial instruments to provide some investor comfort, but these differed
        substantially in that they did not insure 100% of the investors&#8217; principal,
        their claims conditions were very complicated, and the costs did not cover
        the
        provision of additional resources, oversight and referral to appropriate
        consultants, as is included in the premium for the FIIC Investor Protection
        policy.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        believes that it will enjoy an initial market advantage until other insurance
        companies redirect resources and management to seek to become competitive
        with
        FIIC. However, FIIC believes the established relationships of its principals
        with various data compilation sources and industry consultants, including
        Dun
&amp; Bradstreet, a variety of institutions and many of the consultants or other
        service providers that will become its strategic partners, will allow IIC
        to
        maintain a competitive advantage. Also, based on the time and effort invested
        in
        the development of the FIIC Database Content and Technology, including the
        FIIC
        Underwriting Data and Standards, FIIC believes its exclusive license to use
        the
        this content and technology will provide it a strong foundation to compete,
        as
        other will not have immediate access to the long-term data compiled and
        organized specifically to support this type of insurance operation.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Other
        Products and Services</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        anticipates that it will primarily generate revenues from insurance premiums,
        but also anticipates generating revenues through sublicensing fees, agreements
        with strategic partners and sponsorships. FIIC also anticipates opening a
        second
        market product version of the FIIC system for use by banks and lenders as
        FIIC
        gains experience and market presence, and becomes a rated insurance
        company.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Planned
        Growth</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Although
        FIIC intends to be ready and able to fully execute its business plan on its
        own
        upon the completed formation of its insurance subsidiaries, FIIC also intends
        to
        seek candidates from the insurance industry for potential mergers or acquisition
        in an effort to further accelerate growth, strengthen reserves and surplus,
        and
        conserve capital by potentially leveraging access to existing operations,
        distribution and state licensing.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Government
        Regulation</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">It
        is a state and federal law requirement that any company selling any insurance
        product must become licensed to do so. As a holding company, FIIC does not
        require direct licensing or certification, but its two of its three planned
        subsidiaries will require such regulatory approval. FGA must have at least
        one
        officer licensed to sell Property &amp; Casualty (&#8220;P&amp;C&#8221;) insurance; FIIC&#8217;s
        Vice President of Marketing, Sales and Distribution, Robert V.R. Ostrander,
        has
        obtained such licensing. In addition, James W. France just needs to pass
        the
        P&amp;C insurance exam to become licensed. FIIC RRG will require certification
        from the D.C. DISR, as will FIC. Prerequisites receiving the required
        certifications include submission of a Plan of Operation, an actuarial
        Feasibility Study, and funding of a working capital reserve; FIIC has yet
        to
        complete these latter two steps towards certification for FIIC RRG and FIC.
        Prior to marketing in a state, FIIC must submit an application including
        its
        Feasibility Study, often with small fee, to each such state under the RRG
        Act.
        However, by law, each state must accept FIIC&#8217;s application and approve its sales
        activities in the state upon submission of the application. FIIC RRG and
        FIC
        will both require annual insurance audits to be submitted to the D.C. DISR
        as
        well. If FIIC RRG or FIC fails to maintain an adequate working capital reserve
        or maintain compliance with other aspects of the D.C. Captive Insurance Company
        Act of 2004, the or the RRG Act, the subsidiaries and/or FIIC may be subject
        to
        fines or penalties as severe as losing its certifications to conduct
        business.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Employees</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Prior
        to February 7, 2006, FIIC had not entered any employment or other long-term
        compensation agreements with its executive officers or other key personnel.
        However, it has named executive officers, directors and key personnel, many
        of
        whom have provided services during the period of initial organization, the
        negotiation and consummation of the Merger and the launch of FIIC&#8217;s plan of
        operation. For additional detail on the Registrant&#8217;s new executive officers,
        directors and key personnel, see &#8220;Executive Officers, Directors and Key
        Employees&#8221; under Item 5.01 below.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Facilities</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        executive offices are located in Columbus, Ohio, in space leased from a related
        party. For additional detail, see &#8220;Related Party Transactions&#8221; under Item 5.01
        below. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Legal
        Proceedings</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        is not a party to any material legal proceedings.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>RISK
        FACTORS</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Any
        investment in the Company&#8217;s common stock involves a high degree of risk.
        Investors should carefully consider the risks described below and all of
        the
        information contained in this Current Report on Form 8-K before deciding
        whether
        to purchase the Company&#8217;s common stock. The Company&#8217;s business, financial
        condition or results of operations could be materially adversely affected
        by
        these risks if any of them actually occur. The trading price of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #0000ff; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">the
        Company&#8217;s common stock could decline due to any of these risks, and an investor
        may lose all or part of his investment. Some of these factors have affected
        the
        Company&#8217;s financial condition and operating results in the past or are currently
        affecting the Company. This Current Report on Form 8-K also contains
        forward-looking statements that involve risks and uncertainties. The Company&#8217;s
        actual results could differ materially from those anticipated in these
        forward-looking statements as a result of certain factors, including the
        risks
        faced by the Company described below and elsewhere in this Current Report
        on
        Form 8-K. With respect to this discussion, the terms &#8220;FIIC,&#8221; and the &#8220;Company&#8221;
refer to FIIC Holdings, Inc. and its wholly-owned subsidiary FIIC,
        Inc.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Risks
        Related to FIIC Holdings, Inc.&#8217;s Operations</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        has no operating history, expects to initially incur losses and cannot assure
        you that it will achieve profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        has not yet launched its operations and thus has not generated any revenues
        from
        sales of Investor Protection or other insurance policies, or sublicenses
        of the
        FIIC Database Content and Technology. FIIC has incurred significant expense
        to
        obtain an exclusive, perpetual license and hosting and support agreement
        allowing use and providing for maintenance of the FIIC Database Content and
        Technology, including the FIIC Underwriting Data and Standards. FIIC continues
        to incur substantial costs to establish its insurance subsidiaries and to
        gain
        all necessary governmental licenses and certifications to conduct FIIC&#8217;s
        insurance business. FIIC expects that its expenses will continue to increase
        as
        it launches its insurance products and services, due to increased marketing
        expenses as FIIC seeks to develop customer relationships and maintain existing
        relationships with its business and technology resources. FIIC also anticipates
        that it will incur costs to establish and/or improve its financial and
        disclosure controls, expand and train its workforce and to maintain regulatory
        compliance as FIIC&#8217;s insurance underwriting grows.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        of December 31, 2005, FIIC had an accumulated deficit of approximately
        $1,006,050. FIIC expects to continue to incur losses over at least the next
        year, and the amount of future losses is uncertain. FIIC&#8217;s ability to generate
        revenue and become profitable will depend on obtaining and maintaining
        regulatory approvals in the U.S., achieving market acceptance for its Investor
        Protection policies and related services and successfully executing its business
        plan. Sales of the Investor Protection policies cannot begin until FIIC receives
        all necessary regulatory approvals. If FIIC fails to generate significant
        revenues from commercial sales, fails to obtain necessary regulatory approvals,
        or if revenues fail to grow at a pace rapid enough to offset anticipated
        increases in expenses, FIIC may never achieve profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        initial success depends entirely on its Investor Protection policies, which
        are
        a new, unproven insurance product, utilizing underwriting data and standards
        which have not previously been used in the commercial insurance market and
        which
        may not be or become commercially viable.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        business will initially depend entirely on a new insurance product for which
        there is no established market. FIIC intends to use the licensed FIIC Database
        Content and Technology to underwrite policies insuring the capital of investors
        against the risk of loss associated with certain business failures. However,
        the
        Investor Protection Policy remains in development and FIIC must clear certain
        regulatory and financing hurdles before actively selling this product. Further,
        FIIC cannot assure you it can or will develop a consistent method of application
        of the FIIC Underwriting Data and Standards for the issuance of Investor
        Protection policies that will sufficiently minimize risk of loss to FIIC,
        such
        that FIIC may achieve profitability. Developing the FIIC Underwriting Data
        and
        Standards has required extensive and sophisticated statistical gathering
        and
        analysis by FIIC Research and Development LLC (&#8220;FIIC LLC&#8221;), an affiliate of
        FIIC. FIIC LLC cannot assure FIIC or you that the underwriting standards
        are or
        can be made acceptable for FIIC&#8217;s intended use or that all of the relevant
        information necessary to maintain the standards will remain indefinitely
        available. Further, FIIC cannot assure you that the Investor Protection policies
        will be accepted commercially or that they can be priced effectively. FIIC
        has
        not yet sold any insurance policies and it cannot assure you that its
        underwriting efforts will be successful. Because the Investor Protection
        policy
        will initially be FIIC&#8217;s sole product focus, an inability to accurately
        underwrite the policies would materially affect FIIC&#8217;s ability to generate
        significant revenue and could likely prevent FIIC from achieving
        profitability.</font></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">
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          </div>
        </div>
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>If
        FIIC&#8217;s Investor Protection policy is not accepted by the financial community,
        FIIC may not be able to generate significant revenues or achieve
        profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        commercial success of FIIC&#8217;s Investor Protection policy depends on its
        acceptance by new and emerging businesses and investors in such businesses.
        Such
        acceptance will depend on businesses&#8217; perception of the FIIC policies as a
        cost-effective mechanism for encouraging investment and on investors&#8217; perception
        of FIIC and its policies as reliable. FIIC cannot assure you that the Investor
        Protection policy will provide benefits considered adequate by all investors
        or
        businesses, or that investors and businesses will purchase a sufficient number
        of FIIC Investor Protection policies for FIIC and its new insurance product
        to
        achieve commercial success. Even if FIIC establishes the reliability, efficiency
        and cost benefits of its Investor Protection policy, investors and businesses
        may elect not to purchase the policy for a number of other reasons,
        including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">lack
                  of experience with and understanding of this type of investment-related
                  insurance;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  additional cost of obtaining an Investor Protection
                  policy;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">a
                  determination that its limited capital would be more beneficially
                  applied
                  to other purposes;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">a
                  decision to purchase a different product from those available on
                  the
                  market serving a similar function;
                  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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">any
                  adverse publicity regarding investment-related insurance and other
                  risk-hedging financial products.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">If
        FIIC is unable to establish its Investor Protection policy as a commercially
        viable product, it will have to rely on its sublicensing efforts to generate
        sufficient revenues as it seeks to develop and commercialize other products
        and
        services.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        may be unable to compete successfully with its competitors, resulting in
        a lack
        of adequate revenues and inability to obtain
        profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        will face competition from other insurance companies and other financial
        product
        companies. Most of FIIC&#8217;s potential competitors have greater financial
        resources. Some of these competitors already have products currently available
        designed to decrease or hedge some forms of investment risk, and these and
        other
        companies may be developing additional products that would compete with FIIC&#8217;s
        Investor Protection policies.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        ability to compete successfully in the insurance and financial product markets
        is based on numerous factors, including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  reliability and consistency of its policies, including the speed
                  and
                  consistency of FIIC&#8217;s payment of claims presented under the initial
                  Investor Protection policies, relative to competing
                  products;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  relative speed with which FIIC is able to educate business and
                  investors
                  in its target markets about its Investor Protection policies and
                  create a
                  market for the product;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">potential
                  customers&#8217; comfort level with a primarily internet-based insurance
                  company, including the processing of most transactional steps over
                  the
                  internet; 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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  cost-effectiveness of the Investor Protection
                  policy.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        addition, FIIC will compete for clients on the basis of reputation of its
        management, client service, program and product offerings, and the ability
        to
        tailor its products and services to the specific needs of each client. If
        FIIC
        is unable to distinguish its Investor Protection policies from competing
        products, or if competing products reach the market first, FIIC may be unable
        to
        successfully establish a client base sufficient to achieve
        profitability.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        may be unable to scale its operations successfully, resulting in a strain
        on
        management and increased expenses without an equal, if any, increase in
        revenues, negatively impacting FIIC&#8217;s results of operations and prospects for
        achieving profitability and stable leadership.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">If
        successful in growing its insurance operations rapidly, FIIC&#8217;s growth will place
        significant demands on FIIC&#8217;s management, underwriting staff and marketing
        staff, as well as its financial resources. FIIC cannot guarantee that any
        of the
        systems, procedures and controls it puts in place will be adequate to support
        the intended rapid commercialization of its Investor Protection policy. FIIC&#8217;s
        operating results will depend substantially on the ability of its officers
        and
        key employees to manage changing business conditions, to implement and modify
        its underwriting and sales programs and to maintain sufficient financial,
        administrative and other resources. If FIIC is unable to adapt its services
        and
        operations to respond quickly, efficiently and in a cost-sensitive manner
        to
        changing business conditions, then the quality of its products and services
        and
        its ability to retain key personnel could be harmed, adversely impacting
        FIIC&#8217;s
        ability to achieve profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Any
        change in FIIC&#8217;s relationship with the exclusive licensor of the FIIC Database
        Content and Technology, which FIIC will use to sell and underwrite its policies,
        could prevent FIIC from accurately assessing potential insureds&#8217; risk profiles
        when issuing policies and from writing policies in a timely manner, thereby
        reducing its future revenues or increasing its costs.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        relies on a Database Access Content License, Hosting and Support Agreement
        with
        FIIC LLC to access the FIIC Underwriting Data and Standards used to underwrite
        its Investor Protection policies. Under this agreement, FIIC has exclusive,
        perpetual, worldwide rights to access the FIIC Database Content and Technology
        via FIIC LLC&#8217;s proprietary technology and to use it to underwrite and sell
        Investor Protection policies. However, these exclusive rights may be terminate
        or may be terminated if FIIC breaches the terms of the license agreements
        and
        fails to cure the breach.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        reliance on this license subjects it to various risks that could harm its
        business, including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">reliance
                  on FIIC LLC to maintain the FIIC Database Content and Technology
                  and
                  provide adequate support services if and when FIIC encounters a
                  problem;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">reliance
                  on FIIC LLC to ensure the security of the FIIC Database Content
                  and
                  Technology Data and Standards from FIIC&#8217;s
                  competitors;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  possibility that FIIC LLC may not be able to obtain adequate information
                  from its third-party sources in a timely manner or on commercially
                  reasonable terms; 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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">that
                  FIIC may have difficulty locating an alternative set of applicable
                  underwriting data and standards and similar user interface, if
                  available
                  at all, should FIIC LLC breach the terms of the license agreement
                  or
                  become unable to fulfill its
                  obligations.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">Disruption
        or termination of FIIC&#8217;s agreement with FIIC LLC could delay or suspend FIIC&#8217;s
        overall efforts to create a market for its Investor Protection policies.
        The
        loss of the license or FIIC LLC&#8217;s failure to maintain the licensed technology
        and data could require FIIC to cease providing products or services using
        such
        licensed technology, which would likely result in a significant loss of revenue
        for its business.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Claims
        of conflicts of interest may arise because certain of FIIC&#8217;s LLC&#8217;s members and
        key personnel are also directors, officers or employees of
        FIIC.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Certain
        persons in leadership positions with FIIC, including all of FIIC&#8217;s executive
        officers, have a continuing relationship with FIIC LLC. It is generally
        desirable to the members of FIIC LLC to retain such individuals in their
        current
        capacities with FIIC LLC because of their knowledge of, and experience with,
        FIIC LLC&#8217;s business and its operations, including maintenance of the FIIC
        Database Content and Technology. However, the individuals are also vital
        to the
        initial operational success of FIIC due to their familiarity with the planned
        Investor Protection policy, insurance operations and the intended use of
        the
        licensed FIIC Database Content and Technology. These instances of affiliation
        with both FIIC and FIIC LLC could create, or appear to create, conflicts
        of
        interest when such individuals are faced with decisions that may have different
        implications for FIIC and FIIC LLC. If a stockholder feels that one or more
        of
        these individuals failed to act in FIIC&#8217;s best interest, FIIC could be subject
        to shareholder litigation, resulting in additional expenses and potential
        disruption of its key personnel.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        is dependent on information suppliers, including FIIC LLC&#8217;s third-party
        information suppliers, and if it is unable to successfully manage these
        relationships the quality and availability of FIIC&#8217;s insurance products and
        services may be harmed.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Some
        of the data used in underwriting its Investor Protection policies comes from
        various third party suppliers and government entities. If these suppliers
        are no
        longer able or are unwilling to provide FIIC with certain data, or to provide
        it
        at commercially reasonable rates, it may need to find alternative sources,
        which
        may not be readily available. If FIIC is unable to identify, and to the extent
        necessary contract with, suitable alternative data suppliers and integrate
        these
        data sources into its offerings, it could experience disruptions in its
        underwriting process, resulting in potential delays in sales, increased costs
        and reduced quality. In addition, the loss of such access or reduced
        availability of data in the future due to increased governmental regulation
        could have a material adverse effect on FIIC&#8217;s business, financial condition or
        results of operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        ability to protect the intellectual property rights underlying its
        revenue-generating activities involves many complexities and uncertainties,
        including the impact of potential claims that the technology upon which FIIC
        relies infringes on the rights of others.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        business depends significantly on its license of the proprietary FIIC Database
        Content and Technology from FIIC LLC. FIIC LLC relies on a combination of
        common
        law copyrights, confidentiality agreements and other contractual provisions
        to
        establish, maintain and protect its proprietary rights, all of which afford
        only
        limited protection. FIIC&#8217;s success will depend to a significant extent on the
        ability of FIIC LLC to obtain and maintain trademark and copyright protection
        for the FIIC Underwriting Data and Standards and related access and correlation
        technologies, to preserve its trade secrets and to operate without infringing
        the proprietary rights of others. To date, FIIC LLC has not filed for statutory
        trademark or copyright protection for its intellectual property and has not
        committed to do so. FIIC and FIIC LLC cannot assure you that FIIC LLC&#8217;s existing
        common law trademarks or copyrights will provide substantial protection against
        competitors with similar technology or be of commercial benefit to FIIC,
        that
        trademark and/or copyright protection is in fact available for its intellectual
        property, or that such protections, if available, will be effective to provide
        or provide remedies for infringement. FIIC LLC cannot assure FIIC or you
        that
        others will not independently develop substantially equivalent proprietary
        information and techniques, or otherwise gain access to its trade secrets
        or
        disclose such technology. FIIC&#8217;s success will also depend to a significant
        extent on its ability to aid FIIC LLC in preserving such proprietary rights,
        particularly by limiting sublicensed use of the FIIC Database Content and
        Technology pursuant to the agreed limitations of the license between the
        parties
        and not disclosing FIIC LLC&#8217;s confidential sources of third party information.
        FIIC also relies on trade secrets and cannot assure you it can meaningfully
        protect its right to such trade secrets.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        businesses reliant on proprietary information and technology, FIIC and FIIC
        LLC
        may also be subject to intellectual property litigation by third parties
        claiming FIIC&#8217;s products or the underlying processes infringe on their
        proprietary rights. If FIIC LLC&#8217;s proprietary rights and FIIC&#8217;s rights to use
        such information and technology pursuant to the license are challenged by
        litigation and, if the outcome of such litigation were adverse to FIIC LLC
        and/or FIIC, competitors might be free to use the information and technology
        subject to the challenge, or FIIC LLC may be required to license the information
        and technology to others in settlement of such litigation. In addition to
        any
        potential liability for damages, FIIC could be required to obtain an alternate
        or additional license in order to continue to sell or use the affected product
        or process. The invalidation of such proprietary protections could create
        increased competition, with potentially material adverse effects on FIIC
        and its
        business.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Litigation
        also may be necessary to assist FIIC LLC in enforcing its proprietary rights
        and/or to determine the scope and validity of the proprietary rights of others,
        with similar potentially disruptive and adverse effects on FIIC. Legal standards
        relating to the validity, enforceability and scope of protection of both
        common
        law and statutory proprietary rights are continuously evolving, especially
        in
        relation to software and internet technologies. Even if ultimately resolved
        in
        favor of FIIC and FIIC LLC, any intellectual property litigation would be
        costly
        and could divert the efforts and attention of FIIC&#8217;s management and technical
        personnel, which could have a material adverse effect on its business, financial
        condition and results of operations. FIIC cannot assure you that infringement
        claims will not be asserted in the future or that such assertions, if proven
        to
        be true, will not prevent FIIC from selling its products, materially and
        adversely affecting its business, financial condition and results of operations.
        If any such claims are asserted against it, FIIC may seek to enter into royalty
        or licensing arrangements. FIIC cannot assure you that a license with such
        parties will be available on commercially reasonable terms, or at
        all.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        may be subject to claims of trademark infringement, which may harm its ability
        to generate awareness of its products and achieve
        profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        has recently become aware that other parties are utilizing &#8220;FIIC&#8221; as an
        identifying mark, or other marks that incorporate the letters &#8220;FIIC.&#8221; Although
        FIIC is not aware of any such party operating in the insurance industry,
        FIIC
        may be subject to legal proceedings alleging claims of trademark infringement
        in
        the future and those parties may have rights to such marks that are superior
        to
        those of FIIC. In this event, FIIC may be required to stop using the name
        in
        particular markets or to obtain a license from these parties to use it in
        such
        markets. If FIIC must rebrand, it may result in significant marketing expenses
        and additional management time and resources, which may adversely affect
        its
        business.</font></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">
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
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      </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        business model is heavily dependent on information processing systems that
        may
        fail or become obsolete.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        underwriting process relies on proprietary technology to gather, analyze
        and
        apply data related to the success and failure of new and growing businesses
        across the country. FIIC&#8217;s ability to successfully operate its insurance
        business depends on its ability to obtain such information and its capacity
        to
        store, retrieve, process, update and manage significant databases and expand
        and
        upgrade periodically our information processing capabilities. The underlying
        technology likely will change and may become obsolete as new technologies
        develop. FIIC&#8217;s future success will depend upon its ability to remain current
        with the rapid changes in the technologies used in its business, to learn
        quickly to use new technologies as they emerge and to develop new
        technology-based solutions as appropriate. If FIIC is unable to do this,
        it
        could be at a competitive disadvantage. FIIC&#8217;s competitors may gain exclusive
        access to improved technology, which also could put FIIC at a competitive
        disadvantage. If FIIC cannot adapt to these changes, its business, financial
        condition or results of operations may be materially adversely affected.
        Likewise, the information underlying the FIIC Underwriting Data and Standards
        can and will become obsolete if not updated on a consistent and timely basis.
        If
        FIIC LLC fails to adequately maintain the FIIC Database Content and Technology,
        FIIC&#8217;s underwriting process will become increasingly less accurate and FIIC may
        face an increase in the number of claims presented. Further, interruption
        or
        loss of FIIC&#8217;s information processing capabilities through loss of stored data,
        breakdown or malfunctioning of computer equipment and software systems,
        telecommunications failure, or damage caused by fire, tornadoes, lightning,
        electrical power outage or other natural or man-made disruption could have
        a
        material adverse effect on our business, financial condition and results
        of
        operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        faces significant security risks related to its electronic transmission of
        confidential information, which could result in inadvertent disclosure of
        confidential information of FIIC and/or its customers, which could harm FIIC&#8217;s
        competitive advantage, its ability to generate future revenues, and its ability
        to obtain or maintain profitability.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        will rely on encryption and other technologies to provide system security
        to
        effect secure transmission of confidential or personal information in its
        internet-based underwriting system. FIIC currently licenses these technologies
        from FIIC LLC and may obtain similar licenses from other third parties. There
        is
        no assurance that FIIC&#8217;s use of applications designed for data security, or that
        of third-party contractors will effectively manage evolving security risks.
        A
        security or privacy breach could:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">expose
                  FIIC to liability;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">increase
                  FIIC&#8217;s expenses relating to resolution of these
                  breaches;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">deter
                  customers from using FIIC&#8217;s web-based policy application and other aspects
                  of its web-based customer interface;
                  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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">deter
                  information suppliers from doing business with
                  FIIC.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">Any
        inability to protect the security and privacy of FIIC&#8217;s electronic transactions
        could have a material adverse effect on its business, financial condition
        or
        results of operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        Investor Protection policies will likely have variable sales, reflecting
        increases and decreases in overall new or emerging business financing, which
        may
        cause FIIC&#8217;s revenue and operating results to fluctuate significantly from
        quarter-to-quarter.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        expects that its Investor Protection policies may initially have a lengthy
        and
        potentially sporadic sales cycle. FIIC may incur substantial sales and marketing
        expenses and expend substantial effort without making significant sales as
        it
        educates businesses and potential investors about the benefits of its Investor
        Protection policies. Sales of Investor Protection policies may not grow
        significantly until FIIC proves to the market that it will consistently pay
        out
        claims in a time-efficient, cost-effective and business and investor-friendly
        manner. FIIC anticipates that the time from the sale and issuance of its
        initial
        Investor Protection policy to the presentment and processing of an initial
        claim
        under such a policy may be 18 months to 2 years, based on an assessment of
        historical transaction data regarding the success rate of new and emerging
        businesses. The market for investment insurance is dependent upon, among
        other
        things, the volume of financing transactions that satisfy FIIC&#8217;s eligibility
        criteria, which is usually influenced by factors such as interest rates and
        the
        state of the overall economy. Further, even after making a decision to purchase
        an Investor Protection policy for the benefit of its investors, some businesses
        may choose not to renew their policies or subsequently buy policies for
        additional rounds of financing based on the business&#8217; internal performance
        outlook expectations. Thus, the market of potential purchasers of the Investor
        Protection policies will likely grow and shrink according to the numerous
        factors which impact the financial climate for and likely success of new
        businesses as well as the actual performance of FIIC&#8217;s Investor Protection
        policies. As a result, FIIC&#8217;s revenue and operating results may vary
        significantly from quarter to quarter, which increases the risk of an operating
        loss for FIIC for any given quarter.</font></div>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </div>
        </div>
        <div id="HDR">
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          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Any
        geographic or industry concentration of businesses holding FIIC Investor
        Protection policies could leave FIIC vulnerable to an economic downturn or
        regulatory changes in those areas, resulting in a decrease in its
        revenues.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        plans to offer its Investor Protection policies to new and growing businesses
        nationwide. However, it will take a number of years for FIIC to develop a
        portfolio of policies that is fully diversified across geographic regions
        and
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">industries.
        FIIC will initially market its policies to businesses concentrated in a small
        number of states, and thus the occurrence of adverse economic conditions
        or an
        adverse regulatory climate in such states could significantly increase the
        number of claims presented to FIIC and could negatively affect FIIC&#8217;s financial
        results more than would be the case if its business were more geographically
        diversified. Similarly, if FIIC&#8217;s initial policies protect investors in
        businesses concentrated in a small number of industries, any change in the
        regulation of or business climate in such industries and resulting increases
        in
        associated costs and/or competition within such industries could significantly
        increase the number of claims presented to FIIC and could negatively affect
        FIIC&#8217;s financial results more than would be the case if its policies were issued
        to businesses across more diverse industries.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        depends on certain key executive personnel for its success, the loss of whom
        could adversely affect its business, financial condition and results of
        operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        success depends on the continued availability and contributions of members
        of
        its senior management teams and other key personnel. James W. France, FIIC&#8217;s
        President, Chief Executive Officer and a director, first developed the concept
        for the Investor Protection policy, has been intimately involved in developing
        the insurance structure of FIIC and the Database Content and Technology of
        FIIC
        LLC, including the development of the FIIC Underwriting Data and Standards,
        and
        has attracted the capital required necessary to launch FIIC&#8217;s commercial
        efforts. As such, FIIC&#8217;s success depends in large measure on the continued
        service of Mr. France in those positions. The loss of the services of Mr.
        France
        or any of a number of other executive officers and senior managers could
        delay
        or reduce FIIC&#8217;s product and service development and commercialization efforts.
</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Furthermore,
        recruiting and retaining qualified personnel to educate the marketplace about
        the availability and benefits of Investor Protection policies will be critical
        to FIIC&#8217;s success. The loss of members of FIIC&#8217;s management team or its
        inability to attract or retain other qualified personnel or advisors, could
        significant weaken FIIC&#8217;s management team, harm its ability to compete
        effectively and harm its long-term business prospects. If key managers were
        to
        end their employment with FIIC, it could disrupt FIIC&#8217;s initial client
        relationships and have a corresponding negative effect on financial results,
        marketing and other objectives and impair FIIC&#8217;s ability to implement its rapid
        growth strategy.&#160;Most of FIIC's&#160;executive officers&#160;and other
        planned key personnel are subject only to consulting arrangements and not
        formal
        long-term employment agreements. Although FIIC does intend to execute employment
        agreements containing confidentiality and non-compete provisions with these
        individuals prior to underwriting any policies, some courts may not enforce
        such
        an agreement against an employee. Although FIIC has adopted the FIIC 2005
        Plan,
        since FIIC is likely a &#8220;shell company&#8221; as defined by Rule 405 promulgated under
        the Securities Act , it is ineligible to register the plan using Form S-8.
        Given
        FIIC&#8217;s limited financial resources and need to focus on the launch of its
        operations, FIIC is unlikely to register the FIIC 2005 Plan via other available
        methods and thus unlikely to issue shares to its current or potential employees
        under the FIIC 2005 Plan until such time as it ceases to be a shell company
        and
        becomes eligible for use of Form S-8. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        management is relatively inexperienced in the insurance industry and thus
        may be
        less able to foresee potential problems with or adverse effects upon FIIC&#8217;s
        business.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">While
        Mr. France and other members of the FIIC management team have spent several
        years developing the concept of the Investor Protection policy, most of the
        management team does not have any experience with insurance company formation
        or
        the day-to-day operation of insurance entities. FIIC&#8217;s executive management has
        undertaken significant efforts to become more educated about insurance company
        formation and management; Robert Ostrander, FIIC&#8217;s Vice President, Secretary and
        a director of FIIC has become a licensed insurance broker. In addition,
        management plans to hire a number of individuals with more significant insurance
        company experience for key management positions, FIIC will initially rely
        substantially on the advice and guidance of its insurance counsel and insurance
        consultants, and on feedback from governmental authorities, such as the
        Washington D.C. Department of Insurance and Securities Regulation and Ohio
        Department of Insurance. Accordingly, FIIC&#8217;s current personnel&#8217;s inexperience in
        developing an insurance company could significantly adversely affect the
        Company&#8217;s ability to achieve its goal.</font></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">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>If
        FIIC fails to maintain effective internal controls over financial reporting,
        it
        may be subject to litigation and/or costly remediation and the price of its
        common stock may be adversely affected.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        of September 30, 2005, Nicklebys reported that, because it has ceased operations
        and had no plans to resume its business, it did not have formal disclosure
        controls and procedures or internal controls over financial reporting (as
        defined in Rule 13a-15(e) or Rule 15d&#8722;15(e) under the Exchange Act). However,
        Nicklebys&#8217; Chief Executive Officer and Chief Financial Officer also determined
        that, given Nicklebys&#8217; limited operations, Nicklebys&#8217; informal controls and
        procedures were adequate and effective to ensure that material information
        relating to Nicklebys was made known to them by others within the company
        and
        provided reasonable assurance regarding the reliability of financial reporting
        and the preparation of financial statements for external purposes in accordance
        with generally accepted accounting principles. As a private company, FIIC,
        Inc.
        did not previously have to report on its disclosure controls and procedures
        or
        its internal controls over financial reporting, and as a developing company
        is
        only in the process of implementing formal procedures intended to satisfy
        the
        requirements of Section 404 and other related provisions of the Sarbanes-Oxley
        Act of 2002. However, beginning with its fiscal year ending December 31,
        2007,
        FIIC will have to fully comply with these requirements.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Failure
        to establish the required controls or procedures, or any failure of those
        controls or procedures once established, could adversely impact FIIC&#8217;s public
        disclosures regarding its business, financial condition or results of
        operations. Upon review of the required internal controls over financial
        reporting and disclosure controls and procedures, FIIC&#8217;s management and/or its
        auditors may identify material weaknesses and/or significant deficiencies
        that
        need to be addressed. Any actual or perceived weaknesses or conditions that
        need
        to be addressed in FIIC&#8217;s internal controls over financial reporting, disclosure
        of management&#8217;s assessment of its internal controls over financial reporting or
        disclosure of FIIC&#8217;s public accounting firm&#8217;s attestation to or report on
        management&#8217;s assessment of FIIC&#8217;s internal controls over financial reporting
        could have an adverse impact on the price of its common stock and may lead
        to
        claims against FIIC.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Compliance
        with changing corporate governance and public disclosure regulation will
        likely
        result in additional expenses and increased liability exposure for FIIC,
        its
        directors and its executive officers.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Rules
        adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act of 2002
        require annual assessment of FIIC&#8217;s internal control over financial reporting,
        and attestation of its assessment by the combined group&#8217;s independent registered
        public accountants. This requirement first will apply to FIIC&#8217;s annual report
        for fiscal 2007, unless FIIC grows swiftly enough to be deemed &#8220;an accelerated
        filer&#8221; prior to that time. The standards for management&#8217;s assessment of the
        internal control over financial reporting as effective are new and complex,
        and
        require significant documentation, testing and possible remediation to meet
        the
        detailed standards. FIIC may encounter problems or delays in completing
        activities necessary to make an assessment of its internal control over
        financial reporting. In addition, FIIC&#8217;s new independent registered public
        accountants may not have significant experience with the attestation process,
        and the combined group may encounter problems or delays in completing the
        implementation of any requested improvements and receiving an attestation
        of its
        assessment by FIIC&#8217;s independent registered public accountants. If the combined
        group cannot assess its internal control over financial reporting as effective,
        or its independent registered public accountants are unable to provide an
        unqualified attestation report on such assessment, investor confidence and
        share
        value may be negatively impacted. Further, many companies have reported that
        compliance with these standards requires a disproportionate expenditure of
        funds.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        addition, the SEC recently announced a significant number of changes to the
        laws, regulations and standards relating to corporate governance and public
        disclosure. Following the Merger, FIIC&#8217;s new management team will need to invest
        significant time and financial resources to comply with both existing and
        evolving standards for public companies, which will lead to increased general
        and administrative expenses and a diversion of management time and attention
        from revenue-generating activities to compliance activities. In addition,
        because public company directors and officers face increased liabilities,
        the
        individuals slated to serve in these positions after the Merger may be less
        willing to remain as directors or executive officers long-term, and FIIC
        may
        experience difficulty in attracting qualified replacement directors and
        officers, or FIIC may need to expend a significantly larger amount than NBYS
        or
        FIIC previously spent on recruiting, compensating and insuring new directors
        and
        officers.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Risks
        Relating to Regulatory Requirements</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        planned insurance subsidiaries all require certain licensing and/or
        certifications from certain government agencies, without which they will
        be
        unable to operate and unable to generate revenues.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        cannot assure you that it will be able to obtain the regulatory approvals
        necessary for the establishment and operation of its planned insurance
        subsidiaries on a timely basis, if at all. Any delays in receipt or failure
        to
        receive such clearances or approvals, the loss or impairment of previously
        received clearances or approvals, or failure to comply with existing or future
        regulatory requirements would have a material adverse effect on FIIC&#8217;s business,
        prospects, financial condition and results of operations. FIIC cannot assure
        you
        that it will be able to maintain compliance with all regulatory requirements
        over time. Changes in existing laws, regulations or policies and the adoption
        of
        new laws, regulations or policies could prevent FIIC from, or could affect
        the
        timing of, achieving compliance with regulatory requirements, including current
        and future regulatory approvals, where necessary.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Failure
        to comply with government regulations applicable to the insurance industry
        could
        restrict FIIC&#8217;s ability to conduct its business.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Government
        authorities regulate insurance entities in the states in which they do business.
        These regulations generally are intended for the protection of policyholders
        rather than stockholders. The nature and extent of these regulations vary
        from
        jurisdiction to jurisdiction, but typically involve:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">approval
                  of premium rates for insurance;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">standards
                  of solvency and minimum amounts of statutory capital surplus that
                  must be
                  maintained;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">limitations
                  on types and amounts of
                  investments;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">establishing
                  reserves, including statutory premium reserves, for losses and
                  loss
                  adjustment expenses;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">regulation
                  of dividend payments and other transactions between
                  affiliates;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">prior
                  approval of the acquisition and control of an insurance company
                  or of any
                  company controlling an insurance
                  company;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">licensing
                  of insurers and agents;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">regulation
                  of reinsurance;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">restrictions
                  on the size of risks that may be insured by a single
                  company;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">regulation
                  of underwriting and marketing
                  practices;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">deposits
                  of securities for the benefit of
                  policyholders;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">approval
                  of policy forms;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">methods
                  of accounting; 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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">filing
                  of annual and other reports with respect to financial condition
                  and other
                  matters.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">These
        regulations may impede or impose burdensome conditions on rate increases
        or
        other actions that FIIC or its insurance subsidiaries might want to take
        to
        implement FIIC&#8217;s business strategy and enhance its operating results. FIIC
        intends to conduct business in a number of states and will be subject to
        the
        costs of applying to do business and comprehensive regulation and supervision
        by
        government agencies in many or all of the states in which it does business.
        FIIC&#8217;s ability to conduct its business in the states in which it currently
        operates depends on its compliance with the rules and regulations established
        by
        the regulatory authorities in each of these states, and those rules and
        regulations may be or become inconsistent. State insurance regulators and
        the
        National Association of Insurance Commissioners continually re-examine existing
        laws and regulations, including those relating to the licensing of insurance
        brokers and agents, premium rates, regulating unfair trade and claims practices,
        and the regulation of the handling and investment of insurance carrier funds
        held in a fiduciary capacity. These examinations may result in the enactment
        of
        insurance-related laws and regulations, or the issuance of interpretations
        of
        existing laws and regulations, that adversely affect FIIC&#8217;s business. More
        restrictive laws, rules or regulations may be adopted in the future that
        could
        make compliance more difficult and/or expensive.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        is subject to substantial government regulation which could have the effect
        of
        delaying or preventing a change of control of its insurance subsidiaries
        or the
        company as a whole.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Many
        state insurance regulatory laws, intended primarily for the protection of
        policyholders, contain provisions that require advance approval by state
        agencies of any change in control of an insurance company or an insurance
        holding company that is domiciled (or, in some cases, doing business) in
        that
        state. Any future transaction that would constitute a change of control of
        any
        or all of FIIC&#8217;s insurance subsidiaries or FIIC as a whole may require
        regulatory approval by the state insurance agencies of at least Ohio and
        Washington, D.C. Such regulatory requirements could have the effect of delaying
        or preventing transactions affecting the control of FIIC or ownership of
        its
        common stock, including transactions that could be advantageous to the combined
        entity&#8217;s stockholders.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Presentment
        of claims in excess of FIIC&#8217;s reserves could adversely affect its business,
        financial condition and results of operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
        to the licensing requirements of the D.C. DISR, as set forth in district
        and
        federal law, FIIC must initially maintain a reserve account of at least $900,000
        and must accept no more than $2.00 of premium for each dollar of capital
        it
        holds in reserve. The careful application of the FIIC Underwriting Data and
        Standards and maintenance of this reserve are intended to minimize the number
        of
        claims presented to the company and the fiscal impact of such claims on FIIC&#8217;s
        revenues and stability. However, FIIC cannot provide any assurance that its
        insureds will not file claims in number or scope in excess of FIIC&#8217;s
        expectations or that such claims in aggregate will not deplete its revenues
        and
        reserves, resulting in a need to desist from underwriting new policies until
        funds are available to bring FIIC back into regulatory compliance. Further,
        if
        FIIC fails to maintain adequate reserves or maintain the premium to reserve
        ratio as required by the D.C. DISR, it could incur a $5,000 fine per violation
        and/or become subject to claims by any or all of the states in which it is
        doing
        business, which could become disruptive to FIIC&#8217;s operations and negatively
        impact its financial condition, public perception of FIIC and its share price.
        If such violations are significant and remain uncured, FIIC&#8217;s insurance
        subsidiaries could ultimately lose their license and be unable to continue
        their
        operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        may be subject to increased regulation regarding the use of personal information
        received from investors.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Use
        of certain data collected from investors may be subject to regulation by
        various
        federal, state and local regulatory authorities. Compliance with existing
        federal, state and local laws and regulations in the United States designed
        to
        protect the public from the misuse of personal information in the marketplace
        and adverse publicity or potential litigation concerning the commercial use
        of
        such information may increasingly affect FIIC&#8217;s operations, including the
        sharing of such information with FIIC LLC pursuant to the license agreement
        for
        maintenance of the FIIC Database Content and Technology, and could result
        in
        substantial expense for regulatory compliance, limitations on access to
        important information, litigation expense and a loss of revenue.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Risks
        Relating to FIIC&#8217;s Capital Structure</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        capital needs are uncertain and FIIC may need to raise additional funds,
        which
        may not be available on favorable terms, if at all, thereby potentially
        disrupting the initial growth of FIIC&#8217;s insurance business and the FIIC&#8217;s
        ability to generate revenue.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        believes that it will have sufficient cash and cash equivalents to meet
        projected operating requirements for approximately the next 12 months. However,
        if FIIC does not complete the Private Placement within 90 to 120 days after
        the
        Merger resulting in $2.5 million gross proceeds as sought, it will need to
        seek
        additional funds from public and private stock offerings, borrowings under
        credit lines or other sources because, pursuant to district and federal
        insurance law, the Washington, D.C. Department of Insurance and Securities
        Regulation (&#8220;D.C. DISR&#8221;), requires a company to maintain one dollar in working
        capital on reserve for every $2.00 of insurance premium to be written prior
        to
        the establishment and licensing of a risk retention group, or RRG. FIIC is
        in
        the process of preparing an application for the establishment and licensing
        of
        an RRG for submission to the D.C. DISR, pending the funding of a required
        actuarial feasibility study and the necessary working capital reserve. FIIC
        anticipates filing of the complete application&#160;during the second quarter of
        2006</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
        If FIIC is unable to fund or successfully complete the required study or
        the
        minimum working capital reserve, then it will be unable to launch its
        operations. Since the funds in the working capital reserve cannot be used
        to
        fund operations, FIIC may also need additional capital to continue to grow
        its
        business in keeping with market demand if early product sales are
        steady.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        amount of additional capital FIIC may need to raise through public or private
        equity or debt financings over the next few years will depend on many factors,
        including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">market
                  acceptance and the growth rate of demand, if any, for FIIC&#8217;s Investor
                  Protection policies;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  lead time required to execute and generate a revenue stream from
                  customer
                  contracts;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">changes
                  in the size of the required working capital reserve or other regulatory
                  requirements;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">availability
                  of opportunities for strategic acquisition of other companies with
                  technology, resources, customers or know-how that will further
                  the growth
                  of the FIIC&#8217;s insurance business;
                  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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  accuracy of FIIC&#8217;s projections regarding its operating costs, including
                  the costs of regulatory compliance, personnel, legal and accounting
                  costs
                  and the cost of funds.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        cannot be certain that additional sources of liquidity will be available
        when
        needed in the future and that its actual cash requirements will not be greater
        than anticipated. If FIIC requires additional capital at a time when investment
        in insurance companies or in the financial services market in general is
        limited
        due to the then prevailing market or other conditions, FIIC may not be able
        to
        raise such funds at the time that it desires or any time thereafter. If FIIC
        is
        unable to obtain this financing on terms favorable to FIIC, it may be unable
        to
        execute its long-term business plan and may be required to scale back further
        development of FIIC&#8217;s insurance products and services, to limit its marketing
        activities, to sell some or all of its technology, intellectual property
        or
        assets, to merge with another entity, or terminate its operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>If
        FIIC raises additional capital through strategic alliances with third parties,
        the combined group may have to relinquish certain technology or product rights,
        limiting its ability to implement its long-term business
        plan.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">If
        FIIC raises additional funds through collaboration, licensing or other
        arrangements with third parties, it may be required to relinquish rights
        or
        grant licenses on unfavorable terms to certain of its technologies or products
        that it may otherwise seek to develop or commercialize on its own. While
        potentially necessary for the continuance of operations during a time of
        cash
        constraints or a shortage of working capital, such actions could make it
        difficult or impossible to implement FIIC&#8217;s long-term business plans or could
        materially adversely affect its business, financial condition and results
        of
        operations. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>In
        the event that FIIC raises additional capital through issuance of equity
        securities, or securities exercisable for or convertible into equity securities
        in FIIC, its stockholders could experience substantial additional
        dilution.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">If
        FIIC raises additional capital by issuing equity securities or convertible
        debt
        securities, its existing stockholders may incur substantial dilution. Further,
        any shares so issued may have rights, preferences and privileges superior
        to the
        rights, preferences and privileges of FIIC&#8217;s outstanding common
        stock.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Future
        acquisitions, if any, may disrupt FIIC&#8217;s business, distract the group&#8217;s
        management and reduce the percentage ownership of its
        stockholders.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        part of its business strategy, FIIC intends to engage in acquisitions that
        it
        believes will provide complementary technologies, products, services, marketing
        channels, expertise and/or other valuable assets and resources. However,
        FIIC
        may not be able to easily identify suitable acquisition candidates and/or
        may
        need to rely on the services of financial advisors in identifying or negotiating
        with such candidates, possibly at substantial cost. If and when FIIC does
        identify a suitable candidate, it may not be able to acquire the complementary
        business on commercially acceptable terms, or at all. Although FIIC will
        actively seek acquisition candidates, FIIC cannot assure you that it will
        be
        successful in these efforts. If FIIC is unable to acquire appropriate businesses
        on favorable economic terms, or at all, or is unable to introduce new products
        and services successfully, its business could be materially adversely
        affected.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Even
        if FIIC is able to complete such an acquisition, it may not be able to
        successfully integrate the acquired business into its existing business in
        a
        timely and non-disruptive manner. Such integration may require the devotion
        of a
        significant amount of time and management and financial resources. Even with
        this investment of management and financial resources, an acquisition may
        not
        produce the desired revenues, earnings or business synergies. In addition,
        the
        consideration required to complete such strategic acquisitions may reduce
        the
        percentage ownership of FIIC&#8217;s current stockholders. If FIIC misjudges the value
        of and overpays for the target company, fails to integrate the acquired business
        effectively or if key employees of the acquired business depart, the anticipated
        benefits of the acquisition could be jeopardized. The time, capital and
        management and other resources spent on an acquisition that fails to meet
        FIIC&#8217;s
        expectations could materially and adversely affect its business and financial
        condition. In addition, from an accounting perspective, acquisitions can
        involve
        non-recurring charges and amortization of significant amounts of intangible
        assets that could adversely affect the results of operations for and market
        perception of FIIC.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>If
        FIIC is unable to meet its obligations resulting from the Bridge Financing,
        there may be a change of control of the company, which could disrupt certain
        relationships key to the potential success of FIIC&#8217;s
        business.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        a result of the Bridge Financing, Oceanus holds a senior secured convertible
        promissory note convertible into shares of FIIC&#8217;s common stock at any time,
        including accrued and unpaid interest, and a warrant to purchase additional
        shares of FIIC&#8217;s common stock. The note is due and payable on the earlier of
        February&#160;28, 2006, or FIIC&#8217;s receipt of equity or debt financing in excess
        of $500,000. If FIIC receives such financing prior to February&#160;28, 2006,
        FIIC must pay Oceanus the lesser of 50% of the financing amount or the balance
        owed on the note, including accrued interest. Alternately, Oceanus may elect
        to
        convert the note into shares of FIIC&#8217;s common stock at a rate of $1.00 per
        share, including accrued and unpaid interest. In support of the note, FIIC
        executed a security agreement in favor of the noteholder, pledging all of
        its
        existing and hereafter acquired assets, including its license for the FIIC
        Database Content and Technology, as security for the note, and FIIC, Inc.
        provided a subsidiary guaranty. Ten FIIC stockholders, including certain
        directors, officers and affiliates of FIIC, have also executed pledge agreements
        guarantying the FIIC&#8217;s obligations under the convertible note with an aggregate
        4,761,000 shares of their common stock. In the event that FIIC is unable
        to
        fulfill its payment obligations under the convertible note and the noteholder
        chooses not to convert the note to alternatively satisfy such obligations,
        under
        the pledge agreements the noteholder would be entitled to the pledged shares.
        Although the noteholder could not obtain greater than 50% of the company&#8217;s
        issued and outstanding common stock upon receipt of the pledged shares and
        exercise of its warrant to purchase common stock, the noteholder would obtain
        a
        significant stake in FIIC, ranging from approximately 36% on a fully diluted
        basis to 43% on an undiluted basis. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Further,
        a number of the pledgors would lose all of their holdings of common stock
        in
        FIIC, and thus may be less likely to exercise their outstanding warrants
        to
        re-establish an ownership position. In addition, many of the pledgors are
        directors, executive officers or beneficial owners of 5% or more of FIIC&#8217;s
        common stock, and thus may no longer be able to exert the same influence
        over
        the affairs of FIIC, or may be less inclined to serve in leadership positions.
        Finally, if the noteholder seeks to exert control over the rights to the
        FIIC
        Database Content and Technology on which the FIIC business model relies,
        the
        noteholder could disrupt FIIC&#8217;s business to the detriment of FIIC&#8217;s results of
        operations and the other stockholders of FIIC.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC&#8217;s
        common stock will likely be considered a &#8220;penny stock,&#8221; will be subject to
        additional sale and trading regulations that may make it move difficult to
        sell.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        common stock could be considered to be a &#8220;penny stock&#8221; if it does not qualify
        for one of the exemptions from the definition of &#8220;penny stock&#8221; under Section
        3a51-1 of the Securities Exchange Act for 1934, as amended (the &#8220;Exchange Act&#8221;).
        Circumstances under which FIIC&#8217;s shares would be &#8220;penny stock&#8221; under the
        Exchange Act include, but are not limited to, the following: (i) the stock
        trades at a price less than $5.00 per share; (ii) it is NOT traded on a
&#8220;recognized&#8221; national exchange; (iii) it is NOT quoted on the Nasdaq Stock
        Market, or even if so, has a price less than $5.00 per share; or (iv) is
        issued
        by a company that has been in business less than three years with net tangible
        assets less than $5 million.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        principal result or effect of being designated a &#8220;penny stock&#8221; is that
        securities broker-dealers participating in sales of FIIC&#8217;s common stock will be
        subject to the &#8220;penny stock&#8221; regulations set forth in Rules 15-2 through 15g-9
        promulgated under the Exchange Act. For example, Rule 15g-2 requires
        broker-dealers dealing in penny stocks to provide potential investors with
        a
        document disclosing the risks of penny stocks and to obtain a manually signed
        and dated written receipt of the document at least 2 business days before
        effecting any transaction in a penny stock for the investor&#8217;s account. Moreover,
        Rule 15g-9 requires broker-dealers in penny stocks to approve the account
        of any
        investor for transactions in such stocks before selling any penny stock to
        that
        investor. This procedure requires the broker-dealer to (i) obtain from the
        investor information concerning his or her financial situation, investment
        experience and investment objectives; (ii) reasonably determine, based on
        that
        information, that transactions in penny stocks are suitable for the investor
        and
        that the investor has sufficient knowledge and experience as to be reasonably
        capable of evaluating the risks of penny stock transactions; (iii) provide
        the
        investor with a written statement setting forth the basis on which the
        broker-dealer made the determination in (ii) above; and (iv) receive a signed
        and dated copy of such statement from the investor, confirming that it
        accurately reflects the investor&#8217;s financial situation, investment experience
        and investment objectives. Compliance with these requirements may make it
        more
        difficult and time consuming for holders of FIIC&#8217;s common stock to resell their
        shares to third parties or to otherwise dispose of them in the market or
        otherwise.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>We
        cannot assure that an established public trading market will develop for
        FIIC&#8217;s
        securities, which would adversely affect the ability of investors to ultimately
        sell their securities in the public market.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Although
        Nicklebys&#8217; common stock has been listed on the Over-the-Counter Bulletin Board
        (the &#8220;OTCBB&#8221;), there is no active trading market for the Nicklebys, now FIIC,
        common stock, and a regular trading market for FIIC&#8217;s securities may not develop
        or be sustained in the future. The OTCBB is an inter-dealer, over-the-counter
        market that provides significantly less liquidity than the NASD&#8217;s automated
        quotation system (the &#8220;Nasdaq Stock Market&#8221;). Quotes for stocks included on the
        OTCBB are not listed in the financial sections of newspapers as are those
        for
        the Nasdaq Stock Market. Therefore, prices for securities traded solely on
        the
        OTCBB may be difficult to obtain and holders of common stock may be unable
        to
        resell their securities at or near their original offering price or at any
        price. Prices for securities traded solely on the OTCBB may be subject to
        significant volatility. Further, the NASD has enacted recent changes that
        limit
        quotations on the OTCBB to securities of issuers that are current in their
        reports filed with the Securities and Exchange Commission. The effect on
        the
        OTCBB of these rule changes and other proposed changes cannot be determined
        at
        this time.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>The
        high volume of shares eligible for future sale may adversely affect the market
        price of FIIC&#8217;s common stock, because the future sale of a substantial amount of
        outstanding stock in the public marketplace could reduce the perceived value,
        and therefore price, of FIIC&#8217;s common stock.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        terms and conditions of FIIC&#8217;s Bridge Financing and its Private Placement
        include piggyback registration rights for any shares issued in relation to
        these
        transactions. Thus, if FIIC decides to register any shares on its own account
        or
        on behalf of other shareholders under the Securities Act of 1933, as amended
        (the &#8220;Securities Act&#8221;), FIIC will also be obligated to pay all expenses incident
        to registering some or all of the shares issued in relation to the Bridge
        Financing and the Private Placement, covering the subsequent resale of these
        shares of FIIC&#8217;s common stock. These registration rights are subject to the
        requirement that sellers pay all underwriting discounts or commissions with
        respect to their shares, and all shares in registration will be subject to
        any
        lock-up provisions and cut-backs as may be proposed by the underwriter, if
        any.
        However, registration under the Securities Act will allow these shares to
        ultimately be sold on the open market and the impact of a significant percentage
        of shares entering the market at once could adversely affect the market price
        of
        the combined group&#8217;s common stock.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Additionally,
        following the Merger, FIIC&#8217;s stockholders may become eligible to sell all or
        some of their shares of common stock by means of ordinary brokerage transactions
        in the open market pursuant to Rule 144, promulgated under the Securities
        Act
        (&#8220;Rule 144&#8221;), subject to certain limitations. In general, pursuant to Rule 144,
        a stockholder (or stockholders whose shares are aggregated) who has satisfied
        a
        one-year holding period may, under certain circumstances, sell within any
        three-month period a number of securities which does not exceed the greater
        of
        1% of the then outstanding shares of common stock or the average weekly trading
        volume of the class during the four calendar weeks prior to such sale. Rule
        144
        also permits, under certain circumstances, the sale of securities, without
        any
        limitations, by a non-affiliate that has satisfied a two-year holding period.
        Any substantial sale of common stock pursuant to any resale prospectus or
        Rule
        144 may have an adverse effect on the market price of FIIC&#8217;s common stock by
        creating an excessive supply.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Market
        prices for FIIC&#8217;s common stock may be influenced by a number of additional
        factors, including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  issuance of new equity securities pursuant to the Merger, or future
                  offerings;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">changes
                  in interest rates;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">variations
                  in quarterly operating results;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  depth and liquidity of the market for FIIC&#8217;s common
                  stock;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">investor
                  perceptions of the company and the insurance industry
                  generally;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">investor
                  perception of the company&#8217;s ability to adjust to or address changes in
                  government rules and regulations applicable to insurance and/or
                  public
                  companies; 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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">general
                  economic and other national
                  conditions.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
        does not foresee paying cash dividends in the foreseeable
        future.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Nicklebys
        has not paid cash dividends on its stock in the past and FIIC does not plan
        to
        pay cash dividends on its stock in the foreseeable future.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>CAUTIONARY
        STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        information contained in this report, including in the documents incorporated
        by
        reference into this report, includes some statement that are not purely
        historical and that are &#8220;forward-looking statements&#8221; as defined by the Private
        Securities Litigation Reform Act of 1995. Such forward-looking statements
        include, but are not limited to, statements regarding Nicklebys&#8217;, FIIC&#8217;s and
        their management&#8217;s expectations, hopes, beliefs, intentions or strategies
        regarding the future, including FIIC&#8217;s financial condition, results of
        operations, and the expected impact of the Merger on the parties&#8217; individual and
        combined financial performance. In addition, any statements that refer to
        projections, forecasts or other characterizations of future events or
        circumstances, including any underlying assumptions, are forward-looking
        statements. The words &#8220;anticipates,&#8221; &#8220;believes,&#8221; &#8220;continue,&#8221; &#8220;could,&#8221;
&#8220;estimates,&#8221; &#8220;expects,&#8221; &#8220;intends,&#8221; &#8220;may,&#8221; &#8220;might,&#8221; &#8220;plans,&#8221; &#8220;possible,&#8221;
&#8220;potential,&#8221; &#8220;predicts,&#8221; &#8220;projects,&#8221; &#8220;seeks,&#8221; &#8220;should,&#8221; &#8220;will,&#8221; &#8220;would&#8221; and
        similar expressions, or the negatives of such terms, may identify
        forward-looking statements, but the absence of these words does not mean
        that a
        statement is not forward-looking.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        forward-looking statements contained in this proxy statement are based on
        current expectations and beliefs concerning future developments and the
        potential effects on the parties and the transaction. There can be no assurance
        that future developments actually affecting FIIC will be those anticipated.
        These forward-looking statements involve a number of risks, uncertainties
        (some
        of which are beyond the parties&#8217; control) or other assumptions that may cause
        actual results or performance to be materially different from those expressed
        or
        implied by these forward-looking statements, including the
        following:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  ability of FIIC&#8217;s management team to effect a smooth transition to
                  leadership of FIIC;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
                  ability to launch its insurance business in a timely and cost-efficient
                  manner;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;</font></td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
                  ability to obtain all necessary government certifications and/or
                  licenses
                  to conduct its insurance business;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">market
                  acceptance of FIIC&#8217;s Investor Protection
                  policies;</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="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  accuracy of FIIC&#8217;s underwriting
                  model;</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">&#160;</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="3">
          </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>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">competitive
                  factors, such as price competition and competition from other insurance
                  companies and alternate investment protection
                  products;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
                  ability to protect its intellectual property, including maintaining
                  its
                  exclusive license to use the FIIC Underwriting Data and Standards;
                  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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  cost of complying with current and future governmental regulations
                  and the
                  impact of any changes in the regulations on FIIC&#8217;s
                  operations.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">These
        risks and uncertainties, along with others, are also described above under
        the
        heading &#8220;Risk Factors.&#8221; Should one or more of these risks or uncertainties
        materialize, or should any of the parties&#8217; assumptions prove incorrect, actual
        results may vary in material respects from those projected in these
        forward-looking statements. FIIC undertakes no obligation to update or revise
        any forward-looking statements, whether as a result of new information, future
        events or otherwise, except as may be required under applicable securities
        laws.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>ADDITIONAL
        DISCLOSURE</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">For
        additional information that would be required if the Registrant were filing
        a
        general form for registration of securities on Form 10 or Form 10-SB, see
        Item
        2.02 for &#8220;Management&#8217;s Discussion and Analysis of FIIC&#8217;s Financial Condition and
        Results of Operations,&#8221; Item 3.03 for a description of the Registrant&#8217;s
        securities post-Merger and related discussion of market price, and Item 4.01
        regarding changes in the Registrant&#8217;s accountant, all incorporated by reference
        herein. Required disclosure regarding the change in control of the Registrant,
        the impact on its directors, executive officers, control persons and related
        compensation and beneficial ownership issues are addressed in Item 5.01,
        incorporated by reference herein. Attention is also directed to Item 9.01,
        which
        provides FIIC&#8217;s audited financial statements as of and for the period ended
        December 31, 2005 and pro forma financial information regarding the effects
        of
        the Merger.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        2.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Results
        of Operations and Financial Condition.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>MANAGEMENT&#8217;S
        DISCUSSION AND ANALYSIS OF FIIC&#8217;S FINANCIAL CONDITION AND RESULTS OF OPERATIONS
</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        following discussion of FIIC&#8217;s financial condition and results of operations as
        of December 31, 2005 should be read in conjunction with its financial statements
        and the related notes as provided under Item 9.01(a), and the other financial
        information included in this Current Report. With respect to the discussion
        within this Item&#160;2.02, the terms &#8220;FIIC,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221; refer to
        FIIC, Inc. and FIIC Holdings, Inc.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Forward-Looking
        Statements</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        forward-looking comments contained in this discussion involve risks and
        uncertainties. Our actual results may differ materially from those discussed
        here due to factors such as, among others, limited operating history, difficulty
        in developing, exploiting and protecting proprietary technologies, intense
        competition and substantial regulation in the insurance industry. Additional
        factors that could cause or contribute to such differences can be found in
        the
        following discussion, as well as in the section entitled &#8220;Risk Factors&#8221; under
        Item 2.01 above.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Overview</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Since
        FIIC&#8217;s incorporation in January 2005, FIIC has had no revenue and only start-up
        operations. Upon receipt of the necessary governmental approvals and licenses
        and establishment of its planned insurance subsidiaries, FIIC plans to introduce
        an insurance product to insure third-party investors in new and existing
        businesses which meet its underwriting criteria. These planned insurance
        subsidiaries include: Federated Investors Insurance Company Risk Retention
        Group, to underwrite and issue insurance policies; Federated Insurance Captive,
        an agency captive insurance company providing reinsurance; and Federated
        Group
        Agency, a master group agency providing operational services. FIIC anticipates
        receipt of the necessary licenses from the D.C. DISR and from one state,
        likely
        Ohio, by&#160;the end of the second quarter of 2006.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        Until such time, all start-up costs, such as the reserve requirements and
        initial working capital for establishment of these entities, any operational
        expenses, and other requirements will be funded by a combination of debt
        and
        equity financing.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Plan
        of Operation</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Since
        its inception, FIIC dedicated its efforts to implementation of a start-up
        plan
        intended to secure the financing, governmental approvals, and management
        team
        necessary for launch of its planned insurance operations. The key components
        of
        this plan are the execution of a license arrangement for use of the FIIC
        Database Content and Technology upon which FIIC&#8217;s underwriting and marketing
        functions will rely, completion of a merger with a public company, the
        completion of a bridge financing and private placement, and the formation
        and
        licensing of FIIC&#8217;s planned insurance subsidiaries. FIIC believes that upon
        successful completion of these steps, it will be able to launch its insurance
        operations, as described below and in &#8220;FIIC&#8217;s Business&#8221; under Item 2.01 above.
        FIIC currently believes it will be able to complete these steps by the end
        of
        the second quarter of 2006, enabling it to generate initial revenues during
        the
        third quarter of 2006. However, there are many factors that may influence
        FIIC&#8217;s
        ability to achieve this timeline, as discussed in detail in the section entitled
        &#8220;Risk Factors&#8221; under Item 2.01 above.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Start-Up
        Plan</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Licensing
        of FIIC Database Content and Technology</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        March 17, 2005, FIIC entered into a Database Access and Content License,
        Hosting
        and Support Agreement with FIIC Research and Development, LLC (&#8220;FIIC LLC&#8221;); the
        parties amended this agreement on November 7, 2005, in relation to the Bridge
        Financing. FIIC LLC has developed the FIIC Database Content and Technology,
        including an extensive database of insurance underwriting data and standards
        for
        use in connection with insurance policies that insure investors against the
        risk
        of the loss of capital in certain business entities, specially-designed
        supporting software applications, and technology and database-specific workflow
        definitions, decision processes and models for managing such applications
        and
        utilizing the database and its contents. The license agreement provides FIIC
        an
        exclusive and perpetual license to access and use the FIIC Database Content
        and
        Technology to obtain the underwriting data, standards and other information
        for
        the purpose of underwriting its Investor Protection policies. FIIC also has
        the
        right to grant nonexclusive sublicenses to third parties involved in
        underwriting Investor Protection policies, while FIIC is obligated to continue
        to host, maintain and augment the FIIC Database Content and Technology. In
        consideration for the license, FIIC issued to FIIC LLC 9,792,000 shares of
        its
        common stock and 5- year warrants to purchase 1,808,307 shares of its common
        stock at an exercise price of $0.87 per share, and owes FIIC LLC
        $100,000.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">For
        additional information about the license agreement, see &#8220;Related Party
        Transactions--Database Access and Content License, Hosting and Support
        Agreement&#8221; above, and for more information about how FIIC intends to utilize the
        information and technology covered by the license agreement, see &#8220;FIIC&#8217;s
        Business,&#8221; under Item 2.01 above.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Merger
        with a Public Company</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        completion of the Merger satisfies the second aspect of FIIC&#8217;s start-up plan.
        FIIC believes that a merger with a public company will afford increased market
        liquidity and enhanced access to the capital markets, in order to better
        manage
        and satisfy its significant funding requirements during the start-up and
        initial
        operational period. Further, management believes that status as a public
        company
        will provide the means to use securities of a publicly-traded company to
        make
        further acquisitions of assets or businesses in support of the intended
        long-term growth of FIIC&#8217;s insurance business and will offer a competitive
        advantage when competing with other parties in the marketplace for such
        acquisitions. In addition, FIIC believes that becoming a public company will
        provide it increased visibility in the financial and insurance communities
        within a short timeframe and create a satisfactory level of transparency
        for its
        initial investors and customers. Although the Merger cost FIIC approximately
        $291,000 in legal, accounting and other related expenses, including $206,000
        of
        such expenses through January 31, 2006, the management of FIIC believes that
        FIIC has had greater access to funding sources for its start-up activities
        based
        on its plan to become a public company, including the Bridge Financing, and
        will
        continue to reap the benefits post- Merger.</font></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="3">
          </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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Bridge
        Financing and Private Placement</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        planned the Bridge Financing and Private Placement, as described in detail
        under
        Items 1.01 and 2.01 above, to provide the initial funds necessary to establish
        the working capital reserves with the D.C. DISR in conjunction with the
        formation and licensing of FIIC&#8217;s planned insurance subsidiaries. FIIC has
        received funding from the Bridge Financing, and anticipates receipt of
        significant funding from the Private Placement within three to four months
        after
        the close of the Merger. The funds from the Bridge Financing will be used
        to
        repay outstanding loans from stockholders and to begin the preparation of
        the
        D.C. DISR filings required to seek the necessary licensing for and form the
        required insurance entities. The funds from the Private Placement will be
        used
        first to settle outstanding obligations under the Bridge Financing, if any,
        and
        any non-convertible debt outstanding, then to fund the necessary reserve
        accounts for the new insurance entities. As of its closing at November 30,
        2005,
        FIIC estimates that the Bridge Financing cost it approximately $94,500 in
        legal,
        accounting, consulting and other related fees and expenses. FIIC anticipates
        that the Private Placement will cost it approximately $288,000 in such expenses
        and commissions.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Establishment
        and Licensing of Insurance Subsidiaries</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        planned revenue model primarily depends on its use and management of the
        FIIC
        Underwriting Data and Standards, as licensed from FIIC LLC, in support of
        the
        sale of Investor Protection insurance policies through FIIC RRG, with
        reinsurance and operational support provided by FIC and FGA, respectively.
        However, FIIC will be unable to launch its planned insurance operations and
        therefore cannot generate any operational revenues until these insurance
        entities are formed and licensed as required by the D.C. DISR. The key items
        required to complete this stage of FIIC&#8217;s start-up plan are the completion and
        submission of the licensing application and the funding of the required working
        capital reserves. FIIC is in the process of preparing the application for
        the
        establishment and licensing of the three entities, pending receipt of the
        funding necessary for the actuarial feasibility study required by the
        application. Further, the D.C. DISR requires a company to maintain one dollar
        in
        working capital on reserve for every $2.00 of insurance premium to be written
        prior to the establishment and licensing of a RRG. In support of FIIC RRG,
        FIIC
        will provide an initial reserve of $100,000 cash and an additional $400,000
        pursuant to a FIIC, Inc. Surplus Note to satisfy the funding requirements.
        In
        support of FIC, FIIC will provide an initial reserve of $100,000 cash and
        an
        additional $300,000 pursuant to a FIIC, Inc. Surplus Note to satisfy the
        funding
        requirements. It is estimated that each Surplus Note would be repaid over
        a
        five-year period subject to the approval of the D.C. DISR. FIIC anticipates
        use
        of a significant portion of the Bridge Financing net proceeds towards the
        required actuarial feasibility study, but does not anticipate filing the
        completed application until after the Private Placement and Merger close
        and
        FIIC has the necessary capital to fund the required reserves. Once the
        application is filed, FIIC expects the operating structure for the three
        new
        insurance entities to be formally established and licensed within 90 days,
        including the licensing of FIIC RRG and FIC in the District of Columbia and
        at
        least one state, likely Ohio. </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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Capital
        Resources</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        November 29, 2005, FIIC issued a $350,000 Senior Secured Promissory Note
        to
        Oceanus Value Fund, L.P. and closed the first phase of its Bridge Financing.
        After deducting costs related to the financing, FIIC received approximately
        $258,000 for use towards its start-up costs, which was held in escrow through
        February&#160;28, 2006. As a result of the second phase of the Bridge Financing
        and the subsequent amendment of the securities purchase agreement, the balance
        on the NBYS Note issued in the second closing is now $92,000. In addition,
        as of
        February 28, 2006, FIIC had incurred $39,000 in principal under demand notes
        from stockholders and&#160;another $700,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        in principal under convertible notes. FIIC anticipates that the Private
        Placement, when completed, will result in gross equity financing of up to
        $2,500,000. After deduction of related fees and expenses, FIIC anticipates
        receipt of up to $2,212,000 net proceeds from the Private
        Placement.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        of December 31, 2005, FIIC had cash and cash equivalents of $1,714 and current
        liabilities of $1,140,618. As of December 31, 2005, FIIC had an accumulated
        operating deficit of $1,006,050, which has increased in the subsequent
        months.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Use
        of Available Funds</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        believes that upon the successful completion of the Private Placement, including
        the sale of all shares offered resulting in aggregate gross proceeds of
        $2,500,000, its current capital resources will be sufficient to cover all
        startup costs, reserve requirements and operating expenses for twelve months,
        including the anticipated initial six months of its insurance operations.
        FIIC
        currently anticipates allocating its capital resources as follows:</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Debt
        Repayment</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        intends to use a portion of the net proceeds from the Bridge Financing to
        repay
        the principal and interest fees on its current demand notes from its
        stockholders, totaling $58,500. FIIC believes that its other currently
        outstanding convertible notes in the aggregate principal amount
        of&#160;$700,000<font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">will
        convert into equity subsequent to the Merger and thus not require repayment.
        Post-Merger and upon completion of the Private Placement, if Oceanus does
        not
        choose to convert the NBYS Note and its accrued interest before such time,
        FIIC
        also intends to use the proceeds from the Private Placement, upon completion,
        to
        repay its obligations resulting from the Bridge Financing, which it anticipates
        will total approximately $368,000 at that time. </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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Entity
        Financing</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        noted above, FIIC intends to fund the working capital reserves of FIIC RRG
        and
        FIC in the amounts of $500,000 and $400,000, respectively, from the net proceeds
        of the Private Placement. FIIC does not anticipate receiving repayment on
        the
        FIIC, Inc. Surplus Notes pursuant to which a portion of such reserve funding
        will be provided until these insurance entities are operational for at least
        one
        year. In addition, FIIC intends to provide FIIC RRG and FIC each with
        approximately $50,000 for formation and associated initial start-ups costs.
        FIIC
        also intends to provide FGA with initial working capital of $529,500, to
        fund
        its services in support of FIIC RRG and FIC, including regulatory reporting,
        backroom operations, underwriting, claims and accounting. The management
        agreement between FGA and each of the other insurance entities will detail
        which
        vendors and suppliers will be responsible for reinsurance support, legal
        services, accounting services, actuarial support, and other services beyond
        the
        abilities of FGA&#8217;s own personnel. FIIC anticipates that FGA&#8217;s operational
        expenses for the first six months of its management agreement with FIIC RRG
        and
        FIC will total approximately $270,000. Subject to this agreement, FIIC RRG
        and
        FIC will provide certain management fees to FGA for its services, but the
        initial grant of working capital will cover FGA&#8217;s start-up costs and ensure its
        ability to meet its contractual obligations until such time as the insurance
        operations are fully functional.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Operating
        Expenses</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Any
        funds received beyond those needed to repay debt, fund the regulatory working
        capital reserves and provide the insurance entities initial working capital
        will
        be used for FIIC&#8217;s general corporate purposes, including initial product
        development, marketing and employee costs. Within the next twelve months,
        including the anticipated initial six months of its revenue-producing insurance
        operations, FIIC anticipates spending up to $175,000 on intellectual property
        rights and product development costs, including payment of the $100,000 owed
        to
        FIIC LLC under the license agreement for the FIIC Database Content and
        Technology, $46,000 on Dun &amp; Bradstreet information fees, $7,000 on web
        services and support and $22,000 on the part-time employment of an information
        technology specialist. During this period, FIIC also anticipates incurring
        up to
        $197,000 in legal expenses relating to the launch of its operations and general
        corporate governance and $30,000 in audit-related expenses. FIIC also plans
        to
        spend up to $40,000 towards market development in the next twelve months,
        including designing and placing its advertising on-line and developing other
        sales tools. Other anticipated operating expenses during this initial period
        include payment of $96,000 in consulting fees which will become due post-Merger,
        approximately $20,000 in overhead expenses such as copy, fax and phone charges
        and basic travel expenses, and additional funds, as available, towards reducing
        FIIC&#8217;s accumulated deficit. There are no plans nor is there any necessity to
        purchase any significant equipment, beyond basic office computers and related
        technology.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Within
        the first six months of the launch of FIIC&#8217;s insurance operations, FIIC will
        rely on its executive officers, supported by independent consultants, to
        fulfill
        all operational functions. FIIC does not anticipate hiring additional part-time
        or full-time employees until it approaches the operational benchmark of 100
        policies sold, although FIIC may continue partial or occasional payment of
        the
        accrued consulting fees, as disclosed in &#8220;Executive Compensation&#8212;Summary
        Compensation Table&#8221; above, earlier if there are available, unallocated funds.
        FIIC anticipates initiating payment of the projected executive salaries
        disclosed in that section shortly after the planned insurance subsidiaries
        are
        established and fully licensed for operations and each individual executes
        an
        employment agreement.</font></div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        may also use a portion of the excess net proceeds from the Private Placement
        for
        the acquisition of complementary businesses, technologies or products. There
        are
        no contracts or agreements to do so, however. </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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Launch
        of Revenue-Producing Insurance Operations</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Upon
        launch of its insurance operations, FIIC anticipates generating revenues
        primarily from the sale of its Investor Protection insurance policies and
        secondarily from the collection of licensing fees from other insurance carriers
        pertaining to the rights to use all copyrighted and protected intellectual
        property developed by or licensed to FIIC, including for educational,
        scientific, data mining or new business purposes. In the initial six months
        of
        FIIC&#8217;s insurance operations, FIIC projects issuing 17 policies at an average
        total investment per business of $250,000, generating an average premium
        of ten
        percent (10%) and thereby yielding $425,000 gross premiums revenue in this
        initial operational period. Based on FIIC&#8217;s analysis of new business starts in
        the Ohio area, its initial target market, FIIC believes that this level of
        performance represents a projected market penetration of about 0.23%. Further,
        FIIC will generate related revenues from its $50 fee per application, regardless
        of the number of resulting policies issued.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        anticipates 27 applications within it initial six months of operations,
        generating gross application fee revenues of approximately $1,350. FIIC
        anticipates that actual premium rates will range from 8 to 18 percent based
        on
        the risk group of the subject business per the FIIC Underwriting Data and
        Standards, and that eventually the application fee may also become variable.
        FIIC also believes that beginning in year two of its operations overall average
        premium rates may slightly decline, reflecting lower rates for renewals,
        the
        potential impact of competition, and any actual claims experiences. FIIC
        believes that it may be able to write up to 2,000 policies per year its initial
        target geographic markets, but continues to project revenues and expenses
        on a
        significantly more conservative basis, since it is unknown how quickly the
        concept of the Investor Protection policy will penetrate the market and how
        swiftly competition may absorb some of the potential market.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Since
        the funds in the regulatory working capital reserves cannot be used to fund
        operations, FIIC, or subsequently the combined group, may also need additional
        capital to continue to adequately grow its business post-launch of its insurance
        operations. The amount of additional capital the combined group may need
        to
        raise through public or private equity or debt financings over the next few
        years will depend on many factors, including:</font></div>
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      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">market
                  acceptance and the growth rate of demand, if any, for FIIC&#8217;s Investor
                  Protection policies;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  lead time required to execute and generate a revenue stream from
                  customer
                  contracts;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">changes
                  in the size of the required working capital reserve or other regulatory
                  requirements;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">availability
                  of opportunities for strategic acquisition of other companies with
                  technology, resources, customers or know-how that will further
                  the growth
                  of the FIIC&#8217;s insurance business;
                  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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  accuracy of FIIC&#8217;s projections regarding its operating costs, including
                  the costs of regulatory compliance, personnel, legal and accounting
                  costs
                  and the cost of funds.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        combined group cannot be certain that additional sources of liquidity will
        be
        available when needed in the future and that its actual cash requirements
        will
        not be greater than anticipated. If financing is not available when needed
        on
        favorable terms, FIIC would evaluate whether to scale back further development
        of FIIC&#8217;s insurance products and services, to limit its marketing activities, to
        sell some or all of its technology, intellectual property or assets, to merge
        with another entity, or to terminate its operations.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Off-Balance
        Sheet Arrangements</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        of February 28, 2006, the Company had no off-balance sheet
        arrangements.</font></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">
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          </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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Critical
        Accounting Policies and Estimates</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        financial statements are prepared on the accrual basis and in conformity
        with
        generally accepted accounting principles for U.S. Companies (&#8220;U.S. GAAP&#8221;). Cash
        and cash equivalents are defined as cash and investments with maturity of
        less
        than three (3) months. Any prepaid costs are deferred and expensed at time
        of
        receiving services. Debt issuance costs are amortized based upon the lives
        of
        the respective debt obligations. FIIC&#8217;s management may be required to make
        estimates and assumptions that affect the reporting amount of assets and
        liabilities, the actual results of which could differ from those
        estimates.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        3.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>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="left"><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; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 28, 2006, pursuant to the terms of the Merger Agreement by and between
        Nicklebys.com, Inc. (&#8220;Nicklebys&#8221;) , Nicklebys Acquisition Corp. and FIIC, Inc.
        (as described in Item 2.01 above), each share of FIIC, Inc. common stock
        (an
        aggregate of 12,668,377 shares) was converted into one share of Nicklebys&#8217;
common stock. Additionally, warrants to purchase 2,291,384 shares of FIIC,
        Inc.
        common stock and notes in an aggregate principal amount of&#160;$700,000
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">convertible
        into at least 1,661,538 shares of FIIC, Inc. common stock (without regard
        to the
        potential conversion of any accrued and unpaid interest) were assumed by
        Nicklebys at the closing of the Merger. The securities were offered and sold
        to
        investors in reliance upon exemptions from registration pursuant to Section
        4(2)
        under the Securities Act of 1933, as amended, and Rule 506 promulgated
        thereunder. Each of the persons and/or entities receiving our securities
        qualified as an accredited investor (as defined by Rule 501 under the Securities
        Act of 1933, as amended). Immediately following the closing of the Merger,
        Nicklebys executed an Agreement and Plan of Merger with FIIC Holdings, Inc.,
        a
        Delaware corporation, for the purpose of reincorporating from the State of
        Colorado to the State of Delaware and concurrently changing its name to FIIC
        Holdings, Inc.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 28, 2006, pursuant to the Bridge Financing (as defined and discussed
        in
        Item 1.01 above), FIIC Holdings, Inc. (the &#8220;Registrant&#8221;) issued a $350,000
        Senior Secured Convertible Promissory Note bearing annual interest at 12%
        (the
&#8220;NBYS Note&#8221;) and a warrant to purchase 890,995 shares of the Registrant&#8217;s common
        stock (the &#8220;NBYS Warrant&#8221;). The Registrant issued the NBYS Note and NBYS Warrant
        in exchange for the $350,000 Senior Secured Promissory Note previously issued
        by
        FIIC, Inc. to Oceanus in November 2005. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Immediately
        subsequent to execution of the securities purchase agreement and the issuance
        of
        the NBYS Note, the parties executed an amendment to the securities purchase
        agreement, extending the term of the NBYS Note, providing for partial repayment
        of the NBYS Note and releasing certain pledge agreements entered into in
        support
        of the NBYS Note.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        principal balance of $92,000 due on the amended NBYS Note is due and payable
        on
        the earlier of May 29, 2006 or the Registrant&#8217;s receipt of equity or debt
        financing in excess of $500,000. If the Registrant receives such financing
        prior
        to May 29, 2006, the Registrant must pay Oceanus the lesser of 50% of the
        amount
        of the financing or the balance owed on the note, including interest.
        Alternately, Oceanus may elect to convert the NBYS Note to shares of the
        Registrant&#8217;s common stock at any time at a rate of $1.00 per share, including
        accrued and unpaid interest. If the note remains unpaid and unconverted at
        such
        time that the closing price for the Registrant&#8217;s common stock equals or exceeds
        $3.00 per share for 20 consecutive trading days on the OTCBB, the trading
        volume
        for the common stock has been at least $250,000 per day for the 20 consecutive
        trading day period, and the shares allocated for the conversion are freely
        tradeable pursuant to an effective registration statement or Rule 144(k),
        then
        the note shall automatically convert at a rate of $3.00 per share.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 28, 2006, in conjunction with the issuance to Oceanus, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">the
        Registrant also issued Bridgewater Capital Corporation a warrant to purchase
        35,000 shares of the Registrant&#8217;s common stock at $1.00 per share. The issuance
        of the NBYS Note, the NBYS Warrant and the warrants to Bridgewater were made
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">investors
        in reliance upon exemptions from registration pursuant to Section 4(2) under
        the
        Securities Act of 1933, as amended, and Rule 506 promulgated thereunder.
        Each of
        the persons and/or entities receiving these securities qualified as an
        accredited investor (as defined by Rule 501 under the Securities Act of 1933,
        as
        amended).</font></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">
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          </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        3.03</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Material
        Modification to Rights of Security Holders.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>REINCORPORATION
        FROM COLORADO TO DELAWARE; NAME CHANGE</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Overview
        of Reincorporation and Name Change</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Upon
        closing of the Merger and consistent with the terms of the Merger Agreement,
        the
        Nicklebys.com, Inc. (&#8220;Nicklebys&#8221;) executed an Agreement and Plan of Merger with
        its newly-formed, wholly-owned subsidiary, FIIC Holdings, Inc., designed
        to
        result in:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">a
                  change in domicile of the public company from the State of Colorado
                  to the
                  State of Delaware, which means that the surviving company will
                  be governed
                  by the laws of the State of
                  Delaware;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">a
                  change in corporate name from Nicklebys.com, Inc. to FIIC Holdings,
                  Inc.;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  right of Nicklebys&#8217; shareholders, including the former FIIC, Inc.
                  stockholders, to receive one new share of FIIC Holdings, Inc.,
                  for each
                  outstanding share of NBYS common stock held on the effective date
                  of the
                  Reincorporation and Name Change;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  FIIC 2005 Plan, assumed by Nicklebys in the Merger, becoming the
                  stock
                  option plan of FIIC Holdings, Inc.;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
                  Holdings, Inc.&#8217;s Certificate of Incorporation becoming the Certificate of
                  Incorporation of the surviving public corporation;
                  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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
                  Holdings, Inc.&#8217;s Bylaws becoming the Bylaws of the surviving public
                  corporation.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">Nicklebys
        then immediately filed a Statement of Merger with the Colorado Secretary
        of
        State and a Certificate of Merger with the Delaware Secretary of State, along
        with all necessary supporting documentation, to effectuate the reincorporation
        from the State of Colorado to the State of Delaware and concurrent name change
        of the public company. As a result of the reincorporation merger, FIIC Holdings,
        Inc. is the surviving public reporting company (the &#8220;Registrant&#8221;).</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        board of directors and management of FIIC sought to reincorporate Nicklebys
        in
        the State of Delaware because Delaware is recognized for adopting comprehensive
        modern and flexible corporate laws, which are periodically revised to respond
        to
        the changing legal and business needs of corporations. For this reason, many
        major corporations have initially incorporated in Delaware or have changed
        their
        corporate domiciles to Delaware. Consequently, the Delaware judiciary has
        become
        particularly familiar with corporate law matters and a substantial body of
        court
        decisions has developed construing Delaware law. As a result, Delaware corporate
        law has been, and is likely to continue to be, interpreted in many significant
        judicial decisions, providing more flexibility in practice and more certainty
        in
        interpretation and application than currently exists under the corporate
        laws of
        the State of Colorado.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Effect
        of the Reincorporation and Name Change</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Name Change should not have any effect on the transferability of outstanding
        stock certificates. Outstanding stock certificates bearing the name
&#8220;Nicklebys.com, Inc.&#8221; should continue to be valid and represent shares of &#8220;FIIC
        Holdings, Inc.&#8221; In the future, new stock certificates will be issued bearing the
        Company&#8217;s new name, but this will in no way affect the validity of any currently
        outstanding stock certificates. The Name Change will be reflected by book-entry.
        Stockholders that hold physical certificates should not destroy or send to
        the
        Registrant their common stock certificates. Those certificates should be
        carefully preserved by each stockholder, until the stockholder receives any
        further instructions from the Registrant or its transfer agent, Corporate
        Stock
        Transfer.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        rights of the Registrant&#8217;s stockholders are now governed by Delaware corporate
        law, rather than Colorado corporate law as previously governed the rights
        of
        Nicklebys&#8217; shareholders. Because of differences between the Colorado Business
        Corporations Act and the Delaware General Corporate Law, as well as differences
        between Nicklebys&#8217; governing documents and the governing documents for FIIC
        Holdings, Inc. (see Exhibits 3.2 and 3.3 attached hereto), the Reincorporation
        has changed the rights of prior Nicklebys shareholders. Summarized below
        are the
        most significant differences between the rights of shareholders under the
        Colorado law and prior Nicklebys governing documents and the rights of
        stockholders under the Delaware law and governing documents of FIIC Holdings,
        Inc. The summary below is not an exhaustive list of all differences or a
        complete description of the differences described, and is qualified in its
        entirety by reference to CBCA and the DGCL, the prior Nicklebys&#8217; Articles of
        Incorporation and Bylaws and FIIC&#8217;s Certificate of Incorporation and
        Bylaws.</font></div>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </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>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">&#160;</td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Nicklebys.com,
                  Inc. - Colorado</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
                  Holdings, Inc. - Delaware</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Authorized
                  Shares</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Under
                  the Nicklebys Articles of Incorporation, Nicklebys was authorized
                  to issue
                  a total of 100,000,000 shares of common stock, par value $.0001
                  per share,
                  and 3,000,000 shares of preferred stock, par value $.0001 per share.
                  </font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Under
                  the FIIC Holdings Certificate of Incorporation, FIIC Holdings is
                  authorized to issue a total of 100,000,000 shares of common stock,
                  par
                  value $.001 per share, and 3,000,000 shares of preferred stock,
                  par value
                  .$001 per share.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Election
                  and Number of Directors</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to the Nicklebys Bylaws the number of directors may not be less
                  than one.
                  Directors were to be elected at each annual meeting. There were
                  four
                  directors in office prior to the Merger. </font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to the FIIC Holdings Bylaws the number of directors may not be
                  less than 3
                  nor more than nine. Directors will be elected by class as described
                  in
                  &#8220;Classified or Staggered Board.&#8221; Post-Merger there are five directors in
                  office, with two vacant positions available for immediate appointment.
                  </font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Indemnification
                  of Directors</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Under
                  Section 7-109-102 of the CBCA, a corporation may indemnify a director
                  or
                  officer. The Nicklebys Articles of Incorporation provided for mandatory
                  indemnification so long as the person has acted in good faith.
                  The
                  Articles of Incorporation also provided for advancement of expenses
                  incurred to defend such an action, if the director or officer acted
                  in
                  good faith and in the best interest of the company. </font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to Section 145 of the DGCL, a company may indemnify directors and
                  officers. The FIIC Holdings Certificate of Incorporation and Bylaws
                  provide for mandatory indemnification of former or current officers
                  and
                  directors of FIIC Holdings </font><a name="exp25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">with
                  respect to expenses incurred in any action brought against those
                  persons
                  as a result of their role with FIIC Holdings, if certain conditions
                  are
                  satisfied. Subject to certain conditions, the FIIC Holdings Certificate
                  of
                  Incorporation also provides for mandatory advancement of expenses
                  incurred
                  by those persons in defending such an action.</font></a></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Par
                  Value of Capital Stock; Surplus Capital</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  concepts of par value, surplus and capital do not exist under the
                  CBCA,
                  though par value is permitted. Nicklebys&#8217; common stock had a par value of
                  $.0001.</font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to Section 154 of the DGCL, Delaware law recognizes the concepts
                  of par
                  value and surplus capital. FIIC Holdings&#8217; common stock has a par value of
                  $.001.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Special
                  Meetings</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  Nicklebys Bylaws provided that special meetings, unless otherwise
                  provided
                  by statute, may be called by the president, the Board or by the
                  president
                  at the request of no less than 10% of the shareholders.</font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to the FIIC Holdings Bylaws, a special meeting of the stockholders
                  for the
                  transaction of any proper business may be called at any time exclusively
                  by the Board or the Chairman. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </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="3">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
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      </div>
      <div>&#160;</div>
      <div>&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Action
                  by Shareholders Without a Meeting</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Section
                  7-107-104 of the CBCA and the Nicklebys Bylaws provided that any
                  action
                  required or permitted to be taken at a shareholders&#8217; meeting may be taken
                  without a meeting if all of the shareholders entitled to vote thereon
                  consent to such action in writing. </font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Section
                  228(a) of the DGCL and the FIIC Holdings Bylaws permits stockholder
                  action
                  to be taken by less than unanimous written consent, if written
                  consents
                  are signed by the holders of outstanding stock having not less
                  than the
                  minimum number of votes that would be necessary to authorize or
                  take such
                  action at a meeting at which all shares entitled to vote thereon
                  were
                  present and voted and prompt notice of the action so taken by written
                  consent of the requisite majority of the stockholders is given
                  to the
                  non-consenting stockholders.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Amendment
                  to Articles or Certificate of Incorporation</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to Section 7-110-102 and 103 of the CBCA, amendments to the Articles
                  of
                  Incorporation had to be submitted to a shareholder vote if proposed
                  either
                  by the Board of Directors or by the holders of shares representing
                  at
                  least 10% of all of the votes entitled to be cast on the amendment.
                  The
                  Board of Directors must recommend the amendment to the shareholders,
                  unless the amendment is being proposed by the shareholders, or
                  unless the
                  Board of Directors determines that because of a conflict of interest
                  or
                  other special circumstances it should make no recommendation with
                  respect
                  to the amendment. The Nicklebys Articles of Incorporation could
                  be amended
                  by affirmative vote of the shareholders of at least a majority
                  of the
                  shares entitled to vote at a meeting called for that purpose or,
                  when
                  authorized, by written consent. </font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Under
                  Section 241 of the DGCL and the FIIC Holdings Articles of Incorporation,
                  an amendment or change to the certificate of incorporation generally
                  requires the approval of the board of directors, followed by the
                  approval
                  of such amendment by the affirmative vote of the holders of a majority
                  of
                  the outstanding shares entitled to vote thereon. When an amendment
                  of the
                  certificate would adversely affect the rights of a class of stock
                  or the
                  rights of a series of a class, Delaware corporate law provides
                  that the
                  enactment of the amendment also requires the affirmative vote of
                  the
                  holders of a majority of the outstanding shares of such class or
                  series.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>&#160;</div>
      <div>&#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="3">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Dissenters&#8217;
                  Rights of Appraisal</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to Section 7-113-101 and 102, Colorado law gives shareholders appraisal
                  rights over (1) a merger to which the Colorado corporation is a
                  party if
                  (i) approval by the shareholders is required for the merger or
                  (ii) the
                  Colorado corporation is a subsidiary and is merged with its parent
                  where
                  approval of the shareholders is not required; (2) a plan of exchange
                  where
                  the Colorado corporation is a party as the corporation whose shares
                  will
                  be acquired; a sale, lease, exchange or other disposition of all,
                  or
                  substantially all, of the property of the Colorado corporation;
                  (3) a
                  sale, lease, exchange or other disposition of all, or substantially
                  all,
                  of the property of an entity controlled by the Colorado corporation
                  if the
                  shareholders of the Colorado corporation were entitled to vote;
                  and (4) a
                  reverse stock split that reduces the number of shares owned by
                  the
                  shareholder to a fraction of a share if the fractional shares is
                  to be
                  acquired for cash. </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; COLOR: #000000; FONT-FAMILY: Times New Roman">Colorado
                  corporate law does not provide appraisal rights in connection with
                  a
                  merger or consolidation to the owner of shares that is listed on
                  a
                  national securities exchange or is held by more than 2,000
                  shareholders.</font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
                  to Section 262 of the DGCL, appraisal rights are only available
                  with
                  respect to a merger or consolidation of a corporation under certain
                  limited circumstances. No appraisal rights are provided in the
                  case of a
                  sale or transfer of all or substantially all of the corporation&#8217;s assets
                  or an amendment to the corporation&#8217;s certificate of incorporation.
                  Moreover, Delaware corporate law does not provide appraisal rights
                  in
                  connection with a merger or consolidation to the owner of shares
                  that is
                  listed on a national securities exchange or is held by more than
                  2,000
                  stockholders.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Business
                  Combination Law</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  CBCA does not contain any business combination provisions.</font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
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                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Section&#160;203
                  of the DGCL provides for a three-year moratorium on certain business
                  combination transactions with &#8220;interested stockholders&#8221; (generally,
                  persons who beneficially own 15% or more of the corporation&#8217;s outstanding
                  voting stock). FIIC Holdings has not opted out of Section 203 of
                  the DGCL
                  in its governing documents. </font></div>
              </td>
            </tr>

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      <div>&#160;</div>
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        <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="3">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>
      </div>
      <div>&#160;</div>
      <div>
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            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Classified
                  or Staggered Board </strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Under
                  Section 7-108-106, staggered boards are allowed in 2 or 3 groups.
                  However,
                  as provided in the Nicklebys Bylaws, all directors of the Company
                  were to
                  be elected annually.</font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
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                  Section 141(d) boards are allowed in 1, 2 or 3 classes. Pursuant
                  to the
                  FIIC Holdings Bylaws, the directors of the Corporation shall be
                  divided
                  into three classes&#8212;Class I, Class II and Class III. The term of office of
                  the initial Class I directors shall expire at the first
                  regularly-scheduled annual meeting of the stockholders, the term
                  of office
                  of the initial Class II directors shall expire at the second annual
                  meeting of the stockholders and the term of office of the initial
                  Class
                  III directors shall expire at the third annual meeting of the
                  stockholders. At each annual meeting of stockholders, commencing
                  with the
                  first regularly-scheduled annual meeting of stockholders, each
                  of the
                  successors elected to replace the directors of a Class whose term
                  shall
                  have expired at such annual meeting shall be elected to hold office
                  until
                  the third annual meeting succeeding his or her election and until
                  his or
                  her respective successor shall have been duly elected and qualified.
                  The
                  FIIC board currently has two Class&#160;I vacancies.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="27%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Franchise
                  Tax</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Colorado
                  does not have a franchise tax.</font></div>
              </td>
              <td width="2%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="left" valign="top" width="27%" style="border-bottom: black thin solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Section
                  501 of the DGCL requires corporations to pay a franchise tax annually.
                  </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"><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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>POST-MERGER
        DESCRIPTION OF SECURITIES</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Common
        Stock</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant is authorized to issue up to 100,000,000 shares of common stock,
        par
        value $0.001 per share, of which 13,866,983 shares are currently issued and
        outstanding. Each outstanding share of common stock is entitled to one vote,
        either in person or by proxy, on all matters that may be voted upon by their
        holders at meetings of the stockholders. Holders of the Registrant&#8217;s common
        stock (i) have equal ratable rights to dividends from funds legally available
        therefore, if declared by the Board of Directors; (ii) are entitled to share
        ratably in all of the Registrant&#8217;s assets available for distribution upon
        liquidation, dissolution or winding up; and (iii) do not have preemptive,
        subscription or conversion rights or redemption or sinking fund provisions.
        All
        issued shares of the Registrant&#8217;s common stock are fully paid for and
        non-assessable.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Preferred
        Stock</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant is authorized to issue 3,000,000 shares of preferred stock, par
        value
        $0.001 per share, of which no shares are currently issued and outstanding.
        The
        preferred stock may be issued in one or more series and the Registrant&#8217;s Board
        of Directors, without further approval from its stockholders, is authorized
        to
        fix the dividend rights and terms, conversion rights, voting rights, redemption
        rights, liquidation preferences and other rights and restrictions relating
        to
        any series. Issuances of preferred stock, while providing flexibility in
        connection with possible financings, acquisitions and other corporate purposes,
        could, among other things, adversely affect the voting power of the holders
        of
        our common stock.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Stock
        Options </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        connection with the Merger, the Registrant assumed the FIIC 2005 Plan, under
        which 1,854,883 shares of common stock are reserved for issuance. At the
        effective time of the Merger, FIIC, Inc. had no options outstanding under
        the
        FIIC 2005 Plan.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Warrants
        and Convertible Notes</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        connection with the Merger, the Registrant assumed warrants to purchase shares
        of common stock and notes convertible into shares of common stock on the
        same
        terms and conditions as previously issued by FIIC, Inc. Immediately after
        the
        closing of the Merger, FIIC, Inc. had warrants to purchase 3,217,379 shares
        of
        common stock and notes convertible into at least 1,753,538 shares of common
        stock outstanding.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>MARKET
        PRICE OF THE REGISTRANT&#8217;S COMMON STOCK</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        price of the Registrant&#8217;s common stock will likely fluctuate in the future. The
        stock market in general has experienced extreme stock price fluctuations
        in the
        past few years. In some cases, these fluctuations have been unrelated to
        the
        operating performance of the affected companies. Many companies have experienced
        dramatic volatility in the market prices of their common stock. The Registrant
        believes that a number of factors, both within and outside its control, could
        cause the price of the Registrant&#8217;s common stock to fluctuate, perhaps
        substantially. Factors such as the following could have a significant adverse
        impact on the market price of its common stock:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
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              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  Registrant&#8217;s ability to obtain additional financing and, if available, the
                  terms and conditions of the
                  financing;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  Registrant&#8217;s financial position and results of
                  operations;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Concern
                  as to, or other evidence of, the reliability and efficiency of
                  the
                  Registrant&#8217;s proposed products and services or its competitors&#8217; products
                  and services;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Announcements
                  of innovations or new products or services by the Registrant or
                  its
                  competitors;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">U.S.
                  federal and state governmental regulatory actions and the impact
                  of such
                  requirements on the Registrant&#8217;s
                  business;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  development of litigation against the
                  Registrant;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Period-to-period
                  fluctuations in the Registrant&#8217;s operating
                  results;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Changes
                  in estimates of the Registrant&#8217;s performance by any securities
                  analysts;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">The
                  issuance of new equity securities pursuant to a future offering
                  or
                  acquisition;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Changes
                  in interest rates;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;</font></td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Investor
                  perceptions of the Registrant; and</font></div>
              </td>
            </tr>

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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">General
                  economic and other national
                  conditions.</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">&#160;</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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>DELAWARE
        ANTI-TAKEOVER LAW AND CHARTER AND BYLAW PROVISIONS</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant is subject to Section 203 of the Delaware General Corporation
        Law.
        This provision generally prohibits a Delaware corporation from engaging in
        any
        business combination with any interested stockholder for a period of three
        years
        following the date the stockholder became an interested stockholder,
        unless:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">prior
                  to such date, the Board of Directors approved either the business
                  combination or the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">upon
                  consummation of the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder, the interested stockholder owned at
                  least 85%
                  of the voting stock of the corporation outstanding at the time
                  the
                  transaction commenced, excluding for purposes of determining the
                  number of
                  shares outstanding those shares owned by persons who are directors
                  and
                  also officers and by employee stock plans in which employee participants
                  do not have the right to determine confidentially whether shares
                  held
                  subject to the plan will be tendered in a tender or exchange offer;
                  or</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;</font></td>
              <td>
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                  or subsequent to such date, the business combination is approved
                  by the
                  Board of Directors and authorized at an annual meeting or special
                  meeting
                  of stockholders and not by written consent, by the affirmative
                  vote of at
                  least 66 2/3% of the outstanding voting stock that is not owned
                  by the
                  interested stockholder.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">Section
        203 defines a business combination to include:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">any
                  merger or consolidation involving the corporation and the interested
                  stockholder;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">any
                  sale, transfer, pledge or other disposition of 10% or more of the
                  assets
                  of the corporation involving the interested stockholder;
                  </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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">subject
                  to certain exceptions, any transaction that results in the issuance
                  or
                  transfer by the corporation of any stock of the corporation to
                  the
                  interested stockholder;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">any
                  transaction involving the corporation that has the effect of increasing
                  the proportionate share of the stock of any class or series of
                  the
                  corporation beneficially owned by the interested stockholder;
                  or</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  receipt by the interested stockholder of the benefit of any loans,
                  advances, guarantees, pledges or other financial benefits provided
                  by or
                  through the corporation.</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">&#160;</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        general, Section 203 defines an &#8220;interested stockholder&#8221; as any entity or person
        beneficially owning 15% or more of the outstanding voting stock of a
        corporation, or an affiliate or associate of the corporation and was the
        owner
        of 15% or more of the outstanding voting stock of a corporation at any time
        within three years prior to the time of determination of interested stockholder
        status; and any entity or person affiliated with or controlling or controlled
        by</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; COLOR: #000000; FONT-FAMILY: Times New Roman">such
        entity or person. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant&#8217;s certificate of incorporation and bylaws contain provisions that
        could have the effect of discouraging potential acquisition proposals or
        making
        a tender offer or delaying or preventing a change in control of the Registrant,
        including changes a stockholder might consider favorable. In particular,
        the
        Registrant&#8217;s certificate of incorporation and bylaws, as applicable, among other
        things, will:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">provide
                  the Registrant&#8217;s board of directors with the ability to alter its bylaws
                  without stockholder approval;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">provide
                  for an advance notice procedure with regard to the nomination of
                  candidates for election as directors and with regard to business
                  to be
                  brought before a meeting of
                  stockholders;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">provide
                  that vacancies on the Registrant&#8217;s board of directors may be filled by a
                  majority of directors in office, although less than a
                  quorum.</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">&#160;</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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Such
        provisions may have the effect of discouraging a third-party from acquiring
        the
        Registrant, even if doing so would be beneficial to its stockholders. These
        provisions are intended to enhance the likelihood of continuity and stability
        in
        the composition of the Registrant&#8217;s board of directors and in the policies
        formulated by them, and to discourage some types of transactions that may
        involve an actual or threatened change in control of the Registrant. These
        provisions are designed to reduce the Registrant&#8217;s vulnerability to an
        unsolicited acquisition proposal and to discourage some tactics that may
        be used
        in proxy fights. The Registrant believes that the benefits of increased
        protection of its potential ability to negotiate with the proponent of an
        unfriendly or unsolicited proposal to acquire or restructure the Registrant
        outweigh the disadvantages of discouraging such proposals because, among
        other
        things, negotiation of such proposals could result in an improvement of their
        terms.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">However,
        these provisions could have the effect of discouraging others from making
        tender
        offers for the Registrant&#8217;s shares that could result from actual or rumored
        takeover attempts. These provisions also may have the effect of preventing
        changes in the Registrant&#8217;s management.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        4.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Changes
        in Registrant&#8217;s Certifying Accountant.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February&#160;13, 2006, prior to the closing of the Merger, Cordovano and Honeck
        LLP resigned as the Registrant&#8217;s independent certified public accountants and
        the Registrant engaged Miller and McCollom, Certified Public Accountants,
        to
        audit its financial statements for the fiscal year ended December 31, 2005,
        as
        reported on a Current Report on Form 8-K/A dated February 17, 2006.
</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On&#160;March
        6,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;2006,
        the FIIC board of directors accepted the resignation of Schoonover Boyer
        +
        Associates as FIIC, Inc.&#8217;s independent registered certified public accountants.
        Schoonover Boyer + Associates audited FIIC&#8217;s financial statements for the fiscal
        year ended December 31, 2005. Schoonover Boyer + Associates&#8217; audit report does
        not contain an adverse opinion or disclaimer of opinion, nor were they qualified
        or modified as to uncertainty, audit scope, or accounting principles. In
        connection with the audit of the Company's financial statements prepared
        for the
        fiscal year ended December 31, 2005, the Company had no disagreements with
        Schoonover Boyer + Associates on any matters of accounting principles or
        practices, financial statement disclosure, or auditing scope or procedure,
        which
        disagreements, if not resolved to the satisfaction of Schoonover Boyer +
        Associates, would have caused the auditors to make reference to the subject
        matter of such disagreements in connection with their audit report as required
        by Item 304(a)(1)(iv)(A) of Regulation S-B. The Company has provided Schoonover
        Boyer + Associates a copy of this report prior&#160; to its filing with the SEC
        and requested Schoonover Boyer + Associates furnish a letter addressed to
        the
        SEC stating whether Schoonover Boyer + Associates agrees with the above
        statements.&#160; A letter from Schoonover Boyer + Associates is attached as
        Exhibit 16.1 to this Form 8-K.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        March 6, 2006, the Registrant&#8217;s board of directors engaged Russell Bedford
        Stefanou Mirchandani LLP to audit the Registrant&#8217;s financial statements for the
        year ended December 31, 2006, and to review the Registrant&#8217;s quarterly financial
        statements for the three quarters of 2006.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">During
        the fiscal years ending December 31, 2004, 2003 and 2002, including the
        subsequent interim periods through September 30, 2005, and prior to the
        appointment of Miller McCollum and Russell Bedford Stefanou Mirchandani LLP,
        neither the Registrant, or anyone on its behalf, consulted with Cordovano
&amp;
Honeck LLP, Schoonover Boyer + Associates, Miller McCollum or Russell Bedford
        Stefanou Mirchandani LLP regarding any of the accounting or auditing concerns
        stated in Item 304(a)(2) of Regulation S-B.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        5.01 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>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="left"><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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>OVERVIEW</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        July 19, 2005, the Registrant, along with Merger Sub and the NBYS Canceling
        Shareholders (as defined in Item 2.01, &#8220;Principal Terms of the Merger&#8221;) entered
        into an Agreement and Plan of Merger with FIIC, Inc., pursuant to which the
        Registrant would be acquired by FIIC, Inc. in a merger transaction wherein
        Merger Sub would merge with and into FIIC, Inc., with FIIC, Inc. being the
        surviving corporation. On February 28, 2006, the Merger closed and FIIC,
        Inc.
        became a wholly-owned subsidiary of the Registrant. The Merger resulted in
        a
        change-of-control of the Registrant and the assumption of FIIC, Inc.&#8217;s
        operations and liabilities.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Immediately
        prior to the Merger, the Registrant effectuated a 1-for-2.00317 reverse stock
        split of its common stock and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">caused
        500,000 pre-split shares of common stock held by the NBYS Canceling Shareholders
        (Scott Thornock, Bruce Capra, Paul Zueger, Michael Tanner, and James Watson)
        to
        be cancelled and extinguished. In consideration for the Share Cancellation,
        FIIC
        paid an aggregate sum of $200,000 to the NBYS Canceling Shareholders.
</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Just
        prior to the Merger, the individuals currently serving as the Registrant&#8217;s board
        of directors appointed </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">James
        W. France, Robert V.R. Ostrander, Kevin Loychik, Brent Peterson and Dean
        Barrett, each of whom was a director of FIIC, Inc., </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">to
        the Registrant&#8217;s board of directors. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Scott
        Thornock, Bruce Capra, Paul Zueger and Wayne Yakes, M.D., then resigned as
        officers and directors of the Registrant</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
        contingent and effective upon the closing of the Merger. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        addition, concurrent with the closing of the Merger, the Registrant&#8217;s board
        appointed James W. France as its President and Chief Executive Officer, James
        E.
        Bowser as Chief Operating Officer and Executive Vice President, Wade Estep,
        CPA
        as Chief Financial Officer and Robert V.R. Ostrander as Vice President of
        Marketing, Sales and Distribution and Secretary. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">At
        the effective time of the Merger:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  Registrant merged the Merger Sub with and into FIIC, Inc. and the
                  separate
                  corporate existence of the Merger Sub
                  ceased;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  Registrant issued 12,668,377 shares of its common stock on a post-split,
                  one-for-one basis in exchange for 100% of the issued and outstanding
                  shares of FIIC, Inc.&#8217;s common
                  stock;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  Registrant assumed all outstanding warrants to purchase shares
                  of FIIC,
                  Inc.&#8217;s common stock and all outstanding notes convertible into shares
                  of
                  FIIC, Inc.&#8217;s common stock on the same terms and conditions as previously
                  issued by FIIC, Inc.;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  Registrant adopted the FIIC 2005 Plan as its own
                  plan;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">in
                  exchange for cancellation of a certain debt owed to Mr. Capra by
                  Nicklebys
                  prior to the effective date of the Merger Agreement, the Registrant
                  distributed its remaining assets held prior to the Merger to
                  Mr.&#160;Capra, all of which were works of art which Nicklebys failed to
                  sell during the liquidation of its inventory and which have been
                  deemed
                  unsaleable on Nicklebys&#8217; financial
                  statements;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                  Registrant discharged approximately $87,000 of its pre-closing
                  liabilities
                  with cash consideration provided by
                  FIIC</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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="left">
        <div>
          <table cellpadding="0" cellspacing="0" id="list" width="100%">

              <tr valign="top" style="line-height: 1.25;">
                <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;</font></td>
                <td>
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">the
                      Registrant issued a senior secured convertible notes and warrant
                      in
                      exchange for FIIC, Inc.&#8217;s outstanding note from its Bridge Financing, and
                      issued related warrants to FIIC Inc.&#8217;s bridge financing consultant;
                      and</font></div>
                  </div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
                  senior management took over management of the combined
                  group.</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"><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; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        a result of the Merger, the Registrant is the parent corporation of FIIC,
        Inc.,
        and FIIC, Inc. survives as its wholly-owned subsidiary and the holding company
        for the planned insurance operating entities. Former FIIC, Inc. stockholders
        are
        now holders of the Registrant&#8217;s common stock, and FIIC, Inc. warrantholders and
        noteholders became holders of options, warrants and notes, respectively,
        to
        acquire shares of the Registrant&#8217;s common stock. The holder of the senior
        secured promissory note issued in the Bridge Financing received a replacement
        note convertible into shares of the Registrant&#8217;s common stock and a warrant to
        purchase shares of the Registrant&#8217;s common stock. Immediately prior to the
        closing of the Merger, FIIC, Inc. had outstanding 12,668,377 shares of common
        stock, no options to purchase shares of common stock, warrants to purchase
        2,291,384 shares of common stock, and notes convertible into at least 1,661,538
        shares of common stock. Immediately after the closing of the Merger, the
        Registrant had 13,866,983 outstanding shares of common stock, no options
        to
        purchase shares of common stock, warrants to purchase 3,217,379 shares of
        common
        stock, and notes convertible into at least 1,753,538 shares of common stock.
        Based on the number of shares of common stock of the Registrant outstanding
        immediately after the closing of the Merger, the pre-Merger Nicklebys
        shareholders currently own approximately 8.6% of the Company&#8217;s issued and
        outstanding shares of common stock.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">After
        the Merger was concluded, the Registrant reincorporated from the State of
        Colorado to the State of Delaware and changed its corporate name to FIIC
        Holdings, Inc.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        transaction contemplated by the Merger Agreement is intended to be a &#8220;tax-free&#8221;
incorporation pursuant to the provisions of Section 351 and 368(a)(i)(A)
        of the
        Internal Revenue Code of 1986, as amended.</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="left"><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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>EXECUTIVE
        OFFICERS, DIRECTORS AND KEY EMPLOYEES</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Prior
        to the Merger, Scott Thornock, Bruce Capra, Paul Zueger and Wayne Yakes,
        M.D.,
        served as directors, Mr. Thornock served as Chief Executive Officer, President,
        Secretary, and Treasurer, and Mr. Capra served as Chief Financial Officer
        of the
        Registrant.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Upon
        closing of the Merger, the following individuals were named to the board
        of
        directors and executive management of the Registrant:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td valign="top" width="18%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Name</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td valign="top" width="5%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Age</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td valign="top" width="39%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Position</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">James
                  W. France</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">58</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">President,
                  Chief Executive Officer and Director</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">James
                  E. Bowser</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">59</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Chief
                  Operating Officer and Executive Vice President</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Wade
                  Estep, CPA</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">58</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Chief
                  Financial Officer</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Robert
                  V.R. Ostrander</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">60</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Vice
                  President, Secretary and Director</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Kevin
                  Loychik</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">39</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Brent
                  Peterson</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">50</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="18%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Dean
                  Barrett</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="5%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">61</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Director</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"><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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>James
        W. France </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">became
        FIIC&#8217;s President, Chief Executive Officer and a director at its inception in
        January 2005. Mr. France served as Sole Manager of FIIC Research and
        Development, LLC (&#8220;FIIC LLC&#8221;) from August 2000 through the present and is
        anticipated to remain in these dual roles at least through December 2006.
        Mr.
        France began developing the concept for FIIC, Inc. and its Investor Protection
        policy in 1983. From January 2002 to March 2003, Mr. France also served as
        Chief
        Executive Officer of SkyFrames, Inc., a satellite communications company.
        Mr.
        France was a licensed underwriter for the Penn Mutual Insurance Company from
        1970 to 1972, specializing in corporate financial planning and a licensed
        securities representative with Greater Ohio Securities, Inc. and Massachusetts
        Mutual Insurance Company in 1973. In 1986, he co-founded Digiboard International
        Corp., which went public in 1990. In 1988, Mr. France became CEO for Scriptel
        Holding, Inc., which was responsible for the development of a new electronic
        interface used by pen based computer devices. In addition, throughout Mr.
        France&#8217;s business career he has established several small businesses in the
        field of advertising media, technology and corporate finance.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>James
        E. Bowser</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        became FIIC&#8217;s Chief Operating Officer and Executive Vice President in January
        2005. Since October 1998, Mr. Bowser has served as Chief Executive Officer
        of
        Manchester Exchange Investment Company, a small business incubator. He has
        a
        wide range of business and public company experience, specializing in asset
        management, distribution, training and business statistics. Mr. Bowser has
        over
        20 years experience in investment banking, focused on small businesses. He
        holds
        a B.S. and M.S. in Food Science &amp; Technology from Ohio State University and
        an M.B.A. from the University of Dayton, Ohio.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Wade
        Estep, CPA</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
        joined FIIC as its Chief Financial Officer in March 2005. Mr. Estep has been
        a
        Certified Public Accountant in the State of Ohio for over thirty years, and
        has
        been a sole practitioner of tax and consulting services since 1992. His prior
        work experience includes positions with Coopers and Lybrand (now
        PricewaterhouseCoopers) and a real estate property management company. He
        currently holds a Series 6 securities license and formerly held an Ohio Life,
        Accident and Health Insurance license. He has been an elected official Clerk
        Treasurer in Blendon Township, Franklin County, Ohio for over 18 years. Mr.
        Estep obtained a B.S. degree in accounting from Miami University, Oxford,
        Ohio.</font></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">
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          </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </div>
        </div>
        <div id="HDR">
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          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Robert
        V.R. Ostrander</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        joined FIIC at its inception in January 2005 as its Vice President of Marketing,
        Sales and Distribution, Secretary and as a director. Since January 1992,
        Mr.
        Ostrander has also served as President of Omni Financial Securities, a financial
        planning firm. Concurrently, Mr. Ostrander has engaged in insurance sales
        duties
        for Manex Risk Management, an insurance company, since January 1981. He has
        also
        served as Chairman of the Board of Manchester Exchange Investment Company
        since
        October 1998. Mr. Ostrander began his financial career in 1968 as an educator
        in
        financial planning, risk management, and business investing, including work
        experience in these areas with AT&amp;T, Battelle Memorial Institute, Riverside
        Hospital, and Liquibox. In 1983, he developed a 160-page questionnaire-driven
        process intended to help businesses identify critical needs and to reduce
        up to
        80% of the items in an operating expense statement. From 1997 to 2005, he
        served
        on the board of Pinnacle Data Systems, Inc. (AMEX: PNS). He is a NASD Licensed
        Broker with Series 7, 24 and 63, and is licensed in the State of Ohio to
        sell
        Life, Accident and Health Insurance and Annuities. Mr. Ostrander also holds
        a
        Property and Casualty Insurance License in Ohio. Mr. Ostrander holds a B.S.
        in
        Mathematics from Otterbein College.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Kevin
        Loychik</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        has been a member of the board of directors of FIIC since its inception in
        January 2005. Since February 1998, Mr. Loychik has served as Vice President
        and
        Chief Operating Officer of Ohio Auto Delivery, Inc., a transportation services
        company. He is a graduate of Youngstown University with a B.S.B.A. in accounting
        with a minor in management.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Brent
        Peterson</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        has been a member of the board of directors of FIIC since its inception in
        January 2005. Mr. Peterson is the founder of Glenwood Financial Corp., and
        has
        served as its President since establishing the company in 1994. Glenwood
        provides consulting services on corporate finance, mergers &amp; acquisitions
        and investor relations to its corporate clients, both public and private.
        Prior
        to starting Glenwood, he was a senior executive consultant with Health
        Management, Inc. (HMI), a company involved in HMO management and providing
        consulting services to the Assisted Living industry. While at HMI, Mr. Peterson
        was responsible for all areas dealing with the public ownership of the company
        and was instrumental in structuring a transaction where another company
        subsequently acquired HMI. From 1980 to 1990 Mr. Peterson was in the securities
        industry where he acted as a retail broker, trader, General Securities
        Principal, and a Financial Operations Principal. While in this field he held
        the
        NASD Series 7, Series 24, Series 27 and life insurance licenses. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Dean
        Barrett</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        has been a member of the board of directors of FIIC since its inception in
        January 2005. Since April 2001, Mr. Barrett has been Principal Manager of
        Corporate Management Solutions, LLC, a financial consulting business. From
        May
        1990 to February 2001, Mr. Barrett was the Group Vice President of National
        Bank
        of Canada&#8217;s U.S. subsidiary, and previously served as the Bank of New England&#8217;s
        Executive Vice President until is was acquired by National Bank of Canada.
        Mr.
        Barrett has over 34 years of banking industry experience.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Other
        Key Personnel</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        addition to the directors and executive officers listed above, FIIC expects
        the
        following individuals to play an integral role in the launch and growth of
        its
        insurance operations. Also, FIIC will seek to employ experienced claims
        adjusters, auditing managers, underwriters and insurance executives as part
        of
        the broader management team, requiring at least five years hands on experience,
        principally in the bond field or with indemnity coverage.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Hubert
        T. McDonald,</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
        75, will serve as FIIC&#8217;s Vice President of Administration. Since September 1999,
        Mr. McDonald has served as the President of Manchester Exchange Investment
        Company. Mr. McDonald has a manufacturing, investment banking and financial
        background. As a Certified Financial Planner, Chartered Financial Consultant
        and
        past NASD Licensed Broker with Series 7, 24 and 63, he is licensed in the
        State
        of Ohio for Life, Accident and Health Insurance. He holds a B.S. in Business
        from Northern Illinois, an M.S. in Business from Loyola University, Chicago,
        and
        an M.B.A. from Dayton.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Thomas
        M. O&#8217;Leary</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
        62, will serve as FIIC&#8217;s Vice President of Underwriting. Prior to joining FIIC,
        Mr. O&#8217;Leary was a private investor and a consultant within the electronics
        industry. Since 1996, he has also served on the board of directors of Pinnacle
        Data Systems (AMEX: PNS). He retired in 1996 after over 30 years with
        AT&amp;T/Lucent Technologies, where he worked in manufacturing, management, and
        operations. He also served as a member of the Worthington School District
        Board
        of Education from 1996 to 2001. He holds a B.S. in math and systems engineering
        from Illinois State University and a Certificate from the Pennsylvania State
        University Executive Management Program.</font></div>
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
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      </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Scott
        Smith</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
        39, will serve as FIIC&#8217;s Vice President of Information Technology. Since 1987,
        Mr. Smith has been employed as a researcher in the National Security Division
        at
        Battelle Memorial Institute, most recently specializing in configuration
        management for the ISO 9001 Certified Electronics and Avionic Systems Product
        Line. During his 19 year career at Battelle, Mr. Smith has been a team member
        on
        numerous national security related projects, and a leader in the development
        of
        several business management systems. Mr. Smith is a commercially rated pilot
        and
        is pursuing a B.S. in Aviation from Utah Valley State College.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        also intends to contract with </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Camelback
        Captive &amp; Risk Management Services, LLC</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
        for its initial operations management. Led by its founder, Richard Marshall,
        Camelback Captive specializes in the management of risk retention groups
        and
        captive reinsurance companies. Mr. Marshall has over 20 years experience
        in the
        alternative risk transfer mechanism arena, both in the private and public
        sectors. Mr. Marshall was the first captive insurance administrator of the
        Arizona Department of Insurance, where he was responsible for the development,
        licensing and monitoring of Arizona-domiciled Captive and Risk Retention
        Groups.
        During his two year tenure, Arizona issued licenses. Mr. Marshall has also
        held
        senior management positions with several insurance organizations, including
        Meadowbrook Insurance Group and Frontier Insurance Group, focusing on other
        forms of alternative risk transfer mechanisms, both domestically and
        offshore.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Family
        Relationships</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">There
        are no family relationships among the individuals comprising FIIC&#8217;s board of
        directors, management and other key personnel.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Board
        and Management Committees</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Concurrent
        with the closing of the Merger, the Registrant&#8217;s board of directors adopted an
        Audit Committee Charter and appointed Dean Barrett, Brent Peterson and Kevin
        Loychik to serve as members of the Audit Committee. These individuals are
        all
        independent directors as defined by Section 10A(m) of the Exchange Act of
        1934
        and the rules promulgated thereunder, and Mr. Loychik qualifies as a financial
        expert pursuant to Item 401 of Regulation S-K. The board also appointed Mr.
        Loychik as Chairman of the Audit Committee.</font></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Concurrent
        with the closing of the Merger, the Registrant&#8217;s board of directors adopted a
        Compensation Committee Charter and appointed Dean Barrett, Brent Peterson
        and
        Kevin Loychik to serve as members of the Compensation Committee. The board
        also
        appointed Mr. Barrett as Chairman of the Compensation Committee.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Concurrent
        with the closing of the Merger, the Registrant&#8217;s management adopted and the
        board of directors ratified a Disclosure Committee Charter, designed to ensure
        that accurate and complete information regarding the Registrant and its
        operations and financial performance is provided to its stockholders and
        the
        investment community in a timely manner and in compliance with the requirements
        of applicable securities laws. The charter appoints the Registrant&#8217;s Chief
        Financial Officer, Chief Operating Officer and Corporate Secretary (Wade
        Estep,
        James Bowser, and Robert V.R. Ostrander, respectively) as standing members
        of
        the Disclosure Committee, with additional members to be appointed by the
        Chief
        Executive Officer and Chief Financial Officer in their discretion. Mr. Ostrander
        shall serve Chairman of the Disclosure Committee.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>EXECUTIVE
        COMPENSATION</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Summary
        Compensation Tables</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        the effective time of the Merger, to compensate certain executive officers,
        directors and key personnel for their services during the period of initial
        organization, the negotiation and consummation of the Merger and the launch
        of
        FIIC&#8217;s plan of operation, FIIC accrued monthly consulting fees from February 1,
        2005 through September 30, 2005.&#160; As of February 28, 2006, FIIC has paid
        the monthly consulting fees earned by the listed individuals from October
        1,
        2005 to February 28, 2006.</font></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>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td valign="bottom" width="16%" 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">Name</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="bottom" width="39%" 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">Position</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="bottom" width="14%" 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">Consulting
                    </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">Fees
                    </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">Accrued
                    as of</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">&#160;February
                    28,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="bottom" width="12%" 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">Consulting</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">&#160;Fees</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">&#160;Paid
                    as of </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">February
                    28, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2006</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="16%">
                  <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">James
                    France</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Chief
                    Executive Officer and President</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    56,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    35,000</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="16%">
                  <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">James
                    Bowser </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Chief
                    Operating Officer and Executive Vice President </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    24,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    15,000</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="16%">
                  <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">Wade
                    Estep </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Chief
                    Financial Officer </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    24,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    15,000</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="16%">
                  <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">Robert
                    Ostrander</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Vice
                    President of Marketing, Sales and Distribution, Secretary and
                    Director</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    24,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    15,000</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="16%">
                  <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">Hubert
                    McDonald </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Vice
                    President of Administration </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    24,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    15,000</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="16%">
                  <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">Thomas
                    O&#8217;Leary </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Vice
                    President of Underwriting </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    24,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    15,000</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="16%">
                  <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">Scott
                    Smith </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="39%">
                  <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">Vice
                    President of Information Technology </font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="14%">
                  <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">$
                    24,000</font></div>
                </td>
                <td width="2%">&#160;</td>
                <td valign="top" width="12%">
                  <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">$
                    15,000</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>
      <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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        following table sets forth the anticipated annual compensation of FIIC&#8217;s chief
        executive officer and each of the four other likely most highly compensated
        officers, which FIIC will begin incurring once its insurance business becomes
        fully operational and the named individuals execute employment
        agreements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td valign="top" width="17%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Name</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td valign="top" width="39%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Position</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td valign="top" width="10%" 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; COLOR: #000000; FONT-FAMILY: Times New Roman">Salary</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="17%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">James
                  W. France, Jr. </font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">President,
                  Chief Executive Officer </font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">$
                  200,000</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="17%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">James
                  Bowser</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Chief
                  Operating Officer and Executive Vice President </font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">$
                  136,000</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="17%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Thomas
                  O&#8217;Leary</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Vice
                  President of Underwriting</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">$
                  90,000</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="17%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Scott
                  Smith</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Vice
                  President of Information Technology</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">$
                  90,000</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="17%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Robert
                  Ostrander</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Vice
                  President of Marketing, Sales and Distribution, Secretary</font></div>
              </td>
              <td width="2%">&#160;</td>
              <td align="right" valign="top" width="10%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">$
                  75,000</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"><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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Option
        Grants and Exercises Since Inception</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">As
        of the closing of the Merger, FIIC has not issued any options, as executive
        compensation or otherwise, under the FIIC 2005 Plan, and does not anticipate
        issuing any options, as executive compensation or otherwise, until it is
        able to
        register the FIIC 2005 Plan.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Equity
        Compensation Plan Information</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>FIIC
        2005 Plan</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        anticipates that it will issue options in the future under its FIIC 2005
        Plan to
        its employees, including executive officers, as compensation. The level of
        options awarded for an annual period will be based upon salary levels and
        company and individual performance factors, however FIIC has not yet established
        definitive criteria. However, FIIC does not anticipate issuing any options,
        as
        executive compensation or otherwise, until it is able to register the FIIC
        2005
        Plan.</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="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong><em>Director
        Compensation</em></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        has not yet established a definitive plan for compensation of its non-management
        directors, however it anticipates that it will likely provide such directors
        nominal stock options pursuant to the FIIC 2005 Plan and reimbursement of
        costs
        arising from their director duties. To date, FIIC has not provided any
        compensation to its non-management directors.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Employment
        and Severance Arrangements</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="left">
        <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">As
          noted
          above, to date the efforts of FIIC&#8217;s executive officers and key personnel are
          primarily for no, nominal and/or deferred compensation.&#160; FIIC intends to
          enter formal employment agreements with all of its executive officers and
          key
          personnel in the months following the close of the Merger.&#160; On February 7,
          2006, FIIC executed a written consulting agreement with Jim France documenting
          his pre-closing consulting arrangement and confirming the continuance of
          such
          arrangement post-closing until such time as FIIC has sufficient funds to
          formalize the terms of and execute an employment agreement with Mr.
          France.&#160;&#160; FIIC anticipates that the terms of all of its employment
          agreements with its officers will provide for cash and equity compensation
          an
          appropriate level for a start-up company, but also recognize the professional
          experience and forms of expertise each individual brings to FIIC&#8217;s
          business.&#160; FIIC also anticipates that its employment agreements will
          include provisions setting forth any severance arrangements, as well as
          confidentiality and non-competition clauses.</font></div>
      </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>RELATED
        PARTY TRANSACTIONS</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Database
        Access and Content License, Hosting and Support Agreement</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">James
        W. France is the founder, President, Chief Executive Officer and a director
        of
        FIIC. Mr. France is also the founder of and serves as the sole Manager of
        FIIC
        Research and Development, LLC (&#8220;FIIC LLC&#8221;), formed to explore the feasibility of
        the concept of the Investor Protection Policy and to develop the initial
        data
        and technology on which the underwriting process for such policies would
        rely. A
        number of other individuals serving as FIIC&#8217;s initial executive officers and key
        personnel are also providing operational leadership or serving as consultants
        for FIIC LLC, including James Bowser, Thomas O&#8217;Leary and Scott
        Smith.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        March 17, 2005, FIIC entered into a Database Access and Content License,
        Hosting
        and Support Agreement with FIIC LLC; the parties amended this agreement on
        November 7, 2005, in relation to the Bridge Financing. FIIC LLC has developed
        an
        extensive database of insurance underwriting data and standards for use in
        connection with insurance policies that insure investors against the risk
        of the
        loss of capital in certain business entities (the &#8220;Database&#8221;). FIIC LLC hosts
        the Database, and makes available specially-designed supporting software
        applications, together with workflow definitions, decision processes and
        models
        for managing such applications and utilizing the Database (collectively,
        the
&#8220;Database Technology&#8221;). FIIC obtained an exclusive and perpetual license to
        access the Database and to use the Database Technology to obtain the
        underwriting data, standards and other information that the Database contains
        for the purpose of underwriting its Investor Protection policies. FIIC also
        has
        the right to grant nonexclusive sublicenses to third parties involved in
        underwriting Investor Protection policies. Pursuant to the agreement, FIIC
        LLC
        shall continue to host, maintain and augment the Database and the Database
        Technology. Additionally, under the agreement, FIIC LLC continues to retain
        all
        right, title and interest in and to the intellectual property rights in and
        underlying the Database Technology.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        consideration for the license, FIIC issued to FIIC LLC 9,792,000 shares of
        its
        common stock and 5-year warrants to purchase 1,808,307 shares of its common
        stock at an exercise price of $0.87 per share, and owes FIIC LLC $100,000.
        As a
        result, the current members of FIIC LLC are also all stockholders of FIIC.
        FIIC
        believes that the license agreement was entered into on terms no more or
        less
        favorable to FIIC than could have been obtained by an unaffiliated third
        party.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Loans
        from Directors, Officers, FIIC Stockholders and Affiliated
        Parties</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        August 2005, FIIC executed unsecured promissory notes in favor of four of
        its
        existing stockholders &#8212; Robert Hernandez, Peter Slyman, John P. Schinas and
        Dennis Leukart&#160;- in an aggregate principal amount of $39,000, which were
        amended in January 2006, are now due in full on March&#160;31, 2006, or earlier
        upon demand, along with aggregate accrued interest fees of $19,500. As of
        December&#160;31, 2005, FIIC had also received and not yet repaid unsecured,
        non-interest bearing advances totaling approximately $4,500 from FIIC R&amp;D,
        LLC. The funds were used to cover expenses related to FIIC&#8217;s efforts to obtain
        bridge financing and to close the Merger.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC
        has also been receiving and repaying advances on a regular basis from its
        President and Chief Executive Officer, James W. France. On October 21, 2005,
        FIIC executed an unsecured promissory note in the principal amount of
        $14,223.15, reflecting prior advances made by Mr. France, with interest at
        5%
        per annum. FIIC used these funds to cover expenses incurred in support of
        the
        pending Merger, including payment of professional fees and costs incurred
        in
        obtaining the Bridge Financing with Oceanus. As of October 27, 2005, FIIC
        had
        repaid the principal amount of the advances covered by the note and Mr. France
        deemed FIIC&#8217;s obligations under the note fully satisfied. As of
        December&#160;31, 2005, FIIC owed Mr.&#160;France reimbursement for accrued
        business expenses of $2,140.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Facilities</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">FIIC&#8217;s
        executive offices are located in Columbus, Ohio, in space leased from Manchester
        Exchange Investment Company</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">James
        Bowser, FIIC&#8217;s Chief Operating Officer and Executive Vice President has served
        as Chief Executive Officer of Manchester Exchange Investment Company, a small
        business incubator, since 1998, and Robert Ostrander, FIIC&#8217;s Vice President of
        Marketing, Sales and Distribution, Secretary and a director of FIIC, has
        served
        as Chairman of the Board of Manchester Exchange Investment Company since
        1998.
        Effective February 1, 2005, FIIC has been obligated to pay Manchester Exchange
        Investment Company $5,000 per month for use of its office space. As of December
        31, 2005, $12,000 of the amount owed had been paid and $43,000 has been
        accrued.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>INDEMNIFICATION
        OF DIRECTORS AND EXECUTIVE OFFICERS AND LIMITATION OF
        LIABILITY</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Under
        Section 145 of the General Corporation Law of the State of Delaware, the
        Registrant can indemnify its directors and officers against liabilities they
        may
        incur in such capacities, including liabilities under the Securities Act
        of
        1933, as amended (the &#8220;Securities Act&#8221;). The Registrant&#8217;s certificate of
        incorporation provides that, pursuant to Delaware law, its directors shall
        not
        be liable for monetary damages for breach of the directors&#8217; fiduciary duty of
        care to the Company and its stockholders. This provision in the certificate
        of
        incorporation does not eliminate the duty of care, and in appropriate
        circumstances equitable remedies such as injunctive or other forms of
        nonmonetary relief will remain available under Delaware law. In addition,
        each
        director will continue to be subject to liability for breach of the director&#8217;s
        duty of loyalty to the Registrant or its stockholders, for acts or omissions
        not
        in good faith or involving intentional misconduct or knowing violations of
        the
        law, for actions leading to improper personal benefit to the director, and
        for
        payment of dividends or approval of stock repurchases or redemptions that
        are
        unlawful under Delaware law. The provision also does not affect a director&#8217;s
        responsibilities under any other law, such as the federal securities laws
        or
        state or federal environmental laws.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant&#8217;s bylaws provide for the indemnification of its directors to the
        fullest extent permitted by the Delaware General Corporation Law. The
        Registrant&#8217;s bylaws further provide that its Board of Directors has discretion
        to indemnify its officers and other employees. The Registrant is required
        to
        advance, prior to the final disposition of any proceeding, promptly on request,
        all expenses incurred by any director or executive officer in connection
        with
        that proceeding on receipt of an undertaking by or on behalf of that director
        or
        executive officer to repay those amounts if it should be determined ultimately
        that he or she is not entitled to be indemnified under the bylaws or otherwise.
        The Registrant is not, however, required to advance any expenses in connection
        with any proceeding if a determination is reasonably and promptly made by
        its
        Board of Directors by a majority vote of a quorum of disinterested Board
        members
        that (a) the party seeking an advance acted in bad faith or deliberately
        breached his or her duty to the Registrant or its stockholders and (b) as
        a
        result of such actions by the party seeking an advance, it is more likely
        than
        not that it will ultimately be determined that such party is not entitled
        to
        indemnification pursuant to the applicable sections of its bylaws.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant has been advised that in the opinion of the Securities and Exchange
        Commission, insofar as indemnification for liabilities arising under the
        Securities Act may be permitted to the Registrant&#8217;s directors, officers and
        controlling persons pursuant to the foregoing provisions, or otherwise, such
        indemnification is against public policy as expressed in the Securities Act
        and
        is therefore unenforceable. In the event a claim for indemnification against
        such liabilities (other than the Registrant&#8217;s payment of expenses incurred or
        paid by its director, officer or controlling person in the successful defense
        of
        any action, suit or proceeding) is asserted by such director, officer or
        controlling person in connection with the securities being registered, the
        Registrant will, unless in the opinion of its counsel the matter has been
        settled by controlling precedent, submit to a court of appropriate jurisdiction
        the question of whether such indemnification by the Registrant is against
        public
        policy as expressed in the Securities Act and will be governed by the final
        adjudication of such issue.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant may enter into indemnification agreements with each of its directors
        and officers that are, in some cases, broader than the specific indemnification
        provisions permitted by Delaware law, and that may provide additional procedural
        protection. As of the Effective Time of the Merger, the Registrant has not
        entered into any indemnification agreements with its directors or officers,
        but
        may choose to do so in the future. Such indemnification agreements may require
        the Registrant, among other things, to:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">indemnify
                  officers and directors against certain liabilities that may arise
                  because
                  of their status as officers or directors;
</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">advance
                  expenses, as incurred, to officers and directors in connection
                  with a
                  legal proceeding, subject to limited exceptions; or
                  </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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">obtain
                  directors&#8217; and officers&#8217; insurance.
</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">At
        present, there is no pending litigation or proceeding involving any of the
        Registrant&#8217;s directors, officers or employees in which indemnification is
        sought, nor is the Registrant aware of any threatened litigation that may
        result
        in claims for indemnification.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT FOLLOWING THE
        MERGER</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Beneficial
        ownership is determined in accordance with the rules of the SEC. In computing
        the number of shares beneficially owned by a person and the percentage of
        ownership of that person, shares of common stock subject to options, warrants
        or
        convertible notes held by that person that are currently exercisable or
        convertible or become exercisable or convertible within 60 days of the estimated
        closing of the Merger are deemed outstanding even if they have not actually
        been
        exercised. Those shares, however, are not deemed outstanding for the purpose
        of
        computing the percentage ownership of any other person.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Immediately
        prior to the closing of the Merger, FIIC, Inc. had outstanding 12,668,377
        shares
        of common stock, no options to purchase shares of common stock, warrants
        to
        purchase 2,291,384 shares of common stock and notes immediately convertible
        into
        at least 1,661,538 shares of common stock. Immediately after the closing
        of the
        Merger, the Registrant had 13,866,983 outstanding shares of common stock,
        no
        options to purchase shares of common stock, warrants to purchase 3,217,379
        shares of common stock and notes immediately convertible into at least 1,753,538
        shares of common stock.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        following table sets forth certain information with respect to beneficial
        ownership of the Company common stock immediately after the closing of the
        Merger based on 13,866,983 outstanding shares of common stock, by:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Each
                  person known to be the beneficial owner of 5% or more of the outstanding
                  common stock of the Registrant;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Each
                  executive officer;</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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">Each
                  director; 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">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="line-height: 1.25;">
              <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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; COLOR: #000000; FONT-FAMILY: Times New Roman">All
                  of the executive officers and directors as a
                  group.</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">&#160;</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; COLOR: #000000; FONT-FAMILY: Times New Roman">Unless
        otherwise indicated in the table or its footnotes, the persons and entities
        named in the table have sole voting and sole investment power with respect
        to
        the shares set forth opposite the stockholder&#8217;s name, subject to community
        property laws, where applicable. Unless otherwise indicated in the table
        or its
        footnotes, the address of each stockholder listed in the table is c/o FIIC
        Holdings, Inc., 1585 Bethel Road, First Floor, Columbus, Ohio
        43220.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="bottom" width="29%" style="border-bottom: black thin solid;">
                  <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>Name
                    and Address </strong></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"><strong>of
                    Beneficial Owner</strong></font></div>
                </td>
                <td valign="bottom" width="26%" 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>Title</strong></font></div>
                </td>
                <td valign="bottom" 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>Beneficially
                    Owned </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>Post-Merger</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman Bold, serif"><sup><strong>(1)</strong></sup></font></div>
                </td>
                <td valign="bottom" width="9%" 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>Percent
                    of Class</strong></font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="29%">&#160;</td>
                <td valign="bottom" width="26%">&#160;</td>
                <td valign="bottom" width="13%">&#160;</td>
                <td valign="bottom" width="9%">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">James
                    W. France </font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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,
                    Chief Executive Officer &amp; Director</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">672,923</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(2)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.82%</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">James
                    E. Bowser </font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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">Chief
                    Operating Officer &amp; Executive Vice President</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">121,842</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(3)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Wade
                    Estep, CPA</font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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">Chief
                    Financial Officer</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 7.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-&#160;&#160;&#160;</font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                    V. R. Ostrander </font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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">Vice
                    President, Secretary &amp; Director</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">121,842</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(4)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kevin
                    Loychik </font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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">Director</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">280,781</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(5)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.02%</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Brent
                    Peterson </font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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">Director</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 7.5pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-&#160;&#160;&#160;</font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dean
                    Barrett</font></div>
                </td>
                <td align="left" valign="top" width="26%">
                  <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">Director</font></div>
                </td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,081,657</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(6)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.71%</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%">
                  <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">Robert
                    Hernandez</font></div>
                </td>
                <td align="left" valign="top" width="26%">&#160;</td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">875,514</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(7)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.25%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <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">John
                    P. Schinas Trust</font></div>
                </td>
                <td align="left" valign="top" width="26%">&#160;</td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,326,806</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(8)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16.35%</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%">
                  <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">Corporate
                    Management Solutions, LLC</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22021
                    Brookpark Road</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Suite
                    100</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fairview
                    Park, Ohio 44126</font></div>
                </td>
                <td align="left" valign="top" width="26%">&#160;</td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">871,960</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(9)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.23%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <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">Bridge
                    Finance Partners LLC</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5318
                    E. 2nd Street</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Suite
                    491</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long
                    Beach, California 90803</font></div>
                </td>
                <td align="left" valign="top" width="26%">&#160;</td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">823,077</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(10)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.93%</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%">
                  <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">Accelerate-Financial,
                    Inc.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2">11
                    Orchard Road</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2">Suite
                    109</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2">Lake
                    Forest, California 92630</font></div>
                </td>
                <td align="left" valign="top" width="26%">&#160;</td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 13.35pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">825,000</font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.95%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="29%">
                  <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">Oceanus
                    Value Fund, L.P.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">225
                    North Market Street, Suite 220</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Wichita,
                    Kansas 67202</font></div>
                </td>
                <td align="left" valign="top" width="26%">&#160;</td>
                <td align="right" valign="top" width="13%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">982,995</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(11)</sup></font></div>
                </td>
                <td align="right" valign="top" width="9%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.62%</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="29%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>All
                    executive officers and directors as a group (7
                    persons)</u></font></div>
                </td>
                <td align="left" valign="top" width="26%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="top" width="13%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,279,045&#160;&#160;&#160;</font></div>
                </td>
                <td align="right" valign="top" width="9%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16.03%</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">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">______________________</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(1)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          calculation of beneficially owned shares and total percentages of beneficial
          ownership do not include any shares that may be issued upon conversion
          of any
          accrued interest on the outstanding convertible notes.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(2)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          101,922 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share. In conjunction with the issuance
          of the
          NBYS Note in the Bridge Financing and its subsequent amendment, 571,000
          of Mr.
          France&#8217;s shares are subject to a pledge agreement in favor of Oceanus Value
          Fund, L.P.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(3)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          18,842 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(4)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          18,842 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(5)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          43,781 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(6)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
          Barrett and his wife, Rondell Barrett, as joint tenants, owners of 177,000
          shares of the Registrant&#8217;s common stock and 32,697 warrants to purchase shares
          of the Registrant&#8217;s common stock at any time at an exercise price of $0.87 per
          share. Mr. Barrett is also the Principal Manager of Corporate Management
          Solutions, LLC, which is the record owner of 736,000 shares of the Registrant&#8217;s
          common stock and 135,960 warrants to purchase shares of the Registrant&#8217;s common
          stock at any time at an exercise price of $0.87 per share, the beneficial
          ownership of which is attributable to Mr. Barrett and reflected
          herein.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(7)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          136,514 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(8)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          362,806 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(9)</sup></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          135,960 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(10)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
          </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          23,077 warrants to purchase shares of the Registrant&#8217;s common stock at any time
          at an exercise price of $0.87 per share.</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: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>(11)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
          </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
          92,000 shares issuable upon conversion of the NBYS Note from the second
          phase of
          the Bridge Financing, as amended, which is convertible at any time at $1.00
          per
          share, and 890,995 warrants to purchase shares of the Registrant&#8217;s common stock
          at any time.</font></div>
      </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        5.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>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="left"><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; COLOR: #000000; FONT-FAMILY: Times New Roman">Prior
        to the Merger, Scott Thornock, Bruce Capra, Paul Zueger and Wayne Yakes,
        M.D.,
        served as directors, Mr. Thornock served as Chief Executive Officer, President,
        Secretary, and Treasurer, and Mr. Capra served as Chief Financial Officer
        of the
        Registrant. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Just
        prior to the Merger, the individuals currently serving as the Registrant&#8217;s board
        of directors appointed </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">James
        W. France, Robert V.R. Ostrander, Kevin Loychik, Brent Peterson and Dean
        Barrett, each of whom was a director of FIIC, Inc., </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">to
        the Registrant&#8217;s board of directors. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Scott
        Thornock, Bruce Capra, Paul Zueger and Wayne Yakes, M.D., then resigned as
        officers and directors of the Registrant</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">,
        contingent and effective upon the closing of the Merger. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">In
        addition, concurrent with the closing of the Merger, the Registrant&#8217;s board
        appointed James W. France as its President and Chief Executive Officer, James
        E.
        Bowser as Chief Operating Officer and Executive Vice President, Wade Estep,
        CPA
        as Chief Financial Officer and Robert V.R. Ostrander as Vice President of
        Marketing, Sales and Distribution and Secretary. </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">For
        complete information regarding the Registrant&#8217;s new officers and directors,
        refer to &#8220;Executive Officers, Directors and Key Employees&#8221; under Item 5.01
        above.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        5.03</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Amendments
        to Articles of Incorporation or Bylaws; Change in Fiscal
        Year.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 8, 2005, the Registrant filed a Certificate of Amendment to its
        Articles of Incorporation with the Colorado Secretary of State to effectuate
        a
        1-for-2.00317 reverse stock split of its common stock prior to the closing
        of
        the Merger. A copy is attached hereto as Exhibit 3.1.</font></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="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">On
        February 28, 2006, the Registrant filed a Certificate of Merger to (i)
        effectuate a reincorporation from the State of Colorado to the State of Delaware
        and (ii) a corporate name change to &#8220;FIIC Holdings, Inc.&#8221; A copy of the FIIC
        Holdings, Inc. Certificate of Incorporation is attached hereto as Exhibit
        3.2.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Section
        5.06 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>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="left"><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; COLOR: #000000; FONT-FAMILY: Times New Roman">Prior
        to the closing of the Merger, the Registrant was a &#8220;shell company&#8221; as defined in
        Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act. Although
        the
        Registrant believes that it may still be a &#8220;shell company&#8221; pursuant to the
        referenced definition after the consummation of the Merger described in Items
        2.01 and 5.01 of this Current Report on Form 8-K, the Registrant has provided
        disclosure consistent with the requirements set forth in SEC Release No.
        33-8587
        (July 15, 2005). Reference is made to the disclosure set forth under Items
        2.01,
        2.02, 3.03, 4.01, 5.01 and 9.01 of this report, which are incorporated herein
        by
        reference and provide the information that would be required if the registrant
        were filing a general form for registration of securities on Form
        10-SB.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>Item
        9.01 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>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="left"><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; COLOR: #000000; FONT-FAMILY: Times New Roman">(a)
        Financial Statements of Business Acquired. </font></div>
      <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">
          </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">
        <div><br>
          <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>INDEX
            TO FIIC FINANCIAL STATEMENTS</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"><br></div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td valign="top" width="63%" style="border-bottom: medium none;">&#160;</td>
                  <td valign="top" width="15%" 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"><u>Page</u></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                  <td align="justify" valign="top" width="15%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <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">Independent
                      Auditors&#8217; Report</font></div>
                  </td>
                  <td valign="top" width="15%">
                    <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">F-2</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="justify" valign="top" width="63%">
                    <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="15%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <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">Financial
                      Statements:</font></div>
                  </td>
                  <td valign="top" width="15%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="justify" valign="top" width="63%">
                    <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="15%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance
                      Sheet</font></div>
                  </td>
                  <td valign="top" width="15%">
                    <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">F-3</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                  <td valign="top" width="15%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statement
                      of Operations</font></div>
                  </td>
                  <td valign="top" width="15%">
                    <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">F-4</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                  <td valign="top" width="15%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statement
                      of Equity</font></div>
                  </td>
                  <td valign="top" width="15%">
                    <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">F-5</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                  <td valign="top" width="15%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statement
                      of Cash Flows</font></div>
                  </td>
                  <td valign="top" width="15%">
                    <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">F-6</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="justify" valign="top" width="63%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                  <td valign="top" width="15%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="justify" valign="top" width="63%">
                    <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">Notes
                      to Financial Statements</font></div>
                  </td>
                  <td valign="top" width="15%">
                    <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">F-7</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">&#160;</div>
        </div>
        <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="3">
              </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"><u>INDEPENDENT
            AUDITORS&#8217; REPORT</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: 367.2pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
            The
            Shareholders FIIC, Inc.</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">Columbus,
            Ohio</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 style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
            have
            audited the accompanying balance sheet of FIIC, Inc. (a Delaware Corporation)
            as
            of December 31, 2005 and the related statements of operations, equity,
            and cash
            flows for the period from inception (January 25, 2005) to December 31,
            2005.
            These financial statements are the responsibility of FIIC, Inc.&#8217;s management.
            Our responsibility is to express an opinion on these financial statements
            based
            on our audit.</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 style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
            conducted our audit in accordance with the standards of the Public Company
            Accounting Oversight Board (United States). Those standards require that
            we plan
            and perform the audit to obtain reasonable assurance about whether the
            financial
            statements are free of material misstatement. The company is not required
            to
            have, nor were we engaged to perform, an audit of its internal control
            over
            financial reporting. Our audit included consideration of internal control
            over
            financial reporting as a basis for designing audit procedures that are
            appropriate in the circumstances, but not for the purpose of expressing
            an
            opinion on the effectiveness of the company&#8217;s internal control over financing
            reporting. Accordingly, we express no such opinion. An audit also includes
            examining, on a test basis, evidence supporting the amounts and disclosures
            in
            the financial statements, assessing the accounting principles used and
            significant estimates made by management, as well as evaluating the overall
            financial statement presentation. We believe that our audit provides
            a
            reasonable basis for our opinion.</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 style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            our
            opinion, the financial statements referred to above present fairly, in
            all
            material respects, the financial position of FIIC, Inc as of December
            31, 2005,
            and the results of its operations and its cash flows for the initial
            period then
            ended in conformity with accounting principles generally accepted in
            the United
            States of America.</font></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
            Schoonover Boyer + Associates</font></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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Columbus,
            Ohio</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">March
            1,
            2006</font></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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-2</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</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">(A
            Development Stage Company)</font></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="center">
            <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">BALANCE
              SHEET</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">December
              31, 2005</font></div>
          </div>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <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">CURRENT
                      ASSETS</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 32.4pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,714</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">OTHER
                      ASSETS</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      held in escrow (Note 5)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">258,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
                      agreement (Notes 2 and 10)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,792</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loan
                      fees, net of accumulated amortization of $140,146 (Note 2)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">289,042</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      stock issuance costs (Note 7)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,500</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      other assets</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">669,334</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <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">TOTAL
                      ASSETS</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">671,048</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">CURRENT
                      LIABILITIES</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      payable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">112,658</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                      expenses</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">310,975</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                      interest</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,007</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridge
                      loan payable (Note 5)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">350,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                      payable - convertible (Note 4)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                      payable - shareholders (Note 3)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">39,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                      party payable (Note 10)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">104,978</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      current liabilities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,140,618</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">COMMITMENTS
                      (Note 9)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">STOCKHOLDER'S
                      (DEFICIT)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                      stock (Note 6)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,843</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                      paid in capital</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">525,637</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deficit
                      accumulated in the development stage</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      stockholder's (deficit)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(469,570</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <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">TOTAL
                      LIABILITIES AND STOCKHOLDER'S (DEFICIT)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">671,048</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                </tr>

            </table>
          </div>
          <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">The
            accompanying notes are an integral part of the financial
            statements.</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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-3</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</font></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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A
            Development Stage Company)</font></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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">STATEMENT
            OF OPERATIONS</font></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="center">
            <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">For
              the
              period of January 25, 2005 (Inception) through December 31,
              2005</font></div>
          </div>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr bgcolor="white">
                  <td colspan="4" valign="bottom" width="98%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <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">Revenue</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">General
                      and administrative expenses</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">979,543</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <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">Interest
                      expense</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">26,507</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <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">Total
                      expenses</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,006,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <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">Loss
                      before income taxes</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <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">Income
                      taxes (Note 1)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#8212;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <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">Net
                      loss</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <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">Shares
                      outstanding</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,843,377</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <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">Loss
                      per share</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 36pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
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            the
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                <tr>
                  <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
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                      Stock</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" colspan="2" rowspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">&#160;</td>
                  <td width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="12%" 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">Shares</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" 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">Amount</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                    <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">Balance
                      at January 25, 2005 (inception)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
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                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 30.6pt"></font>
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                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;"><font style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px" size="2">$</font></td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                    <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">Issuance
                      of share to founder</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                    <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">Issuance
                      of shares for license agreement</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,792,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,792</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                    <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">Issuance
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                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">400,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">400</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">199,600</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                    <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">Issuance
                      of shares for debt issuance costs</font></div>
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                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">651,376</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">651</font></div>
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                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">325,037</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                    <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">Net
                      loss</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 21.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc solid;">
                    <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">Balance
                      at December 31, 2005</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,843,377</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 9pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 9pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,843</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 12.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">525,637</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 39.6pt"></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;"><font size="2">$</font></td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</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="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">The
            accompanying notes are an integral part of the financial
            statements.</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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-5</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</font></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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A
            Development Stage Company)</font></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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">STATEMENT
            OF CASH FLOWS</font></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="center">
            <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">For
              the
              period of January </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25,
              2005
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Inception)
              through December </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31,
              2005</font></div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
          </div>
          <div>
            <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr bgcolor="white">
                  <td align="left" colspan="4" valign="bottom" width="98%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">CASH
                      FLOWS FROM OPERATING ACTIVITIES</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      loss</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 14.4pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 14.4pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 14.4pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustments
                      to reconcile net loss to net cash (used in) operating
                      activities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      based compensation</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amortization
                      expense</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">140,146</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                      in operating assets and liabilities:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                      payable</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">112,658</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">310,975</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                      interest</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,007</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      adjustments</font></div>
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                  <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      (used in) operating activities</font></div>
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                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(219,264</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <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">CASH
                      FLOWS FROM FINANCING ACTIVITIES</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                      from notes payable - shareholders</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">39,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                      from notes payable - convertible</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Debt
                      issuance costs on notes payable, convertible</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(20,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Proceeds
                      from bridge loan, net of amount held in escrow</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">92,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Debt
                      issuance costs on bridge loan</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(83,500</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Borrowings
                      from related parties</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(7,522</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Issuance
                      of common stock</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <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">Cash
                      provided by financing activities</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">220,978</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <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">Net
                      increase in cash</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,714</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                    <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">CASH
                      - beginning of period</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                    <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">CASH
                      - end of period</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 36pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,714</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <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">SUPPLEMENTAL
                      DISCLOSURE OF CASH FLOW INFORMATION:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      paid for interest</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 34.2pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 34.2pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,500</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                      paid for taxes</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 45pt"></font>
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">&#8212;</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <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">NON
                      CASH INVESTING AND FINANCING ACTIVITIES:</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Acquired
                      license agreement from related party (Notes 2 and 10)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,792</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                      stock issuance costs paid by related party (Note 11)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 30.6pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 30.6pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,500</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridge
                      loan proceeds held in escrow (Note 5)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">258,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      based compensation in exchange for consulting services (Note
                      9)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      based compensation in exchange for debt issuance costs (Note
                      9)</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: 25.2pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">325,688</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>

            </table>
          </div>
          <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">The
            accompanying notes are an integral part of the financial
            statements.</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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-6</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            1 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>NATURE
            OF ORGANIZATION AND SUMMARY OF</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>SIGNIFICANT
            ACCOUNTING POLICIES</u></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FIIC,
            Inc. ("FIIC" or the "Company") is a Delaware Corporation, which was formed
            on
            January 25, 2005. Currently, the Company has limited operations and is
            a
            development stage company.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Nature
            of Business</u></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FIIC
            is a
            development stage enterprise. As such, the Company is devoting substantially
            all
            of its efforts to establishing a new business. The success of the Company
            will
            depend on its ability to raise sufficient capital to bring the business
            plan to
            fruition. There can be no guarantee of such success.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company plans to introduce an insurance product to entrepreneurial business
            enterprises designed to insure third-party investors. This insurance
            product,
            Investor Protection Policy, will insure against the loss of capital invested
            in
            the insured Company. The policies are to be sold to the business enterprise
            as a
            form of credit enhancement for the perspective investors.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            founder of FIIC has developed its business model and strategic plan over
            the
            course of the last decade. Due to the enormous loss of credibility in
            the
            capital markets and the reluctance of equity and debt providers to invest
            in new
            and growing companies, the economic events of recent years make the Company
            solution even more critical for the capital markets.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
            conduct its business, FIIC is in process of forming and capitalizing
            three
            operating entities:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" id="list" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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">Federated
                      Investors Insurance Company Risk Retention Group (&#8220;FIIC RRG&#8221;) shall write
                      the Investor Protection polices;</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div>
            <table cellpadding="0" cellspacing="0" id="list" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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">Federated
                      Insurance Captive (&#8220;FIC&#8221;), an agency captive insurance company, shall
                      provide reinsurance coverage to FIIC RRG;
                      and</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div>
            <table cellpadding="0" cellspacing="0" id="list" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td align="right" style="width: 63pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#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">Federated
                      Group Agency (&#8220;FGA&#8221;), a master group agency, shall provided operation
                      services to FIIC RRG and FIC.</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"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Basis
            of Accounting</u></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            financial statements of the Company are prepared on the accrual basis
            of
            accounting.</font></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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-7</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</font></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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            the
            period of January 25, 2005 (Inception) through December 31, 2005</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: -27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            1 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>NATURE
            OF ORGANIZATION AND SUMMARY</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>SIGNIFICANT
            ACCOUNTING POLICIES</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
            Continued</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Use
            of
            Estimates</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            preparation of financial statement in conformity with accounting principles
            generally accepted in the United States of America requires management
            to make
            estimates and assumptions that affect the reported amounts of assets
            and
            liabilities at the date of the balance sheet. Actual results could differ
            from
            those estimates.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Debt
            Issuance Costs</u></font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Debt
            issuance costs are amortized based upon the lives of the respective debt
            obligations. The gross carrying amount of deferred loan costs at December
            31,
            2005 was $429,188 and accumulated amortization was $140,146. Amortization
            of
            deferred loan costs is included in general and administrative expense
            and was
            $140,146 for the period ended December 31, 2005.</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Statements
            of Cash Flows</u></font></div>
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            and
            cash equivalents are defined as cash and investments that have an original
            maturity of less than three months.</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Income
            Taxes</u></font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            provision for income taxes represents income taxes paid or payable for
            the
            current year plus the change in deferred taxes during the year. The Company
            recognizes deferred tax assets and liabilities based on differences between
            the
            financial reporting and tax bases of assets and liabilities using the
            enacted
            tax rates and laws that are expected to be in effect when the differences
            are
            expected to be recovered. The Company provides a valuation allowance
            for
            deferred tax assets for which it does not consider realization of such
            assets to
            be more likely than not. As of December 31, 2005, the deferred tax asset
            is
            fully reserved; therefore, the net expense/benefit is $0.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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">
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              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-8</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
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              </div>
            </div>
            <div id="HDR">
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              </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">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            2 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>LICENSE
            AGREEMENT</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company has entered into a license agreement to use software developed
            by FIIC
            R&amp;D, LLC (&#8220;licensor&#8221;), a related party (See Note 10). Additionally, FIIC
            R&amp;D will host and support the software application and allow FIIC to
            sublicense to third parties.</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
            consideration for the license agreement, FIIC issued to the licensor
            9,792,000
            shares of its common stock (total par value $9,792) and have issued warrants
            to
            purchase an additional 1,808,307 share of its common stock at an exercise
            price
            of $0.87 per share. Such warrants will expire five years after the date
            of
            issuance. Further, the Company has agreed to pay $100,000 in cash. To
            develop
            this software, the Licensor has invested significantly more than
            $100,000.</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
            pursuant to the license agreement, FIIC, Inc. shall pay the Licensor
            3% of net
            premiums for Hosting and Support services on a quarterly basis.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
            agreement was not the result of an arms-length negotiation.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            3 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>NOTES
            PAYABLE - SHAREHOLDERS</u></font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shareholder
            notes payable at December 31, 2005 consisted of the following:</font></div>
          <div align="right">
            <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="97%">

                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="75%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="75%" style="border-bottom: #ccffcc;">
                    <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">$12,000
                      payable to a shareholder, principal and interest note of $6,000,
                      payable
                      on December 31, 2005, extended March 31, 2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="75%" style="border-bottom: white;">
                    <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">$15,000
                      note payable to a shareholder, principal and interest of $7,500,
                      payable
                      on December 31, 2005, extended to March 31, 2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                    </div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">15,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="75%" style="border-bottom: #ccffcc;">
                    <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">$10,000
                      note payable to a shareholder, principal and interest of $5,000,
                      payable
                      on December 31, 2005, extended to March 31, 2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="75%" style="border-bottom: white solid;">
                    <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">$2,000
                      note payable to a shareholder, principal and interest of $1,000,
                      payable
                      on December 31, 2005, extended to March 31, 2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,000</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="75%" style="border-bottom: #ccffcc solid;">
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="75%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>

            </table>
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          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
            of
            December 31, 2005, interest expense of $19,500 has been accrued on the
            above
            notes.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-9</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </div>
            </div>
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              <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">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            4 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>NOTES
            PAYABLE - CONVERTIBLE</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Convertible
            notes payable at December 31, 2005 consisted of the following:</font><br></div>
          <div align="right">
            <table cellpadding="0" cellspacing="0" id="ftable" width="97%">

                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="75%">&#160;</td>
                  <td width="2%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                  <td align="right" valign="bottom" width="11%">&#160;</td>
                  <td align="left" valign="bottom" width="1%">&#160;</td>
                </tr>
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                  <td align="left" valign="bottom" width="75%" style="border-bottom: #ccffcc;">
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                      note payable accruing interest at 10% per annum, payable on
                      October 7,
                      2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
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                  </td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">50,000</font></div>
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                <tr bgcolor="white">
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                      note payable accruing interest at 10% per annum, payable on
                      October 7,
                      2006</font></div>
                  </td>
                  <td width="2%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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                </tr>
                <tr bgcolor="#ccffcc">
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                      note payable accruing interest at 10% per annum, payable on
                      October 31,
                      2006</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                <tr bgcolor="white">
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                      note payable accruing interest at 10% per annum, payable on
                      December 6,
                      2006</font></div>
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                  <td width="2%" style="border-bottom: white solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="75%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
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          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
            of
            December 31, 2005, interest expense of $3,507 had been accrued on the
            above
            notes.</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            outstanding principal and accrued interest on the notes stated above
            are
            convertible at any time at the option of the holders and shall automatically
            convert into shares of the Company&#8217;s common stock at the close of the Company&#8217;s
            next equity financing, whether in a single transaction or a series of
            related
            transactions, yielding gross proceeds to the Company of at least $2,000,000
            in
            the aggregate. The number of shares of common stock to be issued upon
            such
            conversions shall be equal to the quotient obtained by dividing (i) the
            entire
            principal amount of the Note plus accrued interest by (ii) a $0.50 price
            per
            share of the common stock, rounded to the nearest whole share. If automatically
            converted, the issuance of such shares upon such conversion shall be
            upon the
            terms and subject to the conditions applicable with piggyback registration
            rights to the next equity financing.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Also
            in
            consideration for each of the convertible notes payable, 115,000 warrants
            to
            purchase stock at $0.87 were issued to each of the holders on the notes
            payable
            stated above.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            the
            Company had entered into an agreement with Bridge Finance Partners (&#8220;BFP&#8221;) to
            obtain these convertible notes. In consideration for obtaining these
            notes, the
            Company paid $20,000 to BFP. This $20,000 payment has been included in
            debt
            issuance costs. Also, as further consideration, BFP received 23,077 warrants
            to
            purchase common stock at a price of $0.87.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-10</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A
            Development Stage Company)</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTES
            TO
            FINANCIAL STATEMENTS</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 54pt" align="left">&#160;</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">NOTE
            5 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>BRIDGE
            LOAN PAYABLE AND CASH IN ESCROW</u></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            November 29, 2005, the Company engaged in a bridge financing transaction
            in
            which it issued a $350,000 senior secured promissory note, exchangeable
            upon the
            closing of the Merger (See Note 7) for a senior secured convertible promissory
            note, convertible into the Combined Group&#8217;s common stock at any time at a rate
            of $1.00 per share, including accrued and unpaid interest, and a warrant
            to
            purchase up to 5% of the fully diluted shares of common stock of in the
            Combined
            Group. In support of the initial note, FIIC has executed a security agreement
            in
            favor of the noteholder, pledging all of its existing and hereafter acquired
            assets, including its licenses for the FIIC Database Content and Technology
            (See
            Note 2), as security for the note. At the time of the exchange of the
            initial
            note for the convertible note and warrant from the Combined Group, the
            Combined
            Group will provide a similar security agreement and the Company will
            provide a
            subsidiary guaranty. At such time, 10 existing Company stockholders,
            including
            certain directors, officers and affiliates of the Company, are also obligated
            to
            execute pledge agreement guarantying the Combined Group&#8217;s obligations under the
            convertible note with an aggregate 4,761,000 shares of their common
            stock.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            net
            proceeds of $258,000 are being held in escrow. These funds are to be
            disbursed
            to Nicklebys with the Second Closing. See Note 11.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            6 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>CAPITAL
            STOCK</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Certificate of Incorporation of FIIC, Inc. authorizes an aggregate total
            of
            75,000,000 shares of capital stock, including 50,000,000 of shares of
            common
            stock with a par value of $.001 per share and 25,000,000 shares of preferred
            stock with a par value of $.001 per share. At December 31, 2005, the
            Company has
            10,843,377 shares of common stock issued and outstanding. No preferred
            stock has
            currently been issued.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            7 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>AGREEMENT
            AND PLAN OF MERGER</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            July
            19, 2005, the Company entered in to an Agreement and Plan of Merger (the
            &#8220;Agreement&#8221;) with Nicklebys.com, Inc., a publicly held Colorado corporation (the
            &#8220;Registrant&#8221; or &#8220;NBYS&#8221;), Nicklebys Acquisition Corp., a privately held Nevada
            Corporation and wholly owned subsidiary of the Nicklebys.com, Inc. (the
&#8220;Merger
            Sub&#8221;) and certain principal shareholders of the Merger Sub. Nicklebys.com,
            Inc.
            announced and filed a copy of the Agreement as an exhibit on Form 8-K
            on July
            20, 2005.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-11</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A
            Development Stage Company)</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTES
            TO
            FINANCIAL STATEMENTS</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 54pt" align="left">&#160;</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">NOTE
            7 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>AGREEMENT
            AND PLAN OF MERGER</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
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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="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            merger is to be effectuated through the Merger Sub, which will merge
            with and
            into FIIC, with FIIC being the surviving corporation. The Registrant
            will issue
            shares of its common stock on a one-for-one basis to the stockholders
            of FIIC in
            exchange for 100% of the issued and outstanding shares of common stock
            of FIIC.
            Additionally, the Registrant will assume options and warrants to purchase
            shares
            of its common stock on the same terms and conditions as previously issued
            by
            FIIC. Pursuant to the Agreement, the Registrant will assume FIIC&#8217;s 2005 Stock
            Option, Deferred Stock and Restricted Stock Plan as the stock option
            plan of the
            Registrant.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Registrant will also cancel 500,000 shares of its common stock held by
            certain
            stockholders in exchange for aggregate cash remuneration of $200,000
            and
            immediately following the closing of the Merger, will distribute any
            remaining
            NBYS assets to one of the Registrant&#8217;s directors and principal shareholders and
            the difference between $75,000 and Registrant&#8217;s remaining liabilities to another
            director and principal shareholder, as designated in the Agreement.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immediately
            prior to the Merger, the Registrant will effectuate a 1-for-2.00317 reverse
            stock split of its common stock. Additionally, immediately following
            the Merger,
            the Registrant will reincorporate from the State of Nevada to the State
            of
            Delaware and will changes its corporate name from Nicklebys.com, Inc.
            to FIIC
            Holdings Inc., or such other name as FIIC may select prior to the closing
            of the
            Merger.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Merger will result in a change-in-control of the Registrant to FIIC and
            its
            stockholders and the assumption of FIIC&#8217;s operation and liabilities. In
            connection with the change-in-control, the Board of Directors and management
            of
            FIIC will become the Board of Directors and management of the
            Registrant.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Closing
            of the Merger is contingent on a number of conditions set forth in the
            Agreement, including approval of the Merger by the shareholders of the
            Registrant and of certain amendments of its Articles of Incorporation
            and
            approval of the Merger by stockholders of FIIC.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            October 31, 2005, Nicklebys.com and FIIC executed an amendment to the
            Merger
            Agreement. In the amendment, the parties changed the projected closing
            date of
            the merger to within 30 days after receipt of the approval of both the
            shareholders of NBYS and the stockholders of FIIC. The parties also amended
            the
            list of anticipated directors post-merger. The amendment increases the
            cash
            consideration to be paid by FIIC to cover NBYS&#8217; liabilities upon closing from
            $75,000 to $100,000.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FIIC,
            INC.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A
            Development Stage Company)</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTES
            TO
            FINANCIAL STATEMENTS</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 54pt" align="left">&#160;</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">NOTE
            7 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>AGREEMENT
            AND PLAN OF MERGER</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
            Continued</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            the
            amendment, FIIC also affirms the maximum number of shares of FIIC common
            stock
            to be issued and outstanding at the closing of the merger and represents
            that
            any issuance of FIIC securities prior to closing will comply with all
            applicable
            federal and state securities laws and regulations. Finally, the parties
            agreed
            to amend the Termination Date, as defined the Merger Agreement, from
            October 31,
            2005 to 120 days from the date of NBYS&#8217; initial filing of a proxy statement on
            Schedule 14A, whether that date is before or after the date of approval
            of the
            merger by FIIC&#8217;s stockholders and NBYS&#8217; stockholders. The Preliminary Proxy
            Statement Schedule 14A was filed on December 12, 2005. The Definitive
            Proxy
            Statement Schedule 14A was filed on January 13, 2006.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Subsequent
            of the merger, the Company is preparing to launch a Private Placement.
            Prior to
            December 31, 2005, the Company had entered into a contract with a securities
            brokerage firm that will act as an exclusive placement agent in connection
            with
            a proposed offering, issuance and sale of up to 5 million shares of the
            Company&#8217;s common stock. The terms of this agreement calls for a non-refundable
            retainer fee of $12,500, which has been paid and included in deferred
            stock
            issuance costs on the balance sheet. In addition to the retainer fee,
            the
            contract provides for a transaction fee equal to 10% of the aggregate
            gross
            proceeds received by the Company from the sale of securities and the
            issuance of
            warrants to purchase common stock of the Company equal to 10% of the
            securities
            sold in the Transactions at a per share exercise price equal to the offering
            price of the securities. The warrants will expire five years from the
            date of
            issuance. The Company will also reimburse the placement agent up to $10,000
            for
            out of pocket expenses.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            8 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>STOCK
            OPTION PLAN</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            April
            25, 2005, the Company adopted the 2005 Stock Option, Deferred Stock and
            Restricted Stock Plan (the &#8220;Plan&#8221;). The total number of shares of Stock reserved
            and available for issuance under the Plan shall be 1,854,883 shares.
            Such shares
            shall consist of authorized but unissued shares.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            stock
            options granted under the Plan to eligible persons may be two types:
            Incentive
            Stock Options and Non-Qualified Stock Options.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            8 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>STOCK
            OPTION PLAN</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
            Continued</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            options price per share of stock purchasable under the incentive stock
            option
            shall be determined by the Administrator, in its sole discretion, at
            the time of
            grant but shall not be less than 100% of the fair market value of the
            stock on
            such date, and shall not, in any event, be less than the par value of
            the stock.
            The option price per share of stock purchasable under a non-qualified
            stock
            option may be less than 100% of such fair market value, but in no event
            be less
            than 85% of such fair market value. If an employee owns or is deemed
            to own more
            than 10% of the combined voting power of all classes of stock of the
            Company and
            a stock option is granted to such employee, the option price of such
            stock
            option shall be no less than 110% of the fair market value of the stock
            on the
            date such stock option is granted.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            term
            of each stock option shall be fixed by Administrator but no stock option
            shall
            be exercisable more then ten years after the date such stock option is
            granted.
            Any employee that owns or is deemed to own more than 10% of the combined
            voting
            power of all classes of stock of the Company and an incentive stock option
            is
            granted to such employee, the term of such option shall be no more than
            five
            years from the date of grant. Stock options issued to non-officer employees
            shall vest at least 20% per year over a five-year period commencing from
            the
            date of grant.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
            stock and restricted stock awards granted under the plan entitles recipients
            to
            purchase shares of the Company&#8217;s common stock subject to restrictions concerning
            the sale, transfer and other disposition of the shares issued until such
            shares
            are vested. The purchase price must be at least 85% of the fair market
            value of
            the stock at the time the participant is granted the right to purchase
            shares
            under the plan or at the time the purchase is consummated. If a participant
            owns
            or is deemed to own more than 10% of the combined voting power of all
            classes of
            stock of the Company then the purchase price must be 100% of the fair
            market
            value of the stock either at the time the Participant is granted the
            right to
            purchase shares under the plan, or at the time the purchase is consummated.
            Upon
            termination of employment for any reason during the restricted period,
            all
            shares subject to any restrictions as of the date of such termination
            shall be
            forfeited by the participant, and the participant shall only receive
            the amount,
            if any paid by the Participant for such Deferred Stock or Restricted
            Stock, plus
            simple interest on such amount at the rate of 6% per year.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            of
            December 31, 2005, no options, deferred stock or restricted stock awards
            have
            been granted.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            9 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>COMMITTMENTS</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: 18pt; 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>Financial
            Advisory and Consulting Agreement</u></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            the
            fall of 2004, the FIIC founder selected Peyton, Chandler &amp; Sullivan (&#8220;PCS&#8221;)
            as a consultant to assist FIIC in identifying a suitable candidate for
            a reverse
            merger. Upon finding a suitable candidate, the Company will issue an
            aggregate
            of 625,000 shares to PCS as consideration for their contract. This consideration
            will be due only if (i) the Company consummates a merger with a party
            identified
            by PCS, (ii) the Company consummates the merger only with shares of its
            common
            stock, (iii) the Company pays no cash consideration, and (iv) the shareholders
            of the Company own at least 90% of the capital stock outstanding immediately
            after the merger.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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>Independent
            Consulting Agreements</u></font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company has also entered into a consulting contract with Corporate Growth
            Professionals of Dana Point, California ("CGP") to provide services related
            to
            management, marketing, strategic planning, corporate organization and
            structure,
            business prospects, financial matters in connection with the operation
            of the
            business of the Company, strategic partnerships and related operational
            and
            growth initiatives. CGP further agreed to introduce the Company to financing
            sources capable of providing $1 million in financing.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            terms
            of the agreement state that the consultant shall receive a monthly fee
            of $5,000
            for twelve months to begin once the Company received $1 million in financing
            commitments. In addition to the cash compensation, the Company agreed
            to issue
            2% of the outstanding shares of the Company to the consultant. The shares
            shall
            be issued within five days after it receives the demand from the CGP.
            During the
            period ended December 31, 2005, the Company has issued 400,000 shares
            to CGP.
            These shares were deemed to have a value of $0.50 per share. Thus, $200,000
            has
            been included in consulting expense with the issuance of the shares.
            The
            contract also states the Company shall pay all incidental costs and expenses
            associated with the services provided by the consultant. The term of
            the
            contract is for a period of two years.</font></div>
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            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            9 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>COMMITMENTS</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
            Continued </font></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Advisory
            Agreement &amp; Bridge Financing</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            August
            30, 2005, FIIC and Nicklebys.com entered into an advisory agreement with
            Bridgewater Capital Corporation (&#8220;BCC&#8221;). BCC will assist the Company in
            analyzing and consulting on reverse mergers, negotiate equity capital,
            debt
            financing and bridge loans. BCC will also assist in business development
            and,
            licensing and/or royalty opportunities, locating merger candidates, acquisition
            candidates, divestiture opportunities, valuation metrics, spin-off
            opportunities, strategic alliances or partnerships and any other opportunities
            to enhance shareholder value. For the services described above the Company
            shall
            compensate BCC as follows for:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I.</font></td>
                  <td align="left">
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Finders
                      fee on any mergers or acquisitions of the Company through any
                      source
                      introduced by or through BCC calculated using the Lehman Formula.
                      This fee
                      is payable in common stock of the Company on the merger
                      date.</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"><br></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">II.</font></td>
                  <td align="left">
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consulting
                      fees of $5,000 a month. Once gross proceeds of $1,000,000 have
                      been
                      raised, from a source introduced by or through BCC, the consulting
                      fee
                      will be increased to $10,000 per month thereafter. As of December
                      31,
                      2005, the Company has paid $5,000 to BCC and accrued additional
                      fees of
                      $15,000.</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"><br></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">III.</font></td>
                  <td align="left">
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
                      funding of a minimum of $350,000 in gross proceeds BCC will
                      be issued 4.9%
                      of the fully diluted shares of the Company. The shares will
                      have immediate
                      piggyback registration rights.</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"><br></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">IV.</font></td>
                  <td align="left">
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Company
                      will reimburse the BCC for any and all reasonable normal business
                      expenses
                      incurred with performance of above services up to a sum of
                      $500 a
                      month.</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"><br></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">V.</font></td>
                  <td align="left">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
                      any financings provided, the Company will also pay BCC the
                      following:</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"><br></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 45pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)</font></td>
                  <td align="left">
                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                      financing - a cash placement fee equal to 10% of the gross
                      proceeds
                      involved in the financing as well as a 2% non-accountable fee.
                      At the
                      closing of the financing or at the time of conversion, if any,
                      in addition
                      to any placement fee, the Company shall issue to BCC warrants
                      for shares
                      of common stock equal to 10% of the common stock placed. The
                      warrants will
                      be five year, non-callable, assignable warrants with immediate
                      piggy-back
                      registration rights with an exercise price per share equal
                      to the price
                      per share paid by the investor in the equity financing. The
                      warrants shall
                      also contain a cashless exercise
                      provision.</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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-16</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </div>
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              </div>
            </div>
          </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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            9 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>COMMITMENTS</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
            Continued</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 45pt;">
                  </td>
                  <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)</font></td>
                  <td align="left">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Debt
                      financing - a cash placement fee equal to 3% of the gross facility
                      involved in the debt financing.</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"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
            connection with the Bridge Financing described in Note 5, the Company
            has paid
            $42,000 to BCC as outlined above for the 10% cash placement fee and 2%
            non-accountable fee. Also in connection with the Bridge Financing, the
            Company
            has issued 651,376 shares to BCC as outlined above with the funding of
            a minimum
            of $350,000. These shares were deemed to have a value of $0.50 per share.
            Thus,
            the $42,000 and $325,688 have been included in debt issuance costs and
            are being
            amortized over the life of the Bridge Loan.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            10 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>RELATED
            PARTY TRANSACTIONS</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
            of
            December 31, 2005, the Company has received unsecured, non-interest bearing
            advances from related parties totaling $47,500 to pay for costs associated
            with
            obtaining additional financing. As of December 31, 2005, $4,978 remains
            unpaid.
            Additionally, the Company owes $100,000 for the license agreement as
            described
            in Note 2.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
            the
            period ended December 31, 2005, the Company has expensed $275,000 for
            consulting
            expenses that are payable to several directors, officers and individuals
            who are
            intended to serve as key personnel. As of December 31, 2005, $228,000
            remains
            unpaid and included in Accrued expenses on the accompanying balance
            sheet.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
            Company has entered into a sublease agreement with a related party for
            office
            space and overhead expenses at $5,000 a month. The sublease was effective
            February 1, 2005. The Company has reimbursed the related party $12,000
            for the
            use of the office space during the period ended December 31, 2005. As
            of
            December 31, 2005, $43,000 remains unpaid and included in Accrued expenses
            on
            the accompanying balance sheet.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-17</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
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              </div>
            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right">
              </div>
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          </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">FIIC,
            INC.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A
            Development Stage Company)</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTES
            TO
            FINANCIAL STATEMENTS</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 54pt" align="left">&#160;</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">NOTE
            11 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>SUBSEQUENT
            EVENTS</u></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            January 17, 2006, the Company obtained a $300,000 unsecured convertible
            promissory note accruing interest at 8% and due December 8, 2006. The
            entire
            amount of outstanding principal and accrued interest shall be convertible
            at any
            time at the option of the holder and shall automatically convert into
            shares of
            the Company&#8217;s common stock at the close of the Company&#8217;s next equity financing,
            whether in a single transaction or a series of related transactions,
            yielding
            gross proceeds to the Company of at least $2,000,000 in the aggregate.
            The
            number of shares of common stock to be issued upon such conversion shall
            be
            equal to the quotient obtained by dividing (i) the entire principal amount
            of
            this Note plus accrued interest by (ii) a $0.65 price per share of the
            common
            stock, rounded to the nearest whole share. If automatically converted,
            the
            issuance of such shares upon such conversion shall be upon the terms
            and subject
            to the conditions applicable with piggyback registration rights to the
            next
            equity financing. Also, in consideration for services performed in connection
            with the funding of this note payable, Bridge Finance Partners has received
            800,000 shares of common stock.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            February 7, 2006, the shareholders of Nicklebys and the shareholders
            of FIIC
            approved the merger agreement (See Note 7) during their respective special
            shareholder meetings. The merger was closed and effective on February
            28,
            2006.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            February 23, 2006, the Company obtained two $100,000 unsecured convertible
            promissory notes accruing interest at 8% and due February 24, 2007. The
            entire
            amount of outstanding principal and accrued interest shall be convertible
            at any
            time at the option of the holders and shall automatically convert into
            shares of
            the Company&#8217;s common stock at the close of the Company&#8217;s next equity financing,
            whether in a single transaction or a series of related transactions,
            yielding
            gross proceeds to the Company of at least $2,000,000 in the aggregate.
            The
            number of shares of common stock to be issued upon such conversion shall
            be
            equal to the quotient obtained by dividing (i) the entire principal amount
            of
            this Note plus accrued interest by (ii) a $0.25 price per share of the
            common
            stock, rounded to the nearest whole share. If automatically converted,
            the
            issuance of such shares upon such conversion shall be upon the terms
            and subject
            to the conditions applicable with piggyback registration rights to the
            next
            equity financing. In consideration for the promissory notes, the holders
            of the
            notes will each receive 100,000 shares of common stock. Also, in consideration
            for services performed in connection with the funding of these notes
            payable,
            Bridge Finance Partners will receive a 10% fee ($20,000).</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">F-18</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="3">
              </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">FIIC,
            INC.</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">(A
            Development Stage Company)</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">NOTES
            TO
            FINANCIAL STATEMENTS</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">For
            the
            period of January 25, 2005 (Inception) through December 31, 2005</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTE
            11 -
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>SUBSEQUENT
            EVENTS</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
            -
            continued</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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            February 26, 2006, the Company entered into a contract with
            Accelerate-Financial, Inc. (&#8220;AFI&#8221;), to provide merger and acquisition advisory
            services and corporate consulting services. 825,000 shares of stock shall
            be
            issued to AFI in conjunction with their assistance with completing the
            Nicklebys
            merger. The cost basis of the issuance shall be consistent with the valuation
            of
            FIIC at the time the agreement was executed.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
            February 28, 2006, the Bridge Loan (See Note 5) was extended to May 29,
            2006.
            With the extension, the $258,000 held in escrow was returned to the Buyer,
            leaving $92,000 outstanding. In addition, all of the Pledgors were released
            from
            their respective Pledge Agreements except for James France, CEO of FIIC,
            Inc.
            The Company also will pay $7,019 as payment in full of the interest owed
            to the
            Buyer on the $350,000 Bridge Loan and $3,500 for legal expenses incurred
            by the
            Buyer.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 18pt; 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"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">F-19</font></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: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        </div>
      </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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>SUMMARY
        FINANCIAL INFORMATION</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        following gives a summary of the most recent balance sheet data of FIIC,
        Inc. as
        of December 31, 2005 and the statements of operations data of FIIC, Inc.
        for the
        period from inception (January 24, 2005) through December 31, 2005.</font></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="left">
        <div>
          <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" 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>Balance
                    as 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>December
                    31, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <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">Current
                    Assets</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,714</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                  <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">Other
                    Assets</font></div>
                </td>
                <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">669,334</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    Assets</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">671,048</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <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">Current
                    Liabilities</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,140,618</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                  <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">Stockholders&#8217;
                    (Deficit)</font></div>
                </td>
                <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(469,570</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    Liabilities And Stockholder's (Deficit) </font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">671,048</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>

          </table>
        </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="left"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="11%" 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>From
                    Inception </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>Through</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>December
                    31, 2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <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">Revenue</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                  <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">Total
                    expenses</font></div>
                </td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,006,050</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                  <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">Income
                    taxes</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                    loss</font></div>
                </td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,006,050</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                  <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">Shares
                    outstanding</font></div>
                </td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,843,377</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <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">Loss
                    per share</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.09</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</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>
      <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; COLOR: #000000; FONT-FAMILY: Times New Roman">This
        information is only a summary. You should also read the historical financial
        statements, management&#8217;s discussion and analysis and related notes for FIIC,
        Inc. contained elsewhere in this document.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        Registrant is providing financial and other information for informational
        purposes only. It does not necessarily represent or indicate what the financial
        position and results of operations of the Registrant will be now that the
        Merger
        is concluded.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">(b)
        Pro Forma Financial Statements.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>PRO
        FORMA FINANCIAL INFORMATION</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        following unaudited pro forma condensed combined financial statements give
        effect to the Merger as if it had occurred at an earlier date. The unaudited
        pro
        forma condensed combined balance sheet as of December 31, 2005 gives effect
        to
        the Merger as if it occurred on December 31, 2005 and combines the historical
        balance sheets of FIIC and Nicklebys at December 31, 2005. The FIIC balance
        sheet information was derived from its audited December 31, 2005 balance
        sheet
        included herein. The Nicklebys balance sheet information was derived from
        its
        unaudited December 31, 2005 balance sheet. The unaudited pro forma condensed
        combined statement of operations for the year ended December 31, 2005 is
        presented as if the transaction was consummated on April 1, 2005 and combines
        the historical results of FIIC and Nicklebys for the nine months ended December
        31, 2005. The historical results of FIIC were derived from its audited December
        31, 2005 statement of operations included herein. The historical results
        of
        Nicklebys were derived from its unaudited December 31, 2005 statement of
        operations.</font></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">&#160;</div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="3">
          </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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        unaudited pro forma condensed combined financial statements have been prepared
        by FIIC&#8217;s and Nicklebys&#8217; management for illustrative purposes only and are not
        necessarily indicative of the condensed financial position or results of
        operations in future periods or the results that actually would have been
        realized had FIIC and Nicklebys been a combined company during the specified
        periods. The pro forma adjustments are based on the preliminary information
        available at the time of the preparation of this document. The unaudited
        pro
        forma condensed combined financial statements, including the notes thereto,
        are
        qualified in their entirety by reference to, and should be read in conjunction
        with, the historical financial statements of FIIC from inception (January
        24,
        2005) through December 31, 2005 included herein and the historical financial
        statements of Nicklebys for the three, six and nine months ended and as of
        September 30, 2005, incorporated by reference herein.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">Because
        the former FIIC, Inc. stockholders now own approximately 93.6% of the shares
        of
        the Registrant&#8217;s common stock, former FIIC, Inc. stockholders have control over
        the Registrant, FIIC, Inc.&#8217;s designees are serving as the Registrant&#8217;s directors
        and the former FIIC, Inc. management team is managing the Registrant. As
        a
        result, FIIC, Inc. is deemed to have been the acquiring company for accounting
        purposes. Accordingly, the purchase price has been allocated among the fair
        values of the assets and liabilities of Nicklebys, while the historical results
        of FIIC, Inc. are reflected in the results of the combined post-Merger company.
        The transaction shall be accounted for under the purchase method of accounting
        in accordance with Statement of Financial Accounting Standards (&#8220;SFAS&#8221;) No. 141,
&#8220;Business Combinations.&#8221; Under the purchase method of accounting, the total
        estimated purchase price, calculated as described in Note 1 to these unaudited
        pro forma condensed combined financial statements, is allocated to the net
        tangible and intangible assets acquired and liabilities assumed in connection
        with the Merger, based on their estimated fair values as of the completion
        of
        the Merger, taking into account the intended issuance of Nicklebys&#8217; remaining
        assets and the settlement of its outstanding liabilities upon consummation
        of
        the Merger. A final determination of any estimated fair values, which cannot
        be
        made prior to the completion of the Merger, will be based on the actual net
        tangible and intangible assets of Nicklebys that exist as of the date of
        completion of the Merger.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">The
        selected unaudited pro forma condensed combined financial statements are
        based
        on estimates and assumptions that are preliminary. The data is presented
        for
        informational purposes only and is not intended to represent or be indicative
        of
        the results of operations or financial condition of the Registrant that would
        have been reported had the proposed transaction been completed as of the
        dates
        presented, and should not be taken as representative of future results of
        operations or financial condition of the combined group. Please also read
        the
        section in this Current Report entitled &#8220;Cautionary Note Regarding Forward
        Looking Statements&#8221; under Item 2.01 for more information on the statements made
        in this section.</font></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="left">
        <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
          PRO FORMA CONDENSED COMBINED BALANCE SHEET</strong></font></div>
        <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>as
          of December 31, 2005</strong></font></div><br>
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td valign="bottom" width="36%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>31-Dec-2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>31-Dec-2005</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="8" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Adjustments</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Combined</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" width="36%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FIIC</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nicklebys.com</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dr</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: black double;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cr</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>as
                    adjusted</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ASSETS</strong></font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    assets:</font></div>
                </td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,714</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">406</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">300,000
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
                    </strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(300,000</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(20,000</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white solid;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                    interest</font></div>
                </td>
                <td width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    current assets</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,714
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">406
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">500,000
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(320,406</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">181,714
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loan
                    Fees</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">289,042
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">400,000
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">809,042
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
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                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(258,000</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>d
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">301,199
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">301,199
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">License
                    agreement</font></div>
                </td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,792
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">109,792
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                    stock issuance costs</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,500
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,500
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    assets</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">671,048</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">406</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(578,406</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,414,247</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES
                    AND STOCKHOLDERS' DEFICIT</strong></font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                    liabilities:</font></div>
                </td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                    payable and accrued expenses</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(446,640</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(49,981</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">49,981</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10,519</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>d
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(457,159</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Note
                    payable - convertible</font></div>
                </td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(200,000</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(300,000</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(700,000</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(200,000</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
                    </strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bridge
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                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">258,000
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>d
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(92,000</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                    payable - shareholders</font></div>
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                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13,083</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">406
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(39,000</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,677
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Related
                    party payable</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(104,978</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(104,978</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    liabilities</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,140,618</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">321,064
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(510,519</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,393,137</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
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                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stockholders
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">291
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,199</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(13,867</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
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              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(800</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(200</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(825</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>e
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
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                </td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5,282,719</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,282,719
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(399,200</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,436,312</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>e
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                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deficit
                    accumulated in development stage</font></div>
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                <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>d
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,429,069
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">412,500
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>e
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Retained
                    earnings</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,345,668
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(5,345,668</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                    </strong></font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    stockholders deficit</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">469,570
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                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">62,658
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,706,029
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(6,259,367</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(21,110</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="36%" style="border-bottom: white;">&#160;</td>
                <td width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="36%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    liabilities and stockholders deficit</font></div>
                </td>
                <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(671,048</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(406</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,027,093</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(6,769,886</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,414,247</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                </td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" colspan="11" valign="top" width="88%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Footnotes
                    to the Unaudited Pro Forma Condensed Combined Balance Sheet as
                    of December
                    31, 2005. The Unaudited Pro Forma Condensed Combined Balance
                    Sheet is
                    presented as if the transaction occurred on December 31,
                    2005.</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="28%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>a</strong></font></div>
                </td>
                <td align="left" colspan="10" valign="top" width="86%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                    connection with the merger, FIIC will use the purchase method
                    of
                    accounting. Total cash consideration will be $300,000 ($200,000
                    paid to
                    certain shareholders to cancel 500,000 shares and approximately
                    $87,000
                    for the satisfaction of Nicklebys&#8217; remaining pre-Merger liabilities, and
                    shall cover up to an additional $13,000 of Nicklebys&#8217; closing costs
                    post-Merger.)</font></div>
                </td>
              </tr>
              <tr>
                <td align="right" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="28%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>b</strong></font></div>
                </td>
                <td align="left" colspan="10" valign="top" width="86%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
                    $300,000 convertible note issued in January 2006 accruing interest
                    at 8%
                    per annum due in full December 2006. The note is convertible
                    at any time
                    at the option of the holder and shall automatically convert into
                    shares of
                    common stock at the close of the next equity financing, whether
                    in a
                    single transaction or a series of related transactions, yielding
                    gross
                    proceeds of at least $2,000,000 in the aggregate. The number
                    of shares of
                    common stock to be issued upon such a conversion shall be equal
                    to the
                    quotient obtained dividing (i) the entire principal amount of
                    the note
                    plus accrued interest by (ii) a $0.65 price per share of the
                    common stock,
                    rounded to the nearest whole share. Also, in consideration for
                    services
                    performed in connection with the funding of this note payable,
                    Bridge
                    Finance Partners has received 800,000 shares of common stock.
                    The 800,000
                    shares are deemed to have a value of $0.50 a share and will be
                    amortized
                    over the life of the note.</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="28%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>c</strong></font></div>
                </td>
                <td align="left" colspan="10" valign="top" width="86%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Two
                    $100,000 convertible notes issued in February 2006 accruing interest
                    at 8%
                    per annum due in full February 2007. The notes are convertible
                    at any time
                    at the option of the holders and shall automatically convert
                    into shares
                    of common stock at the close of the next equity financing, whether
                    in a
                    single transaction or a series of related transactions, yielding
                    gross
                    proceeds of at least $2,000,000 in the aggregate. The number
                    of shares of
                    common stock to be issued upon such a conversion shall be equal
                    to the
                    quotient obtained dividing (i) the entire principal amount of
                    the note
                    plus accrued interest by (ii) a $0.25 price per share of the
                    common stock,
                    rounded to the nearest whole share. 100,000 shares of common
                    stock will be
                    issued to each of the holders for consideration of the note.
                    The shares to
                    be issued are deemed to have a value of $0.50 a share. The value
                    of these
                    shares will be recorded to loan fees and amortized over the life
                    of the
                    notes. Also, in consideration for services performed in connection
                    with
                    the funding of these notes, Bridge Finance Partners will receive
                    a 10%
                    finders fee ($20,000) which will be recorded as a loan fee and
                    amortized
                    over the life of the note.</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="28%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>d</strong></font></div>
                </td>
                <td align="left" colspan="10" valign="top" width="86%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                    Bridge loan note dated November 29, 2005, was amended on February
                    28,
                    2006. With the amendment, the $258,000 that was held in escrow
                    was
                    released to the Buyer of the note, leaving $92,000 outstanding.
                    The note
                    was also extended to May 29, 2006. With the extension and payment,
                    all
                    pledgors except for James France,(FIIC CEO) were released from
                    their
                    respective pledge agreements. And finally, the Company shall
                    pay to the
                    Buyer $7,019 representing outstanding interest on the original
                    note dated
                    November 29, 2005 and pay an additional $3,500 for legal expenses
                    incurred
                    by the Buyer.</font></div>
                </td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="28%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="top" width="2%">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>e</strong></font></div>
                </td>
                <td align="right" valign="top" width="28%">
                  <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">Stock
                    compensation due to parties involved in merger:</font></div>
                </td>
                <td align="right" valign="top" width="11%">&#160;</td>
                <td align="right" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="11%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="9%">&#160;</td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="10%">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div align="left">
          <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="50%">

              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accelerate-Financial,
                    Inc.</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">825,000
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                    shares to be issued</font></div>
                </td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">825,000
                    </font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assumed
                    stock price</font></div>
                </td>
                <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.50</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">&#160;</td>
                <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
                    market value of services</font></div>
                </td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">412,500</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
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                <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(825</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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              <tr bgcolor="white">
                <td align="left" valign="bottom" width="85%" style="border-bottom: white;">&#160;</td>
                <td width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc solid;">
                  <div style="MARGIN-LEFT: 9pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
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                </td>
                <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                  <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">411,675</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              </tr>

          </table>
        </div>
        <div>&#160;</div>
        <div>&#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">&#160;</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>&#160;</div>
        <div>
          <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNAUDITED
            PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS</strong></font></div>
        </div>
        <div>
          <div align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>For
            the nine months ended December 31, 2005</strong></font></div><br>
          <div align="left">
            <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

                <tr>
                  <td valign="bottom" width="27%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" colspan="8" valign="bottom" width="16%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Adjustments</strong></font></div>
                  </td>
                  <td colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="6%" style="border-bottom: #ffffff thin solid;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Combined
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                </tr>
                <tr>
                  <td valign="bottom" width="27%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FIIC</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nicklebys.com</strong></font></div>
                  </td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dr</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cr</strong></font></div>
                  </td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>as
                      adjusted </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="bottom" width="27%" style="border-bottom: medium none;">&#160;</td>
                  <td width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                  <td align="right" colspan="2" valign="bottom" width="6%" style="border-bottom: medium none;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">100</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
                      of sales</font></div>
                  </td>
                  <td width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,570
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" colspan="2" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">18,570
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
                      profit</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(18,470</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(18,470</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42,156
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">412,500
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depreciation
                      and amortization</font></div>
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                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">140,146
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">152
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">140,298
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                      on disposal</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">605
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">605
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                      operating expenses</font></div>
                  </td>
                  <td width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">943,816
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                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">42,913
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">412,500
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,399,229
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                      loss</font></div>
                  </td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(943,816</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(61,383</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(412,500</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,417,699</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non
                      operating income</font></div>
                  </td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">503
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">503
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
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                  <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(26,507</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(26,507</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      loss before income taxes</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(970,323</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(60,880</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(412,500</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,443,703</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
                      tax expense </font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                      loss</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(970,323</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(60,880</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(412,500</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                  <td align="right" valign="bottom" width="5%" style="border-bottom: black double;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(1,443,703</font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                      loss per share</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.09</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.10</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white solid;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                      loss per share</font></div>
                  </td>
                  <td width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.09</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                  </td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: black thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.10</font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basic
                      - shares used in per share computations</font></div>
                  </td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">10,843,377
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,198,606
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">825,000
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,866,983
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">800,000
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>d
                      </strong></font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: #ccffcc;">
                    <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Diluted
                      - shares used in per share computations</font></div>
                  </td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
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                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,198,606
                      </font></div>
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                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>a
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">825,000
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>b
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,866,983
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="bottom" width="27%" style="border-bottom: white;">&#160;</td>
                  <td width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">800,000
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: white;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>c
                      </strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: white;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td valign="bottom" width="27%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">200,000
                      </font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                    <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman"><strong>d</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="right" valign="bottom" width="5%" style="border-bottom: #ccffcc;">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                </tr>

            </table>
          </div>
          <div>&#160;</div>
          <div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="left" colspan="11" valign="top" width="85%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Footnotes
                        to the Unaudited Pro Forma Condensed Combined Statement of
                        Operations for
                        the nine months ended December 31, 2005. The Unaudited Pro
                        Forma Condensed
                        Combined Statement of Operations is presented as if the transaction
                        occurred on April 1, 2005.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="29%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="12%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>a</strong></font></div>
                    </td>
                    <td align="left" colspan="10" valign="top" width="83%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                        accordance with the Merger agreement dated July 19, 2005,
                        Nicklebys.com
                        effectuated a 1 for 2.00317 reverse stock spilt of its common
                        stock
                        immediately prior to the merger and after the cancellation
                        of 500,000
                        shares held by certain shareholders. After the cancellation
                        of shares and
                        reverse stock split, 1,198,606 shares of Nicklebys.com Common
                        Stock were
                        be outstanding.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="29%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="12%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>b</strong></font></div>
                    </td>
                    <td align="right" colspan="10" valign="top" width="83%">
                      <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">The
                        Company issued 825,000 shares to Accelerate-Financial, Inc.
                        for services
                        performed in connection with the merger. </font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" colspan="10" valign="top" width="83%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
                        shares are deemed to have a value of $0.50 a share. </font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="29%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="12%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>c</strong></font></div>
                    </td>
                    <td align="right" colspan="10" valign="top" width="83%">
                      <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">The
                        Company issued 800,000 shares to Bridge Financing Partners
                        in connection
                        with services performed in the funding of the a <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$300,000
                        convertible note payable funded in January,
                        2006.</font></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="29%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="12%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="8%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="left" valign="top" width="9%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">
                      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>d</strong></font></div>
                    </td>
                    <td align="right" colspan="10" valign="top" width="83%">
                      <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">The
                        Company issued 200,000 shares to holders of the notes (100,000
                        each) in
                        connection funding of the two $100,000 convertible notes
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">payable
                        issued in February 2006.</font></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="right" colspan="10" valign="top" width="83%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="left" valign="top" width="2%">&#160;</td>
                    <td align="right" colspan="10" valign="top" width="83%">
                      <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">The
                        following securities were not included in the computation
                        of pro forma
                        numbers of shares because to do so would have been anti-dilutive
<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
                        the period presented:</font></font>&#160;</div>
                    </td>
                  </tr>

              </table>
            </div>
            <div>&#160;</div>
            <div align="left">
              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="50%">

                  <tr bgcolor="#ccffcc">
                    <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Warrants
                        to purchase FIIC stock</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,217,379
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Convertible
                        debt </font></div>
                    </td>
                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,753,538
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td align="left" valign="bottom" width="85%" style="border-bottom: white solid;">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;Total
                        securities not included in pro forma number of shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,970,917
                        </font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
        </div>
      </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">&#160;</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">&#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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">(c)
          Exhibits:</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">2.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Agreement
                  and Plan of Merger, dated as of July 19, 2005, by and among Nicklebys.com,
                  Inc., FIIC, Inc., Nicklebys Acquisition Corp., Scott Thornock,
                  Bruce
                  Capra, Paul Zueger, Michael Tanner and James Watson (filed as Exhibit
                  2.1
                  to Current Report on Form 8-K dated July 19, 2005, and incorporated
                  herein
                  by reference)</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">2.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Amendment
                  No. 1 to Agreement and Plan of Merger dated as of October 31, 2005,
                  by and
                  among Nicklebys.com, Inc., FIIC, Inc., Nicklebys Acquisition Corp.,
                  Scott
                  Thornock, Bruce Capra, Paul Zueger, Michael Tanner and James Watson
                  (filed
                  as Exhibit 2.1 to Current Report on Form 8-K dated October 31,
                  2005, and
                  incorporated herein by reference) </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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">2.3</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Agreement
                  and Plan of Merger, dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and FIIC Holdings, Inc. </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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">3.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Certificate
                  of Amendment to Nicklebys.com, Inc. Articles of Incorporation</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">3.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Certificate
                  of Incorporation of FIIC Holdings, Inc.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">3.3</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Bylaws
                  of FIIC Holdings, Inc.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">4.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Senior
                  Secured Convertible Promissory Note, in favor of Oceanus Value
                  Fund,
                  L.P.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">4.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Bridge
                  Financing Warrant, in favor of Oceanus Value Fund, L.P.</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="10%">
                <div><font size="2">4.3</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                of FIIC, Inc. Convertible Promissory Note.</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.4</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Form of
                FIIC, Inc.
                Common Stock Purchase Warrant.</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">10.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Securities
                  Purchase Agreement dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and Oceanus Value Fund, L.P.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">10.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Amendment
                  to Securities Purchase Agreement dated February 28, 2006, by and
                  among
                  Nicklebys.com, Inc. and Oceanus Value Fund, L.P.</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="10%">
                <div><font size="2">10.3</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Registration
                Rights
                Agreement with Oceanus Value Fund, L.P.</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">10.4</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Pledge Agreement
                between James W. France and Oceanus Value Fund, L.P. in support of
                Bridge
                Financing.</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">10.5</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Security
                Agreement in
                favor of Oceanus Value Fund, L.P.</font>&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">10.6</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Subsidiary
                Guaranty&#160;of FIIC, Inc.&#160;in favor of Oceanus Value Fund,
                L.P.</font><font size="3">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">16.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Letter,
                  dated&#160;March 6,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;2006,
                  of Schoonover Boyer + Associates, pursuant to Item 304(a)(3) of
                  Regulation
                  S-B</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">23.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Consent
                  of Schoonover Boyer + Associates</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">99.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Press
                  Release dated March 2, 2006 announcing closing of the Merger of
                  Nicklebys.com and FIIC, Inc.</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>

        </table>
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      <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="left"><br>&#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">
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
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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="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; 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="center"><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; COLOR: #000000; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.</font></div>
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        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>FIIC
                  HOLDINGS, INC.</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">&#160;</td>
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            <tr>
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              <td align="left" valign="top" width="37%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                James W. France</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">
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              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Its:
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              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%" style="border-bottom: #ffffff solid;">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Dated:
                  <u>March 6, 2006</u></font></div>
              </td>
              <td align="left" valign="top" width="12%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="top" width="37%" style="border-bottom: black thin solid;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                Wade Estep</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">By:
                  Wade Estep, CPA</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Its:
                  Chief Financial Officer</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="31%">&#160;</td>
              <td align="left" valign="top" width="12%">&#160;</td>
              <td align="left" valign="top" width="37%">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#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="3">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <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; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
        INDEX</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>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">2.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Agreement
                  and Plan of Merger, dated as of July 19, 2005, by and among Nicklebys.com,
                  Inc., FIIC, Inc., Nicklebys Acquisition Corp., Scott Thornock,
                  Bruce
                  Capra, Paul Zueger, Michael Tanner and James Watson (filed as Exhibit
                  2.1
                  to Current Report on Form 8-K dated July 19, 2005, and incorporated
                  herein
                  by reference)</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">2.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Amendment
                  No. 1 to Agreement and Plan of Merger dated as of October 31, 2005,
                  by and
                  among Nicklebys.com, Inc., FIIC, Inc., Nicklebys Acquisition Corp.,
                  Scott
                  Thornock, Bruce Capra, Paul Zueger, Michael Tanner and James Watson
                  (filed
                  as Exhibit 2.1 to Current Report on Form 8-K dated October 31,
                  2005, and
                  incorporated herein by reference) </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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">2.3</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Agreement
                  and Plan of Merger, dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and FIIC Holdings, Inc. </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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">3.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Certificate
                  of Amendment to Nicklebys.com, Inc. Articles of Incorporation</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">3.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Certificate
                  of Incorporation of FIIC Holdings, Inc.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">3.3</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Bylaws
                  of FIIC Holdings, Inc.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">4.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Senior
                  Secured Convertible Promissory Note, in favor of Oceanus Value
                  Fund,
                  L.P.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">4.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Bridge
                  Financing Warrant, in favor of Oceanus Value Fund, L.P.</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="10%">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Form of
                FIIC, Inc.
                Convertible Promissory Note.</font>&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">4.4</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Form of
                FIIC, Inc.
                Common Stock Purchase Warrant.</font>&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">10.1</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Securities
                  Purchase Agreement dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and Oceanus Value Fund, L.P.</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">10.2</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 width="2%">&#160;</td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Amendment
                  to Securities Purchase Agreement dated February 28, 2006, by and
                  among
                  Nicklebys.com, Inc. and Oceanus Value Fund, L.P.</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="10%">
                <div><font size="2">10.3</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Registration
                Rights
                Agreement with Oceanus Value Fund, L.P.</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">10.4</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Pledge Agreement
                between James W. France and Oceanus Value Fund, L.P. in support of
                Bridge
                Financing.</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">10.5</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Security
                Agreement in
                favor of Oceanus Value Fund, L.P.</font>&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <div><font size="2">10.6</font></div>
                <div>&#160;</div>
              </td>
              <td width="2%">&#160;</td>
              <td align="left" valign="top" width="70%"><font size="2">Subsidiary
                Guaranty&#160;of FIIC, Inc.&#160;in favor of Oceanus Value Fund,
                L.P.</font><font size="3">&#160;</font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">16.1</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 width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Letter,
                  dated March 6, 2006, of Schoonover Boyer + Associates, pursuant
                  to Item
                  304(a)(3) of Regulation S-B</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">23.1</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 width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Consent
                  of Schoonover Boyer + Associates</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="10%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">99.1</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 width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;</font></td>
              <td align="left" valign="top" width="70%">
                <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; COLOR: #000000; FONT-FAMILY: Times New Roman">Press
                  Release dated March 2, 2006 announcing closing of the Merger of
                  Nicklebys.com and FIIC, Inc.</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>

        </table>
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{"company-data": {"conformed-name": "NICKLEBYS COM INC", "cik": "0001077720", "assigned-sic": "7389", "irs-number": "841494708", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-33339", "film-number": "06668122"}, "business-address": {"street1": "3179 SOUTH PEORIA COURT", "street2": ".", "city": "AURORA", "state": "CO", "zip": "80014", "phone": "(303) 525-6161"}, "mail-address": {"street1": "3179 SOUTH PEORIA COURT", "street2": ".", "city": "AURORA", "state": "CO", "zip": "80014"}}
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):
February
                  28, 2006
FIIC
        HOLDINGS, INC.
(Exact
        name of registrant as specified in its charter)
Delaware
000-33339
20-4397836
(State
                  or other jurisdiction
of
                  incorporation)
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
1585
        Bethel Road, 1st Floor, Columbus, Ohio 43220
(Address
        of principal executive offices)
(Zip
        Code)
Registrant's
                  telephone number, including area code
(614)
                  451-5030
Nicklebys.com,
        Inc.
650
        South Cherry Street, Suite 310, Denver, Colorado 80246
(formerly
        3179 South Peoria Court, Aurora, Colorado 80014)
(Former
        name or former address, if changed since last report.)
Check
        the appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions (see General Instruction A.2. below):
¨
Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)
¨
Soliciting
        material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)
¨
Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b))
¨
Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))
Item
        1.01
Entry
        into a Material Definitive Agreement.
On
        February 28, 2006, concurrent with the closing of the Merger (as defined
        in Item
        2.01 below), FIIC Holdings, Inc. (within this Item 1.01, the "Registrant"
or "FIIC") entered into a securities purchase agreement with Oceanus Value Fund,
        L.P. ("Oceanus"), pursuant to which it issued a $350,000 Senior Secured
        Convertible Promissory Note bearing annual interest at 12% (the "NBYS Note") and
        a warrant to purchase 890,995 shares of the Registrant's common stock (the "NBYS
        Warrant"). The Registrant issued the NBYS Note and NBYS Warrant in exchange for
        the $350,000 Senior Secured Promissory Note previously issued by FIIC, Inc.
        to
        Oceanus in November 2005.
We
        refer collectively to the issuance of the FIIC Note and the issuance of the
        NBYS
        Note and NBYS Warrant as the Bridge Financing. Immediately subsequent to
        execution of the securities purchase agreement and the issuance of the NBYS
        Note, the parties executed an amendment to the securities purchase agreement,
        extending the term of the NBYS Note, providing for partial repayment of the
        NBYS
        Note and releasing certain pledge agreements entered into in support of the
        NBYS
        Note.
The
        principal balance of $92,000 due on the amended NBYS Note is due and payable
        on
        the earlier of May 29, 2006 or the Registrant's receipt of equity or debt
        financing in excess of $500,000. If the Registrant receives such financing
        prior
        to May 29, 2006, the Registrant must pay Oceanus the lesser of 50% of the
        amount
        of the financing or the balance owed on the note, including interest.
        Alternately, Oceanus may elect to convert the NBYS Note to shares of the
        Registrant's common stock at any time at a rate of $1.00 per share, including
        accrued and unpaid interest. If the note remains unpaid and unconverted at
        such
        time that the closing price for the Registrant's common stock equals or exceeds
        $3.00 per share for 20 consecutive trading days on the OTCBB, the trading
        volume
        for the common stock has been at least $250,000 per day for the 20 consecutive
        trading day period, and the shares allocated for the conversion are freely
        tradeable pursuant to an effective registration statement or Rule 144(k),
        then
        the note shall automatically convert at a rate of $3.00 per share.
In
        conjunction with the execution of the securities purchase agreement, the
        Registrant also executed a security agreement in favor of Oceanus pledging
        all
        of its existing and hereafter acquired assets, including its license for
        the
        FIIC Database Content and Technology, as security for the NBYS Note and FIIC,
        Inc. provided a subsidiary guaranty. In addition, 10 former FIIC, Inc.
        stockholders, including certain directors, officers and affiliates of the
        Registrant, executed pledge agreements guarantying the obligations under
        the
        NBYS Note with an aggregate 4,761,000 shares of their common stock of the
        Registrant received in the Merger. However, pursuant to the terms of the
        amendment, all but one of these agreements were immediately
        released. 571,000
shares held by James W France, Jr., the Registrant's President, Chief Executive
        Officer and director, remain subject to a pledge agreement.
Upon
        completion of the Merger and the execution of the securities purchase agreement,
        the Registrant also triggered its assumed obligation to issue FIIC, Inc.'s
        bridge financing consultant, Bridgewater Capital Corporation, a warrant to
        purchase 35,000 shares of the Registrant's common stock at $1.00 per
        share.
Item
        2.01
Completion
        of Acquisition or Disposition of Assets.
OVERVIEW
FIIC
        Holdings, Inc. ("FIIC"), which operates through its wholly-owned subsidiary
        FIIC, Inc.,
is
        an organizational stage company in the process of establishing itself as
        an
        insurance holding company. To conduct its business, FIIC is forming and
        capitalizing three affiliated operating entities, including a Risk Retention
        Group to write insurance policies, an Agency Captive insurance company to
        provide reinsurance, and a Master Group Agency providing operations services
        to
        the other two insurance entities. FIIC has an exclusive license to access
        and
        use a proprietary set of underwriting data and standards, known as the FIIC
        Underwriting Data and Standards, and an associated web-based interface,
        collectively known as the FIIC Database Content and Technology. Through the
        planned insurance entities, FIIC intends to use this proprietary information
        and
        technology to underwrite a new form of insurance policy, designated as an
        Investor Protection policy, designed and intended to bolster investment in
        new
        and growing businesses by insuring businesses, which will then name their
        investors as beneficiaries, against certain kinds of business failure. FIIC's
        objective is to provide a stable investment environment for small business
        investors through the strict application of its underwriting
        criteria.
On
        July 19, 2005, Nicklebys.com, Inc. (within this Item 2.01, the "Registrant"
or "Nicklebys"), the Registrant's wholly-owned subsidiary Nicklebys Acquisition
        Corp. ("Merger Sub") and certain existing stockholders of the Registrant entered
        into an Agreement and Plan of Merger (the "Merger Agreement") with FIIC, Inc.,
        pursuant to which the Merger Sub would merge with and into FIIC, Inc., with
        FIIC, Inc. being the surviving corporation (the "Merger"). Upon closing of the
        Merger on February 28, 2006, FIIC, Inc. became a wholly-owned subsidiary
        of the
        Registrant, the Registrant changed its name to FIIC Holdings, Inc. and
        reincorporated in the State of Delaware.
PRINCIPAL
        TERMS OF THE MERGER
Immediately
        prior to the Merger, the Registrant effectuated a 1-for-2.00317 reverse stock
        split of its common stock. At the Effective Time of the Merger (as defined
        in
        the Merger Agreement), Merger Sub was merged with and into FIIC, Inc., the
        separate existence of Merger Sub ceased, and FIIC, Inc. continued as the
        surviving corporation at the subsidiary level. The Registrant issued shares
        of
        its common stock on a one-for-one basis to the stockholders of FIIC, Inc.
        in
        exchange for 100% of the issued and outstanding shares of common stock of
        FIIC,
        Inc. Additionally, the Registrant assumed all outstanding warrants to purchase
        shares of FIIC, Inc.'s common stock and notes convertible into shares of FIIC,
        Inc.'s common stock on the same terms and conditions as previously issued by
        FIIC, Inc. The Registrant also issued a new convertible senior secured
        promissory note in exchange for FIIC, Inc.'s existing outstanding senior secured
        promissory note from its November 2005 Bridge Financing (see Item 1.01 above
        and
"The Bridge Financing" below) and executed an amendment to the related
        securities purchase agreement. Further to the Merger, the Registrant assumed
        the
        FIIC 2005 Stock Option, Deferred Stock and Restricted Stock Plan (the "FIIC 2005
        Plan") as its stock option plan.
Further
        to the Merger, the Registrant also canceled 500,000 shares of its pre-split
        common stock held by
shareholders
        Scott Thornock, Bruce Capra, Paul Zueger, Michael Tanner, and James Watson
        (collectively, the "NBYS Canceling Shareholders"), who received aggregate cash
        consideration of $200,000 from FIIC, Inc. for the cancellation of these shares.
        The Registrant distributed the remaining Nicklebys' assets held prior to the
        Merger to Mr. Capra, in exchange for cancellation of a certain debt owed
        to Mr.
        Capra by Nicklebys prior to the effective date of the Merger Agreement. These
        assets, all of which were works of art which Nicklebys failed to sell during
        the
        liquidation of its inventory, have been deemed unsaleable on Nicklebys'
financial statements. FIIC, Inc. also has provided the Registrant approximately
        $87,000 for the satisfaction of Nicklebys' remaining pre-Merger liabilities, and
        shall cover up to an additional $13,000 of Nicklebys' closing costs post-Merger.
Immediately
        after the closing of the Merger, the Registrant reincorporated from the State
        of
        Colorado to the State of Delaware and changed its corporate name to FIIC
        Holdings, Inc.
Immediately
        prior to the closing of the Merger, FIIC, Inc. had outstanding 12,668,377
        shares
        of common stock, warrants to purchase 2,291,384 shares of common stock and
        notes
        convertible into at least 1,661,538 shares of common stock. Immediately after
        the closing of the Merger and the amended Bridge Financing, the Registrant
        has
        13,866,983 outstanding shares of common stock, warrants to purchase 3,217,379
        shares of common stock, and notes convertible into at least 1,753,538 shares
        of
        common stock.
The
        shares of common stock of the Registrant are now listed for quotation on
        the
        Over-the-Counter Bulletin Board under the symbol "FIIH.OB" to reflect the recent
        corporate name change.
THE
        SHARE CANCELLATION
Concurrent
        with the execution of the Merger Agreement, FIIC, Inc. and the NBYS Canceling
        Shareholders entered into an Escrow and Share Cancellation Agreement dated
        July
        19, 2005 whereby the NBYS Canceling Shareholders agreed to cancel an aggregate
        500,000 pre-split shares of the Registrant's outstanding common stock held by
        them on the effective date of the Merger. Mr. Thornock and Mr. Capra were
        directors, officers and principal shareholders of the Registrant and Mr.
        Zueger
        was a director of the Registrant prior to the closing of the Merger.
The
        NBYS Canceling Shareholders deposited the stock certificates representing
        the
        shares to be cancelled (the "Cancellation Shares") with a designated escrow
        agent and FIIC, Inc. deposited the $200,000 aggregate cash consideration
        with
        the escrow agent prior to the closing date of the Merger. On the closing
        date of
        the Merger, the escrowed Cancellation Shares were deemed automatically cancelled
        and the escrow agent distributed the $200,000, of which Thornock received
        the
        sum of $55,000, Capra received the sum of $27,500, Zueger received the sum
        of
        $7,500, Tanner received the sum of $55,000 and Watson received the sum of
        $55,000.
DISTRIBUTION
        OF ASSETS AND LIABILITIES
In
        connection with the closing of the Merger, Nicklebys distributed all of its
        remaining pre-closing assets to Mr. Capra in exchange for cancellation of
        a
        certain debt owed to Mr. Capra by Nicklebys prior to the effective date of
        the Merger Agreement. These assets, all of which were works of art which
        Nicklebys failed to sell during the liquidation of its inventory, have been
        deemed unsaleable on Nicklebys' financial statements.
FIIC,
        Inc. also provided Nicklebys with approximately $87,000 to satisfy its
        pre-closing liabilities, including its remaining outstanding promissory notes
        totaling $13,000, including accrued interest, in favor of Mr. Thornock, Mr.
        Tanner, Mr. Capra and Mr. Watson, all of which were entered to obtain funds
        necessary to pay for professional services in support of the Merger. FIIC
        shall
        provide up to an additional $13,000 to satisfy Nicklebys' closing costs
        post-Merger.
THE
        BRIDGE FINANCING
In
        August 2005, FIIC, Inc. entered a consulting agreement with Bridgewater for
        general business advisory and consulting services, including assisting FIIC,
        Inc. to locate and secure bridge financing. Subsequently, Bridgewater introduced
        FIIC, Inc. to Oceanus and assisted in bridge financing negotiations. In November
        2005, FIIC, Inc. executed a note purchase agreement with Oceanus under which
        it
        issued a $350,000 Senior Secured Promissory Note bearing annual interest
        at 12%
        (the "FIIC Note").
On
        February 28, 2006, concurrent with the closing of the Merger, the Registrant
        entered into a securities purchase agreement with Oceanus, pursuant to which
        it
        issued the NBYS Note and NBYS Warrant (as defined in Item 1.01) in exchange
        for
        the FIIC Note, and immediately subsequently amended the terms of the securities
        purchase agreement to
extend
        the term of the NBYS Note, provide for partial repayment of the NBYS Note
        and
        release certain pledge agreements entered into in support of the NBYS
        Note.
For
        additional details about the Bridge Financing, see Item 1.01 above.
THE
        PRIVATE PLACEMENT
In
        October 2004, in anticipation of the formation of FIIC and the launch of
        its
        operations, FIIC, Inc. engaged a placement agent in connection with a planned
        $2,500,000 private placement (the "Private Placement") of its common stock to be
        conducted concurrent with the Merger process. In this capacity, the Placement
        Agent agreed to seek commitments from investors to purchase FIIC's securities.
        The Placement Agent agreed to act as FIIC, Inc.'s agent and not on an
        underwritten basis. The shares of common stock are to be offered only to
        "accredited investors" as defined in Regulation D under the Securities Act of
        1933. In exchange for the Placement Agent's services, FIIC, Inc. agreed to pay a
        non-refundable retainer fee of $12,500 and a transaction fee equal to 10%
        of the
        aggregate gross proceeds received by FIIC from the sale of the securities
        in the
        Private Placement, less the retainer fee. FIIC, Inc. also agreed to issue
        the
        Placement Agent warrants to purchase a number of shares of FIIC, Inc.'s common
        stock equal to 10% of the number of shares sold in the Private Placement
        any
        time within five years of the completion of the Private Placement. Pursuant
        to
        the Merger Agreement, if FIIC, Inc. did not complete the Private Placement
prior
        to the closing of the Merger, the Registrant agreed to conduct and complete
        the
        Private Placement post-Merger, and assumed FIIC, Inc.'s obligations to the
        Placement Agent.
FIIC
        ultimately launched the Private Placement concurrent with the closing of
        the
        Merger.
FIIC
        anticipates that the net proceeds from the Private Placement, assuming the
        sale
        of securities for an aggregate $2.5 million, will be approximately $2.2 million
        after deducting placement agent commissions and other anticipated offering
        expenses, although the actual net proceeds will depend upon the actual number
        of
        securities sold by FIIC and the actual offering expenses it incurs. FIIC
        intends
        to use the net proceeds from the Private Placement to repay its outstanding
        short-term debt and to fund the working capital reserve account required
        to
        obtain a license from the Washington, D.C. Department of Insurance and
        Securities Regulation, in support of its planned application to establish
        a Risk
        Retention Group, or RRG. FIIC must successfully establish an RRG and obtain
        a
        license for the RRG before it can launch its insurance operations. Any funds
        received beyond those needed to repay debt and fund the regulatory working
        capital reserve will be used for general corporate purposes, including working
        capital, marketing and expanding FIIC's technical employee base. FIIC may also
        use a portion of the net proceeds for the acquisition of complementary
        businesses, technologies or products. There are no contracts or agreements
        to do
        so, however.
THIS
        CURRENT REPORT IS NOT AN OFFER OF SECURITIES FOR SALE. ANY SECURITIES SOLD
        IN
        THE PRIVATE PLACEMENT WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
        1933,
        AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS
        REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT TO AN
        EXEMPTION FROM SUCH REGISTRATION.
FIIC'S
        BUSINESS
Overview
FIIC
        Holdings, Inc. is an organizational stage company in the process of establishing
        itself as an insurance holding company. To conduct its business, FIIC, though
        its operating subsidiary FIIC, Inc., is forming and capitalizing three
        affiliated operating entities, including a Risk Retention Group to write
        insurance policies, an Agency Captive insurance company to provide reinsurance,
        and a Master Group Agency providing operations services to the other two
        insurance entities. FIIC has an exclusive license to access and use a
        proprietary set of underwriting data and standards, known as the FIIC
        Underwriting Data and Standards, and an associated web-based interface,
        collectively known as the FIIC Database Content and Technology. Through the
        planned insurance entities, FIIC intends to use this proprietary information
        and
        technology to underwrite a new form of insurance policy, designated as an
        Investor Protection policy, designed and intended to bolster investment in
        new
        and growing businesses by insuring businesses, which will then name their
        investors as beneficiaries, against certain kinds of business failure. FIIC's
        objective is to provide a stable investment environment for small business
        investors through the strict application of its underwriting criteria. FIIC
        anticipates that it will primarily generate revenues from insurance premiums,
        but also anticipates generating revenues through sublicensing fees, agreements
        with strategic partners and sponsorships.
FIIC
        plans to market its Investor Protection policy via the internet as a
        business-to-business and business-to-client product, through direct sales
        agents, and through certain professional advisors. FIIC intends to provide
        each
        insured business and its investors a personalized, interactive experience
        during
        the insurance process, affording access to relevant data and research, updates
        on the status of current insured investments, and notification regarding
        various
        additional business opportunities. FIIC plans to provide regular reports
        on each
        insured business entity to investors
in
        that entity regularly through its website.
Market
        Opportunity
On
        average from 1990-2002, 120,000 new businesses started in the United States
        per
        year, 73% of which were small businesses as defined by the regulations of
        the
        Small Business Administration (the "SBA"). Although varied slightly by Standard
        Industrial Classification code ("SIC code"), a "small business" generally has
        $500,000 or less in annual revenues and 500 or fewer employees. According
        to the
        U.S. Census Bureau Statistical Abstract of the United States (2000), business
        failures among new small businesses historically averaged 9 to 11%, while
        business failures among existing corporations averaged 1.03 to 1.22%. However,
        the potential for business failure, especially among new businesses, often
        makes
        it difficult for such businesses to obtain adequate working capital, in effect
        furthering their potential for failure. Although investment in small businesses
        grew rapidly from 1995 to 2000, due primarily to investment of large amounts
        of
        venture capital, this trend has reversed. After the unfortunate events of
        September 11, 2001 and the various scandals that have rocked the public markets
        in recent years, venture capital investment dropped significantly from 2000
        to
        2001 and continued to decline in subsequent years. Generally, investors of
        both
        equity and debt capital have become increasingly reluctant to invest in new
        or
        developing businesses, crippling the ability of entrepreneurs and growth
        business alike to attract needed capital. In addition, the SBA has significantly
        limited its small business funding over the last two years. During January
        2004,
        it was widely reported that Congress's inadequate funding of the SBA had caused
        the SBA to reject over 1,000 pending small business applications, representing
        just a single month's worth of applications and about $600 million of requested
        capital.
Investor
        Protection Policy
FIIC
        believes that the risk assessment and investment protection needs of the
        financial community are not currently being adequately addressed, and seeks
        to
        leverage the demand within current investment community for better investment
        risk management. FIIC aims to create a less risky approach to investment
        in new
        and developing businesses by lessening the risk of capital loss by investors
        due
        to a business failure. Over the course of the last decade, James W. France,
        FIIC's founder, President and Chief Executive Officer, has developed the concept
        for an Investor Protection Policy, designed and intended to provide a stable
        investment environment for small business investors in the form of a contract
        liability insurance policy covering the investment exposure of outside investors
        in operational start-up or developing small businesses against certain kinds
        of
        business failure. The ability to purchase an Investor Protection policy shall
        be
        offered to new and existing businesses, where the business and the potential
        outside investors meet the necessary parameters of the FIIC Underwriting
        Data
        and Standards. Although the business seeking investment shall be the
        policyholder, the terms and conditions of the policy shall obligate the
        purchasing business to assign certain policyholder rights to each qualified
        outside investor, subject to a contractual agreement between the business
        and
        the investor upon which issuance of the policy is contingent. In the event
        of a
        covered business failure, the insured investors would receive the payout
        under
        the policy, without having to wait to determine the post-failure value and
        return, if any, of their investment.
FIIC
        believes that the availability of its Investor Protection policy should
        encourage hesitant investors to actively engage in investment in small
        businesses, thereby bolstering investment in new and growing businesses and
        making increased capital more readily available to such businesses. FIIC
        believes that, if successful, the availability of the Investor Protection
        policy
        and FIIC's user-friendly online underwriting process will assist new and growing
        businesses in developing a stronger relationship with their funding sources,
        in
        part by enabling faster funding decisions within the investment community.
        Further, FIIC will seek to promote market confidence by assisting investors
        in
        becoming better prepared when considering business opportunities.
FIIC
        Database Content and Technology
FIIC
        has an exclusive license from its affiliate FIIC Research & Development, LLC
        ("FIIC LLC") to access and use a proprietary set of underwriting data and
        standards, known as the FIIC Underwriting Data and Standards, and an associated
        web-based interface, collectively known as the FIIC Database Content and
        Technology, designed to support for the underwriting process for insuring
        new
        capital invested in new and growing businesses by qualified outside investors.
        Through its planned insurance subsidiaries, FIIC intends to use this proprietary
        information and technology to underwrite its Investor Protection
        policies.
FIIC
        LLC was formed in 2000 to determine the feasibility of developing and offering
        an Investor Protection Policy, and eventually developed the FIIC Database
        Content and Technology, including the FIIC Underwriting Data and Standards.
        The
        FIIC Database Content and Technology includes a specially-designed, proprietary
        database of SIC classified companies, developed from multiple public sources,
        that identifies the success and failure rates of U.S. businesses since 1984.
        This information is the source for FIIC LLC's development of business mortality
        tables organized by SIC Code, which form the actuarial basis for the FIIC
        Underwriting Data and Standards that will be central to FIIC's planned
        underwriting process. In addition, the FIIC LLC Database Content and Technology
        includes software incorporating funding strategies and industry and segment
        specific risk assessment developed for consistent application of the FIIC
        Underwriting Data and Standards; a web interface for completion and processing
        of customer and investor applications and interaction with the policy sales
        force; and sample forms of policies, application questionnaires and promotional
        materials, all designed and intended to make most efficient use of the FIIC
        Database Content and Technology and resulting FIIC Underwriting Data and
        Standards and the supporting software functions.
In
        March 2005, FIIC LLC granted FIIC, Inc. a perpetual, worldwide license for
        access to and use of the FIIC Database Content and Technology, along with
        the
        right to sublicense the technology in limited circumstances. FIIC LLC is
        obligated to maintain and continue to develop the FIIC Database Content and
        Technology, while FIIC will adapt the licensed data and technology to serve
        its
        marketing and underwriting needs as they evolve. As FIIC gains additional
        information about various industries, business success or failure rates,
        and the
        factors influencing such rates, it will share this information with FIIC
        LLC to
        assist in the maintenance and updating of the underlying database.
Insurance
        Entities
To
        conduct its business, FIIC is forming and capitalizing three operating insurance
        entities:
·
Federated
                  Investors Insurance Company Risk Retention Group ("FIIC RRG") shall write
                  the Investor Protection policies;
·
Federated
                  Insurance Captive ("FIC"), an agency captive insurance company, shall
                  provide reinsurance coverage to FIIC RRG;
                  and
·
Federated
                  Group Agency ("FGA"), a master group agency, shall provide operations
                  services to FIIC RRG and FIC.
Federated
        Investors Insurance Company Risk Retention Group
FIIC
        RRG will be incorporated, domiciled and licensed in the District of Columbia
        and
        will be owned by its policyholders, the businesses purchasing the Investor
        Protection policies. Although the business seeking investment shall be the
        policyholder, the purchasing business will be obligated to assign certain
        policyholder rights to the each qualified outside investor, subject to a
        contractual agreement between the business and the investor upon which issuance
        of the policy is contingent.
Risk
        Retention Groups are insurance companies formed and operated pursuant to
        the
        federal Liability Risk Retention Act of 1986 (the "RRG Act"). The RRG Act allows
        homogeneous groups to establish insurance companies to write liability coverage
        for businesses that fall within the definition of those groups, as long as
        the
        RRG policyholders become owners of the RRG insurance company. Thus, FIIC
        RRG
        will assess a 10% subscription fee on each annual premium paid by the
        policyholders, and classify such fee as a capital contribution; thus ensuring
        that all policyholders are also owners of the Company.
Camelback
        Captive and Risk Management Services, Inc. ("Camelback"), a non-affiliated
        company specializing in the management of risk retention groups and captive
        reinsurance companies, will initially be responsible for the day to day
        management of FIIC RRG pursuant to a management agreement. To fund its required
        working capital reserve with the District of Columbia Department of Insurance
        and Securities Regulation ("D.C. DISR"), FIIC will initially provide RRG with
        $100,000 of cash and $400,000 in the form of a surplus note to be repaid
        over a
        five-year period, subject to the approval of the District of Columbia
        regulators. FIC will provide initial reinsurance support for FIIC RRG, as
        described below, and any additional reinsurance support required will be
        sought
        from other reinsurers approved by the District of Columbia.
Federated
        Insurance Captive
FIC
        will provide reinsurance to FIIC RRG, written initially on a quote-share
        basis,
        meaning that 50% of the net commissions on premiums collected shall be ceded
        to
        FIC from RRG, with FIIC RRG assuming 50% and FIC assuming 50% of the risk
        on the
        policy. FIC shall also be incorporated and domiciled in the District of
        Columbia, and will be wholly owned and operated by FGA. To fund its required
        working capital reserve with the D.C. DISR, FIIC will initially provide FIC
        with
        $100,000 of cash and $300,000 in the form of a surplus note to be repaid
        over a
        five-year period, subject to the approval of the District of Columbia
        regulators. Camelback will also initially be responsible for the day to day
        management of FIC pursuant to a management agreement.
Federated
        Group Agency
FGA
        was incorporated in Ohio in December 2005, is domiciled in Columbus, Ohio,
        and
        will wholly own and operate FIC. FGA will provide operations support for
        FIIC
        RRG and FIC, in conjunction with the management efforts of Camelback. FGA
        will
        provide operational support for the sales, underwriting, policy-issuance,
        accounting, field personnel and claims functions. FIIC intends that FGA's key
        employees shall all have experience in corporate financial planning, investment
        banking, risk management or asset management.
Initial
        Target Market
Research
        into the potential marketability of the FIIC Investor Protection policy has
        centered on identifying the annual numbers of newly formed business corporations
        that actually commence operation, as opposed to newly formed businesses overall.
        Further, based on the significant business failure rate between businesses
        in
        their first year versus longer existing businesses, FIIC anticipates that
        by
        insuring a mix of new corporations and existing corporations on a 50/50 basis
        actual failures producing claims should only represent approximately 2% of
        all
        businesses insured by FIIC RRG.
Of
        the annual average 120,000 new businesses started in the United States in
        1997,
        the Midwest region surrounding Ohio yielded slightly more than 21,000 new
        businesses. FIIC initially intends to target its sales efforts to new and
        developing small businesses in Ohio. FIIC aims to underwrite approximately
        0.4%,
        0.8% and 1.0% of the historical new business starts in Ohio during its first
        three operations years at an average premium of 10% over the amount insured
        and
        an average total investment of $250,000. FIIC anticipates initially expanding
        its business beyond Ohio into a 5-state region around Ohio, including
        Pennsylvania, Indiana, Missouri, Kentucky, and Illinois, and potentially
        two
        western states, as soon as it has initiated operations and has adequate reserves
        to allow sufficient underwriting in these markets. FIIC believes its business
        will grow primarily through increasing market penetration, eventually attracting
        later stage businesses seeking capital as well, and through development on
        additional product offerings viable for financial institutions.
Marketing
        Strategy
FIIC
        plans to market its Investor Protection policy via the internet as a
        business-to-business and business-to-client product, as well as through direct
        sales agents and by creating and leveraging relationships with various business
        advisors. FIIC will also reach out to entrepreneurs and investors to educate
        them about the availability and benefits of the Investor Protection
        policy.
Corporate
        Website
FIIC's
        product-focused website will be the home page for the application for the
        Investor Protection policy. This website will provide access to a demonstration
        of the FIIC application and underwriting process and a detailed description
        of
        the Investor Protection policy. FIIC also plans to offer monthly informational
        features on this website, including updated financial news, announcements
        of
        periodic updates of FIIC's product or service offerings and links to and
        information on FIIC's strategic partners who can provide support services to
        businesses or their investors. By tracking the visits and inquiries made
        via
        this website, FIIC also intends to collect data from investors and businesses
        that it hopes will further facilitate its understanding of the investment
        community's current and potential needs.
Direct
        Sales
FIIC
        may also take on commissioned insurance sales agents who have producer insurance
        licenses and experience in dealing with the insurance needs of business clients.
        Although approached by a sales agent, the application and underwriting process
        for such sales will still rely on use on FIIC's centralized on-line
        process.
Press
        Releases
FIIC
        intends to use press releases to generate website traffic and inquiries
        regarding the Investor Protection policies. Press releases will be issued
        as the
        company reaches certain milestones, enters agreements with new strategic
        partners and roles out new reference information and useful links on its
        websites.
Application
        and Underwriting Process
Application
        Process
FIIC's
        application will be readily available for review and completion on its website.
        The application for the Investor Protection policy will provide basic data
        about
        the applicant business, information concerning the adequacy of the business
        venture's planning and funding to date, and will require representations of both
        management and the investors or other funding source regarding the anticipated
        financing structure.
When
        the applicant finishes the on-line application, including a Due Diligence
        Questionnaire about the business and its industry, the website will also
        request
        submission of a Business Plan, Management Plan, Marketing Plan and Capital
        Plan
        including Pro Forma Financials, either electronically or in hard copy. Any
        other
        related documents regarding the investment or other funding relationship,
        including all material contracts, agreements, organizational documents, and
        related materials of the entity to be insured, must also be filed with FIIC
        as
        exhibits to the policy application.
Upon
        submission of the application and acceptance of a nominal application fee
        payment, FIIC anticipates that the website technology will be programmed
        to
        automatically pull appropriate credit bureau reports and Dun & Bradstreet
        information on the business and its primary owner/operator. Further, FIIC
        anticipates that the website will trigger the licensed software from FIIC
        LLC to
        access the database of business failure data, generate several statistics
        based
        on the appropriate SIC code, including the failure rate of the applicant's
        industry currently and the failure rate of the businesses within the specific
        SIC code currently and over time (up to 10 previous years). The licensed
        programming should then report out this data via e-mail to the FGA
        administration screen and by e-mail to the applicant. Subsequently, the licensed
        technology shall reduce all input and generated data points on the applicant
        company into four areas (basically covering business, management, marketing,
        and
        capital planning), which will be used by the underwriting committee to rate
        the
        business and approve or disapprove of issuing the policy.
Underwriting
After
        receipt of all requested documents a screener will review the completed
        application and determine if anything is missing or too weak to be reviewed
        further. If such information is necessary, the screener will contact the
        applicant by e-mail with any follow-on requests. If the application is adequate,
        FIIC intends to have the screener electronically send the various parts of
        the
        application to the appropriate individual underwriters. The four areas of
        gathered information (Business, Management, Marketing and Capital Plans)
        will be
        reviewed by in-house underwriters in each respective area of expertise. The
        underwriter(s) will then complete an underwriting criteria document and score
        the applicant. After all the underwriting scores are posted, the underwriters
        will use the Scoring, matching against mortality data and business judgment
        to
        set a final premium, with sign-off by the Underwriting Committee. However,
        if
        the Underwriting Committee determines the risks are too high, the applicant
        will
        be turned down at this point. Rejected applicants will receive an e-mail
        communication describing the underwriting evaluation summary with all pertinent
        information and explain why a rejection occurred. FGA will also make
        recommendations to the business to take appropriate steps to re-apply for
        future
        qualification.
If
        the application is approved, FIIC will send an e-mail report to the applicant
        and the website's status board will be updated to show the approval. The
        applicant may then request a draft policy be provided for its use in
        communicating the nature and benefits of the policy to the potential investors.
        In order to qualify as a beneficiary under the policy, the investor(s) must
        enter the website and fill out an investor application, which will then be
        linked to the application of the business. From this application, FGA will
        determine if an investor(s) is or is not an accredited investor. FIIC may
        provide non-accredited investors as beneficiaries under an Investor Protection
        policy with coverage for up to $10,000 in one business, and intends to provide
        accredited investors coverage for up to $50,000 per business. If an investor
        wants to invest more he or she will have the opportunity to appeal to the
        Underwriting Committee via the website.
FIIC
        intends to audit the underwriting system regularly to ensure continued and
        consistent compliance with its standards. The computer system licensed from
        FIIC
        LLC self-audits to flag questionable data as part of the underwriting
        process.
Policy
        Issuance, Closing and Follow-Up
Upon
        satisfactory completion of both the business application and all investor
        applications, the investment is approved for a closing under the Investor
        Protection policy. Just prior to closing, FGA will electronically issue to
        the
        business the unsigned policies and subscription agreement to purchase its
        stock
        in FIIC RRG. FIIC will require that a licensed FGA representative be present
        at
        the closing of the investment transaction and that FGA receives the first
        year
        premium on the Investor Protection policy and the first year Subscription
        Fee
        from the business prior to the closing. FGA should also receive at this time
        final copies of all pertinent investor/business contracts. Upon closing of
        the
        investment and the policy issuance, the business applicant shall become an
        insured party and a shareholder-owner in FIIC RRG, while their investors
        become
        the beneficiaries of the policy.
After
        closing of the policy and funding of the investment, the ongoing review and
        field audit team activity will begin at the end of each quarter. The field
        audit
        team review of quarterly financial results will be used to set up a due
        diligence profile. Any critical questions are reviewed with insured business,
        including a customer visit by an agent or representative to discuss any
        potential problem areas, and this information will be given to the FGA field
        audit team for their review and action. If there are any significant concerns,
        the field audit team will contact the client and offer to consult in those
        areas
        where there are problems. This consulting is at no cost to the client, and
        will
        be covered as part of the paid insurance premium. Depending on the nature
        and
        complexity of the problem, the field audit team might recommend that a third
        party consultant be engaged on a fee basis to correct the problem. Targets
        will
        be set to remove any deficiencies, and if necessary, FIIC will assist the
        company in evaluating a potential recapitalization or bankruptcy.
Prior
        to the end of the fourth quarter after closing, the field audit team will
        prepare a recommendation to the Underwriting Committee incorporating
        recommendations from the independent agent or consultant(s). This recommendation
        will include a suggested renewal premium if the recommendation is to renew.
        If
        the recommendation is not to renew, the Underwriting Committee shall write
        the
        client with its decision, including a statement of the deficiencies that
        were
        found and the corrective actions recommended. It will also recommend that
        a
        consultant assist the client to remove those deficiencies if
        appropriate.
If
        approved for renewal by the Underwriting Committee, then FIIC will notify
        the
        business in writing. If the premium is lowered at renewal, the committee
        will
        explain its views to the client on improvements made during the year. If
        the
        premium is raised for the next year, any deficiencies contributing to the
        increase in premium will be noted. The renewal approval letter will also
        explain
        the renewal process to the client and the client will be asked to comment
        on its
        experience.
Claims
FIIC
        projects that claims on Investor Protection policies will be incurred at
        the
        rate of two percent (2%) of the total number of businesses insured (2% of
        policyholders). FIIC anticipates all claims will be settled on a quota-share
        basis with the reinsurers, split according to the quota share at time of
        premium
        recognition. In a quota share arrangement, the reinsurer accepts a stated
        percentage of each and every risk within a defined category of policies on
        a pro
        rata basis at a fixed and certain level of participation. FIIC intends to
        set
        conservative reserve levels in an effort to assure its ability to pay all
        claims. FIIC intends to maintain reserves of at least 15% of the collected
        premiums, to be adjusted regularly based on actual claims experience. The
        premium to surplus ratio will not exceed 2:1 unless approved by the appropriate
        regulatory agency.
Competition
The
        offering of investor protection insurance products is relatively new. Although
        conventional products are currently offered, including on-line, FIIC is not
        aware of any similar business insurance product to the Investor Protection
        policy. Although various credit unions may insure their members' use of
        proceeds, credit union insurance covers only one SIC code. FIIC's product will
        be insuring multiple SIC codes. Other instruments such as surety bonds and
        letters of credit are useful instruments yet hardly any business averaging
        a
        $250,000 investment level, FIIC's target investment level, qualifies for these
        instruments. FIIC is aware of two offerings that packaged more common and
        basic
        financial instruments to provide some investor comfort, but these differed
        substantially in that they did not insure 100% of the investors' principal,
        their claims conditions were very complicated, and the costs did not cover
        the
        provision of additional resources, oversight and referral to appropriate
        consultants, as is included in the premium for the FIIC Investor Protection
        policy.
FIIC
        believes that it will enjoy an initial market advantage until other insurance
        companies redirect resources and management to seek to become competitive
        with
        FIIC. However, FIIC believes the established relationships of its principals
        with various data compilation sources and industry consultants, including
        Dun
& Bradstreet, a variety of institutions and many of the consultants or other
        service providers that will become its strategic partners, will allow IIC
        to
        maintain a competitive advantage. Also, based on the time and effort invested
        in
        the development of the FIIC Database Content and Technology, including the
        FIIC
        Underwriting Data and Standards, FIIC believes its exclusive license to use
        the
        this content and technology will provide it a strong foundation to compete,
        as
        other will not have immediate access to the long-term data compiled and
        organized specifically to support this type of insurance operation.
Other
        Products and Services
FIIC
        anticipates that it will primarily generate revenues from insurance premiums,
        but also anticipates generating revenues through sublicensing fees, agreements
        with strategic partners and sponsorships. FIIC also anticipates opening a
        second
        market product version of the FIIC system for use by banks and lenders as
        FIIC
        gains experience and market presence, and becomes a rated insurance
        company.
Planned
        Growth
Although
        FIIC intends to be ready and able to fully execute its business plan on its
        own
        upon the completed formation of its insurance subsidiaries, FIIC also intends
        to
        seek candidates from the insurance industry for potential mergers or acquisition
        in an effort to further accelerate growth, strengthen reserves and surplus,
        and
        conserve capital by potentially leveraging access to existing operations,
        distribution and state licensing.
Government
        Regulation
It
        is a state and federal law requirement that any company selling any insurance
        product must become licensed to do so. As a holding company, FIIC does not
        require direct licensing or certification, but its two of its three planned
        subsidiaries will require such regulatory approval. FGA must have at least
        one
        officer licensed to sell Property & Casualty ("P&C") insurance; FIIC's
        Vice President of Marketing, Sales and Distribution, Robert V.R. Ostrander,
        has
        obtained such licensing. In addition, James W. France just needs to pass
        the
        P&C insurance exam to become licensed. FIIC RRG will require certification
        from the D.C. DISR, as will FIC. Prerequisites receiving the required
        certifications include submission of a Plan of Operation, an actuarial
        Feasibility Study, and funding of a working capital reserve; FIIC has yet
        to
        complete these latter two steps towards certification for FIIC RRG and FIC.
        Prior to marketing in a state, FIIC must submit an application including
        its
        Feasibility Study, often with small fee, to each such state under the RRG
        Act.
        However, by law, each state must accept FIIC's application and approve its sales
        activities in the state upon submission of the application. FIIC RRG and
        FIC
        will both require annual insurance audits to be submitted to the D.C. DISR
        as
        well. If FIIC RRG or FIC fails to maintain an adequate working capital reserve
        or maintain compliance with other aspects of the D.C. Captive Insurance Company
        Act of 2004, the or the RRG Act, the subsidiaries and/or FIIC may be subject
        to
        fines or penalties as severe as losing its certifications to conduct
        business.
Employees
Prior
        to February 7, 2006, FIIC had not entered any employment or other long-term
        compensation agreements with its executive officers or other key personnel.
        However, it has named executive officers, directors and key personnel, many
        of
        whom have provided services during the period of initial organization, the
        negotiation and consummation of the Merger and the launch of FIIC's plan of
        operation. For additional detail on the Registrant's new executive officers,
        directors and key personnel, see "Executive Officers, Directors and Key
        Employees" under Item 5.01 below.
Facilities
FIIC's
        executive offices are located in Columbus, Ohio, in space leased from a related
        party. For additional detail, see "Related Party Transactions" under Item 5.01
        below.
Legal
        Proceedings
FIIC
        is not a party to any material legal proceedings.
RISK
        FACTORS
Any
        investment in the Company's common stock involves a high degree of risk.
        Investors should carefully consider the risks described below and all of
        the
        information contained in this Current Report on Form 8-K before deciding
        whether
        to purchase the Company's common stock. The Company's business, financial
        condition or results of operations could be materially adversely affected
        by
        these risks if any of them actually occur. The trading price of
the
        Company's common stock could decline due to any of these risks, and an investor
        may lose all or part of his investment. Some of these factors have affected
        the
        Company's financial condition and operating results in the past or are currently
        affecting the Company. This Current Report on Form 8-K also contains
        forward-looking statements that involve risks and uncertainties. The Company's
        actual results could differ materially from those anticipated in these
        forward-looking statements as a result of certain factors, including the
        risks
        faced by the Company described below and elsewhere in this Current Report
        on
        Form 8-K. With respect to this discussion, the terms "FIIC," and the "Company"
refer to FIIC Holdings, Inc. and its wholly-owned subsidiary FIIC,
        Inc.
Risks
        Related to FIIC Holdings, Inc.'s Operations
FIIC
        has no operating history, expects to initially incur losses and cannot assure
        you that it will achieve profitability.
FIIC
        has not yet launched its operations and thus has not generated any revenues
        from
        sales of Investor Protection or other insurance policies, or sublicenses
        of the
        FIIC Database Content and Technology. FIIC has incurred significant expense
        to
        obtain an exclusive, perpetual license and hosting and support agreement
        allowing use and providing for maintenance of the FIIC Database Content and
        Technology, including the FIIC Underwriting Data and Standards. FIIC continues
        to incur substantial costs to establish its insurance subsidiaries and to
        gain
        all necessary governmental licenses and certifications to conduct FIIC's
        insurance business. FIIC expects that its expenses will continue to increase
        as
        it launches its insurance products and services, due to increased marketing
        expenses as FIIC seeks to develop customer relationships and maintain existing
        relationships with its business and technology resources. FIIC also anticipates
        that it will incur costs to establish and/or improve its financial and
        disclosure controls, expand and train its workforce and to maintain regulatory
        compliance as FIIC's insurance underwriting grows.
As
        of December 31, 2005, FIIC had an accumulated deficit of approximately
        $1,006,050. FIIC expects to continue to incur losses over at least the next
        year, and the amount of future losses is uncertain. FIIC's ability to generate
        revenue and become profitable will depend on obtaining and maintaining
        regulatory approvals in the U.S., achieving market acceptance for its Investor
        Protection policies and related services and successfully executing its business
        plan. Sales of the Investor Protection policies cannot begin until FIIC receives
        all necessary regulatory approvals. If FIIC fails to generate significant
        revenues from commercial sales, fails to obtain necessary regulatory approvals,
        or if revenues fail to grow at a pace rapid enough to offset anticipated
        increases in expenses, FIIC may never achieve profitability.
FIIC's
        initial success depends entirely on its Investor Protection policies, which
        are
        a new, unproven insurance product, utilizing underwriting data and standards
        which have not previously been used in the commercial insurance market and
        which
        may not be or become commercially viable.
FIIC's
        business will initially depend entirely on a new insurance product for which
        there is no established market. FIIC intends to use the licensed FIIC Database
        Content and Technology to underwrite policies insuring the capital of investors
        against the risk of loss associated with certain business failures. However,
        the
        Investor Protection Policy remains in development and FIIC must clear certain
        regulatory and financing hurdles before actively selling this product. Further,
        FIIC cannot assure you it can or will develop a consistent method of application
        of the FIIC Underwriting Data and Standards for the issuance of Investor
        Protection policies that will sufficiently minimize risk of loss to FIIC,
        such
        that FIIC may achieve profitability. Developing the FIIC Underwriting Data
        and
        Standards has required extensive and sophisticated statistical gathering
        and
        analysis by FIIC Research and Development LLC ("FIIC LLC"), an affiliate of
        FIIC. FIIC LLC cannot assure FIIC or you that the underwriting standards
        are or
        can be made acceptable for FIIC's intended use or that all of the relevant
        information necessary to maintain the standards will remain indefinitely
        available. Further, FIIC cannot assure you that the Investor Protection policies
        will be accepted commercially or that they can be priced effectively. FIIC
        has
        not yet sold any insurance policies and it cannot assure you that its
        underwriting efforts will be successful. Because the Investor Protection
        policy
        will initially be FIIC's sole product focus, an inability to accurately
        underwrite the policies would materially affect FIIC's ability to generate
        significant revenue and could likely prevent FIIC from achieving
        profitability.
If
        FIIC's Investor Protection policy is not accepted by the financial community,
        FIIC may not be able to generate significant revenues or achieve
        profitability.
The
        commercial success of FIIC's Investor Protection policy depends on its
        acceptance by new and emerging businesses and investors in such businesses.
        Such
        acceptance will depend on businesses' perception of the FIIC policies as a
        cost-effective mechanism for encouraging investment and on investors' perception
        of FIIC and its policies as reliable. FIIC cannot assure you that the Investor
        Protection policy will provide benefits considered adequate by all investors
        or
        businesses, or that investors and businesses will purchase a sufficient number
        of FIIC Investor Protection policies for FIIC and its new insurance product
        to
        achieve commercial success. Even if FIIC establishes the reliability, efficiency
        and cost benefits of its Investor Protection policy, investors and businesses
        may elect not to purchase the policy for a number of other reasons,
        including:
·
lack
                  of experience with and understanding of this type of investment-related
                  insurance;
·
the
                  additional cost of obtaining an Investor Protection
                  policy;
·
a
                  determination that its limited capital would be more beneficially
                  applied
                  to other purposes;
·
a
                  decision to purchase a different product from those available on
                  the
                  market serving a similar function;
                  and
·
any
                  adverse publicity regarding investment-related insurance and other
                  risk-hedging financial products.
If
        FIIC is unable to establish its Investor Protection policy as a commercially
        viable product, it will have to rely on its sublicensing efforts to generate
        sufficient revenues as it seeks to develop and commercialize other products
        and
        services.
FIIC
        may be unable to compete successfully with its competitors, resulting in
        a lack
        of adequate revenues and inability to obtain
        profitability.
FIIC
        will face competition from other insurance companies and other financial
        product
        companies. Most of FIIC's potential competitors have greater financial
        resources. Some of these competitors already have products currently available
        designed to decrease or hedge some forms of investment risk, and these and
        other
        companies may be developing additional products that would compete with FIIC's
        Investor Protection policies.
FIIC's
        ability to compete successfully in the insurance and financial product markets
        is based on numerous factors, including:
·
the
                  reliability and consistency of its policies, including the speed
                  and
                  consistency of FIIC's payment of claims presented under the initial
                  Investor Protection policies, relative to competing
                  products;
·
the
                  relative speed with which FIIC is able to educate business and
                  investors
                  in its target markets about its Investor Protection policies and
                  create a
                  market for the product;
·
potential
                  customers' comfort level with a primarily internet-based insurance
                  company, including the processing of most transactional steps over
                  the
                  internet; and
·
the
                  cost-effectiveness of the Investor Protection
                  policy.
In
        addition, FIIC will compete for clients on the basis of reputation of its
        management, client service, program and product offerings, and the ability
        to
        tailor its products and services to the specific needs of each client. If
        FIIC
        is unable to distinguish its Investor Protection policies from competing
        products, or if competing products reach the market first, FIIC may be unable
        to
        successfully establish a client base sufficient to achieve
        profitability.
FIIC
        may be unable to scale its operations successfully, resulting in a strain
        on
        management and increased expenses without an equal, if any, increase in
        revenues, negatively impacting FIIC's results of operations and prospects for
        achieving profitability and stable leadership.
If
        successful in growing its insurance operations rapidly, FIIC's growth will place
        significant demands on FIIC's management, underwriting staff and marketing
        staff, as well as its financial resources. FIIC cannot guarantee that any
        of the
        systems, procedures and controls it puts in place will be adequate to support
        the intended rapid commercialization of its Investor Protection policy. FIIC's
        operating results will depend substantially on the ability of its officers
        and
        key employees to manage changing business conditions, to implement and modify
        its underwriting and sales programs and to maintain sufficient financial,
        administrative and other resources. If FIIC is unable to adapt its services
        and
        operations to respond quickly, efficiently and in a cost-sensitive manner
        to
        changing business conditions, then the quality of its products and services
        and
        its ability to retain key personnel could be harmed, adversely impacting
        FIIC's
        ability to achieve profitability.
Any
        change in FIIC's relationship with the exclusive licensor of the FIIC Database
        Content and Technology, which FIIC will use to sell and underwrite its policies,
        could prevent FIIC from accurately assessing potential insureds' risk profiles
        when issuing policies and from writing policies in a timely manner, thereby
        reducing its future revenues or increasing its costs.
FIIC
        relies on a Database Access Content License, Hosting and Support Agreement
        with
        FIIC LLC to access the FIIC Underwriting Data and Standards used to underwrite
        its Investor Protection policies. Under this agreement, FIIC has exclusive,
        perpetual, worldwide rights to access the FIIC Database Content and Technology
        via FIIC LLC's proprietary technology and to use it to underwrite and sell
        Investor Protection policies. However, these exclusive rights may be terminate
        or may be terminated if FIIC breaches the terms of the license agreements
        and
        fails to cure the breach.
FIIC's
        reliance on this license subjects it to various risks that could harm its
        business, including:
·
reliance
                  on FIIC LLC to maintain the FIIC Database Content and Technology
                  and
                  provide adequate support services if and when FIIC encounters a
                  problem;
·
reliance
                  on FIIC LLC to ensure the security of the FIIC Database Content
                  and
                  Technology Data and Standards from FIIC's
                  competitors;
·
the
                  possibility that FIIC LLC may not be able to obtain adequate information
                  from its third-party sources in a timely manner or on commercially
                  reasonable terms; and
·
that
                  FIIC may have difficulty locating an alternative set of applicable
                  underwriting data and standards and similar user interface, if
                  available
                  at all, should FIIC LLC breach the terms of the license agreement
                  or
                  become unable to fulfill its
                  obligations.
Disruption
        or termination of FIIC's agreement with FIIC LLC could delay or suspend FIIC's
        overall efforts to create a market for its Investor Protection policies.
        The
        loss of the license or FIIC LLC's failure to maintain the licensed technology
        and data could require FIIC to cease providing products or services using
        such
        licensed technology, which would likely result in a significant loss of revenue
        for its business.
Claims
        of conflicts of interest may arise because certain of FIIC's LLC's members and
        key personnel are also directors, officers or employees of
        FIIC.
Certain
        persons in leadership positions with FIIC, including all of FIIC's executive
        officers, have a continuing relationship with FIIC LLC. It is generally
        desirable to the members of FIIC LLC to retain such individuals in their
        current
        capacities with FIIC LLC because of their knowledge of, and experience with,
        FIIC LLC's business and its operations, including maintenance of the FIIC
        Database Content and Technology. However, the individuals are also vital
        to the
        initial operational success of FIIC due to their familiarity with the planned
        Investor Protection policy, insurance operations and the intended use of
        the
        licensed FIIC Database Content and Technology. These instances of affiliation
        with both FIIC and FIIC LLC could create, or appear to create, conflicts
        of
        interest when such individuals are faced with decisions that may have different
        implications for FIIC and FIIC LLC. If a stockholder feels that one or more
        of
        these individuals failed to act in FIIC's best interest, FIIC could be subject
        to shareholder litigation, resulting in additional expenses and potential
        disruption of its key personnel.
FIIC
        is dependent on information suppliers, including FIIC LLC's third-party
        information suppliers, and if it is unable to successfully manage these
        relationships the quality and availability of FIIC's insurance products and
        services may be harmed.
Some
        of the data used in underwriting its Investor Protection policies comes from
        various third party suppliers and government entities. If these suppliers
        are no
        longer able or are unwilling to provide FIIC with certain data, or to provide
        it
        at commercially reasonable rates, it may need to find alternative sources,
        which
        may not be readily available. If FIIC is unable to identify, and to the extent
        necessary contract with, suitable alternative data suppliers and integrate
        these
        data sources into its offerings, it could experience disruptions in its
        underwriting process, resulting in potential delays in sales, increased costs
        and reduced quality. In addition, the loss of such access or reduced
        availability of data in the future due to increased governmental regulation
        could have a material adverse effect on FIIC's business, financial condition or
        results of operations.
FIIC's
        ability to protect the intellectual property rights underlying its
        revenue-generating activities involves many complexities and uncertainties,
        including the impact of potential claims that the technology upon which FIIC
        relies infringes on the rights of others.
FIIC's
        business depends significantly on its license of the proprietary FIIC Database
        Content and Technology from FIIC LLC. FIIC LLC relies on a combination of
        common
        law copyrights, confidentiality agreements and other contractual provisions
        to
        establish, maintain and protect its proprietary rights, all of which afford
        only
        limited protection. FIIC's success will depend to a significant extent on the
        ability of FIIC LLC to obtain and maintain trademark and copyright protection
        for the FIIC Underwriting Data and Standards and related access and correlation
        technologies, to preserve its trade secrets and to operate without infringing
        the proprietary rights of others. To date, FIIC LLC has not filed for statutory
        trademark or copyright protection for its intellectual property and has not
        committed to do so. FIIC and FIIC LLC cannot assure you that FIIC LLC's existing
        common law trademarks or copyrights will provide substantial protection against
        competitors with similar technology or be of commercial benefit to FIIC,
        that
        trademark and/or copyright protection is in fact available for its intellectual
        property, or that such protections, if available, will be effective to provide
        or provide remedies for infringement. FIIC LLC cannot assure FIIC or you
        that
        others will not independently develop substantially equivalent proprietary
        information and techniques, or otherwise gain access to its trade secrets
        or
        disclose such technology. FIIC's success will also depend to a significant
        extent on its ability to aid FIIC LLC in preserving such proprietary rights,
        particularly by limiting sublicensed use of the FIIC Database Content and
        Technology pursuant to the agreed limitations of the license between the
        parties
        and not disclosing FIIC LLC's confidential sources of third party information.
        FIIC also relies on trade secrets and cannot assure you it can meaningfully
        protect its right to such trade secrets.
As
        businesses reliant on proprietary information and technology, FIIC and FIIC
        LLC
        may also be subject to intellectual property litigation by third parties
        claiming FIIC's products or the underlying processes infringe on their
        proprietary rights. If FIIC LLC's proprietary rights and FIIC's rights to use
        such information and technology pursuant to the license are challenged by
        litigation and, if the outcome of such litigation were adverse to FIIC LLC
        and/or FIIC, competitors might be free to use the information and technology
        subject to the challenge, or FIIC LLC may be required to license the information
        and technology to others in settlement of such litigation. In addition to
        any
        potential liability for damages, FIIC could be required to obtain an alternate
        or additional license in order to continue to sell or use the affected product
        or process. The invalidation of such proprietary protections could create
        increased competition, with potentially material adverse effects on FIIC
        and its
        business.
Litigation
        also may be necessary to assist FIIC LLC in enforcing its proprietary rights
        and/or to determine the scope and validity of the proprietary rights of others,
        with similar potentially disruptive and adverse effects on FIIC. Legal standards
        relating to the validity, enforceability and scope of protection of both
        common
        law and statutory proprietary rights are continuously evolving, especially
        in
        relation to software and internet technologies. Even if ultimately resolved
        in
        favor of FIIC and FIIC LLC, any intellectual property litigation would be
        costly
        and could divert the efforts and attention of FIIC's management and technical
        personnel, which could have a material adverse effect on its business, financial
        condition and results of operations. FIIC cannot assure you that infringement
        claims will not be asserted in the future or that such assertions, if proven
        to
        be true, will not prevent FIIC from selling its products, materially and
        adversely affecting its business, financial condition and results of operations.
        If any such claims are asserted against it, FIIC may seek to enter into royalty
        or licensing arrangements. FIIC cannot assure you that a license with such
        parties will be available on commercially reasonable terms, or at
        all.
FIIC
        may be subject to claims of trademark infringement, which may harm its ability
        to generate awareness of its products and achieve
        profitability.
FIIC
        has recently become aware that other parties are utilizing "FIIC" as an
        identifying mark, or other marks that incorporate the letters "FIIC." Although
        FIIC is not aware of any such party operating in the insurance industry,
        FIIC
        may be subject to legal proceedings alleging claims of trademark infringement
        in
        the future and those parties may have rights to such marks that are superior
        to
        those of FIIC. In this event, FIIC may be required to stop using the name
        in
        particular markets or to obtain a license from these parties to use it in
        such
        markets. If FIIC must rebrand, it may result in significant marketing expenses
        and additional management time and resources, which may adversely affect
        its
        business.
FIIC's
        business model is heavily dependent on information processing systems that
        may
        fail or become obsolete.
FIIC's
        underwriting process relies on proprietary technology to gather, analyze
        and
        apply data related to the success and failure of new and growing businesses
        across the country. FIIC's ability to successfully operate its insurance
        business depends on its ability to obtain such information and its capacity
        to
        store, retrieve, process, update and manage significant databases and expand
        and
        upgrade periodically our information processing capabilities. The underlying
        technology likely will change and may become obsolete as new technologies
        develop. FIIC's future success will depend upon its ability to remain current
        with the rapid changes in the technologies used in its business, to learn
        quickly to use new technologies as they emerge and to develop new
        technology-based solutions as appropriate. If FIIC is unable to do this,
        it
        could be at a competitive disadvantage. FIIC's competitors may gain exclusive
        access to improved technology, which also could put FIIC at a competitive
        disadvantage. If FIIC cannot adapt to these changes, its business, financial
        condition or results of operations may be materially adversely affected.
        Likewise, the information underlying the FIIC Underwriting Data and Standards
        can and will become obsolete if not updated on a consistent and timely basis.
        If
        FIIC LLC fails to adequately maintain the FIIC Database Content and Technology,
        FIIC's underwriting process will become increasingly less accurate and FIIC may
        face an increase in the number of claims presented. Further, interruption
        or
        loss of FIIC's information processing capabilities through loss of stored data,
        breakdown or malfunctioning of computer equipment and software systems,
        telecommunications failure, or damage caused by fire, tornadoes, lightning,
        electrical power outage or other natural or man-made disruption could have
        a
        material adverse effect on our business, financial condition and results
        of
        operations.
FIIC
        faces significant security risks related to its electronic transmission of
        confidential information, which could result in inadvertent disclosure of
        confidential information of FIIC and/or its customers, which could harm FIIC's
        competitive advantage, its ability to generate future revenues, and its ability
        to obtain or maintain profitability.
FIIC
        will rely on encryption and other technologies to provide system security
        to
        effect secure transmission of confidential or personal information in its
        internet-based underwriting system. FIIC currently licenses these technologies
        from FIIC LLC and may obtain similar licenses from other third parties. There
        is
        no assurance that FIIC's use of applications designed for data security, or that
        of third-party contractors will effectively manage evolving security risks.
        A
        security or privacy breach could:
·
expose
                  FIIC to liability;
·
increase
                  FIIC's expenses relating to resolution of these
                  breaches;
·
deter
                  customers from using FIIC's web-based policy application and other aspects
                  of its web-based customer interface;
                  and
·
deter
                  information suppliers from doing business with
                  FIIC.
Any
        inability to protect the security and privacy of FIIC's electronic transactions
        could have a material adverse effect on its business, financial condition
        or
        results of operations.
FIIC's
        Investor Protection policies will likely have variable sales, reflecting
        increases and decreases in overall new or emerging business financing, which
        may
        cause FIIC's revenue and operating results to fluctuate significantly from
        quarter-to-quarter.
FIIC
        expects that its Investor Protection policies may initially have a lengthy
        and
        potentially sporadic sales cycle. FIIC may incur substantial sales and marketing
        expenses and expend substantial effort without making significant sales as
        it
        educates businesses and potential investors about the benefits of its Investor
        Protection policies. Sales of Investor Protection policies may not grow
        significantly until FIIC proves to the market that it will consistently pay
        out
        claims in a time-efficient, cost-effective and business and investor-friendly
        manner. FIIC anticipates that the time from the sale and issuance of its
        initial
        Investor Protection policy to the presentment and processing of an initial
        claim
        under such a policy may be 18 months to 2 years, based on an assessment of
        historical transaction data regarding the success rate of new and emerging
        businesses. The market for investment insurance is dependent upon, among
        other
        things, the volume of financing transactions that satisfy FIIC's eligibility
        criteria, which is usually influenced by factors such as interest rates and
        the
        state of the overall economy. Further, even after making a decision to purchase
        an Investor Protection policy for the benefit of its investors, some businesses
        may choose not to renew their policies or subsequently buy policies for
        additional rounds of financing based on the business' internal performance
        outlook expectations. Thus, the market of potential purchasers of the Investor
        Protection policies will likely grow and shrink according to the numerous
        factors which impact the financial climate for and likely success of new
        businesses as well as the actual performance of FIIC's Investor Protection
        policies. As a result, FIIC's revenue and operating results may vary
        significantly from quarter to quarter, which increases the risk of an operating
        loss for FIIC for any given quarter.
Any
        geographic or industry concentration of businesses holding FIIC Investor
        Protection policies could leave FIIC vulnerable to an economic downturn or
        regulatory changes in those areas, resulting in a decrease in its
        revenues.
FIIC
        plans to offer its Investor Protection policies to new and growing businesses
        nationwide. However, it will take a number of years for FIIC to develop a
        portfolio of policies that is fully diversified across geographic regions
        and
industries.
        FIIC will initially market its policies to businesses concentrated in a small
        number of states, and thus the occurrence of adverse economic conditions
        or an
        adverse regulatory climate in such states could significantly increase the
        number of claims presented to FIIC and could negatively affect FIIC's financial
        results more than would be the case if its business were more geographically
        diversified. Similarly, if FIIC's initial policies protect investors in
        businesses concentrated in a small number of industries, any change in the
        regulation of or business climate in such industries and resulting increases
        in
        associated costs and/or competition within such industries could significantly
        increase the number of claims presented to FIIC and could negatively affect
        FIIC's financial results more than would be the case if its policies were issued
        to businesses across more diverse industries.
FIIC
        depends on certain key executive personnel for its success, the loss of whom
        could adversely affect its business, financial condition and results of
        operations.
FIIC's
        success depends on the continued availability and contributions of members
        of
        its senior management teams and other key personnel. James W. France, FIIC's
        President, Chief Executive Officer and a director, first developed the concept
        for the Investor Protection policy, has been intimately involved in developing
        the insurance structure of FIIC and the Database Content and Technology of
        FIIC
        LLC, including the development of the FIIC Underwriting Data and Standards,
        and
        has attracted the capital required necessary to launch FIIC's commercial
        efforts. As such, FIIC's success depends in large measure on the continued
        service of Mr. France in those positions. The loss of the services of Mr.
        France
        or any of a number of other executive officers and senior managers could
        delay
        or reduce FIIC's product and service development and commercialization efforts.
Furthermore,
        recruiting and retaining qualified personnel to educate the marketplace about
        the availability and benefits of Investor Protection policies will be critical
        to FIIC's success. The loss of members of FIIC's management team or its
        inability to attract or retain other qualified personnel or advisors, could
        significant weaken FIIC's management team, harm its ability to compete
        effectively and harm its long-term business prospects. If key managers were
        to
        end their employment with FIIC, it could disrupt FIIC's initial client
        relationships and have a corresponding negative effect on financial results,
        marketing and other objectives and impair FIIC's ability to implement its rapid
        growth strategy. Most of FIIC's executive officers and other
        planned key personnel are subject only to consulting arrangements and not
        formal
        long-term employment agreements. Although FIIC does intend to execute employment
        agreements containing confidentiality and non-compete provisions with these
        individuals prior to underwriting any policies, some courts may not enforce
        such
        an agreement against an employee. Although FIIC has adopted the FIIC 2005
        Plan,
        since FIIC is likely a "shell company" as defined by Rule 405 promulgated under
        the Securities Act , it is ineligible to register the plan using Form S-8.
        Given
        FIIC's limited financial resources and need to focus on the launch of its
        operations, FIIC is unlikely to register the FIIC 2005 Plan via other available
        methods and thus unlikely to issue shares to its current or potential employees
        under the FIIC 2005 Plan until such time as it ceases to be a shell company
        and
        becomes eligible for use of Form S-8.
FIIC's
        management is relatively inexperienced in the insurance industry and thus
        may be
        less able to foresee potential problems with or adverse effects upon FIIC's
        business.
While
        Mr. France and other members of the FIIC management team have spent several
        years developing the concept of the Investor Protection policy, most of the
        management team does not have any experience with insurance company formation
        or
        the day-to-day operation of insurance entities. FIIC's executive management has
        undertaken significant efforts to become more educated about insurance company
        formation and management; Robert Ostrander, FIIC's Vice President, Secretary and
        a director of FIIC has become a licensed insurance broker. In addition,
        management plans to hire a number of individuals with more significant insurance
        company experience for key management positions, FIIC will initially rely
        substantially on the advice and guidance of its insurance counsel and insurance
        consultants, and on feedback from governmental authorities, such as the
        Washington D.C. Department of Insurance and Securities Regulation and Ohio
        Department of Insurance. Accordingly, FIIC's current personnel's inexperience in
        developing an insurance company could significantly adversely affect the
        Company's ability to achieve its goal.
If
        FIIC fails to maintain effective internal controls over financial reporting,
        it
        may be subject to litigation and/or costly remediation and the price of its
        common stock may be adversely affected.
As
        of September 30, 2005, Nicklebys reported that, because it has ceased operations
        and had no plans to resume its business, it did not have formal disclosure
        controls and procedures or internal controls over financial reporting (as
        defined in Rule 13a-15(e) or Rule 15d−15(e) under the Exchange Act). However,
        Nicklebys' Chief Executive Officer and Chief Financial Officer also determined
        that, given Nicklebys' limited operations, Nicklebys' informal controls and
        procedures were adequate and effective to ensure that material information
        relating to Nicklebys was made known to them by others within the company
        and
        provided reasonable assurance regarding the reliability of financial reporting
        and the preparation of financial statements for external purposes in accordance
        with generally accepted accounting principles. As a private company, FIIC,
        Inc.
        did not previously have to report on its disclosure controls and procedures
        or
        its internal controls over financial reporting, and as a developing company
        is
        only in the process of implementing formal procedures intended to satisfy
        the
        requirements of Section 404 and other related provisions of the Sarbanes-Oxley
        Act of 2002. However, beginning with its fiscal year ending December 31,
        2007,
        FIIC will have to fully comply with these requirements.
Failure
        to establish the required controls or procedures, or any failure of those
        controls or procedures once established, could adversely impact FIIC's public
        disclosures regarding its business, financial condition or results of
        operations. Upon review of the required internal controls over financial
        reporting and disclosure controls and procedures, FIIC's management and/or its
        auditors may identify material weaknesses and/or significant deficiencies
        that
        need to be addressed. Any actual or perceived weaknesses or conditions that
        need
        to be addressed in FIIC's internal controls over financial reporting, disclosure
        of management's assessment of its internal controls over financial reporting or
        disclosure of FIIC's public accounting firm's attestation to or report on
        management's assessment of FIIC's internal controls over financial reporting
        could have an adverse impact on the price of its common stock and may lead
        to
        claims against FIIC.
Compliance
        with changing corporate governance and public disclosure regulation will
        likely
        result in additional expenses and increased liability exposure for FIIC,
        its
        directors and its executive officers.
Rules
        adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act of 2002
        require annual assessment of FIIC's internal control over financial reporting,
        and attestation of its assessment by the combined group's independent registered
        public accountants. This requirement first will apply to FIIC's annual report
        for fiscal 2007, unless FIIC grows swiftly enough to be deemed "an accelerated
        filer" prior to that time. The standards for management's assessment of the
        internal control over financial reporting as effective are new and complex,
        and
        require significant documentation, testing and possible remediation to meet
        the
        detailed standards. FIIC may encounter problems or delays in completing
        activities necessary to make an assessment of its internal control over
        financial reporting. In addition, FIIC's new independent registered public
        accountants may not have significant experience with the attestation process,
        and the combined group may encounter problems or delays in completing the
        implementation of any requested improvements and receiving an attestation
        of its
        assessment by FIIC's independent registered public accountants. If the combined
        group cannot assess its internal control over financial reporting as effective,
        or its independent registered public accountants are unable to provide an
        unqualified attestation report on such assessment, investor confidence and
        share
        value may be negatively impacted. Further, many companies have reported that
        compliance with these standards requires a disproportionate expenditure of
        funds.
In
        addition, the SEC recently announced a significant number of changes to the
        laws, regulations and standards relating to corporate governance and public
        disclosure. Following the Merger, FIIC's new management team will need to invest
        significant time and financial resources to comply with both existing and
        evolving standards for public companies, which will lead to increased general
        and administrative expenses and a diversion of management time and attention
        from revenue-generating activities to compliance activities. In addition,
        because public company directors and officers face increased liabilities,
        the
        individuals slated to serve in these positions after the Merger may be less
        willing to remain as directors or executive officers long-term, and FIIC
        may
        experience difficulty in attracting qualified replacement directors and
        officers, or FIIC may need to expend a significantly larger amount than NBYS
        or
        FIIC previously spent on recruiting, compensating and insuring new directors
        and
        officers.
Risks
        Relating to Regulatory Requirements
FIIC's
        planned insurance subsidiaries all require certain licensing and/or
        certifications from certain government agencies, without which they will
        be
        unable to operate and unable to generate revenues.
FIIC
        cannot assure you that it will be able to obtain the regulatory approvals
        necessary for the establishment and operation of its planned insurance
        subsidiaries on a timely basis, if at all. Any delays in receipt or failure
        to
        receive such clearances or approvals, the loss or impairment of previously
        received clearances or approvals, or failure to comply with existing or future
        regulatory requirements would have a material adverse effect on FIIC's business,
        prospects, financial condition and results of operations. FIIC cannot assure
        you
        that it will be able to maintain compliance with all regulatory requirements
        over time. Changes in existing laws, regulations or policies and the adoption
        of
        new laws, regulations or policies could prevent FIIC from, or could affect
        the
        timing of, achieving compliance with regulatory requirements, including current
        and future regulatory approvals, where necessary.
Failure
        to comply with government regulations applicable to the insurance industry
        could
        restrict FIIC's ability to conduct its business.
Government
        authorities regulate insurance entities in the states in which they do business.
        These regulations generally are intended for the protection of policyholders
        rather than stockholders. The nature and extent of these regulations vary
        from
        jurisdiction to jurisdiction, but typically involve:
·
approval
                  of premium rates for insurance;
·
standards
                  of solvency and minimum amounts of statutory capital surplus that
                  must be
                  maintained;
·
limitations
                  on types and amounts of
                  investments;
·
establishing
                  reserves, including statutory premium reserves, for losses and
                  loss
                  adjustment expenses;
·
regulation
                  of dividend payments and other transactions between
                  affiliates;
·
prior
                  approval of the acquisition and control of an insurance company
                  or of any
                  company controlling an insurance
                  company;
·
licensing
                  of insurers and agents;
·
regulation
                  of reinsurance;
·
restrictions
                  on the size of risks that may be insured by a single
                  company;
·
regulation
                  of underwriting and marketing
                  practices;
·
deposits
                  of securities for the benefit of
                  policyholders;
·
approval
                  of policy forms;
·
methods
                  of accounting; and
·
filing
                  of annual and other reports with respect to financial condition
                  and other
                  matters.
These
        regulations may impede or impose burdensome conditions on rate increases
        or
        other actions that FIIC or its insurance subsidiaries might want to take
        to
        implement FIIC's business strategy and enhance its operating results. FIIC
        intends to conduct business in a number of states and will be subject to
        the
        costs of applying to do business and comprehensive regulation and supervision
        by
        government agencies in many or all of the states in which it does business.
        FIIC's ability to conduct its business in the states in which it currently
        operates depends on its compliance with the rules and regulations established
        by
        the regulatory authorities in each of these states, and those rules and
        regulations may be or become inconsistent. State insurance regulators and
        the
        National Association of Insurance Commissioners continually re-examine existing
        laws and regulations, including those relating to the licensing of insurance
        brokers and agents, premium rates, regulating unfair trade and claims practices,
        and the regulation of the handling and investment of insurance carrier funds
        held in a fiduciary capacity. These examinations may result in the enactment
        of
        insurance-related laws and regulations, or the issuance of interpretations
        of
        existing laws and regulations, that adversely affect FIIC's business. More
        restrictive laws, rules or regulations may be adopted in the future that
        could
        make compliance more difficult and/or expensive.
FIIC
        is subject to substantial government regulation which could have the effect
        of
        delaying or preventing a change of control of its insurance subsidiaries
        or the
        company as a whole.
Many
        state insurance regulatory laws, intended primarily for the protection of
        policyholders, contain provisions that require advance approval by state
        agencies of any change in control of an insurance company or an insurance
        holding company that is domiciled (or, in some cases, doing business) in
        that
        state. Any future transaction that would constitute a change of control of
        any
        or all of FIIC's insurance subsidiaries or FIIC as a whole may require
        regulatory approval by the state insurance agencies of at least Ohio and
        Washington, D.C. Such regulatory requirements could have the effect of delaying
        or preventing transactions affecting the control of FIIC or ownership of
        its
        common stock, including transactions that could be advantageous to the combined
        entity's stockholders.
Presentment
        of claims in excess of FIIC's reserves could adversely affect its business,
        financial condition and results of operations.
Pursuant
        to the licensing requirements of the D.C. DISR, as set forth in district
        and
        federal law, FIIC must initially maintain a reserve account of at least $900,000
        and must accept no more than $2.00 of premium for each dollar of capital
        it
        holds in reserve. The careful application of the FIIC Underwriting Data and
        Standards and maintenance of this reserve are intended to minimize the number
        of
        claims presented to the company and the fiscal impact of such claims on FIIC's
        revenues and stability. However, FIIC cannot provide any assurance that its
        insureds will not file claims in number or scope in excess of FIIC's
        expectations or that such claims in aggregate will not deplete its revenues
        and
        reserves, resulting in a need to desist from underwriting new policies until
        funds are available to bring FIIC back into regulatory compliance. Further,
        if
        FIIC fails to maintain adequate reserves or maintain the premium to reserve
        ratio as required by the D.C. DISR, it could incur a $5,000 fine per violation
        and/or become subject to claims by any or all of the states in which it is
        doing
        business, which could become disruptive to FIIC's operations and negatively
        impact its financial condition, public perception of FIIC and its share price.
        If such violations are significant and remain uncured, FIIC's insurance
        subsidiaries could ultimately lose their license and be unable to continue
        their
        operations.
FIIC
        may be subject to increased regulation regarding the use of personal information
        received from investors.
Use
        of certain data collected from investors may be subject to regulation by
        various
        federal, state and local regulatory authorities. Compliance with existing
        federal, state and local laws and regulations in the United States designed
        to
        protect the public from the misuse of personal information in the marketplace
        and adverse publicity or potential litigation concerning the commercial use
        of
        such information may increasingly affect FIIC's operations, including the
        sharing of such information with FIIC LLC pursuant to the license agreement
        for
        maintenance of the FIIC Database Content and Technology, and could result
        in
        substantial expense for regulatory compliance, limitations on access to
        important information, litigation expense and a loss of revenue.
Risks
        Relating to FIIC's Capital Structure
FIIC's
        capital needs are uncertain and FIIC may need to raise additional funds,
        which
        may not be available on favorable terms, if at all, thereby potentially
        disrupting the initial growth of FIIC's insurance business and the FIIC's
        ability to generate revenue.
FIIC
        believes that it will have sufficient cash and cash equivalents to meet
        projected operating requirements for approximately the next 12 months. However,
        if FIIC does not complete the Private Placement within 90 to 120 days after
        the
        Merger resulting in $2.5 million gross proceeds as sought, it will need to
        seek
        additional funds from public and private stock offerings, borrowings under
        credit lines or other sources because, pursuant to district and federal
        insurance law, the Washington, D.C. Department of Insurance and Securities
        Regulation ("D.C. DISR"), requires a company to maintain one dollar in working
        capital on reserve for every $2.00 of insurance premium to be written prior
        to
        the establishment and licensing of a risk retention group, or RRG. FIIC is
        in
        the process of preparing an application for the establishment and licensing
        of
        an RRG for submission to the D.C. DISR, pending the funding of a required
        actuarial feasibility study and the necessary working capital reserve. FIIC
        anticipates filing of the complete application during the second quarter of
        2006
.
        If FIIC is unable to fund or successfully complete the required study or
        the
        minimum working capital reserve, then it will be unable to launch its
        operations. Since the funds in the working capital reserve cannot be used
        to
        fund operations, FIIC may also need additional capital to continue to grow
        its
        business in keeping with market demand if early product sales are
        steady.
The
        amount of additional capital FIIC may need to raise through public or private
        equity or debt financings over the next few years will depend on many factors,
        including:
·
market
                  acceptance and the growth rate of demand, if any, for FIIC's Investor
                  Protection policies;
·
the
                  lead time required to execute and generate a revenue stream from
                  customer
                  contracts;
·
changes
                  in the size of the required working capital reserve or other regulatory
                  requirements;
·
availability
                  of opportunities for strategic acquisition of other companies with
                  technology, resources, customers or know-how that will further
                  the growth
                  of the FIIC's insurance business;
                  and
·
the
                  accuracy of FIIC's projections regarding its operating costs, including
                  the costs of regulatory compliance, personnel, legal and accounting
                  costs
                  and the cost of funds.
FIIC
        cannot be certain that additional sources of liquidity will be available
        when
        needed in the future and that its actual cash requirements will not be greater
        than anticipated. If FIIC requires additional capital at a time when investment
        in insurance companies or in the financial services market in general is
        limited
        due to the then prevailing market or other conditions, FIIC may not be able
        to
        raise such funds at the time that it desires or any time thereafter. If FIIC
        is
        unable to obtain this financing on terms favorable to FIIC, it may be unable
        to
        execute its long-term business plan and may be required to scale back further
        development of FIIC's insurance products and services, to limit its marketing
        activities, to sell some or all of its technology, intellectual property
        or
        assets, to merge with another entity, or terminate its operations.
If
        FIIC raises additional capital through strategic alliances with third parties,
        the combined group may have to relinquish certain technology or product rights,
        limiting its ability to implement its long-term business
        plan.
If
        FIIC raises additional funds through collaboration, licensing or other
        arrangements with third parties, it may be required to relinquish rights
        or
        grant licenses on unfavorable terms to certain of its technologies or products
        that it may otherwise seek to develop or commercialize on its own. While
        potentially necessary for the continuance of operations during a time of
        cash
        constraints or a shortage of working capital, such actions could make it
        difficult or impossible to implement FIIC's long-term business plans or could
        materially adversely affect its business, financial condition and results
        of
        operations.
In
        the event that FIIC raises additional capital through issuance of equity
        securities, or securities exercisable for or convertible into equity securities
        in FIIC, its stockholders could experience substantial additional
        dilution.
If
        FIIC raises additional capital by issuing equity securities or convertible
        debt
        securities, its existing stockholders may incur substantial dilution. Further,
        any shares so issued may have rights, preferences and privileges superior
        to the
        rights, preferences and privileges of FIIC's outstanding common
        stock.
Future
        acquisitions, if any, may disrupt FIIC's business, distract the group's
        management and reduce the percentage ownership of its
        stockholders.
As
        part of its business strategy, FIIC intends to engage in acquisitions that
        it
        believes will provide complementary technologies, products, services, marketing
        channels, expertise and/or other valuable assets and resources. However,
        FIIC
        may not be able to easily identify suitable acquisition candidates and/or
        may
        need to rely on the services of financial advisors in identifying or negotiating
        with such candidates, possibly at substantial cost. If and when FIIC does
        identify a suitable candidate, it may not be able to acquire the complementary
        business on commercially acceptable terms, or at all. Although FIIC will
        actively seek acquisition candidates, FIIC cannot assure you that it will
        be
        successful in these efforts. If FIIC is unable to acquire appropriate businesses
        on favorable economic terms, or at all, or is unable to introduce new products
        and services successfully, its business could be materially adversely
        affected.
Even
        if FIIC is able to complete such an acquisition, it may not be able to
        successfully integrate the acquired business into its existing business in
        a
        timely and non-disruptive manner. Such integration may require the devotion
        of a
        significant amount of time and management and financial resources. Even with
        this investment of management and financial resources, an acquisition may
        not
        produce the desired revenues, earnings or business synergies. In addition,
        the
        consideration required to complete such strategic acquisitions may reduce
        the
        percentage ownership of FIIC's current stockholders. If FIIC misjudges the value
        of and overpays for the target company, fails to integrate the acquired business
        effectively or if key employees of the acquired business depart, the anticipated
        benefits of the acquisition could be jeopardized. The time, capital and
        management and other resources spent on an acquisition that fails to meet
        FIIC's
        expectations could materially and adversely affect its business and financial
        condition. In addition, from an accounting perspective, acquisitions can
        involve
        non-recurring charges and amortization of significant amounts of intangible
        assets that could adversely affect the results of operations for and market
        perception of FIIC.
If
        FIIC is unable to meet its obligations resulting from the Bridge Financing,
        there may be a change of control of the company, which could disrupt certain
        relationships key to the potential success of FIIC's
        business.
As
        a result of the Bridge Financing, Oceanus holds a senior secured convertible
        promissory note convertible into shares of FIIC's common stock at any time,
        including accrued and unpaid interest, and a warrant to purchase additional
        shares of FIIC's common stock. The note is due and payable on the earlier of
        February 28, 2006, or FIIC's receipt of equity or debt financing in excess
        of $500,000. If FIIC receives such financing prior to February 28, 2006,
        FIIC must pay Oceanus the lesser of 50% of the financing amount or the balance
        owed on the note, including accrued interest. Alternately, Oceanus may elect
        to
        convert the note into shares of FIIC's common stock at a rate of $1.00 per
        share, including accrued and unpaid interest. In support of the note, FIIC
        executed a security agreement in favor of the noteholder, pledging all of
        its
        existing and hereafter acquired assets, including its license for the FIIC
        Database Content and Technology, as security for the note, and FIIC, Inc.
        provided a subsidiary guaranty. Ten FIIC stockholders, including certain
        directors, officers and affiliates of FIIC, have also executed pledge agreements
        guarantying the FIIC's obligations under the convertible note with an aggregate
        4,761,000 shares of their common stock. In the event that FIIC is unable
        to
        fulfill its payment obligations under the convertible note and the noteholder
        chooses not to convert the note to alternatively satisfy such obligations,
        under
        the pledge agreements the noteholder would be entitled to the pledged shares.
        Although the noteholder could not obtain greater than 50% of the company's
        issued and outstanding common stock upon receipt of the pledged shares and
        exercise of its warrant to purchase common stock, the noteholder would obtain
        a
        significant stake in FIIC, ranging from approximately 36% on a fully diluted
        basis to 43% on an undiluted basis.
Further,
        a number of the pledgors would lose all of their holdings of common stock
        in
        FIIC, and thus may be less likely to exercise their outstanding warrants
        to
        re-establish an ownership position. In addition, many of the pledgors are
        directors, executive officers or beneficial owners of 5% or more of FIIC's
        common stock, and thus may no longer be able to exert the same influence
        over
        the affairs of FIIC, or may be less inclined to serve in leadership positions.
        Finally, if the noteholder seeks to exert control over the rights to the
        FIIC
        Database Content and Technology on which the FIIC business model relies,
        the
        noteholder could disrupt FIIC's business to the detriment of FIIC's results of
        operations and the other stockholders of FIIC.
FIIC's
        common stock will likely be considered a "penny stock," will be subject to
        additional sale and trading regulations that may make it move difficult to
        sell.
FIIC's
        common stock could be considered to be a "penny stock" if it does not qualify
        for one of the exemptions from the definition of "penny stock" under Section
        3a51-1 of the Securities Exchange Act for 1934, as amended (the "Exchange Act").
        Circumstances under which FIIC's shares would be "penny stock" under the
        Exchange Act include, but are not limited to, the following: (i) the stock
        trades at a price less than $5.00 per share; (ii) it is NOT traded on a
"recognized" national exchange; (iii) it is NOT quoted on the Nasdaq Stock
        Market, or even if so, has a price less than $5.00 per share; or (iv) is
        issued
        by a company that has been in business less than three years with net tangible
        assets less than $5 million.
The
        principal result or effect of being designated a "penny stock" is that
        securities broker-dealers participating in sales of FIIC's common stock will be
        subject to the "penny stock" regulations set forth in Rules 15-2 through 15g-9
        promulgated under the Exchange Act. For example, Rule 15g-2 requires
        broker-dealers dealing in penny stocks to provide potential investors with
        a
        document disclosing the risks of penny stocks and to obtain a manually signed
        and dated written receipt of the document at least 2 business days before
        effecting any transaction in a penny stock for the investor's account. Moreover,
        Rule 15g-9 requires broker-dealers in penny stocks to approve the account
        of any
        investor for transactions in such stocks before selling any penny stock to
        that
        investor. This procedure requires the broker-dealer to (i) obtain from the
        investor information concerning his or her financial situation, investment
        experience and investment objectives; (ii) reasonably determine, based on
        that
        information, that transactions in penny stocks are suitable for the investor
        and
        that the investor has sufficient knowledge and experience as to be reasonably
        capable of evaluating the risks of penny stock transactions; (iii) provide
        the
        investor with a written statement setting forth the basis on which the
        broker-dealer made the determination in (ii) above; and (iv) receive a signed
        and dated copy of such statement from the investor, confirming that it
        accurately reflects the investor's financial situation, investment experience
        and investment objectives. Compliance with these requirements may make it
        more
        difficult and time consuming for holders of FIIC's common stock to resell their
        shares to third parties or to otherwise dispose of them in the market or
        otherwise.
We
        cannot assure that an established public trading market will develop for
        FIIC's
        securities, which would adversely affect the ability of investors to ultimately
        sell their securities in the public market.
Although
        Nicklebys' common stock has been listed on the Over-the-Counter Bulletin Board
        (the "OTCBB"), there is no active trading market for the Nicklebys, now FIIC,
        common stock, and a regular trading market for FIIC's securities may not develop
        or be sustained in the future. The OTCBB is an inter-dealer, over-the-counter
        market that provides significantly less liquidity than the NASD's automated
        quotation system (the "Nasdaq Stock Market"). Quotes for stocks included on the
        OTCBB are not listed in the financial sections of newspapers as are those
        for
        the Nasdaq Stock Market. Therefore, prices for securities traded solely on
        the
        OTCBB may be difficult to obtain and holders of common stock may be unable
        to
        resell their securities at or near their original offering price or at any
        price. Prices for securities traded solely on the OTCBB may be subject to
        significant volatility. Further, the NASD has enacted recent changes that
        limit
        quotations on the OTCBB to securities of issuers that are current in their
        reports filed with the Securities and Exchange Commission. The effect on
        the
        OTCBB of these rule changes and other proposed changes cannot be determined
        at
        this time.
The
        high volume of shares eligible for future sale may adversely affect the market
        price of FIIC's common stock, because the future sale of a substantial amount of
        outstanding stock in the public marketplace could reduce the perceived value,
        and therefore price, of FIIC's common stock.
The
        terms and conditions of FIIC's Bridge Financing and its Private Placement
        include piggyback registration rights for any shares issued in relation to
        these
        transactions. Thus, if FIIC decides to register any shares on its own account
        or
        on behalf of other shareholders under the Securities Act of 1933, as amended
        (the "Securities Act"), FIIC will also be obligated to pay all expenses incident
        to registering some or all of the shares issued in relation to the Bridge
        Financing and the Private Placement, covering the subsequent resale of these
        shares of FIIC's common stock. These registration rights are subject to the
        requirement that sellers pay all underwriting discounts or commissions with
        respect to their shares, and all shares in registration will be subject to
        any
        lock-up provisions and cut-backs as may be proposed by the underwriter, if
        any.
        However, registration under the Securities Act will allow these shares to
        ultimately be sold on the open market and the impact of a significant percentage
        of shares entering the market at once could adversely affect the market price
        of
        the combined group's common stock.
Additionally,
        following the Merger, FIIC's stockholders may become eligible to sell all or
        some of their shares of common stock by means of ordinary brokerage transactions
        in the open market pursuant to Rule 144, promulgated under the Securities
        Act
        ("Rule 144"), subject to certain limitations. In general, pursuant to Rule 144,
        a stockholder (or stockholders whose shares are aggregated) who has satisfied
        a
        one-year holding period may, under certain circumstances, sell within any
        three-month period a number of securities which does not exceed the greater
        of
        1% of the then outstanding shares of common stock or the average weekly trading
        volume of the class during the four calendar weeks prior to such sale. Rule
        144
        also permits, under certain circumstances, the sale of securities, without
        any
        limitations, by a non-affiliate that has satisfied a two-year holding period.
        Any substantial sale of common stock pursuant to any resale prospectus or
        Rule
        144 may have an adverse effect on the market price of FIIC's common stock by
        creating an excessive supply.
Market
        prices for FIIC's common stock may be influenced by a number of additional
        factors, including:
·
the
                  issuance of new equity securities pursuant to the Merger, or future
                  offerings;
·
changes
                  in interest rates;
·
competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;
·
variations
                  in quarterly operating results;
·
the
                  depth and liquidity of the market for FIIC's common
                  stock;
·
investor
                  perceptions of the company and the insurance industry
                  generally;
·
investor
                  perception of the company's ability to adjust to or address changes in
                  government rules and regulations applicable to insurance and/or
                  public
                  companies; and
·
general
                  economic and other national
                  conditions.
FIIC
        does not foresee paying cash dividends in the foreseeable
        future.
Nicklebys
        has not paid cash dividends on its stock in the past and FIIC does not plan
        to
        pay cash dividends on its stock in the foreseeable future.
CAUTIONARY
        STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The
        information contained in this report, including in the documents incorporated
        by
        reference into this report, includes some statement that are not purely
        historical and that are "forward-looking statements" as defined by the Private
        Securities Litigation Reform Act of 1995. Such forward-looking statements
        include, but are not limited to, statements regarding Nicklebys', FIIC's and
        their management's expectations, hopes, beliefs, intentions or strategies
        regarding the future, including FIIC's financial condition, results of
        operations, and the expected impact of the Merger on the parties' individual and
        combined financial performance. In addition, any statements that refer to
        projections, forecasts or other characterizations of future events or
        circumstances, including any underlying assumptions, are forward-looking
        statements. The words "anticipates," "believes," "continue," "could,"
"estimates," "expects," "intends," "may," "might," "plans," "possible,"
"potential," "predicts," "projects," "seeks," "should," "will," "would" and
        similar expressions, or the negatives of such terms, may identify
        forward-looking statements, but the absence of these words does not mean
        that a
        statement is not forward-looking.
The
        forward-looking statements contained in this proxy statement are based on
        current expectations and beliefs concerning future developments and the
        potential effects on the parties and the transaction. There can be no assurance
        that future developments actually affecting FIIC will be those anticipated.
        These forward-looking statements involve a number of risks, uncertainties
        (some
        of which are beyond the parties' control) or other assumptions that may cause
        actual results or performance to be materially different from those expressed
        or
        implied by these forward-looking statements, including the
        following:
·
the
                  ability of FIIC's management team to effect a smooth transition to
                  leadership of FIIC;
·
FIIC's
                  ability to launch its insurance business in a timely and cost-efficient
                  manner;
·
FIIC's
                  ability to obtain all necessary government certifications and/or
                  licenses
                  to conduct its insurance business;
·
market
                  acceptance of FIIC's Investor Protection
                  policies;
·
the
                  accuracy of FIIC's underwriting
                  model;
·
competitive
                  factors, such as price competition and competition from other insurance
                  companies and alternate investment protection
                  products;
·
FIIC's
                  ability to protect its intellectual property, including maintaining
                  its
                  exclusive license to use the FIIC Underwriting Data and Standards;
                  and
·
the
                  cost of complying with current and future governmental regulations
                  and the
                  impact of any changes in the regulations on FIIC's
                  operations.
These
        risks and uncertainties, along with others, are also described above under
        the
        heading "Risk Factors." Should one or more of these risks or uncertainties
        materialize, or should any of the parties' assumptions prove incorrect, actual
        results may vary in material respects from those projected in these
        forward-looking statements. FIIC undertakes no obligation to update or revise
        any forward-looking statements, whether as a result of new information, future
        events or otherwise, except as may be required under applicable securities
        laws.
ADDITIONAL
        DISCLOSURE
For
        additional information that would be required if the Registrant were filing
        a
        general form for registration of securities on Form 10 or Form 10-SB, see
        Item
        2.02 for "Management's Discussion and Analysis of FIIC's Financial Condition and
        Results of Operations," Item 3.03 for a description of the Registrant's
        securities post-Merger and related discussion of market price, and Item 4.01
        regarding changes in the Registrant's accountant, all incorporated by reference
        herein. Required disclosure regarding the change in control of the Registrant,
        the impact on its directors, executive officers, control persons and related
        compensation and beneficial ownership issues are addressed in Item 5.01,
        incorporated by reference herein. Attention is also directed to Item 9.01,
        which
        provides FIIC's audited financial statements as of and for the period ended
        December 31, 2005 and pro forma financial information regarding the effects
        of
        the Merger.
Item
        2.02
Results
        of Operations and Financial Condition.
MANAGEMENT'S
        DISCUSSION AND ANALYSIS OF FIIC'S FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The
        following discussion of FIIC's financial condition and results of operations as
        of December 31, 2005 should be read in conjunction with its financial statements
        and the related notes as provided under Item 9.01(a), and the other financial
        information included in this Current Report. With respect to the discussion
        within this Item 2.02, the terms "FIIC," "we," "us," and "our" refer to
        FIIC, Inc. and FIIC Holdings, Inc.
Forward-Looking
        Statements
The
        forward-looking comments contained in this discussion involve risks and
        uncertainties. Our actual results may differ materially from those discussed
        here due to factors such as, among others, limited operating history, difficulty
        in developing, exploiting and protecting proprietary technologies, intense
        competition and substantial regulation in the insurance industry. Additional
        factors that could cause or contribute to such differences can be found in
        the
        following discussion, as well as in the section entitled "Risk Factors" under
        Item 2.01 above.
Overview
Since
        FIIC's incorporation in January 2005, FIIC has had no revenue and only start-up
        operations. Upon receipt of the necessary governmental approvals and licenses
        and establishment of its planned insurance subsidiaries, FIIC plans to introduce
        an insurance product to insure third-party investors in new and existing
        businesses which meet its underwriting criteria. These planned insurance
        subsidiaries include: Federated Investors Insurance Company Risk Retention
        Group, to underwrite and issue insurance policies; Federated Insurance Captive,
        an agency captive insurance company providing reinsurance; and Federated
        Group
        Agency, a master group agency providing operational services. FIIC anticipates
        receipt of the necessary licenses from the D.C. DISR and from one state,
        likely
        Ohio, by the end of the second quarter of 2006.
Until such time, all start-up costs, such as the reserve requirements and
        initial working capital for establishment of these entities, any operational
        expenses, and other requirements will be funded by a combination of debt
        and
        equity financing.
Plan
        of Operation
Since
        its inception, FIIC dedicated its efforts to implementation of a start-up
        plan
        intended to secure the financing, governmental approvals, and management
        team
        necessary for launch of its planned insurance operations. The key components
        of
        this plan are the execution of a license arrangement for use of the FIIC
        Database Content and Technology upon which FIIC's underwriting and marketing
        functions will rely, completion of a merger with a public company, the
        completion of a bridge financing and private placement, and the formation
        and
        licensing of FIIC's planned insurance subsidiaries. FIIC believes that upon
        successful completion of these steps, it will be able to launch its insurance
        operations, as described below and in "FIIC's Business" under Item 2.01 above.
        FIIC currently believes it will be able to complete these steps by the end
        of
        the second quarter of 2006, enabling it to generate initial revenues during
        the
        third quarter of 2006. However, there are many factors that may influence
        FIIC's
        ability to achieve this timeline, as discussed in detail in the section entitled
        "Risk Factors" under Item 2.01 above.
Start-Up
        Plan
Licensing
        of FIIC Database Content and Technology
On
        March 17, 2005, FIIC entered into a Database Access and Content License,
        Hosting
        and Support Agreement with FIIC Research and Development, LLC ("FIIC LLC"); the
        parties amended this agreement on November 7, 2005, in relation to the Bridge
        Financing. FIIC LLC has developed the FIIC Database Content and Technology,
        including an extensive database of insurance underwriting data and standards
        for
        use in connection with insurance policies that insure investors against the
        risk
        of the loss of capital in certain business entities, specially-designed
        supporting software applications, and technology and database-specific workflow
        definitions, decision processes and models for managing such applications
        and
        utilizing the database and its contents. The license agreement provides FIIC
        an
        exclusive and perpetual license to access and use the FIIC Database Content
        and
        Technology to obtain the underwriting data, standards and other information
        for
        the purpose of underwriting its Investor Protection policies. FIIC also has
        the
        right to grant nonexclusive sublicenses to third parties involved in
        underwriting Investor Protection policies, while FIIC is obligated to continue
        to host, maintain and augment the FIIC Database Content and Technology. In
        consideration for the license, FIIC issued to FIIC LLC 9,792,000 shares of
        its
        common stock and 5- year warrants to purchase 1,808,307 shares of its common
        stock at an exercise price of $0.87 per share, and owes FIIC LLC
        $100,000.
For
        additional information about the license agreement, see "Related Party
        Transactions--Database Access and Content License, Hosting and Support
        Agreement" above, and for more information about how FIIC intends to utilize the
        information and technology covered by the license agreement, see "FIIC's
        Business," under Item 2.01 above.
Merger
        with a Public Company
The
        completion of the Merger satisfies the second aspect of FIIC's start-up plan.
        FIIC believes that a merger with a public company will afford increased market
        liquidity and enhanced access to the capital markets, in order to better
        manage
        and satisfy its significant funding requirements during the start-up and
        initial
        operational period. Further, management believes that status as a public
        company
        will provide the means to use securities of a publicly-traded company to
        make
        further acquisitions of assets or businesses in support of the intended
        long-term growth of FIIC's insurance business and will offer a competitive
        advantage when competing with other parties in the marketplace for such
        acquisitions. In addition, FIIC believes that becoming a public company will
        provide it increased visibility in the financial and insurance communities
        within a short timeframe and create a satisfactory level of transparency
        for its
        initial investors and customers. Although the Merger cost FIIC approximately
        $291,000 in legal, accounting and other related expenses, including $206,000
        of
        such expenses through January 31, 2006, the management of FIIC believes that
        FIIC has had greater access to funding sources for its start-up activities
        based
        on its plan to become a public company, including the Bridge Financing, and
        will
        continue to reap the benefits post- Merger.
Bridge
        Financing and Private Placement
FIIC
        planned the Bridge Financing and Private Placement, as described in detail
        under
        Items 1.01 and 2.01 above, to provide the initial funds necessary to establish
        the working capital reserves with the D.C. DISR in conjunction with the
        formation and licensing of FIIC's planned insurance subsidiaries. FIIC has
        received funding from the Bridge Financing, and anticipates receipt of
        significant funding from the Private Placement within three to four months
        after
        the close of the Merger. The funds from the Bridge Financing will be used
        to
        repay outstanding loans from stockholders and to begin the preparation of
        the
        D.C. DISR filings required to seek the necessary licensing for and form the
        required insurance entities. The funds from the Private Placement will be
        used
        first to settle outstanding obligations under the Bridge Financing, if any,
        and
        any non-convertible debt outstanding, then to fund the necessary reserve
        accounts for the new insurance entities. As of its closing at November 30,
        2005,
        FIIC estimates that the Bridge Financing cost it approximately $94,500 in
        legal,
        accounting, consulting and other related fees and expenses. FIIC anticipates
        that the Private Placement will cost it approximately $288,000 in such expenses
        and commissions.
Establishment
        and Licensing of Insurance Subsidiaries
FIIC's
        planned revenue model primarily depends on its use and management of the
        FIIC
        Underwriting Data and Standards, as licensed from FIIC LLC, in support of
        the
        sale of Investor Protection insurance policies through FIIC RRG, with
        reinsurance and operational support provided by FIC and FGA, respectively.
        However, FIIC will be unable to launch its planned insurance operations and
        therefore cannot generate any operational revenues until these insurance
        entities are formed and licensed as required by the D.C. DISR. The key items
        required to complete this stage of FIIC's start-up plan are the completion and
        submission of the licensing application and the funding of the required working
        capital reserves. FIIC is in the process of preparing the application for
        the
        establishment and licensing of the three entities, pending receipt of the
        funding necessary for the actuarial feasibility study required by the
        application. Further, the D.C. DISR requires a company to maintain one dollar
        in
        working capital on reserve for every $2.00 of insurance premium to be written
        prior to the establishment and licensing of a RRG. In support of FIIC RRG,
        FIIC
        will provide an initial reserve of $100,000 cash and an additional $400,000
        pursuant to a FIIC, Inc. Surplus Note to satisfy the funding requirements.
        In
        support of FIC, FIIC will provide an initial reserve of $100,000 cash and
        an
        additional $300,000 pursuant to a FIIC, Inc. Surplus Note to satisfy the
        funding
        requirements. It is estimated that each Surplus Note would be repaid over
        a
        five-year period subject to the approval of the D.C. DISR. FIIC anticipates
        use
        of a significant portion of the Bridge Financing net proceeds towards the
        required actuarial feasibility study, but does not anticipate filing the
        completed application until after the Private Placement and Merger close
        and
        FIIC has the necessary capital to fund the required reserves. Once the
        application is filed, FIIC expects the operating structure for the three
        new
        insurance entities to be formally established and licensed within 90 days,
        including the licensing of FIIC RRG and FIC in the District of Columbia and
        at
        least one state, likely Ohio.
Capital
        Resources
On
        November 29, 2005, FIIC issued a $350,000 Senior Secured Promissory Note
        to
        Oceanus Value Fund, L.P. and closed the first phase of its Bridge Financing.
        After deducting costs related to the financing, FIIC received approximately
        $258,000 for use towards its start-up costs, which was held in escrow through
        February 28, 2006. As a result of the second phase of the Bridge Financing
        and the subsequent amendment of the securities purchase agreement, the balance
        on the NBYS Note issued in the second closing is now $92,000. In addition,
        as of
        February 28, 2006, FIIC had incurred $39,000 in principal under demand notes
        from stockholders and another $700,000
in principal under convertible notes. FIIC anticipates that the Private
        Placement, when completed, will result in gross equity financing of up to
        $2,500,000. After deduction of related fees and expenses, FIIC anticipates
        receipt of up to $2,212,000 net proceeds from the Private
        Placement.
As
        of December 31, 2005, FIIC had cash and cash equivalents of $1,714 and current
        liabilities of $1,140,618. As of December 31, 2005, FIIC had an accumulated
        operating deficit of $1,006,050, which has increased in the subsequent
        months.
Use
        of Available Funds
FIIC
        believes that upon the successful completion of the Private Placement, including
        the sale of all shares offered resulting in aggregate gross proceeds of
        $2,500,000, its current capital resources will be sufficient to cover all
        startup costs, reserve requirements and operating expenses for twelve months,
        including the anticipated initial six months of its insurance operations.
        FIIC
        currently anticipates allocating its capital resources as follows:
Debt
        Repayment
FIIC
        intends to use a portion of the net proceeds from the Bridge Financing to
        repay
        the principal and interest fees on its current demand notes from its
        stockholders, totaling $58,500. FIIC believes that its other currently
        outstanding convertible notes in the aggregate principal amount
        of $700,000
will
        convert into equity subsequent to the Merger and thus not require repayment.
        Post-Merger and upon completion of the Private Placement, if Oceanus does
        not
        choose to convert the NBYS Note and its accrued interest before such time,
        FIIC
        also intends to use the proceeds from the Private Placement, upon completion,
        to
        repay its obligations resulting from the Bridge Financing, which it anticipates
        will total approximately $368,000 at that time.
Entity
        Financing
As
        noted above, FIIC intends to fund the working capital reserves of FIIC RRG
        and
        FIC in the amounts of $500,000 and $400,000, respectively, from the net proceeds
        of the Private Placement. FIIC does not anticipate receiving repayment on
        the
        FIIC, Inc. Surplus Notes pursuant to which a portion of such reserve funding
        will be provided until these insurance entities are operational for at least
        one
        year. In addition, FIIC intends to provide FIIC RRG and FIC each with
        approximately $50,000 for formation and associated initial start-ups costs.
        FIIC
        also intends to provide FGA with initial working capital of $529,500, to
        fund
        its services in support of FIIC RRG and FIC, including regulatory reporting,
        backroom operations, underwriting, claims and accounting. The management
        agreement between FGA and each of the other insurance entities will detail
        which
        vendors and suppliers will be responsible for reinsurance support, legal
        services, accounting services, actuarial support, and other services beyond
        the
        abilities of FGA's own personnel. FIIC anticipates that FGA's operational
        expenses for the first six months of its management agreement with FIIC RRG
        and
        FIC will total approximately $270,000. Subject to this agreement, FIIC RRG
        and
        FIC will provide certain management fees to FGA for its services, but the
        initial grant of working capital will cover FGA's start-up costs and ensure its
        ability to meet its contractual obligations until such time as the insurance
        operations are fully functional.
Operating
        Expenses
Any
        funds received beyond those needed to repay debt, fund the regulatory working
        capital reserves and provide the insurance entities initial working capital
        will
        be used for FIIC's general corporate purposes, including initial product
        development, marketing and employee costs. Within the next twelve months,
        including the anticipated initial six months of its revenue-producing insurance
        operations, FIIC anticipates spending up to $175,000 on intellectual property
        rights and product development costs, including payment of the $100,000 owed
        to
        FIIC LLC under the license agreement for the FIIC Database Content and
        Technology, $46,000 on Dun & Bradstreet information fees, $7,000 on web
        services and support and $22,000 on the part-time employment of an information
        technology specialist. During this period, FIIC also anticipates incurring
        up to
        $197,000 in legal expenses relating to the launch of its operations and general
        corporate governance and $30,000 in audit-related expenses. FIIC also plans
        to
        spend up to $40,000 towards market development in the next twelve months,
        including designing and placing its advertising on-line and developing other
        sales tools. Other anticipated operating expenses during this initial period
        include payment of $96,000 in consulting fees which will become due post-Merger,
        approximately $20,000 in overhead expenses such as copy, fax and phone charges
        and basic travel expenses, and additional funds, as available, towards reducing
        FIIC's accumulated deficit. There are no plans nor is there any necessity to
        purchase any significant equipment, beyond basic office computers and related
        technology.
Within
        the first six months of the launch of FIIC's insurance operations, FIIC will
        rely on its executive officers, supported by independent consultants, to
        fulfill
        all operational functions. FIIC does not anticipate hiring additional part-time
        or full-time employees until it approaches the operational benchmark of 100
        policies sold, although FIIC may continue partial or occasional payment of
        the
        accrued consulting fees, as disclosed in "Executive Compensation—Summary
        Compensation Table" above, earlier if there are available, unallocated funds.
        FIIC anticipates initiating payment of the projected executive salaries
        disclosed in that section shortly after the planned insurance subsidiaries
        are
        established and fully licensed for operations and each individual executes
        an
        employment agreement.
FIIC
        may also use a portion of the excess net proceeds from the Private Placement
        for
        the acquisition of complementary businesses, technologies or products. There
        are
        no contracts or agreements to do so, however.
Launch
        of Revenue-Producing Insurance Operations
Upon
        launch of its insurance operations, FIIC anticipates generating revenues
        primarily from the sale of its Investor Protection insurance policies and
        secondarily from the collection of licensing fees from other insurance carriers
        pertaining to the rights to use all copyrighted and protected intellectual
        property developed by or licensed to FIIC, including for educational,
        scientific, data mining or new business purposes. In the initial six months
        of
        FIIC's insurance operations, FIIC projects issuing 17 policies at an average
        total investment per business of $250,000, generating an average premium
        of ten
        percent (10%) and thereby yielding $425,000 gross premiums revenue in this
        initial operational period. Based on FIIC's analysis of new business starts in
        the Ohio area, its initial target market, FIIC believes that this level of
        performance represents a projected market penetration of about 0.23%. Further,
        FIIC will generate related revenues from its $50 fee per application, regardless
        of the number of resulting policies issued.
FIIC
        anticipates 27 applications within it initial six months of operations,
        generating gross application fee revenues of approximately $1,350. FIIC
        anticipates that actual premium rates will range from 8 to 18 percent based
        on
        the risk group of the subject business per the FIIC Underwriting Data and
        Standards, and that eventually the application fee may also become variable.
        FIIC also believes that beginning in year two of its operations overall average
        premium rates may slightly decline, reflecting lower rates for renewals,
        the
        potential impact of competition, and any actual claims experiences. FIIC
        believes that it may be able to write up to 2,000 policies per year its initial
        target geographic markets, but continues to project revenues and expenses
        on a
        significantly more conservative basis, since it is unknown how quickly the
        concept of the Investor Protection policy will penetrate the market and how
        swiftly competition may absorb some of the potential market.
Since
        the funds in the regulatory working capital reserves cannot be used to fund
        operations, FIIC, or subsequently the combined group, may also need additional
        capital to continue to adequately grow its business post-launch of its insurance
        operations. The amount of additional capital the combined group may need
        to
        raise through public or private equity or debt financings over the next few
        years will depend on many factors, including:
·
market
                  acceptance and the growth rate of demand, if any, for FIIC's Investor
                  Protection policies;
·
the
                  lead time required to execute and generate a revenue stream from
                  customer
                  contracts;
·
changes
                  in the size of the required working capital reserve or other regulatory
                  requirements;
·
availability
                  of opportunities for strategic acquisition of other companies with
                  technology, resources, customers or know-how that will further
                  the growth
                  of the FIIC's insurance business;
                  and
·
the
                  accuracy of FIIC's projections regarding its operating costs, including
                  the costs of regulatory compliance, personnel, legal and accounting
                  costs
                  and the cost of funds.
The
        combined group cannot be certain that additional sources of liquidity will
        be
        available when needed in the future and that its actual cash requirements
        will
        not be greater than anticipated. If financing is not available when needed
        on
        favorable terms, FIIC would evaluate whether to scale back further development
        of FIIC's insurance products and services, to limit its marketing activities, to
        sell some or all of its technology, intellectual property or assets, to merge
        with another entity, or to terminate its operations.
Off-Balance
        Sheet Arrangements
As
        of February 28, 2006, the Company had no off-balance sheet
        arrangements.
Critical
        Accounting Policies and Estimates
FIIC's
        financial statements are prepared on the accrual basis and in conformity
        with
        generally accepted accounting principles for U.S. Companies ("U.S. GAAP"). Cash
        and cash equivalents are defined as cash and investments with maturity of
        less
        than three (3) months. Any prepaid costs are deferred and expensed at time
        of
        receiving services. Debt issuance costs are amortized based upon the lives
        of
        the respective debt obligations. FIIC's management may be required to make
        estimates and assumptions that affect the reporting amount of assets and
        liabilities, the actual results of which could differ from those
        estimates.
Item
        3.02
Unregistered
        Sales of Equity Securities.
On
        February 28, 2006, pursuant to the terms of the Merger Agreement by and between
        Nicklebys.com, Inc. ("Nicklebys") , Nicklebys Acquisition Corp. and FIIC, Inc.
        (as described in Item 2.01 above), each share of FIIC, Inc. common stock
        (an
        aggregate of 12,668,377 shares) was converted into one share of Nicklebys'
common stock. Additionally, warrants to purchase 2,291,384 shares of FIIC,
        Inc.
        common stock and notes in an aggregate principal amount of $700,000
convertible
        into at least 1,661,538 shares of FIIC, Inc. common stock (without regard
        to the
        potential conversion of any accrued and unpaid interest) were assumed by
        Nicklebys at the closing of the Merger. The securities were offered and sold
        to
        investors in reliance upon exemptions from registration pursuant to Section
        4(2)
        under the Securities Act of 1933, as amended, and Rule 506 promulgated
        thereunder. Each of the persons and/or entities receiving our securities
        qualified as an accredited investor (as defined by Rule 501 under the Securities
        Act of 1933, as amended). Immediately following the closing of the Merger,
        Nicklebys executed an Agreement and Plan of Merger with FIIC Holdings, Inc.,
        a
        Delaware corporation, for the purpose of reincorporating from the State of
        Colorado to the State of Delaware and concurrently changing its name to FIIC
        Holdings, Inc.
On
        February 28, 2006, pursuant to the Bridge Financing (as defined and discussed
        in
        Item 1.01 above), FIIC Holdings, Inc. (the "Registrant") issued a $350,000
        Senior Secured Convertible Promissory Note bearing annual interest at 12%
        (the
"NBYS Note") and a warrant to purchase 890,995 shares of the Registrant's common
        stock (the "NBYS Warrant"). The Registrant issued the NBYS Note and NBYS Warrant
        in exchange for the $350,000 Senior Secured Promissory Note previously issued
        by
        FIIC, Inc. to Oceanus in November 2005.
Immediately
        subsequent to execution of the securities purchase agreement and the issuance
        of
        the NBYS Note, the parties executed an amendment to the securities purchase
        agreement, extending the term of the NBYS Note, providing for partial repayment
        of the NBYS Note and releasing certain pledge agreements entered into in
        support
        of the NBYS Note.
The
        principal balance of $92,000 due on the amended NBYS Note is due and payable
        on
        the earlier of May 29, 2006 or the Registrant's receipt of equity or debt
        financing in excess of $500,000. If the Registrant receives such financing
        prior
        to May 29, 2006, the Registrant must pay Oceanus the lesser of 50% of the
        amount
        of the financing or the balance owed on the note, including interest.
        Alternately, Oceanus may elect to convert the NBYS Note to shares of the
        Registrant's common stock at any time at a rate of $1.00 per share, including
        accrued and unpaid interest. If the note remains unpaid and unconverted at
        such
        time that the closing price for the Registrant's common stock equals or exceeds
        $3.00 per share for 20 consecutive trading days on the OTCBB, the trading
        volume
        for the common stock has been at least $250,000 per day for the 20 consecutive
        trading day period, and the shares allocated for the conversion are freely
        tradeable pursuant to an effective registration statement or Rule 144(k),
        then
        the note shall automatically convert at a rate of $3.00 per share.
On
        February 28, 2006, in conjunction with the issuance to Oceanus,
the
        Registrant also issued Bridgewater Capital Corporation a warrant to purchase
        35,000 shares of the Registrant's common stock at $1.00 per share. The issuance
        of the NBYS Note, the NBYS Warrant and the warrants to Bridgewater were made
investors
        in reliance upon exemptions from registration pursuant to Section 4(2) under
        the
        Securities Act of 1933, as amended, and Rule 506 promulgated thereunder.
        Each of
        the persons and/or entities receiving these securities qualified as an
        accredited investor (as defined by Rule 501 under the Securities Act of 1933,
        as
        amended).
Item
        3.03
Material
        Modification to Rights of Security Holders.
REINCORPORATION
        FROM COLORADO TO DELAWARE; NAME CHANGE
Overview
        of Reincorporation and Name Change
Upon
        closing of the Merger and consistent with the terms of the Merger Agreement,
        the
        Nicklebys.com, Inc. ("Nicklebys") executed an Agreement and Plan of Merger with
        its newly-formed, wholly-owned subsidiary, FIIC Holdings, Inc., designed
        to
        result in:
·
a
                  change in domicile of the public company from the State of Colorado
                  to the
                  State of Delaware, which means that the surviving company will
                  be governed
                  by the laws of the State of
                  Delaware;
·
a
                  change in corporate name from Nicklebys.com, Inc. to FIIC Holdings,
                  Inc.;
·
the
                  right of Nicklebys' shareholders, including the former FIIC, Inc.
                  stockholders, to receive one new share of FIIC Holdings, Inc.,
                  for each
                  outstanding share of NBYS common stock held on the effective date
                  of the
                  Reincorporation and Name Change;
·
the
                  FIIC 2005 Plan, assumed by Nicklebys in the Merger, becoming the
                  stock
                  option plan of FIIC Holdings, Inc.;
·
FIIC
                  Holdings, Inc.'s Certificate of Incorporation becoming the Certificate of
                  Incorporation of the surviving public corporation;
                  and
·
FIIC
                  Holdings, Inc.'s Bylaws becoming the Bylaws of the surviving public
                  corporation.
Nicklebys
        then immediately filed a Statement of Merger with the Colorado Secretary
        of
        State and a Certificate of Merger with the Delaware Secretary of State, along
        with all necessary supporting documentation, to effectuate the reincorporation
        from the State of Colorado to the State of Delaware and concurrent name change
        of the public company. As a result of the reincorporation merger, FIIC Holdings,
        Inc. is the surviving public reporting company (the "Registrant").
The
        board of directors and management of FIIC sought to reincorporate Nicklebys
        in
        the State of Delaware because Delaware is recognized for adopting comprehensive
        modern and flexible corporate laws, which are periodically revised to respond
        to
        the changing legal and business needs of corporations. For this reason, many
        major corporations have initially incorporated in Delaware or have changed
        their
        corporate domiciles to Delaware. Consequently, the Delaware judiciary has
        become
        particularly familiar with corporate law matters and a substantial body of
        court
        decisions has developed construing Delaware law. As a result, Delaware corporate
        law has been, and is likely to continue to be, interpreted in many significant
        judicial decisions, providing more flexibility in practice and more certainty
        in
        interpretation and application than currently exists under the corporate
        laws of
        the State of Colorado.
Effect
        of the Reincorporation and Name Change
The
        Name Change should not have any effect on the transferability of outstanding
        stock certificates. Outstanding stock certificates bearing the name
"Nicklebys.com, Inc." should continue to be valid and represent shares of "FIIC
        Holdings, Inc." In the future, new stock certificates will be issued bearing the
        Company's new name, but this will in no way affect the validity of any currently
        outstanding stock certificates. The Name Change will be reflected by book-entry.
        Stockholders that hold physical certificates should not destroy or send to
        the
        Registrant their common stock certificates. Those certificates should be
        carefully preserved by each stockholder, until the stockholder receives any
        further instructions from the Registrant or its transfer agent, Corporate
        Stock
        Transfer.
The
        rights of the Registrant's stockholders are now governed by Delaware corporate
        law, rather than Colorado corporate law as previously governed the rights
        of
        Nicklebys' shareholders. Because of differences between the Colorado Business
        Corporations Act and the Delaware General Corporate Law, as well as differences
        between Nicklebys' governing documents and the governing documents for FIIC
        Holdings, Inc. (see Exhibits 3.2 and 3.3 attached hereto), the Reincorporation
        has changed the rights of prior Nicklebys shareholders. Summarized below
        are the
        most significant differences between the rights of shareholders under the
        Colorado law and prior Nicklebys governing documents and the rights of
        stockholders under the Delaware law and governing documents of FIIC Holdings,
        Inc. The summary below is not an exhaustive list of all differences or a
        complete description of the differences described, and is qualified in its
        entirety by reference to CBCA and the DGCL, the prior Nicklebys' Articles of
        Incorporation and Bylaws and FIIC's Certificate of Incorporation and
        Bylaws.
Nicklebys.com,
                  Inc. - Colorado
FIIC
                  Holdings, Inc. - Delaware
Authorized
                  Shares
Under
                  the Nicklebys Articles of Incorporation, Nicklebys was authorized
                  to issue
                  a total of 100,000,000 shares of common stock, par value $.0001
                  per share,
                  and 3,000,000 shares of preferred stock, par value $.0001 per share.
Under
                  the FIIC Holdings Certificate of Incorporation, FIIC Holdings is
                  authorized to issue a total of 100,000,000 shares of common stock,
                  par
                  value $.001 per share, and 3,000,000 shares of preferred stock,
                  par value
                  .$001 per share.
Election
                  and Number of Directors
Pursuant
                  to the Nicklebys Bylaws the number of directors may not be less
                  than one.
                  Directors were to be elected at each annual meeting. There were
                  four
                  directors in office prior to the Merger.
Pursuant
                  to the FIIC Holdings Bylaws the number of directors may not be
                  less than 3
                  nor more than nine. Directors will be elected by class as described
                  in
                  "Classified or Staggered Board." Post-Merger there are five directors in
                  office, with two vacant positions available for immediate appointment.
Indemnification
                  of Directors
Under
                  Section 7-109-102 of the CBCA, a corporation may indemnify a director
                  or
                  officer. The Nicklebys Articles of Incorporation provided for mandatory
                  indemnification so long as the person has acted in good faith.
                  The
                  Articles of Incorporation also provided for advancement of expenses
                  incurred to defend such an action, if the director or officer acted
                  in
                  good faith and in the best interest of the company.
Pursuant
                  to Section 145 of the DGCL, a company may indemnify directors and
                  officers. The FIIC Holdings Certificate of Incorporation and Bylaws
                  provide for mandatory indemnification of former or current officers
                  and
                  directors of FIIC Holdings
with
                  respect to expenses incurred in any action brought against those
                  persons
                  as a result of their role with FIIC Holdings, if certain conditions
                  are
                  satisfied. Subject to certain conditions, the FIIC Holdings Certificate
                  of
                  Incorporation also provides for mandatory advancement of expenses
                  incurred
                  by those persons in defending such an action.
Par
                  Value of Capital Stock; Surplus Capital
The
                  concepts of par value, surplus and capital do not exist under the
                  CBCA,
                  though par value is permitted. Nicklebys' common stock had a par value of
                  $.0001.
Pursuant
                  to Section 154 of the DGCL, Delaware law recognizes the concepts
                  of par
                  value and surplus capital. FIIC Holdings' common stock has a par value of
                  $.001.
Special
                  Meetings
The
                  Nicklebys Bylaws provided that special meetings, unless otherwise
                  provided
                  by statute, may be called by the president, the Board or by the
                  president
                  at the request of no less than 10% of the shareholders.
Pursuant
                  to the FIIC Holdings Bylaws, a special meeting of the stockholders
                  for the
                  transaction of any proper business may be called at any time exclusively
                  by the Board or the Chairman.
Action
                  by Shareholders Without a Meeting
Section
                  7-107-104 of the CBCA and the Nicklebys Bylaws provided that any
                  action
                  required or permitted to be taken at a shareholders' meeting may be taken
                  without a meeting if all of the shareholders entitled to vote thereon
                  consent to such action in writing.
Section
                  228(a) of the DGCL and the FIIC Holdings Bylaws permits stockholder
                  action
                  to be taken by less than unanimous written consent, if written
                  consents
                  are signed by the holders of outstanding stock having not less
                  than the
                  minimum number of votes that would be necessary to authorize or
                  take such
                  action at a meeting at which all shares entitled to vote thereon
                  were
                  present and voted and prompt notice of the action so taken by written
                  consent of the requisite majority of the stockholders is given
                  to the
                  non-consenting stockholders.
Amendment
                  to Articles or Certificate of Incorporation
Pursuant
                  to Section 7-110-102 and 103 of the CBCA, amendments to the Articles
                  of
                  Incorporation had to be submitted to a shareholder vote if proposed
                  either
                  by the Board of Directors or by the holders of shares representing
                  at
                  least 10% of all of the votes entitled to be cast on the amendment.
                  The
                  Board of Directors must recommend the amendment to the shareholders,
                  unless the amendment is being proposed by the shareholders, or
                  unless the
                  Board of Directors determines that because of a conflict of interest
                  or
                  other special circumstances it should make no recommendation with
                  respect
                  to the amendment. The Nicklebys Articles of Incorporation could
                  be amended
                  by affirmative vote of the shareholders of at least a majority
                  of the
                  shares entitled to vote at a meeting called for that purpose or,
                  when
                  authorized, by written consent.
Under
                  Section 241 of the DGCL and the FIIC Holdings Articles of Incorporation,
                  an amendment or change to the certificate of incorporation generally
                  requires the approval of the board of directors, followed by the
                  approval
                  of such amendment by the affirmative vote of the holders of a majority
                  of
                  the outstanding shares entitled to vote thereon. When an amendment
                  of the
                  certificate would adversely affect the rights of a class of stock
                  or the
                  rights of a series of a class, Delaware corporate law provides
                  that the
                  enactment of the amendment also requires the affirmative vote of
                  the
                  holders of a majority of the outstanding shares of such class or
                  series.
Dissenters'
                  Rights of Appraisal
Pursuant
                  to Section 7-113-101 and 102, Colorado law gives shareholders appraisal
                  rights over (1) a merger to which the Colorado corporation is a
                  party if
                  (i) approval by the shareholders is required for the merger or
                  (ii) the
                  Colorado corporation is a subsidiary and is merged with its parent
                  where
                  approval of the shareholders is not required; (2) a plan of exchange
                  where
                  the Colorado corporation is a party as the corporation whose shares
                  will
                  be acquired; a sale, lease, exchange or other disposition of all,
                  or
                  substantially all, of the property of the Colorado corporation;
                  (3) a
                  sale, lease, exchange or other disposition of all, or substantially
                  all,
                  of the property of an entity controlled by the Colorado corporation
                  if the
                  shareholders of the Colorado corporation were entitled to vote;
                  and (4) a
                  reverse stock split that reduces the number of shares owned by
                  the
                  shareholder to a fraction of a share if the fractional shares is
                  to be
                  acquired for cash.
Colorado
                  corporate law does not provide appraisal rights in connection with
                  a
                  merger or consolidation to the owner of shares that is listed on
                  a
                  national securities exchange or is held by more than 2,000
                  shareholders.
Pursuant
                  to Section 262 of the DGCL, appraisal rights are only available
                  with
                  respect to a merger or consolidation of a corporation under certain
                  limited circumstances. No appraisal rights are provided in the
                  case of a
                  sale or transfer of all or substantially all of the corporation's assets
                  or an amendment to the corporation's certificate of incorporation.
                  Moreover, Delaware corporate law does not provide appraisal rights
                  in
                  connection with a merger or consolidation to the owner of shares
                  that is
                  listed on a national securities exchange or is held by more than
                  2,000
                  stockholders.
Business
                  Combination Law
The
                  CBCA does not contain any business combination provisions.
Section 203
                  of the DGCL provides for a three-year moratorium on certain business
                  combination transactions with "interested stockholders" (generally,
                  persons who beneficially own 15% or more of the corporation's outstanding
                  voting stock). FIIC Holdings has not opted out of Section 203 of
                  the DGCL
                  in its governing documents.
Classified
                  or Staggered Board
Under
                  Section 7-108-106, staggered boards are allowed in 2 or 3 groups.
                  However,
                  as provided in the Nicklebys Bylaws, all directors of the Company
                  were to
                  be elected annually.
Under
                  Section 141(d) boards are allowed in 1, 2 or 3 classes. Pursuant
                  to the
                  FIIC Holdings Bylaws, the directors of the Corporation shall be
                  divided
                  into three classes—Class I, Class II and Class III. The term of office of
                  the initial Class I directors shall expire at the first
                  regularly-scheduled annual meeting of the stockholders, the term
                  of office
                  of the initial Class II directors shall expire at the second annual
                  meeting of the stockholders and the term of office of the initial
                  Class
                  III directors shall expire at the third annual meeting of the
                  stockholders. At each annual meeting of stockholders, commencing
                  with the
                  first regularly-scheduled annual meeting of stockholders, each
                  of the
                  successors elected to replace the directors of a Class whose term
                  shall
                  have expired at such annual meeting shall be elected to hold office
                  until
                  the third annual meeting succeeding his or her election and until
                  his or
                  her respective successor shall have been duly elected and qualified.
                  The
                  FIIC board currently has two Class I vacancies.
Franchise
                  Tax
Colorado
                  does not have a franchise tax.
Section
                  501 of the DGCL requires corporations to pay a franchise tax annually.
POST-MERGER
        DESCRIPTION OF SECURITIES
Common
        Stock
The
        Registrant is authorized to issue up to 100,000,000 shares of common stock,
        par
        value $0.001 per share, of which 13,866,983 shares are currently issued and
        outstanding. Each outstanding share of common stock is entitled to one vote,
        either in person or by proxy, on all matters that may be voted upon by their
        holders at meetings of the stockholders. Holders of the Registrant's common
        stock (i) have equal ratable rights to dividends from funds legally available
        therefore, if declared by the Board of Directors; (ii) are entitled to share
        ratably in all of the Registrant's assets available for distribution upon
        liquidation, dissolution or winding up; and (iii) do not have preemptive,
        subscription or conversion rights or redemption or sinking fund provisions.
        All
        issued shares of the Registrant's common stock are fully paid for and
        non-assessable.
Preferred
        Stock
The
        Registrant is authorized to issue 3,000,000 shares of preferred stock, par
        value
        $0.001 per share, of which no shares are currently issued and outstanding.
        The
        preferred stock may be issued in one or more series and the Registrant's Board
        of Directors, without further approval from its stockholders, is authorized
        to
        fix the dividend rights and terms, conversion rights, voting rights, redemption
        rights, liquidation preferences and other rights and restrictions relating
        to
        any series. Issuances of preferred stock, while providing flexibility in
        connection with possible financings, acquisitions and other corporate purposes,
        could, among other things, adversely affect the voting power of the holders
        of
        our common stock.
Stock
        Options
In
        connection with the Merger, the Registrant assumed the FIIC 2005 Plan, under
        which 1,854,883 shares of common stock are reserved for issuance. At the
        effective time of the Merger, FIIC, Inc. had no options outstanding under
        the
        FIIC 2005 Plan.
Warrants
        and Convertible Notes
In
        connection with the Merger, the Registrant assumed warrants to purchase shares
        of common stock and notes convertible into shares of common stock on the
        same
        terms and conditions as previously issued by FIIC, Inc. Immediately after
        the
        closing of the Merger, FIIC, Inc. had warrants to purchase 3,217,379 shares
        of
        common stock and notes convertible into at least 1,753,538 shares of common
        stock outstanding.
MARKET
        PRICE OF THE REGISTRANT'S COMMON STOCK
The
        price of the Registrant's common stock will likely fluctuate in the future. The
        stock market in general has experienced extreme stock price fluctuations
        in the
        past few years. In some cases, these fluctuations have been unrelated to
        the
        operating performance of the affected companies. Many companies have experienced
        dramatic volatility in the market prices of their common stock. The Registrant
        believes that a number of factors, both within and outside its control, could
        cause the price of the Registrant's common stock to fluctuate, perhaps
        substantially. Factors such as the following could have a significant adverse
        impact on the market price of its common stock:
·
The
                  Registrant's ability to obtain additional financing and, if available, the
                  terms and conditions of the
                  financing;
·
The
                  Registrant's financial position and results of
                  operations;
·
Concern
                  as to, or other evidence of, the reliability and efficiency of
                  the
                  Registrant's proposed products and services or its competitors' products
                  and services;
·
Announcements
                  of innovations or new products or services by the Registrant or
                  its
                  competitors;
·
U.S.
                  federal and state governmental regulatory actions and the impact
                  of such
                  requirements on the Registrant's
                  business;
·
The
                  development of litigation against the
                  Registrant;
·
Period-to-period
                  fluctuations in the Registrant's operating
                  results;
·
Changes
                  in estimates of the Registrant's performance by any securities
                  analysts;
·
The
                  issuance of new equity securities pursuant to a future offering
                  or
                  acquisition;
·
Changes
                  in interest rates;
·
Competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;
·
Investor
                  perceptions of the Registrant; and
·
General
                  economic and other national
                  conditions.
DELAWARE
        ANTI-TAKEOVER LAW AND CHARTER AND BYLAW PROVISIONS
The
        Registrant is subject to Section 203 of the Delaware General Corporation
        Law.
        This provision generally prohibits a Delaware corporation from engaging in
        any
        business combination with any interested stockholder for a period of three
        years
        following the date the stockholder became an interested stockholder,
        unless:
·
prior
                  to such date, the Board of Directors approved either the business
                  combination or the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder;
·
upon
                  consummation of the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder, the interested stockholder owned at
                  least 85%
                  of the voting stock of the corporation outstanding at the time
                  the
                  transaction commenced, excluding for purposes of determining the
                  number of
                  shares outstanding those shares owned by persons who are directors
                  and
                  also officers and by employee stock plans in which employee participants
                  do not have the right to determine confidentially whether shares
                  held
                  subject to the plan will be tendered in a tender or exchange offer;
                  or
·
on
                  or subsequent to such date, the business combination is approved
                  by the
                  Board of Directors and authorized at an annual meeting or special
                  meeting
                  of stockholders and not by written consent, by the affirmative
                  vote of at
                  least 66 2/3% of the outstanding voting stock that is not owned
                  by the
                  interested stockholder.
Section
        203 defines a business combination to include:
·
any
                  merger or consolidation involving the corporation and the interested
                  stockholder;
·
any
                  sale, transfer, pledge or other disposition of 10% or more of the
                  assets
                  of the corporation involving the interested stockholder;
·
subject
                  to certain exceptions, any transaction that results in the issuance
                  or
                  transfer by the corporation of any stock of the corporation to
                  the
                  interested stockholder;
·
any
                  transaction involving the corporation that has the effect of increasing
                  the proportionate share of the stock of any class or series of
                  the
                  corporation beneficially owned by the interested stockholder;
                  or
·
the
                  receipt by the interested stockholder of the benefit of any loans,
                  advances, guarantees, pledges or other financial benefits provided
                  by or
                  through the corporation.
In
        general, Section 203 defines an "interested stockholder" as any entity or person
        beneficially owning 15% or more of the outstanding voting stock of a
        corporation, or an affiliate or associate of the corporation and was the
        owner
        of 15% or more of the outstanding voting stock of a corporation at any time
        within three years prior to the time of determination of interested stockholder
        status; and any entity or person affiliated with or controlling or controlled
        by
such
        entity or person.
The
        Registrant's certificate of incorporation and bylaws contain provisions that
        could have the effect of discouraging potential acquisition proposals or
        making
        a tender offer or delaying or preventing a change in control of the Registrant,
        including changes a stockholder might consider favorable. In particular,
        the
        Registrant's certificate of incorporation and bylaws, as applicable, among other
        things, will:
·
provide
                  the Registrant's board of directors with the ability to alter its bylaws
                  without stockholder approval;
·
provide
                  for an advance notice procedure with regard to the nomination of
                  candidates for election as directors and with regard to business
                  to be
                  brought before a meeting of
                  stockholders;
·
provide
                  that vacancies on the Registrant's board of directors may be filled by a
                  majority of directors in office, although less than a
                  quorum.
Such
        provisions may have the effect of discouraging a third-party from acquiring
        the
        Registrant, even if doing so would be beneficial to its stockholders. These
        provisions are intended to enhance the likelihood of continuity and stability
        in
        the composition of the Registrant's board of directors and in the policies
        formulated by them, and to discourage some types of transactions that may
        involve an actual or threatened change in control of the Registrant. These
        provisions are designed to reduce the Registrant's vulnerability to an
        unsolicited acquisition proposal and to discourage some tactics that may
        be used
        in proxy fights. The Registrant believes that the benefits of increased
        protection of its potential ability to negotiate with the proponent of an
        unfriendly or unsolicited proposal to acquire or restructure the Registrant
        outweigh the disadvantages of discouraging such proposals because, among
        other
        things, negotiation of such proposals could result in an improvement of their
        terms.
However,
        these provisions could have the effect of discouraging others from making
        tender
        offers for the Registrant's shares that could result from actual or rumored
        takeover attempts. These provisions also may have the effect of preventing
        changes in the Registrant's management.
Item
        4.01
Changes
        in Registrant's Certifying Accountant.
On
        February 13, 2006, prior to the closing of the Merger, Cordovano and Honeck
        LLP resigned as the Registrant's independent certified public accountants and
        the Registrant engaged Miller and McCollom, Certified Public Accountants,
        to
        audit its financial statements for the fiscal year ended December 31, 2005,
        as
        reported on a Current Report on Form 8-K/A dated February 17, 2006.
On March
        6,
2006,
        the FIIC board of directors accepted the resignation of Schoonover Boyer
        +
        Associates as FIIC, Inc.'s independent registered certified public accountants.
        Schoonover Boyer + Associates audited FIIC's financial statements for the fiscal
        year ended December 31, 2005. Schoonover Boyer + Associates' audit report does
        not contain an adverse opinion or disclaimer of opinion, nor were they qualified
        or modified as to uncertainty, audit scope, or accounting principles. In
        connection with the audit of the Company's financial statements prepared
        for the
        fiscal year ended December 31, 2005, the Company had no disagreements with
        Schoonover Boyer + Associates on any matters of accounting principles or
        practices, financial statement disclosure, or auditing scope or procedure,
        which
        disagreements, if not resolved to the satisfaction of Schoonover Boyer +
        Associates, would have caused the auditors to make reference to the subject
        matter of such disagreements in connection with their audit report as required
        by Item 304(a)(1)(iv)(A) of Regulation S-B. The Company has provided Schoonover
        Boyer + Associates a copy of this report prior  to its filing with the SEC
        and requested Schoonover Boyer + Associates furnish a letter addressed to
        the
        SEC stating whether Schoonover Boyer + Associates agrees with the above
        statements.  A letter from Schoonover Boyer + Associates is attached as
        Exhibit 16.1 to this Form 8-K.
On
        March 6, 2006, the Registrant's board of directors engaged Russell Bedford
        Stefanou Mirchandani LLP to audit the Registrant's financial statements for the
        year ended December 31, 2006, and to review the Registrant's quarterly financial
        statements for the three quarters of 2006.
During
        the fiscal years ending December 31, 2004, 2003 and 2002, including the
        subsequent interim periods through September 30, 2005, and prior to the
        appointment of Miller McCollum and Russell Bedford Stefanou Mirchandani LLP,
        neither the Registrant, or anyone on its behalf, consulted with Cordovano
&
Honeck LLP, Schoonover Boyer + Associates, Miller McCollum or Russell Bedford
        Stefanou Mirchandani LLP regarding any of the accounting or auditing concerns
        stated in Item 304(a)(2) of Regulation S-B.
Item
        5.01
Changes
        in Control of Registrant.
OVERVIEW
On
        July 19, 2005, the Registrant, along with Merger Sub and the NBYS Canceling
        Shareholders (as defined in Item 2.01, "Principal Terms of the Merger") entered
        into an Agreement and Plan of Merger with FIIC, Inc., pursuant to which the
        Registrant would be acquired by FIIC, Inc. in a merger transaction wherein
        Merger Sub would merge with and into FIIC, Inc., with FIIC, Inc. being the
        surviving corporation. On February 28, 2006, the Merger closed and FIIC,
        Inc.
        became a wholly-owned subsidiary of the Registrant. The Merger resulted in
        a
        change-of-control of the Registrant and the assumption of FIIC, Inc.'s
        operations and liabilities.
Immediately
        prior to the Merger, the Registrant effectuated a 1-for-2.00317 reverse stock
        split of its common stock and
caused
        500,000 pre-split shares of common stock held by the NBYS Canceling Shareholders
        (Scott Thornock, Bruce Capra, Paul Zueger, Michael Tanner, and James Watson)
        to
        be cancelled and extinguished. In consideration for the Share Cancellation,
        FIIC
        paid an aggregate sum of $200,000 to the NBYS Canceling Shareholders.
Just
        prior to the Merger, the individuals currently serving as the Registrant's board
        of directors appointed
James
        W. France, Robert V.R. Ostrander, Kevin Loychik, Brent Peterson and Dean
        Barrett, each of whom was a director of FIIC, Inc.,
to
        the Registrant's board of directors.
Scott
        Thornock, Bruce Capra, Paul Zueger and Wayne Yakes, M.D., then resigned as
        officers and directors of the Registrant
,
        contingent and effective upon the closing of the Merger.
In
        addition, concurrent with the closing of the Merger, the Registrant's board
        appointed James W. France as its President and Chief Executive Officer, James
        E.
        Bowser as Chief Operating Officer and Executive Vice President, Wade Estep,
        CPA
        as Chief Financial Officer and Robert V.R. Ostrander as Vice President of
        Marketing, Sales and Distribution and Secretary.
At
        the effective time of the Merger:
·
the
                  Registrant merged the Merger Sub with and into FIIC, Inc. and the
                  separate
                  corporate existence of the Merger Sub
                  ceased;
·
the
                  Registrant issued 12,668,377 shares of its common stock on a post-split,
                  one-for-one basis in exchange for 100% of the issued and outstanding
                  shares of FIIC, Inc.'s common
                  stock;
·
the
                  Registrant assumed all outstanding warrants to purchase shares
                  of FIIC,
                  Inc.'s common stock and all outstanding notes convertible into shares
                  of
                  FIIC, Inc.'s common stock on the same terms and conditions as previously
                  issued by FIIC, Inc.;
·
the
                  Registrant adopted the FIIC 2005 Plan as its own
                  plan;
·
in
                  exchange for cancellation of a certain debt owed to Mr. Capra by
                  Nicklebys
                  prior to the effective date of the Merger Agreement, the Registrant
                  distributed its remaining assets held prior to the Merger to
                  Mr. Capra, all of which were works of art which Nicklebys failed to
                  sell during the liquidation of its inventory and which have been
                  deemed
                  unsaleable on Nicklebys' financial
                  statements;
·
the
                  Registrant discharged approximately $87,000 of its pre-closing
                  liabilities
                  with cash consideration provided by
                  FIIC
·
the
                      Registrant issued a senior secured convertible notes and warrant
                      in
                      exchange for FIIC, Inc.'s outstanding note from its Bridge Financing, and
                      issued related warrants to FIIC Inc.'s bridge financing consultant;
                      and
·
FIIC's
                  senior management took over management of the combined
                  group.
As
        a result of the Merger, the Registrant is the parent corporation of FIIC,
        Inc.,
        and FIIC, Inc. survives as its wholly-owned subsidiary and the holding company
        for the planned insurance operating entities. Former FIIC, Inc. stockholders
        are
        now holders of the Registrant's common stock, and FIIC, Inc. warrantholders and
        noteholders became holders of options, warrants and notes, respectively,
        to
        acquire shares of the Registrant's common stock. The holder of the senior
        secured promissory note issued in the Bridge Financing received a replacement
        note convertible into shares of the Registrant's common stock and a warrant to
        purchase shares of the Registrant's common stock. Immediately prior to the
        closing of the Merger, FIIC, Inc. had outstanding 12,668,377 shares of common
        stock, no options to purchase shares of common stock, warrants to purchase
        2,291,384 shares of common stock, and notes convertible into at least 1,661,538
        shares of common stock. Immediately after the closing of the Merger, the
        Registrant had 13,866,983 outstanding shares of common stock, no options
        to
        purchase shares of common stock, warrants to purchase 3,217,379 shares of
        common
        stock, and notes convertible into at least 1,753,538 shares of common stock.
        Based on the number of shares of common stock of the Registrant outstanding
        immediately after the closing of the Merger, the pre-Merger Nicklebys
        shareholders currently own approximately 8.6% of the Company's issued and
        outstanding shares of common stock.
After
        the Merger was concluded, the Registrant reincorporated from the State of
        Colorado to the State of Delaware and changed its corporate name to FIIC
        Holdings, Inc.
The
        transaction contemplated by the Merger Agreement is intended to be a "tax-free"
incorporation pursuant to the provisions of Section 351 and 368(a)(i)(A)
        of the
        Internal Revenue Code of 1986, as amended.
EXECUTIVE
        OFFICERS, DIRECTORS AND KEY EMPLOYEES
Prior
        to the Merger, Scott Thornock, Bruce Capra, Paul Zueger and Wayne Yakes,
        M.D.,
        served as directors, Mr. Thornock served as Chief Executive Officer, President,
        Secretary, and Treasurer, and Mr. Capra served as Chief Financial Officer
        of the
        Registrant.
Upon
        closing of the Merger, the following individuals were named to the board
        of
        directors and executive management of the Registrant:
Name
Age
Position
James
                  W. France
58
President,
                  Chief Executive Officer and Director
James
                  E. Bowser
59
Chief
                  Operating Officer and Executive Vice President
Wade
                  Estep, CPA
58
Chief
                  Financial Officer
Robert
                  V.R. Ostrander
60
Vice
                  President, Secretary and Director
Kevin
                  Loychik
39
Director
Brent
                  Peterson
50
Director
Dean
                  Barrett
61
Director
James
        W. France
became
        FIIC's President, Chief Executive Officer and a director at its inception in
        January 2005. Mr. France served as Sole Manager of FIIC Research and
        Development, LLC ("FIIC LLC") from August 2000 through the present and is
        anticipated to remain in these dual roles at least through December 2006.
        Mr.
        France began developing the concept for FIIC, Inc. and its Investor Protection
        policy in 1983. From January 2002 to March 2003, Mr. France also served as
        Chief
        Executive Officer of SkyFrames, Inc., a satellite communications company.
        Mr.
        France was a licensed underwriter for the Penn Mutual Insurance Company from
        1970 to 1972, specializing in corporate financial planning and a licensed
        securities representative with Greater Ohio Securities, Inc. and Massachusetts
        Mutual Insurance Company in 1973. In 1986, he co-founded Digiboard International
        Corp., which went public in 1990. In 1988, Mr. France became CEO for Scriptel
        Holding, Inc., which was responsible for the development of a new electronic
        interface used by pen based computer devices. In addition, throughout Mr.
        France's business career he has established several small businesses in the
        field of advertising media, technology and corporate finance.
James
        E. Bowser
became FIIC's Chief Operating Officer and Executive Vice President in January
        2005. Since October 1998, Mr. Bowser has served as Chief Executive Officer
        of
        Manchester Exchange Investment Company, a small business incubator. He has
        a
        wide range of business and public company experience, specializing in asset
        management, distribution, training and business statistics. Mr. Bowser has
        over
        20 years experience in investment banking, focused on small businesses. He
        holds
        a B.S. and M.S. in Food Science & Technology from Ohio State University and
        an M.B.A. from the University of Dayton, Ohio.
Wade
        Estep, CPA
,
        joined FIIC as its Chief Financial Officer in March 2005. Mr. Estep has been
        a
        Certified Public Accountant in the State of Ohio for over thirty years, and
        has
        been a sole practitioner of tax and consulting services since 1992. His prior
        work experience includes positions with Coopers and Lybrand (now
        PricewaterhouseCoopers) and a real estate property management company. He
        currently holds a Series 6 securities license and formerly held an Ohio Life,
        Accident and Health Insurance license. He has been an elected official Clerk
        Treasurer in Blendon Township, Franklin County, Ohio for over 18 years. Mr.
        Estep obtained a B.S. degree in accounting from Miami University, Oxford,
        Ohio.
Robert
        V.R. Ostrander
joined FIIC at its inception in January 2005 as its Vice President of Marketing,
        Sales and Distribution, Secretary and as a director. Since January 1992,
        Mr.
        Ostrander has also served as President of Omni Financial Securities, a financial
        planning firm. Concurrently, Mr. Ostrander has engaged in insurance sales
        duties
        for Manex Risk Management, an insurance company, since January 1981. He has
        also
        served as Chairman of the Board of Manchester Exchange Investment Company
        since
        October 1998. Mr. Ostrander began his financial career in 1968 as an educator
        in
        financial planning, risk management, and business investing, including work
        experience in these areas with AT&T, Battelle Memorial Institute, Riverside
        Hospital, and Liquibox. In 1983, he developed a 160-page questionnaire-driven
        process intended to help businesses identify critical needs and to reduce
        up to
        80% of the items in an operating expense statement. From 1997 to 2005, he
        served
        on the board of Pinnacle Data Systems, Inc. (AMEX: PNS). He is a NASD Licensed
        Broker with Series 7, 24 and 63, and is licensed in the State of Ohio to
        sell
        Life, Accident and Health Insurance and Annuities. Mr. Ostrander also holds
        a
        Property and Casualty Insurance License in Ohio. Mr. Ostrander holds a B.S.
        in
        Mathematics from Otterbein College.
Kevin
        Loychik
has been a member of the board of directors of FIIC since its inception in
        January 2005. Since February 1998, Mr. Loychik has served as Vice President
        and
        Chief Operating Officer of Ohio Auto Delivery, Inc., a transportation services
        company. He is a graduate of Youngstown University with a B.S.B.A. in accounting
        with a minor in management.
Brent
        Peterson
has been a member of the board of directors of FIIC since its inception in
        January 2005. Mr. Peterson is the founder of Glenwood Financial Corp., and
        has
        served as its President since establishing the company in 1994. Glenwood
        provides consulting services on corporate finance, mergers & acquisitions
        and investor relations to its corporate clients, both public and private.
        Prior
        to starting Glenwood, he was a senior executive consultant with Health
        Management, Inc. (HMI), a company involved in HMO management and providing
        consulting services to the Assisted Living industry. While at HMI, Mr. Peterson
        was responsible for all areas dealing with the public ownership of the company
        and was instrumental in structuring a transaction where another company
        subsequently acquired HMI. From 1980 to 1990 Mr. Peterson was in the securities
        industry where he acted as a retail broker, trader, General Securities
        Principal, and a Financial Operations Principal. While in this field he held
        the
        NASD Series 7, Series 24, Series 27 and life insurance licenses.
Dean
        Barrett
has been a member of the board of directors of FIIC since its inception in
        January 2005. Since April 2001, Mr. Barrett has been Principal Manager of
        Corporate Management Solutions, LLC, a financial consulting business. From
        May
        1990 to February 2001, Mr. Barrett was the Group Vice President of National
        Bank
        of Canada's U.S. subsidiary, and previously served as the Bank of New England's
        Executive Vice President until is was acquired by National Bank of Canada.
        Mr.
        Barrett has over 34 years of banking industry experience.
Other
        Key Personnel
In
        addition to the directors and executive officers listed above, FIIC expects
        the
        following individuals to play an integral role in the launch and growth of
        its
        insurance operations. Also, FIIC will seek to employ experienced claims
        adjusters, auditing managers, underwriters and insurance executives as part
        of
        the broader management team, requiring at least five years hands on experience,
        principally in the bond field or with indemnity coverage.
Hubert
        T. McDonald,
75, will serve as FIIC's Vice President of Administration. Since September 1999,
        Mr. McDonald has served as the President of Manchester Exchange Investment
        Company. Mr. McDonald has a manufacturing, investment banking and financial
        background. As a Certified Financial Planner, Chartered Financial Consultant
        and
        past NASD Licensed Broker with Series 7, 24 and 63, he is licensed in the
        State
        of Ohio for Life, Accident and Health Insurance. He holds a B.S. in Business
        from Northern Illinois, an M.S. in Business from Loyola University, Chicago,
        and
        an M.B.A. from Dayton.
Thomas
        M. O'Leary
,
        62, will serve as FIIC's Vice President of Underwriting. Prior to joining FIIC,
        Mr. O'Leary was a private investor and a consultant within the electronics
        industry. Since 1996, he has also served on the board of directors of Pinnacle
        Data Systems (AMEX: PNS). He retired in 1996 after over 30 years with
        AT&T/Lucent Technologies, where he worked in manufacturing, management, and
        operations. He also served as a member of the Worthington School District
        Board
        of Education from 1996 to 2001. He holds a B.S. in math and systems engineering
        from Illinois State University and a Certificate from the Pennsylvania State
        University Executive Management Program.
Scott
        Smith
,
        39, will serve as FIIC's Vice President of Information Technology. Since 1987,
        Mr. Smith has been employed as a researcher in the National Security Division
        at
        Battelle Memorial Institute, most recently specializing in configuration
        management for the ISO 9001 Certified Electronics and Avionic Systems Product
        Line. During his 19 year career at Battelle, Mr. Smith has been a team member
        on
        numerous national security related projects, and a leader in the development
        of
        several business management systems. Mr. Smith is a commercially rated pilot
        and
        is pursuing a B.S. in Aviation from Utah Valley State College.
FIIC
        also intends to contract with
Camelback
        Captive & Risk Management Services, LLC
,
        for its initial operations management. Led by its founder, Richard Marshall,
        Camelback Captive specializes in the management of risk retention groups
        and
        captive reinsurance companies. Mr. Marshall has over 20 years experience
        in the
        alternative risk transfer mechanism arena, both in the private and public
        sectors. Mr. Marshall was the first captive insurance administrator of the
        Arizona Department of Insurance, where he was responsible for the development,
        licensing and monitoring of Arizona-domiciled Captive and Risk Retention
        Groups.
        During his two year tenure, Arizona issued licenses. Mr. Marshall has also
        held
        senior management positions with several insurance organizations, including
        Meadowbrook Insurance Group and Frontier Insurance Group, focusing on other
        forms of alternative risk transfer mechanisms, both domestically and
        offshore.
Family
        Relationships
There
        are no family relationships among the individuals comprising FIIC's board of
        directors, management and other key personnel.
Board
        and Management Committees
Concurrent
        with the closing of the Merger, the Registrant's board of directors adopted an
        Audit Committee Charter and appointed Dean Barrett, Brent Peterson and Kevin
        Loychik to serve as members of the Audit Committee. These individuals are
        all
        independent directors as defined by Section 10A(m) of the Exchange Act of
        1934
        and the rules promulgated thereunder, and Mr. Loychik qualifies as a financial
        expert pursuant to Item 401 of Regulation S-K. The board also appointed Mr.
        Loychik as Chairman of the Audit Committee.
Concurrent
        with the closing of the Merger, the Registrant's board of directors adopted a
        Compensation Committee Charter and appointed Dean Barrett, Brent Peterson
        and
        Kevin Loychik to serve as members of the Compensation Committee. The board
        also
        appointed Mr. Barrett as Chairman of the Compensation Committee.
Concurrent
        with the closing of the Merger, the Registrant's management adopted and the
        board of directors ratified a Disclosure Committee Charter, designed to ensure
        that accurate and complete information regarding the Registrant and its
        operations and financial performance is provided to its stockholders and
        the
        investment community in a timely manner and in compliance with the requirements
        of applicable securities laws. The charter appoints the Registrant's Chief
        Financial Officer, Chief Operating Officer and Corporate Secretary (Wade
        Estep,
        James Bowser, and Robert V.R. Ostrander, respectively) as standing members
        of
        the Disclosure Committee, with additional members to be appointed by the
        Chief
        Executive Officer and Chief Financial Officer in their discretion. Mr. Ostrander
        shall serve Chairman of the Disclosure Committee.
EXECUTIVE
        COMPENSATION
Summary
        Compensation Tables
Prior
        to
        the effective time of the Merger, to compensate certain executive officers,
        directors and key personnel for their services during the period of initial
        organization, the negotiation and consummation of the Merger and the launch
        of
        FIIC's plan of operation, FIIC accrued monthly consulting fees from February 1,
        2005 through September 30, 2005.  As of February 28, 2006, FIIC has paid
        the monthly consulting fees earned by the listed individuals from October
        1,
        2005 to February 28, 2006.
Name
Position
Consulting
Fees
Accrued
                    as of
February
                    28,
2006
Consulting
Fees
Paid
                    as of
February
                    28,
2006
James
                    France
Chief
                    Executive Officer and President
$
                    56,000
$
                    35,000
James
                    Bowser
Chief
                    Operating Officer and Executive Vice President
$
                    24,000
$
                    15,000
Wade
                    Estep
Chief
                    Financial Officer
$
                    24,000
$
                    15,000
Robert
                    Ostrander
Vice
                    President of Marketing, Sales and Distribution, Secretary and
                    Director
$
                    24,000
$
                    15,000
Hubert
                    McDonald
Vice
                    President of Administration
$
                    24,000
$
                    15,000
Thomas
                    O'Leary
Vice
                    President of Underwriting
$
                    24,000
$
                    15,000
Scott
                    Smith
Vice
                    President of Information Technology
$
                    24,000
$
                    15,000
The
        following table sets forth the anticipated annual compensation of FIIC's chief
        executive officer and each of the four other likely most highly compensated
        officers, which FIIC will begin incurring once its insurance business becomes
        fully operational and the named individuals execute employment
        agreements.
Name
Position
Salary
James
                  W. France, Jr.
President,
                  Chief Executive Officer
$
                  200,000
James
                  Bowser
Chief
                  Operating Officer and Executive Vice President
$
                  136,000
Thomas
                  O'Leary
Vice
                  President of Underwriting
$
                  90,000
Scott
                  Smith
Vice
                  President of Information Technology
$
                  90,000
Robert
                  Ostrander
Vice
                  President of Marketing, Sales and Distribution, Secretary
$
                  75,000
Option
        Grants and Exercises Since Inception
As
        of the closing of the Merger, FIIC has not issued any options, as executive
        compensation or otherwise, under the FIIC 2005 Plan, and does not anticipate
        issuing any options, as executive compensation or otherwise, until it is
        able to
        register the FIIC 2005 Plan.
Equity
        Compensation Plan Information
FIIC
        2005 Plan
FIIC
        anticipates that it will issue options in the future under its FIIC 2005
        Plan to
        its employees, including executive officers, as compensation. The level of
        options awarded for an annual period will be based upon salary levels and
        company and individual performance factors, however FIIC has not yet established
        definitive criteria. However, FIIC does not anticipate issuing any options,
        as
        executive compensation or otherwise, until it is able to register the FIIC
        2005
        Plan.
Director
        Compensation
FIIC
        has not yet established a definitive plan for compensation of its non-management
        directors, however it anticipates that it will likely provide such directors
        nominal stock options pursuant to the FIIC 2005 Plan and reimbursement of
        costs
        arising from their director duties. To date, FIIC has not provided any
        compensation to its non-management directors.
Employment
        and Severance Arrangements
As
          noted
          above, to date the efforts of FIIC's executive officers and key personnel are
          primarily for no, nominal and/or deferred compensation.  FIIC intends to
          enter formal employment agreements with all of its executive officers and
          key
          personnel in the months following the close of the Merger.  On February 7,
          2006, FIIC executed a written consulting agreement with Jim France documenting
          his pre-closing consulting arrangement and confirming the continuance of
          such
          arrangement post-closing until such time as FIIC has sufficient funds to
          formalize the terms of and execute an employment agreement with Mr.
          France.   FIIC anticipates that the terms of all of its employment
          agreements with its officers will provide for cash and equity compensation
          an
          appropriate level for a start-up company, but also recognize the professional
          experience and forms of expertise each individual brings to FIIC's
          business.  FIIC also anticipates that its employment agreements will
          include provisions setting forth any severance arrangements, as well as
          confidentiality and non-competition clauses.
RELATED
        PARTY TRANSACTIONS
Database
        Access and Content License, Hosting and Support Agreement
James
        W. France is the founder, President, Chief Executive Officer and a director
        of
        FIIC. Mr. France is also the founder of and serves as the sole Manager of
        FIIC
        Research and Development, LLC ("FIIC LLC"), formed to explore the feasibility of
        the concept of the Investor Protection Policy and to develop the initial
        data
        and technology on which the underwriting process for such policies would
        rely. A
        number of other individuals serving as FIIC's initial executive officers and key
        personnel are also providing operational leadership or serving as consultants
        for FIIC LLC, including James Bowser, Thomas O'Leary and Scott
        Smith.
On
        March 17, 2005, FIIC entered into a Database Access and Content License,
        Hosting
        and Support Agreement with FIIC LLC; the parties amended this agreement on
        November 7, 2005, in relation to the Bridge Financing. FIIC LLC has developed
        an
        extensive database of insurance underwriting data and standards for use in
        connection with insurance policies that insure investors against the risk
        of the
        loss of capital in certain business entities (the "Database"). FIIC LLC hosts
        the Database, and makes available specially-designed supporting software
        applications, together with workflow definitions, decision processes and
        models
        for managing such applications and utilizing the Database (collectively,
        the
"Database Technology"). FIIC obtained an exclusive and perpetual license to
        access the Database and to use the Database Technology to obtain the
        underwriting data, standards and other information that the Database contains
        for the purpose of underwriting its Investor Protection policies. FIIC also
        has
        the right to grant nonexclusive sublicenses to third parties involved in
        underwriting Investor Protection policies. Pursuant to the agreement, FIIC
        LLC
        shall continue to host, maintain and augment the Database and the Database
        Technology. Additionally, under the agreement, FIIC LLC continues to retain
        all
        right, title and interest in and to the intellectual property rights in and
        underlying the Database Technology.
In
        consideration for the license, FIIC issued to FIIC LLC 9,792,000 shares of
        its
        common stock and 5-year warrants to purchase 1,808,307 shares of its common
        stock at an exercise price of $0.87 per share, and owes FIIC LLC $100,000.
        As a
        result, the current members of FIIC LLC are also all stockholders of FIIC.
        FIIC
        believes that the license agreement was entered into on terms no more or
        less
        favorable to FIIC than could have been obtained by an unaffiliated third
        party.
Loans
        from Directors, Officers, FIIC Stockholders and Affiliated
        Parties
In
        August 2005, FIIC executed unsecured promissory notes in favor of four of
        its
        existing stockholders — Robert Hernandez, Peter Slyman, John P. Schinas and
        Dennis Leukart - in an aggregate principal amount of $39,000, which were
        amended in January 2006, are now due in full on March 31, 2006, or earlier
        upon demand, along with aggregate accrued interest fees of $19,500. As of
        December 31, 2005, FIIC had also received and not yet repaid unsecured,
        non-interest bearing advances totaling approximately $4,500 from FIIC R&D,
        LLC. The funds were used to cover expenses related to FIIC's efforts to obtain
        bridge financing and to close the Merger.
FIIC
        has also been receiving and repaying advances on a regular basis from its
        President and Chief Executive Officer, James W. France. On October 21, 2005,
        FIIC executed an unsecured promissory note in the principal amount of
        $14,223.15, reflecting prior advances made by Mr. France, with interest at
        5%
        per annum. FIIC used these funds to cover expenses incurred in support of
        the
        pending Merger, including payment of professional fees and costs incurred
        in
        obtaining the Bridge Financing with Oceanus. As of October 27, 2005, FIIC
        had
        repaid the principal amount of the advances covered by the note and Mr. France
        deemed FIIC's obligations under the note fully satisfied. As of
        December 31, 2005, FIIC owed Mr. France reimbursement for accrued
        business expenses of $2,140.
Facilities
FIIC's
        executive offices are located in Columbus, Ohio, in space leased from Manchester
        Exchange Investment Company
.
James
        Bowser, FIIC's Chief Operating Officer and Executive Vice President has served
        as Chief Executive Officer of Manchester Exchange Investment Company, a small
        business incubator, since 1998, and Robert Ostrander, FIIC's Vice President of
        Marketing, Sales and Distribution, Secretary and a director of FIIC, has
        served
        as Chairman of the Board of Manchester Exchange Investment Company since
        1998.
        Effective February 1, 2005, FIIC has been obligated to pay Manchester Exchange
        Investment Company $5,000 per month for use of its office space. As of December
        31, 2005, $12,000 of the amount owed had been paid and $43,000 has been
        accrued.
INDEMNIFICATION
        OF DIRECTORS AND EXECUTIVE OFFICERS AND LIMITATION OF
        LIABILITY
Under
        Section 145 of the General Corporation Law of the State of Delaware, the
        Registrant can indemnify its directors and officers against liabilities they
        may
        incur in such capacities, including liabilities under the Securities Act
        of
        1933, as amended (the "Securities Act"). The Registrant's certificate of
        incorporation provides that, pursuant to Delaware law, its directors shall
        not
        be liable for monetary damages for breach of the directors' fiduciary duty of
        care to the Company and its stockholders. This provision in the certificate
        of
        incorporation does not eliminate the duty of care, and in appropriate
        circumstances equitable remedies such as injunctive or other forms of
        nonmonetary relief will remain available under Delaware law. In addition,
        each
        director will continue to be subject to liability for breach of the director's
        duty of loyalty to the Registrant or its stockholders, for acts or omissions
        not
        in good faith or involving intentional misconduct or knowing violations of
        the
        law, for actions leading to improper personal benefit to the director, and
        for
        payment of dividends or approval of stock repurchases or redemptions that
        are
        unlawful under Delaware law. The provision also does not affect a director's
        responsibilities under any other law, such as the federal securities laws
        or
        state or federal environmental laws.
The
        Registrant's bylaws provide for the indemnification of its directors to the
        fullest extent permitted by the Delaware General Corporation Law. The
        Registrant's bylaws further provide that its Board of Directors has discretion
        to indemnify its officers and other employees. The Registrant is required
        to
        advance, prior to the final disposition of any proceeding, promptly on request,
        all expenses incurred by any director or executive officer in connection
        with
        that proceeding on receipt of an undertaking by or on behalf of that director
        or
        executive officer to repay those amounts if it should be determined ultimately
        that he or she is not entitled to be indemnified under the bylaws or otherwise.
        The Registrant is not, however, required to advance any expenses in connection
        with any proceeding if a determination is reasonably and promptly made by
        its
        Board of Directors by a majority vote of a quorum of disinterested Board
        members
        that (a) the party seeking an advance acted in bad faith or deliberately
        breached his or her duty to the Registrant or its stockholders and (b) as
        a
        result of such actions by the party seeking an advance, it is more likely
        than
        not that it will ultimately be determined that such party is not entitled
        to
        indemnification pursuant to the applicable sections of its bylaws.
The
        Registrant has been advised that in the opinion of the Securities and Exchange
        Commission, insofar as indemnification for liabilities arising under the
        Securities Act may be permitted to the Registrant's directors, officers and
        controlling persons pursuant to the foregoing provisions, or otherwise, such
        indemnification is against public policy as expressed in the Securities Act
        and
        is therefore unenforceable. In the event a claim for indemnification against
        such liabilities (other than the Registrant's payment of expenses incurred or
        paid by its director, officer or controlling person in the successful defense
        of
        any action, suit or proceeding) is asserted by such director, officer or
        controlling person in connection with the securities being registered, the
        Registrant will, unless in the opinion of its counsel the matter has been
        settled by controlling precedent, submit to a court of appropriate jurisdiction
        the question of whether such indemnification by the Registrant is against
        public
        policy as expressed in the Securities Act and will be governed by the final
        adjudication of such issue.
The
        Registrant may enter into indemnification agreements with each of its directors
        and officers that are, in some cases, broader than the specific indemnification
        provisions permitted by Delaware law, and that may provide additional procedural
        protection. As of the Effective Time of the Merger, the Registrant has not
        entered into any indemnification agreements with its directors or officers,
        but
        may choose to do so in the future. Such indemnification agreements may require
        the Registrant, among other things, to:
·
indemnify
                  officers and directors against certain liabilities that may arise
                  because
                  of their status as officers or directors;
·
advance
                  expenses, as incurred, to officers and directors in connection
                  with a
                  legal proceeding, subject to limited exceptions; or
·
obtain
                  directors' and officers' insurance.
At
        present, there is no pending litigation or proceeding involving any of the
        Registrant's directors, officers or employees in which indemnification is
        sought, nor is the Registrant aware of any threatened litigation that may
        result
        in claims for indemnification.
SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT FOLLOWING THE
        MERGER
Beneficial
        ownership is determined in accordance with the rules of the SEC. In computing
        the number of shares beneficially owned by a person and the percentage of
        ownership of that person, shares of common stock subject to options, warrants
        or
        convertible notes held by that person that are currently exercisable or
        convertible or become exercisable or convertible within 60 days of the estimated
        closing of the Merger are deemed outstanding even if they have not actually
        been
        exercised. Those shares, however, are not deemed outstanding for the purpose
        of
        computing the percentage ownership of any other person.
Immediately
        prior to the closing of the Merger, FIIC, Inc. had outstanding 12,668,377
        shares
        of common stock, no options to purchase shares of common stock, warrants
        to
        purchase 2,291,384 shares of common stock and notes immediately convertible
        into
        at least 1,661,538 shares of common stock. Immediately after the closing
        of the
        Merger, the Registrant had 13,866,983 outstanding shares of common stock,
        no
        options to purchase shares of common stock, warrants to purchase 3,217,379
        shares of common stock and notes immediately convertible into at least 1,753,538
        shares of common stock.
The
        following table sets forth certain information with respect to beneficial
        ownership of the Company common stock immediately after the closing of the
        Merger based on 13,866,983 outstanding shares of common stock, by:
·
Each
                  person known to be the beneficial owner of 5% or more of the outstanding
                  common stock of the Registrant;
·
Each
                  executive officer;
·
Each
                  director; and
·
All
                  of the executive officers and directors as a
                  group.
Unless
        otherwise indicated in the table or its footnotes, the persons and entities
        named in the table have sole voting and sole investment power with respect
        to
        the shares set forth opposite the stockholder's name, subject to community
        property laws, where applicable. Unless otherwise indicated in the table
        or its
        footnotes, the address of each stockholder listed in the table is c/o FIIC
        Holdings, Inc., 1585 Bethel Road, First Floor, Columbus, Ohio
        43220.
Name
                    and Address
of
                    Beneficial Owner
Title
Beneficially
                    Owned
Post-Merger
(1)
Percent
                    of Class
James
                    W. France
President,
                    Chief Executive Officer & Director
672,923
(2)
4.82%
James
                    E. Bowser
Chief
                    Operating Officer & Executive Vice President
121,842
(3)
*
Wade
                    Estep, CPA
Chief
                    Financial Officer
-
-
Robert
                    V. R. Ostrander
Vice
                    President, Secretary & Director
121,842
(4)
*
Kevin
                    Loychik
Director
280,781
(5)
2.02%
Brent
                    Peterson
Director
-
-
Dean
                    Barrett
Director
1,081,657
(6)
7.71%
Robert
                    Hernandez
875,514
(7)
6.25%
John
                    P. Schinas Trust
2,326,806
(8)
16.35%
Corporate
                    Management Solutions, LLC
22021
                    Brookpark Road
Suite
                    100
Fairview
                    Park, Ohio 44126
871,960
(9)
6.23%
Bridge
                    Finance Partners LLC
5318
                    E. 2nd Street
Suite
                    491
Long
                    Beach, California 90803
823,077
(10)
5.93%
Accelerate-Financial,
                    Inc.
11
                    Orchard Road
Suite
                    109
Lake
                    Forest, California 92630
825,000
5.95%
Oceanus
                    Value Fund, L.P.
225
                    North Market Street, Suite 220
Wichita,
                    Kansas 67202
982,995
(11)
6.62%
All
                    executive officers and directors as a group (7
                    persons)
2,279,045
16.03%
______________________
(1)
The
          calculation of beneficially owned shares and total percentages of beneficial
          ownership do not include any shares that may be issued upon conversion
          of any
          accrued interest on the outstanding convertible notes.
(2)
Includes
          101,922 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share. In conjunction with the issuance
          of the
          NBYS Note in the Bridge Financing and its subsequent amendment, 571,000
          of Mr.
          France's shares are subject to a pledge agreement in favor of Oceanus Value
          Fund, L.P.
(3)
Includes
          18,842 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(4)
Includes
          18,842 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(5)
Includes
          43,781 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(6)
Mr.
          Barrett and his wife, Rondell Barrett, as joint tenants, owners of 177,000
          shares of the Registrant's common stock and 32,697 warrants to purchase shares
          of the Registrant's common stock at any time at an exercise price of $0.87 per
          share. Mr. Barrett is also the Principal Manager of Corporate Management
          Solutions, LLC, which is the record owner of 736,000 shares of the Registrant's
          common stock and 135,960 warrants to purchase shares of the Registrant's common
          stock at any time at an exercise price of $0.87 per share, the beneficial
          ownership of which is attributable to Mr. Barrett and reflected
          herein.
(7)
Includes
          136,514 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(8)
Includes
          362,806 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(9)
Includes
          135,960 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(10)
Includes
          23,077 warrants to purchase shares of the Registrant's common stock at any time
          at an exercise price of $0.87 per share.
(11)
Includes
          92,000 shares issuable upon conversion of the NBYS Note from the second
          phase of
          the Bridge Financing, as amended, which is convertible at any time at $1.00
          per
          share, and 890,995 warrants to purchase shares of the Registrant's common stock
          at any time.
Item
        5.02
Departure
        of Directors or Principal Officers; Election of Directors; Appointment of
        Principal Officers.
Prior
        to the Merger, Scott Thornock, Bruce Capra, Paul Zueger and Wayne Yakes,
        M.D.,
        served as directors, Mr. Thornock served as Chief Executive Officer, President,
        Secretary, and Treasurer, and Mr. Capra served as Chief Financial Officer
        of the
        Registrant.
Just
        prior to the Merger, the individuals currently serving as the Registrant's board
        of directors appointed
James
        W. France, Robert V.R. Ostrander, Kevin Loychik, Brent Peterson and Dean
        Barrett, each of whom was a director of FIIC, Inc.,
to
        the Registrant's board of directors.
Scott
        Thornock, Bruce Capra, Paul Zueger and Wayne Yakes, M.D., then resigned as
        officers and directors of the Registrant
,
        contingent and effective upon the closing of the Merger.
In
        addition, concurrent with the closing of the Merger, the Registrant's board
        appointed James W. France as its President and Chief Executive Officer, James
        E.
        Bowser as Chief Operating Officer and Executive Vice President, Wade Estep,
        CPA
        as Chief Financial Officer and Robert V.R. Ostrander as Vice President of
        Marketing, Sales and Distribution and Secretary.
For
        complete information regarding the Registrant's new officers and directors,
        refer to "Executive Officers, Directors and Key Employees" under Item 5.01
        above.
Item
        5.03
Amendments
        to Articles of Incorporation or Bylaws; Change in Fiscal
        Year.
On
        February 8, 2005, the Registrant filed a Certificate of Amendment to its
        Articles of Incorporation with the Colorado Secretary of State to effectuate
        a
        1-for-2.00317 reverse stock split of its common stock prior to the closing
        of
        the Merger. A copy is attached hereto as Exhibit 3.1.
On
        February 28, 2006, the Registrant filed a Certificate of Merger to (i)
        effectuate a reincorporation from the State of Colorado to the State of Delaware
        and (ii) a corporate name change to "FIIC Holdings, Inc." A copy of the FIIC
        Holdings, Inc. Certificate of Incorporation is attached hereto as Exhibit
        3.2.
Section
        5.06
Change
        in Shell Company Status.
Prior
        to the closing of the Merger, the Registrant was a "shell company" as defined in
        Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act. Although
        the
        Registrant believes that it may still be a "shell company" pursuant to the
        referenced definition after the consummation of the Merger described in Items
        2.01 and 5.01 of this Current Report on Form 8-K, the Registrant has provided
        disclosure consistent with the requirements set forth in SEC Release No.
        33-8587
        (July 15, 2005). Reference is made to the disclosure set forth under Items
        2.01,
        2.02, 3.03, 4.01, 5.01 and 9.01 of this report, which are incorporated herein
        by
        reference and provide the information that would be required if the registrant
        were filing a general form for registration of securities on Form
        10-SB.
Item
        9.01
Financial
        Statements and Exhibits.
(a)
        Financial Statements of Business Acquired.
INDEX
            TO FIIC FINANCIAL STATEMENTS
Page
Independent
                      Auditors' Report
F-2
Financial
                      Statements:
Balance
                      Sheet
F-3
Statement
                      of Operations
F-4
Statement
                      of Equity
F-5
Statement
                      of Cash Flows
F-6
Notes
                      to Financial Statements
F-7
INDEPENDENT
            AUDITORS' REPORT
To
            The
            Shareholders FIIC, Inc.
Columbus,
            Ohio
We
            have
            audited the accompanying balance sheet of FIIC, Inc. (a Delaware Corporation)
            as
            of December 31, 2005 and the related statements of operations, equity,
            and cash
            flows for the period from inception (January 25, 2005) to December 31,
            2005.
            These financial statements are the responsibility of FIIC, Inc.'s management.
            Our responsibility is to express an opinion on these financial statements
            based
            on our audit.
We
            conducted our audit in accordance with the standards of the Public Company
            Accounting Oversight Board (United States). Those standards require that
            we plan
            and perform the audit to obtain reasonable assurance about whether the
            financial
            statements are free of material misstatement. The company is not required
            to
            have, nor were we engaged to perform, an audit of its internal control
            over
            financial reporting. Our audit included consideration of internal control
            over
            financial reporting as a basis for designing audit procedures that are
            appropriate in the circumstances, but not for the purpose of expressing
            an
            opinion on the effectiveness of the company's internal control over financing
            reporting. Accordingly, we express no such opinion. An audit also includes
            examining, on a test basis, evidence supporting the amounts and disclosures
            in
            the financial statements, assessing the accounting principles used and
            significant estimates made by management, as well as evaluating the overall
            financial statement presentation. We believe that our audit provides
            a
            reasonable basis for our opinion.
In
            our
            opinion, the financial statements referred to above present fairly, in
            all
            material respects, the financial position of FIIC, Inc as of December
            31, 2005,
            and the results of its operations and its cash flows for the initial
            period then
            ended in conformity with accounting principles generally accepted in
            the United
            States of America.
/s/
            Schoonover Boyer + Associates
Columbus,
            Ohio
March
            1,
            2006
F-2
FIIC,
            INC.
(A
            Development Stage Company)
BALANCE
              SHEET
December
              31, 2005
CURRENT
                      ASSETS
Cash
$
1,714
OTHER
                      ASSETS
Cash
                      held in escrow (Note 5)
258,000
License
                      agreement (Notes 2 and 10)
109,792
Loan
                      fees, net of accumulated amortization of $140,146 (Note 2)
289,042
Deferred
                      stock issuance costs (Note 7)
12,500
Total
                      other assets
669,334
TOTAL
                      ASSETS
$
671,048
CURRENT
                      LIABILITIES
Accounts
                      payable
$
112,658
Accrued
                      expenses
310,975
Accrued
                      interest
23,007
Bridge
                      loan payable (Note 5)
350,000
Notes
                      payable - convertible (Note 4)
200,000
Notes
                      payable - shareholders (Note 3)
39,000
Related
                      party payable (Note 10)
104,978
Total
                      current liabilities
1,140,618
COMMITMENTS
                      (Note 9)
STOCKHOLDER'S
                      (DEFICIT)
Capital
                      stock (Note 6)
10,843
Additional
                      paid in capital
525,637
Deficit
                      accumulated in the development stage
(1,006,050
)
Total
                      stockholder's (deficit)
(469,570
)
TOTAL
                      LIABILITIES AND STOCKHOLDER'S (DEFICIT)
$
671,048
The
            accompanying notes are an integral part of the financial
            statements.
F-3
FIIC,
            INC.
(A
            Development Stage Company)
STATEMENT
            OF OPERATIONS
For
              the
              period of January 25, 2005 (Inception) through December 31,
              2005
Revenue
$
—
General
                      and administrative expenses
979,543
Interest
                      expense
26,507
Total
                      expenses
1,006,050
Loss
                      before income taxes
(1,006,050
)
Income
                      taxes (Note 1)
—
Net
                      loss
$
(1,006,050
)
Shares
                      outstanding
10,843,377
Loss
                      per share
$
(0.09
)
The
            accompanying notes are an integral part of the financial
            statements.
F-4
FIIC,
            INC.
(A
            Development Stage Company)
STATEMENT
            OF EQUITY
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
Common
                      Stock
Additional
Paid
                      in
Capital
Deficit
Accumulated
                      in
the
                      Development
Stage
Shares
Amount
Balance
                      at January 25, 2005 (inception)
—
$
—
$
—
$
—
Issuance
                      of share to founder
1
—
1,000
—
Issuance
                      of shares for license agreement
9,792,000
9,792
—
—
Issuance
                      of shares for consulting services
400,000
400
199,600
—
Issuance
                      of shares for debt issuance costs
651,376
651
325,037
—
Net
                      loss
—
—
—
(1,006,050
)
Balance
                      at December 31, 2005
10,843,377
$
10,843
$
525,637
$
(1,006,050
)
The
            accompanying notes are an integral part of the financial
            statements.
F-5
FIIC,
            INC.
(A
            Development Stage Company)
STATEMENT
            OF CASH FLOWS
For
              the
              period of January
25,
              2005
(Inception)
              through December
31,
              2005
CASH
                      FLOWS FROM OPERATING ACTIVITIES
Net
                      loss
$
(1,006,050
)
Adjustments
                      to reconcile net loss to net cash (used in) operating
                      activities:
Stock
                      based compensation
200,000
Amortization
                      expense
140,146
Changes
                      in operating assets and liabilities:
Accounts
                      payable
112,658
Accrued
                      expenses
310,975
Accrued
                      interest
23,007
Total
                      adjustments
786,786
Cash
                      (used in) operating activities
(219,264
)
CASH
                      FLOWS FROM FINANCING ACTIVITIES
Proceeds
                      from notes payable - shareholders
39,000
Proceeds
                      from notes payable - convertible
200,000
Debt
                      issuance costs on notes payable, convertible
(20,000
)
Proceeds
                      from bridge loan, net of amount held in escrow
92,000
Debt
                      issuance costs on bridge loan
(83,500
)
Borrowings
                      from related parties
(7,522
)
Issuance
                      of common stock
1,000
Cash
                      provided by financing activities
220,978
Net
                      increase in cash
1,714
CASH
                      - beginning of period
—
CASH
                      - end of period
$
1,714
SUPPLEMENTAL
                      DISCLOSURE OF CASH FLOW INFORMATION:
Cash
                      paid for interest
$
3,500
Cash
                      paid for taxes
$
—
NON
                      CASH INVESTING AND FINANCING ACTIVITIES:
Acquired
                      license agreement from related party (Notes 2 and 10)
$
109,792
Deferred
                      stock issuance costs paid by related party (Note 11)
$
12,500
Bridge
                      loan proceeds held in escrow (Note 5)
$
258,000
Stock
                      based compensation in exchange for consulting services (Note
                      9)
$
200,000
Stock
                      based compensation in exchange for debt issuance costs (Note
                      9)
$
325,688
The
            accompanying notes are an integral part of the financial
            statements.
F-6
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            1 -
NATURE
            OF ORGANIZATION AND SUMMARY OF
SIGNIFICANT
            ACCOUNTING POLICIES
FIIC,
            Inc. ("FIIC" or the "Company") is a Delaware Corporation, which was formed
            on
            January 25, 2005. Currently, the Company has limited operations and is
            a
            development stage company.
Nature
            of Business
FIIC
            is a
            development stage enterprise. As such, the Company is devoting substantially
            all
            of its efforts to establishing a new business. The success of the Company
            will
            depend on its ability to raise sufficient capital to bring the business
            plan to
            fruition. There can be no guarantee of such success.
The
            Company plans to introduce an insurance product to entrepreneurial business
            enterprises designed to insure third-party investors. This insurance
            product,
            Investor Protection Policy, will insure against the loss of capital invested
            in
            the insured Company. The policies are to be sold to the business enterprise
            as a
            form of credit enhancement for the perspective investors.
The
            founder of FIIC has developed its business model and strategic plan over
            the
            course of the last decade. Due to the enormous loss of credibility in
            the
            capital markets and the reluctance of equity and debt providers to invest
            in new
            and growing companies, the economic events of recent years make the Company
            solution even more critical for the capital markets.
To
            conduct its business, FIIC is in process of forming and capitalizing
            three
            operating entities:
·
Federated
                      Investors Insurance Company Risk Retention Group ("FIIC RRG") shall write
                      the Investor Protection polices;
·
Federated
                      Insurance Captive ("FIC"), an agency captive insurance company, shall
                      provide reinsurance coverage to FIIC RRG;
                      and
·
Federated
                      Group Agency ("FGA"), a master group agency, shall provided operation
                      services to FIIC RRG and FIC.
Basis
            of Accounting
The
            financial statements of the Company are prepared on the accrual basis
            of
            accounting.
F-7
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            1 -
NATURE
            OF ORGANIZATION AND SUMMARY
SIGNIFICANT
            ACCOUNTING POLICIES
-
            Continued
Use
            of
            Estimates
The
            preparation of financial statement in conformity with accounting principles
            generally accepted in the United States of America requires management
            to make
            estimates and assumptions that affect the reported amounts of assets
            and
            liabilities at the date of the balance sheet. Actual results could differ
            from
            those estimates.
Debt
            Issuance Costs
Debt
            issuance costs are amortized based upon the lives of the respective debt
            obligations. The gross carrying amount of deferred loan costs at December
            31,
            2005 was $429,188 and accumulated amortization was $140,146. Amortization
            of
            deferred loan costs is included in general and administrative expense
            and was
            $140,146 for the period ended December 31, 2005.
Statements
            of Cash Flows
Cash
            and
            cash equivalents are defined as cash and investments that have an original
            maturity of less than three months.
Income
            Taxes
The
            provision for income taxes represents income taxes paid or payable for
            the
            current year plus the change in deferred taxes during the year. The Company
            recognizes deferred tax assets and liabilities based on differences between
            the
            financial reporting and tax bases of assets and liabilities using the
            enacted
            tax rates and laws that are expected to be in effect when the differences
            are
            expected to be recovered. The Company provides a valuation allowance
            for
            deferred tax assets for which it does not consider realization of such
            assets to
            be more likely than not. As of December 31, 2005, the deferred tax asset
            is
            fully reserved; therefore, the net expense/benefit is $0.
F-8
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            2 -
LICENSE
            AGREEMENT
The
            Company has entered into a license agreement to use software developed
            by FIIC
            R&D, LLC ("licensor"), a related party (See Note 10). Additionally, FIIC
            R&D will host and support the software application and allow FIIC to
            sublicense to third parties.
As
            consideration for the license agreement, FIIC issued to the licensor
            9,792,000
            shares of its common stock (total par value $9,792) and have issued warrants
            to
            purchase an additional 1,808,307 share of its common stock at an exercise
            price
            of $0.87 per share. Such warrants will expire five years after the date
            of
            issuance. Further, the Company has agreed to pay $100,000 in cash. To
            develop
            this software, the Licensor has invested significantly more than
            $100,000.
Additionally,
            pursuant to the license agreement, FIIC, Inc. shall pay the Licensor
            3% of net
            premiums for Hosting and Support services on a quarterly basis.
This
            agreement was not the result of an arms-length negotiation.
NOTE
            3 -
NOTES
            PAYABLE - SHAREHOLDERS
Shareholder
            notes payable at December 31, 2005 consisted of the following:
$12,000
                      payable to a shareholder, principal and interest note of $6,000,
                      payable
                      on December 31, 2005, extended March 31, 2006
$
12,000
$15,000
                      note payable to a shareholder, principal and interest of $7,500,
                      payable
                      on December 31, 2005, extended to March 31, 2006
15,000
$10,000
                      note payable to a shareholder, principal and interest of $5,000,
                      payable
                      on December 31, 2005, extended to March 31, 2006
10,000
$2,000
                      note payable to a shareholder, principal and interest of $1,000,
                      payable
                      on December 31, 2005, extended to March 31, 2006
2,000
$
39,000
As
            of
            December 31, 2005, interest expense of $19,500 has been accrued on the
            above
            notes.
F-9
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            4 -
NOTES
            PAYABLE - CONVERTIBLE
Convertible
            notes payable at December 31, 2005 consisted of the following:
$50,000
                      note payable accruing interest at 10% per annum, payable on
                      October 7,
                      2006
$
50,000
$50,000
                      note payable accruing interest at 10% per annum, payable on
                      October 7,
                      2006
50,000
$50,000
                      note payable accruing interest at 10% per annum, payable on
                      October 31,
                      2006
50,000
$50,000
                      note payable accruing interest at 10% per annum, payable on
                      December 6,
                      2006
50,000
$
200,000
As
            of
            December 31, 2005, interest expense of $3,507 had been accrued on the
            above
            notes.
The
            outstanding principal and accrued interest on the notes stated above
            are
            convertible at any time at the option of the holders and shall automatically
            convert into shares of the Company's common stock at the close of the Company's
            next equity financing, whether in a single transaction or a series of
            related
            transactions, yielding gross proceeds to the Company of at least $2,000,000
            in
            the aggregate. The number of shares of common stock to be issued upon
            such
            conversions shall be equal to the quotient obtained by dividing (i) the
            entire
            principal amount of the Note plus accrued interest by (ii) a $0.50 price
            per
            share of the common stock, rounded to the nearest whole share. If automatically
            converted, the issuance of such shares upon such conversion shall be
            upon the
            terms and subject to the conditions applicable with piggyback registration
            rights to the next equity financing.
Also
            in
            consideration for each of the convertible notes payable, 115,000 warrants
            to
            purchase stock at $0.87 were issued to each of the holders on the notes
            payable
            stated above.
Also,
            the
            Company had entered into an agreement with Bridge Finance Partners ("BFP") to
            obtain these convertible notes. In consideration for obtaining these
            notes, the
            Company paid $20,000 to BFP. This $20,000 payment has been included in
            debt
            issuance costs. Also, as further consideration, BFP received 23,077 warrants
            to
            purchase common stock at a price of $0.87.
F-10
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            5 -
BRIDGE
            LOAN PAYABLE AND CASH IN ESCROW
On
            November 29, 2005, the Company engaged in a bridge financing transaction
            in
            which it issued a $350,000 senior secured promissory note, exchangeable
            upon the
            closing of the Merger (See Note 7) for a senior secured convertible promissory
            note, convertible into the Combined Group's common stock at any time at a rate
            of $1.00 per share, including accrued and unpaid interest, and a warrant
            to
            purchase up to 5% of the fully diluted shares of common stock of in the
            Combined
            Group. In support of the initial note, FIIC has executed a security agreement
            in
            favor of the noteholder, pledging all of its existing and hereafter acquired
            assets, including its licenses for the FIIC Database Content and Technology
            (See
            Note 2), as security for the note. At the time of the exchange of the
            initial
            note for the convertible note and warrant from the Combined Group, the
            Combined
            Group will provide a similar security agreement and the Company will
            provide a
            subsidiary guaranty. At such time, 10 existing Company stockholders,
            including
            certain directors, officers and affiliates of the Company, are also obligated
            to
            execute pledge agreement guarantying the Combined Group's obligations under the
            convertible note with an aggregate 4,761,000 shares of their common
            stock.
The
            net
            proceeds of $258,000 are being held in escrow. These funds are to be
            disbursed
            to Nicklebys with the Second Closing. See Note 11.
NOTE
            6 -
CAPITAL
            STOCK
The
            Certificate of Incorporation of FIIC, Inc. authorizes an aggregate total
            of
            75,000,000 shares of capital stock, including 50,000,000 of shares of
            common
            stock with a par value of $.001 per share and 25,000,000 shares of preferred
            stock with a par value of $.001 per share. At December 31, 2005, the
            Company has
            10,843,377 shares of common stock issued and outstanding. No preferred
            stock has
            currently been issued.
NOTE
            7 -
AGREEMENT
            AND PLAN OF MERGER
On
            July
            19, 2005, the Company entered in to an Agreement and Plan of Merger (the
            "Agreement") with Nicklebys.com, Inc., a publicly held Colorado corporation (the
            "Registrant" or "NBYS"), Nicklebys Acquisition Corp., a privately held Nevada
            Corporation and wholly owned subsidiary of the Nicklebys.com, Inc. (the
"Merger
            Sub") and certain principal shareholders of the Merger Sub. Nicklebys.com,
            Inc.
            announced and filed a copy of the Agreement as an exhibit on Form 8-K
            on July
            20, 2005.
F-11
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            7 -
AGREEMENT
            AND PLAN OF MERGER
-
            Continued
The
            merger is to be effectuated through the Merger Sub, which will merge
            with and
            into FIIC, with FIIC being the surviving corporation. The Registrant
            will issue
            shares of its common stock on a one-for-one basis to the stockholders
            of FIIC in
            exchange for 100% of the issued and outstanding shares of common stock
            of FIIC.
            Additionally, the Registrant will assume options and warrants to purchase
            shares
            of its common stock on the same terms and conditions as previously issued
            by
            FIIC. Pursuant to the Agreement, the Registrant will assume FIIC's 2005 Stock
            Option, Deferred Stock and Restricted Stock Plan as the stock option
            plan of the
            Registrant.
The
            Registrant will also cancel 500,000 shares of its common stock held by
            certain
            stockholders in exchange for aggregate cash remuneration of $200,000
            and
            immediately following the closing of the Merger, will distribute any
            remaining
            NBYS assets to one of the Registrant's directors and principal shareholders and
            the difference between $75,000 and Registrant's remaining liabilities to another
            director and principal shareholder, as designated in the Agreement.
Immediately
            prior to the Merger, the Registrant will effectuate a 1-for-2.00317 reverse
            stock split of its common stock. Additionally, immediately following
            the Merger,
            the Registrant will reincorporate from the State of Nevada to the State
            of
            Delaware and will changes its corporate name from Nicklebys.com, Inc.
            to FIIC
            Holdings Inc., or such other name as FIIC may select prior to the closing
            of the
            Merger.
The
            Merger will result in a change-in-control of the Registrant to FIIC and
            its
            stockholders and the assumption of FIIC's operation and liabilities. In
            connection with the change-in-control, the Board of Directors and management
            of
            FIIC will become the Board of Directors and management of the
            Registrant.
Closing
            of the Merger is contingent on a number of conditions set forth in the
            Agreement, including approval of the Merger by the shareholders of the
            Registrant and of certain amendments of its Articles of Incorporation
            and
            approval of the Merger by stockholders of FIIC.
On
            October 31, 2005, Nicklebys.com and FIIC executed an amendment to the
            Merger
            Agreement. In the amendment, the parties changed the projected closing
            date of
            the merger to within 30 days after receipt of the approval of both the
            shareholders of NBYS and the stockholders of FIIC. The parties also amended
            the
            list of anticipated directors post-merger. The amendment increases the
            cash
            consideration to be paid by FIIC to cover NBYS' liabilities upon closing from
            $75,000 to $100,000.
F-12
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            7 -
AGREEMENT
            AND PLAN OF MERGER
-
            Continued
In
            the
            amendment, FIIC also affirms the maximum number of shares of FIIC common
            stock
            to be issued and outstanding at the closing of the merger and represents
            that
            any issuance of FIIC securities prior to closing will comply with all
            applicable
            federal and state securities laws and regulations. Finally, the parties
            agreed
            to amend the Termination Date, as defined the Merger Agreement, from
            October 31,
            2005 to 120 days from the date of NBYS' initial filing of a proxy statement on
            Schedule 14A, whether that date is before or after the date of approval
            of the
            merger by FIIC's stockholders and NBYS' stockholders. The Preliminary Proxy
            Statement Schedule 14A was filed on December 12, 2005. The Definitive
            Proxy
            Statement Schedule 14A was filed on January 13, 2006.
Subsequent
            of the merger, the Company is preparing to launch a Private Placement.
            Prior to
            December 31, 2005, the Company had entered into a contract with a securities
            brokerage firm that will act as an exclusive placement agent in connection
            with
            a proposed offering, issuance and sale of up to 5 million shares of the
            Company's common stock. The terms of this agreement calls for a non-refundable
            retainer fee of $12,500, which has been paid and included in deferred
            stock
            issuance costs on the balance sheet. In addition to the retainer fee,
            the
            contract provides for a transaction fee equal to 10% of the aggregate
            gross
            proceeds received by the Company from the sale of securities and the
            issuance of
            warrants to purchase common stock of the Company equal to 10% of the
            securities
            sold in the Transactions at a per share exercise price equal to the offering
            price of the securities. The warrants will expire five years from the
            date of
            issuance. The Company will also reimburse the placement agent up to $10,000
            for
            out of pocket expenses.
NOTE
            8 -
STOCK
            OPTION PLAN
On
            April
            25, 2005, the Company adopted the 2005 Stock Option, Deferred Stock and
            Restricted Stock Plan (the "Plan"). The total number of shares of Stock reserved
            and available for issuance under the Plan shall be 1,854,883 shares.
            Such shares
            shall consist of authorized but unissued shares.
The
            stock
            options granted under the Plan to eligible persons may be two types:
            Incentive
            Stock Options and Non-Qualified Stock Options.
F-13
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            8 -
STOCK
            OPTION PLAN
-
            Continued
The
            options price per share of stock purchasable under the incentive stock
            option
            shall be determined by the Administrator, in its sole discretion, at
            the time of
            grant but shall not be less than 100% of the fair market value of the
            stock on
            such date, and shall not, in any event, be less than the par value of
            the stock.
            The option price per share of stock purchasable under a non-qualified
            stock
            option may be less than 100% of such fair market value, but in no event
            be less
            than 85% of such fair market value. If an employee owns or is deemed
            to own more
            than 10% of the combined voting power of all classes of stock of the
            Company and
            a stock option is granted to such employee, the option price of such
            stock
            option shall be no less than 110% of the fair market value of the stock
            on the
            date such stock option is granted.
The
            term
            of each stock option shall be fixed by Administrator but no stock option
            shall
            be exercisable more then ten years after the date such stock option is
            granted.
            Any employee that owns or is deemed to own more than 10% of the combined
            voting
            power of all classes of stock of the Company and an incentive stock option
            is
            granted to such employee, the term of such option shall be no more than
            five
            years from the date of grant. Stock options issued to non-officer employees
            shall vest at least 20% per year over a five-year period commencing from
            the
            date of grant.
Deferred
            stock and restricted stock awards granted under the plan entitles recipients
            to
            purchase shares of the Company's common stock subject to restrictions concerning
            the sale, transfer and other disposition of the shares issued until such
            shares
            are vested. The purchase price must be at least 85% of the fair market
            value of
            the stock at the time the participant is granted the right to purchase
            shares
            under the plan or at the time the purchase is consummated. If a participant
            owns
            or is deemed to own more than 10% of the combined voting power of all
            classes of
            stock of the Company then the purchase price must be 100% of the fair
            market
            value of the stock either at the time the Participant is granted the
            right to
            purchase shares under the plan, or at the time the purchase is consummated.
            Upon
            termination of employment for any reason during the restricted period,
            all
            shares subject to any restrictions as of the date of such termination
            shall be
            forfeited by the participant, and the participant shall only receive
            the amount,
            if any paid by the Participant for such Deferred Stock or Restricted
            Stock, plus
            simple interest on such amount at the rate of 6% per year.
As
            of
            December 31, 2005, no options, deferred stock or restricted stock awards
            have
            been granted.
F-14
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            9 -
COMMITTMENTS
Financial
            Advisory and Consulting Agreement
In
            the
            fall of 2004, the FIIC founder selected Peyton, Chandler & Sullivan ("PCS")
            as a consultant to assist FIIC in identifying a suitable candidate for
            a reverse
            merger. Upon finding a suitable candidate, the Company will issue an
            aggregate
            of 625,000 shares to PCS as consideration for their contract. This consideration
            will be due only if (i) the Company consummates a merger with a party
            identified
            by PCS, (ii) the Company consummates the merger only with shares of its
            common
            stock, (iii) the Company pays no cash consideration, and (iv) the shareholders
            of the Company own at least 90% of the capital stock outstanding immediately
            after the merger.
Independent
            Consulting Agreements
The
            Company has also entered into a consulting contract with Corporate Growth
            Professionals of Dana Point, California ("CGP") to provide services related
            to
            management, marketing, strategic planning, corporate organization and
            structure,
            business prospects, financial matters in connection with the operation
            of the
            business of the Company, strategic partnerships and related operational
            and
            growth initiatives. CGP further agreed to introduce the Company to financing
            sources capable of providing $1 million in financing.
The
            terms
            of the agreement state that the consultant shall receive a monthly fee
            of $5,000
            for twelve months to begin once the Company received $1 million in financing
            commitments. In addition to the cash compensation, the Company agreed
            to issue
            2% of the outstanding shares of the Company to the consultant. The shares
            shall
            be issued within five days after it receives the demand from the CGP.
            During the
            period ended December 31, 2005, the Company has issued 400,000 shares
            to CGP.
            These shares were deemed to have a value of $0.50 per share. Thus, $200,000
            has
            been included in consulting expense with the issuance of the shares.
            The
            contract also states the Company shall pay all incidental costs and expenses
            associated with the services provided by the consultant. The term of
            the
            contract is for a period of two years.
F-15
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            9 -
COMMITMENTS
-
            Continued
Advisory
            Agreement & Bridge Financing
On
            August
            30, 2005, FIIC and Nicklebys.com entered into an advisory agreement with
            Bridgewater Capital Corporation ("BCC"). BCC will assist the Company in
            analyzing and consulting on reverse mergers, negotiate equity capital,
            debt
            financing and bridge loans. BCC will also assist in business development
            and,
            licensing and/or royalty opportunities, locating merger candidates, acquisition
            candidates, divestiture opportunities, valuation metrics, spin-off
            opportunities, strategic alliances or partnerships and any other opportunities
            to enhance shareholder value. For the services described above the Company
            shall
            compensate BCC as follows for:
I.
Finders
                      fee on any mergers or acquisitions of the Company through any
                      source
                      introduced by or through BCC calculated using the Lehman Formula.
                      This fee
                      is payable in common stock of the Company on the merger
                      date.
II.
Consulting
                      fees of $5,000 a month. Once gross proceeds of $1,000,000 have
                      been
                      raised, from a source introduced by or through BCC, the consulting
                      fee
                      will be increased to $10,000 per month thereafter. As of December
                      31,
                      2005, the Company has paid $5,000 to BCC and accrued additional
                      fees of
                      $15,000.
III.
Upon
                      funding of a minimum of $350,000 in gross proceeds BCC will
                      be issued 4.9%
                      of the fully diluted shares of the Company. The shares will
                      have immediate
                      piggyback registration rights.
IV.
Company
                      will reimburse the BCC for any and all reasonable normal business
                      expenses
                      incurred with performance of above services up to a sum of
                      $500 a
                      month.
V.
For
                      any financings provided, the Company will also pay BCC the
                      following:
a)
Equity
                      financing - a cash placement fee equal to 10% of the gross
                      proceeds
                      involved in the financing as well as a 2% non-accountable fee.
                      At the
                      closing of the financing or at the time of conversion, if any,
                      in addition
                      to any placement fee, the Company shall issue to BCC warrants
                      for shares
                      of common stock equal to 10% of the common stock placed. The
                      warrants will
                      be five year, non-callable, assignable warrants with immediate
                      piggy-back
                      registration rights with an exercise price per share equal
                      to the price
                      per share paid by the investor in the equity financing. The
                      warrants shall
                      also contain a cashless exercise
                      provision.
F-16
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            9 -
COMMITMENTS
-
            Continued
b)
Debt
                      financing - a cash placement fee equal to 3% of the gross facility
                      involved in the debt financing.
In
            connection with the Bridge Financing described in Note 5, the Company
            has paid
            $42,000 to BCC as outlined above for the 10% cash placement fee and 2%
            non-accountable fee. Also in connection with the Bridge Financing, the
            Company
            has issued 651,376 shares to BCC as outlined above with the funding of
            a minimum
            of $350,000. These shares were deemed to have a value of $0.50 per share.
            Thus,
            the $42,000 and $325,688 have been included in debt issuance costs and
            are being
            amortized over the life of the Bridge Loan.
NOTE
            10 -
RELATED
            PARTY TRANSACTIONS
As
            of
            December 31, 2005, the Company has received unsecured, non-interest bearing
            advances from related parties totaling $47,500 to pay for costs associated
            with
            obtaining additional financing. As of December 31, 2005, $4,978 remains
            unpaid.
            Additionally, the Company owes $100,000 for the license agreement as
            described
            in Note 2.
For
            the
            period ended December 31, 2005, the Company has expensed $275,000 for
            consulting
            expenses that are payable to several directors, officers and individuals
            who are
            intended to serve as key personnel. As of December 31, 2005, $228,000
            remains
            unpaid and included in Accrued expenses on the accompanying balance
            sheet.
The
            Company has entered into a sublease agreement with a related party for
            office
            space and overhead expenses at $5,000 a month. The sublease was effective
            February 1, 2005. The Company has reimbursed the related party $12,000
            for the
            use of the office space during the period ended December 31, 2005. As
            of
            December 31, 2005, $43,000 remains unpaid and included in Accrued expenses
            on
            the accompanying balance sheet.
F-17
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            11 -
SUBSEQUENT
            EVENTS
On
            January 17, 2006, the Company obtained a $300,000 unsecured convertible
            promissory note accruing interest at 8% and due December 8, 2006. The
            entire
            amount of outstanding principal and accrued interest shall be convertible
            at any
            time at the option of the holder and shall automatically convert into
            shares of
            the Company's common stock at the close of the Company's next equity financing,
            whether in a single transaction or a series of related transactions,
            yielding
            gross proceeds to the Company of at least $2,000,000 in the aggregate.
            The
            number of shares of common stock to be issued upon such conversion shall
            be
            equal to the quotient obtained by dividing (i) the entire principal amount
            of
            this Note plus accrued interest by (ii) a $0.65 price per share of the
            common
            stock, rounded to the nearest whole share. If automatically converted,
            the
            issuance of such shares upon such conversion shall be upon the terms
            and subject
            to the conditions applicable with piggyback registration rights to the
            next
            equity financing. Also, in consideration for services performed in connection
            with the funding of this note payable, Bridge Finance Partners has received
            800,000 shares of common stock.
On
            February 7, 2006, the shareholders of Nicklebys and the shareholders
            of FIIC
            approved the merger agreement (See Note 7) during their respective special
            shareholder meetings. The merger was closed and effective on February
            28,
            2006.
On
            February 23, 2006, the Company obtained two $100,000 unsecured convertible
            promissory notes accruing interest at 8% and due February 24, 2007. The
            entire
            amount of outstanding principal and accrued interest shall be convertible
            at any
            time at the option of the holders and shall automatically convert into
            shares of
            the Company's common stock at the close of the Company's next equity financing,
            whether in a single transaction or a series of related transactions,
            yielding
            gross proceeds to the Company of at least $2,000,000 in the aggregate.
            The
            number of shares of common stock to be issued upon such conversion shall
            be
            equal to the quotient obtained by dividing (i) the entire principal amount
            of
            this Note plus accrued interest by (ii) a $0.25 price per share of the
            common
            stock, rounded to the nearest whole share. If automatically converted,
            the
            issuance of such shares upon such conversion shall be upon the terms
            and subject
            to the conditions applicable with piggyback registration rights to the
            next
            equity financing. In consideration for the promissory notes, the holders
            of the
            notes will each receive 100,000 shares of common stock. Also, in consideration
            for services performed in connection with the funding of these notes
            payable,
            Bridge Finance Partners will receive a 10% fee ($20,000).
F-18
FIIC,
            INC.
(A
            Development Stage Company)
NOTES
            TO
            FINANCIAL STATEMENTS
For
            the
            period of January 25, 2005 (Inception) through December 31, 2005
NOTE
            11 -
SUBSEQUENT
            EVENTS
-
            continued
On
            February 26, 2006, the Company entered into a contract with
            Accelerate-Financial, Inc. ("AFI"), to provide merger and acquisition advisory
            services and corporate consulting services. 825,000 shares of stock shall
            be
            issued to AFI in conjunction with their assistance with completing the
            Nicklebys
            merger. The cost basis of the issuance shall be consistent with the valuation
            of
            FIIC at the time the agreement was executed.
On
            February 28, 2006, the Bridge Loan (See Note 5) was extended to May 29,
            2006.
            With the extension, the $258,000 held in escrow was returned to the Buyer,
            leaving $92,000 outstanding. In addition, all of the Pledgors were released
            from
            their respective Pledge Agreements except for James France, CEO of FIIC,
            Inc.
            The Company also will pay $7,019 as payment in full of the interest owed
            to the
            Buyer on the $350,000 Bridge Loan and $3,500 for legal expenses incurred
            by the
            Buyer.
F-19
SUMMARY
        FINANCIAL INFORMATION
The
        following gives a summary of the most recent balance sheet data of FIIC,
        Inc. as
        of December 31, 2005 and the statements of operations data of FIIC, Inc.
        for the
        period from inception (January 24, 2005) through December 31, 2005.
Balance
                    as of
December
                    31, 2005
Current
                    Assets
$
1,714
Other
                    Assets
669,334
Total
                    Assets
$
671,048
Current
                    Liabilities
1,140,618
Stockholders'
                    (Deficit)
(469,570
)
Total
                    Liabilities And Stockholder's (Deficit)
$
671,048
From
                    Inception
Through
December
                    31, 2005
Revenue
$
-
Total
                    expenses
1,006,050
Income
                    taxes
-
Net
                    loss
$
(1,006,050
)
Shares
                    outstanding
10,843,377
Loss
                    per share
$
(0.09
)
This
        information is only a summary. You should also read the historical financial
        statements, management's discussion and analysis and related notes for FIIC,
        Inc. contained elsewhere in this document.
The
        Registrant is providing financial and other information for informational
        purposes only. It does not necessarily represent or indicate what the financial
        position and results of operations of the Registrant will be now that the
        Merger
        is concluded.
(b)
        Pro Forma Financial Statements.
PRO
        FORMA FINANCIAL INFORMATION
The
        following unaudited pro forma condensed combined financial statements give
        effect to the Merger as if it had occurred at an earlier date. The unaudited
        pro
        forma condensed combined balance sheet as of December 31, 2005 gives effect
        to
        the Merger as if it occurred on December 31, 2005 and combines the historical
        balance sheets of FIIC and Nicklebys at December 31, 2005. The FIIC balance
        sheet information was derived from its audited December 31, 2005 balance
        sheet
        included herein. The Nicklebys balance sheet information was derived from
        its
        unaudited December 31, 2005 balance sheet. The unaudited pro forma condensed
        combined statement of operations for the year ended December 31, 2005 is
        presented as if the transaction was consummated on April 1, 2005 and combines
        the historical results of FIIC and Nicklebys for the nine months ended December
        31, 2005. The historical results of FIIC were derived from its audited December
        31, 2005 statement of operations included herein. The historical results
        of
        Nicklebys were derived from its unaudited December 31, 2005 statement of
        operations.
The
        unaudited pro forma condensed combined financial statements have been prepared
        by FIIC's and Nicklebys' management for illustrative purposes only and are not
        necessarily indicative of the condensed financial position or results of
        operations in future periods or the results that actually would have been
        realized had FIIC and Nicklebys been a combined company during the specified
        periods. The pro forma adjustments are based on the preliminary information
        available at the time of the preparation of this document. The unaudited
        pro
        forma condensed combined financial statements, including the notes thereto,
        are
        qualified in their entirety by reference to, and should be read in conjunction
        with, the historical financial statements of FIIC from inception (January
        24,
        2005) through December 31, 2005 included herein and the historical financial
        statements of Nicklebys for the three, six and nine months ended and as of
        September 30, 2005, incorporated by reference herein.
Because
        the former FIIC, Inc. stockholders now own approximately 93.6% of the shares
        of
        the Registrant's common stock, former FIIC, Inc. stockholders have control over
        the Registrant, FIIC, Inc.'s designees are serving as the Registrant's directors
        and the former FIIC, Inc. management team is managing the Registrant. As
        a
        result, FIIC, Inc. is deemed to have been the acquiring company for accounting
        purposes. Accordingly, the purchase price has been allocated among the fair
        values of the assets and liabilities of Nicklebys, while the historical results
        of FIIC, Inc. are reflected in the results of the combined post-Merger company.
        The transaction shall be accounted for under the purchase method of accounting
        in accordance with Statement of Financial Accounting Standards ("SFAS") No. 141,
"Business Combinations." Under the purchase method of accounting, the total
        estimated purchase price, calculated as described in Note 1 to these unaudited
        pro forma condensed combined financial statements, is allocated to the net
        tangible and intangible assets acquired and liabilities assumed in connection
        with the Merger, based on their estimated fair values as of the completion
        of
        the Merger, taking into account the intended issuance of Nicklebys' remaining
        assets and the settlement of its outstanding liabilities upon consummation
        of
        the Merger. A final determination of any estimated fair values, which cannot
        be
        made prior to the completion of the Merger, will be based on the actual net
        tangible and intangible assets of Nicklebys that exist as of the date of
        completion of the Merger.
The
        selected unaudited pro forma condensed combined financial statements are
        based
        on estimates and assumptions that are preliminary. The data is presented
        for
        informational purposes only and is not intended to represent or be indicative
        of
        the results of operations or financial condition of the Registrant that would
        have been reported had the proposed transaction been completed as of the
        dates
        presented, and should not be taken as representative of future results of
        operations or financial condition of the combined group. Please also read
        the
        section in this Current Report entitled "Cautionary Note Regarding Forward
        Looking Statements" under Item 2.01 for more information on the statements made
        in this section.
UNAUDITED
          PRO FORMA CONDENSED COMBINED BALANCE SHEET
as
          of December 31, 2005
31-Dec-2005
31-Dec-2005
Adjustments
Combined
FIIC
Nicklebys.com
Dr
Cr
as
                    adjusted
ASSETS
Current
                    assets:
Cash
$
1,714
$
406
300,000
b
$
(406
)
a
$
181,714
200,000
c
(300,000
)
a
(20,000
)
c
Prepaid
                    interest
-
-
-
-
-
Total
                    current assets
1,714
406
500,000
(320,406
)
181,714
Loan
                    Fees
289,042
-
400,000
b
-
809,042
100,000
c
20,000
c
Cash
                    held in escrow
258,000
-
-
(258,000
)
d
-
Goodwill
-
-
301,199
a
-
301,199
License
                    agreement
109,792
-
-
-
109,792
Deferred
                    stock issuance costs
12,500
-
-
-
12,500
Total
                    assets
$
671,048
$
406
$
1,321,199
$
(578,406
)
$
1,414,247
LIABILITIES
                    AND STOCKHOLDERS' DEFICIT
Current
                    liabilities:
Accounts
                    payable and accrued expenses
$
(446,640
)
$
(49,981
)
$
49,981
a
$
(10,519
)
d
$
(457,159
)
Note
                    payable - convertible
(200,000
)
-
-
(300,000
)
b
(700,000
)
(200,000
)
c
Bridge
                    loan payable
(350,000
)
-
258,000
d
-
(92,000
)
Notes
                    payable - shareholders
(39,000
)
(13,083
)
406
a
-
(39,000
)
12,677
a
Related
                    party payable
(104,978
)
-
-
-
(104,978
)
Total
                    liabilities
(1,140,618
)
(63,064
)
321,064
(510,519
)
(1,393,137
)
Stockholders
                    deficit:
Capital
                    stock
(10,843
)
(291
)
291
a
(1,199
)
a
(13,867
)
(800
)
b
(200
)
c
(825
)
e
Additional
                    paid in capital
(525,637
)
(5,282,719
)
5,282,719
a
(399,200
)
b
(1,436,312
)
(99,800
)
c
(411,675
)
e
Deficit
                    accumulated in development stage
1,006,050
10,519
d
-
1,429,069
412,500
e
Retained
                    earnings
-
5,345,668
-
(5,345,668
)
a
-
Total
                    stockholders deficit
469,570
62,658
5,706,029
(6,259,367
)
(21,110
)
Total
                    liabilities and stockholders deficit
$
(671,048
)
$
(406
)
$
6,027,093
$
(6,769,886
)
$
(1,414,247
)
Footnotes
                    to the Unaudited Pro Forma Condensed Combined Balance Sheet as
                    of December
                    31, 2005. The Unaudited Pro Forma Condensed Combined Balance
                    Sheet is
                    presented as if the transaction occurred on December 31,
                    2005.
a
In
                    connection with the merger, FIIC will use the purchase method
                    of
                    accounting. Total cash consideration will be $300,000 ($200,000
                    paid to
                    certain shareholders to cancel 500,000 shares and approximately
                    $87,000
                    for the satisfaction of Nicklebys' remaining pre-Merger liabilities, and
                    shall cover up to an additional $13,000 of Nicklebys' closing costs
                    post-Merger.)
b
One
                    $300,000 convertible note issued in January 2006 accruing interest
                    at 8%
                    per annum due in full December 2006. The note is convertible
                    at any time
                    at the option of the holder and shall automatically convert into
                    shares of
                    common stock at the close of the next equity financing, whether
                    in a
                    single transaction or a series of related transactions, yielding
                    gross
                    proceeds of at least $2,000,000 in the aggregate. The number
                    of shares of
                    common stock to be issued upon such a conversion shall be equal
                    to the
                    quotient obtained dividing (i) the entire principal amount of
                    the note
                    plus accrued interest by (ii) a $0.65 price per share of the
                    common stock,
                    rounded to the nearest whole share. Also, in consideration for
                    services
                    performed in connection with the funding of this note payable,
                    Bridge
                    Finance Partners has received 800,000 shares of common stock.
                    The 800,000
                    shares are deemed to have a value of $0.50 a share and will be
                    amortized
                    over the life of the note.
c
Two
                    $100,000 convertible notes issued in February 2006 accruing interest
                    at 8%
                    per annum due in full February 2007. The notes are convertible
                    at any time
                    at the option of the holders and shall automatically convert
                    into shares
                    of common stock at the close of the next equity financing, whether
                    in a
                    single transaction or a series of related transactions, yielding
                    gross
                    proceeds of at least $2,000,000 in the aggregate. The number
                    of shares of
                    common stock to be issued upon such a conversion shall be equal
                    to the
                    quotient obtained dividing (i) the entire principal amount of
                    the note
                    plus accrued interest by (ii) a $0.25 price per share of the
                    common stock,
                    rounded to the nearest whole share. 100,000 shares of common
                    stock will be
                    issued to each of the holders for consideration of the note.
                    The shares to
                    be issued are deemed to have a value of $0.50 a share. The value
                    of these
                    shares will be recorded to loan fees and amortized over the life
                    of the
                    notes. Also, in consideration for services performed in connection
                    with
                    the funding of these notes, Bridge Finance Partners will receive
                    a 10%
                    finders fee ($20,000) which will be recorded as a loan fee and
                    amortized
                    over the life of the note.
d
The
                    Bridge loan note dated November 29, 2005, was amended on February
                    28,
                    2006. With the amendment, the $258,000 that was held in escrow
                    was
                    released to the Buyer of the note, leaving $92,000 outstanding.
                    The note
                    was also extended to May 29, 2006. With the extension and payment,
                    all
                    pledgors except for James France,(FIIC CEO) were released from
                    their
                    respective pledge agreements. And finally, the Company shall
                    pay to the
                    Buyer $7,019 representing outstanding interest on the original
                    note dated
                    November 29, 2005 and pay an additional $3,500 for legal expenses
                    incurred
                    by the Buyer.
e
Stock
                    compensation due to parties involved in merger:
Accelerate-Financial,
                    Inc.
825,000
Total
                    shares to be issued
825,000
Assumed
                    stock price
$
0.50
Fair
                    market value of services
$
412,500
Less:
                    par value (.001 per share)
$
(825
)
Additional
                    paid in capital
$
411,675
UNAUDITED
            PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For
            the nine months ended December 31, 2005
Adjustments
Combined
FIIC
Nicklebys.com
Dr
Cr
as
                      adjusted
Revenues
$
-
$
100
$
-
$
-
$
100
Cost
                      of sales
-
18,570
-
-
18,570
Gross
                      profit
-
(18,470
-
-
(18,470
)
General
                      and administrative expense
803,670
42,156
412,500
b
-
1,258,326
Depreciation
                      and amortization
140,146
152
-
-
140,298
Loss
                      on disposal
-
605
-
-
605
Total
                      operating expenses
943,816
42,913
412,500
-
1,399,229
Operating
                      loss
(943,816
)
(61,383
(412,500
)
-
(1,417,699
)
Non
                      operating income
-
503
-
-
503
Interest
                      expense
(26,507
)
-
-
-
(26,507
)
Net
                      loss before income taxes
(970,323
)
(60,880
(412,500
)
-
(1,443,703
)
Income
                      tax expense
-
-
-
-
-
Net
                      loss
$
(970,323
)
$
(60,880
$
(412,500
)
$
-
$
(1,443,703
)
Basic
                      loss per share
$
(0.09
)
$
(0.10
)
Diluted
                      loss per share
$
(0.09
)
$
(0.10
)
Basic
                      - shares used in per share computations
10,843,377
1,198,606
a
825,000
b
13,866,983
800,000
c
200,000
d
Diluted
                      - shares used in per share computations
10,843,377
1,198,606
a
825,000
b
13,866,983
800,000
c
200,000
d
Footnotes
                        to the Unaudited Pro Forma Condensed Combined Statement of
                        Operations for
                        the nine months ended December 31, 2005. The Unaudited Pro
                        Forma Condensed
                        Combined Statement of Operations is presented as if the transaction
                        occurred on April 1, 2005.
a
In
                        accordance with the Merger agreement dated July 19, 2005,
                        Nicklebys.com
                        effectuated a 1 for 2.00317 reverse stock spilt of its common
                        stock
                        immediately prior to the merger and after the cancellation
                        of 500,000
                        shares held by certain shareholders. After the cancellation
                        of shares and
                        reverse stock split, 1,198,606 shares of Nicklebys.com Common
                        Stock were
                        be outstanding.
b
The
                        Company issued 825,000 shares to Accelerate-Financial, Inc.
                        for services
                        performed in connection with the merger.
These
                        shares are deemed to have a value of $0.50 a share.
c
The
                        Company issued 800,000 shares to Bridge Financing Partners
                        in connection
                        with services performed in the funding of the a
$300,000
                        convertible note payable funded in January,
                        2006.
d
The
                        Company issued 200,000 shares to holders of the notes (100,000
                        each) in
                        connection funding of the two $100,000 convertible notes
payable
                        issued in February 2006.
The
                        following securities were not included in the computation
                        of pro forma
                        numbers of shares because to do so would have been anti-dilutive
for
                        the period presented:
Warrants
                        to purchase FIIC stock
3,217,379
Convertible
                        debt
1,753,538
Total
                        securities not included in pro forma number of shares
4,970,917
(c)
          Exhibits:
2.1
Agreement
                  and Plan of Merger, dated as of July 19, 2005, by and among Nicklebys.com,
                  Inc., FIIC, Inc., Nicklebys Acquisition Corp., Scott Thornock,
                  Bruce
                  Capra, Paul Zueger, Michael Tanner and James Watson (filed as Exhibit
                  2.1
                  to Current Report on Form 8-K dated July 19, 2005, and incorporated
                  herein
                  by reference)
2.2
Amendment
                  No. 1 to Agreement and Plan of Merger dated as of October 31, 2005,
                  by and
                  among Nicklebys.com, Inc., FIIC, Inc., Nicklebys Acquisition Corp.,
                  Scott
                  Thornock, Bruce Capra, Paul Zueger, Michael Tanner and James Watson
                  (filed
                  as Exhibit 2.1 to Current Report on Form 8-K dated October 31,
                  2005, and
                  incorporated herein by reference)
2.3
Agreement
                  and Plan of Merger, dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and FIIC Holdings, Inc.
3.1
Certificate
                  of Amendment to Nicklebys.com, Inc. Articles of Incorporation
3.2
Certificate
                  of Incorporation of FIIC Holdings, Inc.
3.3
Bylaws
                  of FIIC Holdings, Inc.
4.1
Senior
                  Secured Convertible Promissory Note, in favor of Oceanus Value
                  Fund,
                  L.P.
4.2
Bridge
                  Financing Warrant, in favor of Oceanus Value Fund, L.P.
4.3
Form
                of FIIC, Inc. Convertible Promissory Note.
4.4
Form of
                FIIC, Inc.
                Common Stock Purchase Warrant.
10.1
Securities
                  Purchase Agreement dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and Oceanus Value Fund, L.P.
10.2
Amendment
                  to Securities Purchase Agreement dated February 28, 2006, by and
                  among
                  Nicklebys.com, Inc. and Oceanus Value Fund, L.P.
10.3
Registration
                Rights
                Agreement with Oceanus Value Fund, L.P.
10.4
Pledge Agreement
                between James W. France and Oceanus Value Fund, L.P. in support of
                Bridge
                Financing.
10.5
Security
                Agreement in
                favor of Oceanus Value Fund, L.P.
10.6
Subsidiary
                Guaranty of FIIC, Inc. in favor of Oceanus Value Fund,
                L.P.
16.1
Letter,
                  dated March 6,
2006,
                  of Schoonover Boyer + Associates, pursuant to Item 304(a)(3) of
                  Regulation
                  S-B
23.1
Consent
                  of Schoonover Boyer + Associates
99.1
Press
                  Release dated March 2, 2006 announcing closing of the Merger of
                  Nicklebys.com and FIIC, Inc.
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.
FIIC
                  HOLDINGS, INC.
Dated:
March 6, 2006
/s/
                James W. France
By:
                  James W. France
Its:
                  President and Chief Executive Officer
Dated:
March 6, 2006
/s/
                Wade Estep
By:
                  Wade Estep, CPA
Its:
                  Chief Financial Officer
EXHIBIT
        INDEX
2.1
Agreement
                  and Plan of Merger, dated as of July 19, 2005, by and among Nicklebys.com,
                  Inc., FIIC, Inc., Nicklebys Acquisition Corp., Scott Thornock,
                  Bruce
                  Capra, Paul Zueger, Michael Tanner and James Watson (filed as Exhibit
                  2.1
                  to Current Report on Form 8-K dated July 19, 2005, and incorporated
                  herein
                  by reference)
2.2
Amendment
                  No. 1 to Agreement and Plan of Merger dated as of October 31, 2005,
                  by and
                  among Nicklebys.com, Inc., FIIC, Inc., Nicklebys Acquisition Corp.,
                  Scott
                  Thornock, Bruce Capra, Paul Zueger, Michael Tanner and James Watson
                  (filed
                  as Exhibit 2.1 to Current Report on Form 8-K dated October 31,
                  2005, and
                  incorporated herein by reference)
2.3
Agreement
                  and Plan of Merger, dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and FIIC Holdings, Inc.
3.1
Certificate
                  of Amendment to Nicklebys.com, Inc. Articles of Incorporation
3.2
Certificate
                  of Incorporation of FIIC Holdings, Inc.
3.3
Bylaws
                  of FIIC Holdings, Inc.
4.1
Senior
                  Secured Convertible Promissory Note, in favor of Oceanus Value
                  Fund,
                  L.P.
4.2
Bridge
                  Financing Warrant, in favor of Oceanus Value Fund, L.P.
4.3
Form of
                FIIC, Inc.
                Convertible Promissory Note.
4.4
Form of
                FIIC, Inc.
                Common Stock Purchase Warrant.
10.1
Securities
                  Purchase Agreement dated February 28, 2006, by and among Nicklebys.com,
                  Inc. and Oceanus Value Fund, L.P.
10.2
Amendment
                  to Securities Purchase Agreement dated February 28, 2006, by and
                  among
                  Nicklebys.com, Inc. and Oceanus Value Fund, L.P.
10.3
Registration
                Rights
                Agreement with Oceanus Value Fund, L.P.
10.4
Pledge Agreement
                between James W. France and Oceanus Value Fund, L.P. in support of
                Bridge
                Financing.
10.5
Security
                Agreement in
                favor of Oceanus Value Fund, L.P.
10.6
Subsidiary
                Guaranty of FIIC, Inc. in favor of Oceanus Value Fund,
                L.P.
16.1
Letter,
                  dated March 6, 2006, of Schoonover Boyer + Associates, pursuant
                  to Item
                  304(a)(3) of Regulation S-B
23.1
Consent
                  of Schoonover Boyer + Associates
99.1
Press
                  Release dated March 2, 2006 announcing closing of the Merger of
                  Nicklebys.com and FIIC, Inc.