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      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><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>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: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
          AND EXCHANGE COMMISSION</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
          DC 20549</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br>&#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="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
          8-K</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
          REPORT</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
          TO SECTION 13 OR 15(d) OF THE</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
          EXCHANGE ACT OF 1934</strong></font></div><br></div>
    </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; FONT-FAMILY: Times New Roman">Date
        of
        report (Date of earliest event reported):&#160; April 11, 2006 (April 5,
        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">&#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">ZEROS
        &amp; ONES, 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">(Exact
        Name of Registrant as Specified in Charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</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">Nevada</font></div>
              </td>
              <td valign="top" width="24%">
                <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">33-26531-LA</font></div>
              </td>
              <td valign="top" width="24%">
                <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">88-0241079</font></div>
              </td>
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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">(State
                  or Other Jurisdiction</font></div>
              </td>
              <td valign="top" width="24%">
                <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">(Commission</font></div>
              </td>
              <td valign="top" width="24%">
                <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">(IRS
                  Employer</font></div>
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              <td valign="top" width="24%">
                <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">of
                  Incorporation)</font></div>
              </td>
              <td valign="top" width="24%">
                <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">File
                  Number)</font></div>
              </td>
              <td valign="top" width="24%">
                <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">Identification
                  No.)</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">&#160;</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">7119
                  Sunset Blvd. #318</font></div>
              </td>
              <td align="left" valign="top" width="36%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
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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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Los
                  Angeles, California</font></div>
              </td>
              <td valign="top" width="36%">
                <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">90046</font></div>
              </td>
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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">(Address
                  of Principal Executive Offices)</font></div>
              </td>
              <td valign="top" width="36%">
                <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">(Zip
                  Code)</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">&#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">Registrant's
        telephone number, including area code: (800) 710-6637</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">Not
        Applicable</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        name or former address, if changed since last report.)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="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">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; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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; FONT-FAMILY: Wingdings">o</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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"><br>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            </div>
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          <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>
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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">
        <div style="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>Item
          5.01 Changes in Control of Registrant</strong></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a name="id_0_5"/><a name="id_0_6"/>&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
          I.</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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
          Current Report on Form&#160;8-K (the &#8220;Form 8-K&#8221;) contains forward-looking
          statements including, without limitation, statements concerning the future
          of
          the industry in which Zeros &amp; Ones, Inc. (the &#8220;Company&#8221;) operates, its
          product development plans, business strategy, financial estimates, continued
          acceptance of its products and dependence on significant distributors and
          customers. In some cases, you can identify forward-looking statements by
          terminology such as &#8220;may&#8221;, &#8220;will&#8221;, &#8220;should&#8221;, &#8220;expects&#8221;, &#8220;plans&#8221;, &#8220;anticipates&#8221;,
&#8220;believes&#8221;, &#8220;estimates&#8221;, &#8220;predicts&#8221;, &#8220;potential&#8221;, &#8220;continue&#8221; or the negative of
          such terms or other comparable terminology. You should not place undue
          reliance
          on the forward-looking statements contained in this document. When considering
          forward-looking statements, you should keep in mind the risk factors and
          other
          cautionary statements made in this Form&#160;8-K. Forward-looking statements,
          particularly those concerning anticipated events relating to the development
          and
          marketing of the Company's products and services, and the timing or magnitude
          of
          those events, are inherently uncertain. The risk factors discussed below
          and
          other considerations noted throughout this Form&#160;8-K could cause the
          Company&#8217;s actual results to differ significantly from those contained in any
          forward-looking 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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
          the Company believes that the expectations reflected in the forward-looking
          statements are reasonable, the Company cannot guarantee future results,
          levels
          of activity, performance, or achievements. The Company is under no duty
          to
          update any of the forward-looking statements after the date of this
          Form&#160;8-K to conform forward-looking statements to actual
          results.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
          <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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
                      1.</strong></font></div>
                  </td>
                  <td align="left" valign="top" width="59%">
                    <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"><strong>Description
                        of Business</strong></font></div>
                    </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>
        <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">The
          Company is a holding company focused on identifying and developing different
          media-based technologies, media assets, and strategic partnerships, and
          bringing
          those together to deliver next-generation commercial and consumer
          solutions.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-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"><em>Founding
          and Merger</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company was founded in 1994 by Robert J. Holtz (&#8220;Holtz&#8221;). At that time, the
          Company was focused on delivering products and services to the entertainment
          industry. In July 1999, the Company, along with several other companies
          with
          technologies, products, and services focused on digital convergence, were
          acquired by Commercial Labor Management, Inc., a publicly traded company
          (the
&#8220;Consolidation&#8221;). Immediately following the Consolidation, Commercial Labor
          Management, Inc. changed its name to &#8220;Zeros &amp; Ones, Inc.&#8221;, and each of the
          constituent corporations were combined into a single entity with the
          Consolidation being accounted for in a manner similar to a pooling of
          interests.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="PN"/>&#160;</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"><em>Market
          Conditions and Business Events</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Due
          to
          sustained adverse market conditions following the Consolidation, in 2003
          the
          Company redirected its management focus in the technology and entertainment
          industries by seeking to identify and develop nascent media-based technologies,
          acquiring fresh media assets, and forging various strategic alliances in
          order
          to deliver next-generation commercial and consumer solutions. Unfortunately,
          this approach failed to generate any material new revenue for the Company,
          and
          before long, the Company became delinquent with the Securities and Exchange
          Commission (the &#8220;SEC&#8221;) in filing its mandatory reports, schedules and
          statements, as prescribed by the Securities Exchange Act of 1934, as amended
          (the &#8220;Exchange Act&#8221;), and the Securities Act of 1933, as amended (&#8220;Securities
          Act&#8221;). Moreover, in early 2005, the Company&#8217;s stock was suspended from trading
          on the Over-The-Counter Bulletin Board and since then has traded principally
          on
          the &#8220;Pink Sheets.&#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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          addition to the general market&#8217;s failure to embrace the Company&#8217;s products and
          services, the Company was adversely impacted in the post-Consolidation
          period
          due to a lengthy legal dispute with Allied Boston Group (&#8220;Allied&#8221;).
          Specifically, pursuant to a 2001 Stock Exchange Agreement, the Company
          issued a
          substantial portion of its available common stock to Allied in exchange
          for a
          commensurate amount of Allied&#8217;s common equity. Allied, however, failed to
          complete the transaction, while retaining the Company&#8217;s common stock, thus
          forcing the Company to commence litigation against Allied in order to formally
          unwind the stock exchange and recover the Company&#8217;s stock. While this litigation
          ultimately settled in November 2004 with the cancellation of the shares
          previously issued to Allied, due to Allied&#8217;s actions, from 2001 to 2004, the
          Company did not have sufficient authorized capital to continue operating
          as
          expected, having to cancel certain stock based acquisitions (which was
          a
          fundamental part of its growth strategy at the time) and planned equity
          offerings.</font></div>
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          Change</em></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">On
          May
          31, 2005, Mark M. Laisure (&#8220;Laisure&#8221;), then the Company&#8217;s President, replaced
          Holtz as the Company&#8217;s Chairman and Chief Executive Officer. While Holtz
          remained a member of the Board of Directors, he subsequently resigned his
          seat,
          effective December 21, 2005. </font></div>
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            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Current
          Plan of Operations</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company is principally a provider of sophisticated software solutions that
          delivers media-rich content efficiently over the Internet. The Company,
          however,
          is seeking to expand its offerings through the development and/or acquisition
          of
          proprietary technologies that would compliment both its existing portfolio
          of
          offerings and its targeted customer base. The Company believes that technology
          has created a world where everyone is connected - at home, in the office,
          and in
          transit. In the last decade, the Internet has empowered consumers with
          choice,
          immediate gratification, and the ability to quickly evaluate, purchase,
          consume,
          contribute, and share information in an unprecedented manner. The technology
          and
          entertainment industries are two of the wealthiest and dynamic industries
          in the
          world, yet they work, play, and create using very different approaches
          to
          business.</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">The
          Company sees these two industries as complementary, if not overlapping.
          Many
          technology companies are already entering the entertainment industry and
          becoming a viable force in their respective markets. Likewise, the Company
          believes that the entertainment industry is realizing the true economic
          and
          long-term value of its media, the content itself, as the future driver
          for
          technology adoption by consumers. With the rapid transition from a predominantly
          analog world into a fully digital environment, the Company intends to position
          itself to capitalize on these changing dynamics by acquiring intellectual
          property, developing strategic partnerships, and leveraging industry
          relationships to streamline and enhance the business models surrounding
          content
          creation, media distribution, and consumer commerce.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Employees</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company has one full-time and two part-time employees, and continues to
          rely on
          a number of independent consultants who provide administrative, business
          development, and management services similar to such services that would
          be
          provided by full and part-time employees. The Company has also entered
          into
          consulting agreements to obtain marketing, media relations and financing
          services.</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="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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; FONT-FAMILY: Times New Roman"><em>Going
          Concern Opinion</em></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">The
          Company has no established source of consistent revenue and has incurred
          significant losses since inception. There can be no assurance as to when,
          if
          ever, the Company will generate positive operating income. The continued
          failure
          to achieve significant revenues or profitability will materially and adversely
          affect the Company's business, financial condition, and results of operations.
          Furthermore, the Company's independent auditors, Armando C. Ibarra, CPA,
          P.C.,
          issued an opinion in connection with the Company's financial statements
          for the
          fiscal year ended December 31, 2005 raising a substantial doubt about the
          Company&#8217;s ability to continue as a going concern.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="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"><em>Competitive
          Business Environment</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          technology and data transmission industry is highly competitive and the
          Company's management expects this competition to intensify in the future.
          The
          industry is characterized by rapidly changing technologies and customer
          demands
          for newer and better products. Third party competitors of the Company may
          develop products and technologies that could render the Company's products
          and
          technologies obsolete. Many of the Company's competitors have greater resources,
          including financial and scientific personnel, marketing and sales capacity,
          established distribution networks, significant goodwill and greater brand
          name
          recognition. As a result, these competitors may be in a better position
          than the
          Company to respond quickly to, or significantly influence, rapid technological
          change and consumer demand.</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">Competition
          within the technology and data transmission industry is characterized by
          several
          key factors, including, but not limited to, the following:</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" width="100%">

              <tr>
                <td align="left" valign="top" width="4%" style="border-bottom: medium none;">
                  <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="top" width="4%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></div>
                </td>
                <td align="justify" valign="top" width="82%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Rapid
                    changes in technology and customer requirements</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                    New opportunities for existing and new competitors can quickly
                    render
                    existing technologies less
                    valuable.</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" width="100%">

              <tr>
                <td align="left" valign="top" width="4%" style="border-bottom: medium none;">
                  <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="top" width="4%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></div>
                </td>
                <td align="justify" valign="top" width="82%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Relatively
                    low barriers to entry</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                    Startup capital requirements for technology companies can be
                    very small,
                    and software distribution over the Internet is inexpensive and
                    easily
                    outsourced.</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" width="100%">

              <tr>
                <td align="left" valign="top" width="4%" style="border-bottom: medium none;">
                  <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="top" width="4%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></div>
                </td>
                <td align="justify" valign="top" width="82%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Significant
                    price competition</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                    Direct distribution of competing products, particularly over
                    the Internet,
                    may cause prices and margins to decrease in traditional sales
                    channels.</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" width="100%">

              <tr>
                <td align="left" valign="top" width="4%" style="border-bottom: medium none;">
                  <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="top" width="4%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font></div>
                </td>
                <td align="justify" valign="top" width="82%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Consolidations
                    and mergers</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
                    Technology companies and their individual products have a high
                    rate of
                    mergers, product line sales, and other transfers and consolidations;
                    consequently, there is a tendency to have a higher concentration
                    of able
                    competitors within the industry.</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>
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          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
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            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            </div>
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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="justify">&#160;</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"><em>Slowdown
          in Demand for Digital Technology</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
          slowdown affecting the general growth in demand for data transmission and
          related products and services could harm the Company's plan of operations
          and
          prospects for achieving profitability. The markets for the Company's potential
          products and services depend upon economic conditions that affect the broader
          computer technology and related markets. Downturns in any of these markets
          may
          cause end-users to delay or cancel orders for such products and
          services.</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="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Patents,
          Proprietary Technology and Other Intellectual Property</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
          the
          Company develops or acquires new assets that could have commercial value
          and
          would be protected under current or future patent laws, the Company will
          need to
          rely on a combination of copyright, trademark and patent laws, trade secrets,
          confidentiality procedures and contractual provisions to protect its proprietary
          technology. For example, the Company seeks to avoid disclosure of any trade
          secrets by requiring those persons with access to the Company's proprietary
          information to execute confidentiality agreements with the Company. The
          Company
          also relies on unpatented proprietary know-how in developing its products
          and
          services, and employs various methods, including confidentiality agreements
          with
          employees, consultants and others, to protect its trade secrets and
          know-how.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Irrespective
          of the foregoing, the Company cannot be sure that these methods of protecting
          its proprietary technology, information and know-how will afford complete
          protection. Patents may not be enforceable or provide the Company with
          meaningful protection from competitors. If a competitor was to infringe
          on the
          Company's patents, the costs of enforcing the Company's patent rights might
          be
          substantial or even prohibitive. Likewise, the Company cannot be sure that
          others will not independently develop any trade secrets and know-how or
          obtain
          access to them.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="id_0_8"/>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <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>ITEM
                    2.</strong></font></div>
                </td>
                <td align="left" valign="top" width="64%">
                  <div style="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>Management's
                    Discussion and Analysis or Plan of
                    Operation</strong></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 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">The
          following information should be read in conjunction with the consolidated
          financial statements and the notes thereto contained elsewhere in this
          Form&#160;8-K. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          following discussion and analysis provides information that management
          believes
          is relevant to an assessment and understanding of its results of operations
          and
          financial condition, and is used by management in assessing the Company's
          performance and making managerial decisions. The following significant
          events
          impacted the Company's financial condition during this past fiscal year
          and will
          have a significant influence on its condition in future reporting
          periods.</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"><em>Purchase
          of Rocketstream Holding Corporation</em></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">On
          May
          10, 2006, the Company entered into a Share Exchange Agreement (the &#8220;Share
          Exchange Agreement&#8221;) with Rocketstream Holding Corporation, a Nevada corporation
          (&#8220;RHC&#8221;), and all of its shareholders (the &#8220;Share Exchange&#8221;). In connection with
          the Share Exchange, the Company acquired all of the outstanding shares
          of RHC
          through a voluntary share exchange with each of RHC&#8217;s shareholders pursuant to
          an exchange ratio equal to 1 share of RHC common stock in exchange for
          1,000
          shares of the Company&#8217;s common stock. In consideration of 100% of the
          outstanding shares of RHC, the Company issued 48,235,000 shares of the
          Company&#8217;s
          unregistered common stock to the 52 shareholders of RHC. RHC is the sole
          shareholder of RocketStream, Inc., a Georgia corporation (&#8220;RocketStream&#8221;).
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          number of shares of common stock of the Company issued and outstanding
          prior to
          the Share Exchange was approximately 43,560,002 shares, and immediately
          after
          the Share Exchange was approximately </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">91,795,002
          shares</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="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">The
          Share
          Exchange Agreement constitutes a related party transaction. Mark Laisure
          held
          14,000 shares of RHC and Scott Fairbairn held 15,000 shares of RHC. Pursuant
          to
          the Share Exchange, Mark Laisure received 14,000,000 shares of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
          Company&#8217;s </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">common
          stock and Scott Fairbairn received 15,000,000 shares of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
          Company&#8217;s </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">common
          stock. Mark Laisure is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
          Company&#8217;s </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman
          of the Board, Chief Executive Officer, President, Chief Financial Officer,
          Secretary and a member of its Board of Directors. Scott Fairbairn is the
          Company&#8217;s Chief Technology Officer and a member of its Board of Directors. Mr.
          Fairbairn is also President of RHC and RocketStream.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Convertible
          Notes</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          May
          2003, the Company commenced an offering of convertible notes, at various
          interest rates, ranging from 8% to 12% per annum, with a maturity of 1
          year (the
&#8220;Notes&#8221;). The terms of each Note provide that the holder of a Note may, at its
          option, convert the principal and interest of such Note into shares of
          the
          Company&#8217;s common stock at any time at a conversion price equal to the average of
          the last five (5) trading days closing price, less a discount ranging from
          25%
          to 35%. The Company issued approximately $180,000 of Notes during 2006,
          $135,000
          of Notes during the year ended December 31, 2005, $512,527 of Notes during
          the
          year ended December 31, 2004, and $474,000 of Notes during the year ended
          December 31, 2003.</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"><em>Critical
          Accounting Policies</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          accordance with SEC guidance, those material accounting policies that the
          Company believes are the most critical to an investor's understanding of
          the
          Company's financial results and condition are discussed below. Certain
          of these
          policies are particularly important to the portrayal of the Company's financial
          position and results of operations and require the application of significant
          judgment by the Company's management to determine the appropriate assumptions
          to
          be used in the determination of certain estimates.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Basis
          of
          Presentation - The accompanying financial statements have been prepared
          in
          conformity with accounting principles generally accepted in the United
          States
          (&#8220;US GAAP&#8221;), which contemplate continuation of the Company as a going concern.
          However, the Company is subject to the risks and uncertainties associated
          with a
          new business, has no established source of revenue, and has incurred significant
          losses from operations. These matters raise substantial doubt about the
          Company&#8217;s ability to continue as a going concern. The Company has not been
          profitable and has sustained substantial net losses from operations. There
          can
          be no assurance that it will ever generate positive revenues from its operating
          activities, or that it will achieve and sustain a profit during any future
          period, particularly if operations remain at current levels. Failure to
          achieve
          significant revenues or profitability would materially and adversely affect
          the
          Company&#8217;s business, financial condition, and results of operations. The
          accompanying financial statements do not include any adjustments relating
          to the
          recoverability and classification of recorded asset amounts, or amounts
          and
          classification of liabilities that might be necessary should the Company
          be
          unable to continue as a going concern.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Management
          does not believe that that the Company&#8217;s present funds are sufficient to sustain
          the Company for the balance of 2006. While the Company anticipates to generate
          revenue from normal operations during the second half of 2006, the Company
          remains uncertain as to whether it will report enough revenue to achieve
          a
          profit from normal operations, and expects that additional capital will
          be
          required to offset both ongoing losses and the costs associated with revenue
          growth. Moreover, the Company has no commitments from outside investors
          to help
          finance the Company&#8217;s operations for the rest of 2006. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principles
          of Consolidation - The consolidated financial statements include the accounts
          of
          the Company and its subsidiary, Zeros &amp; Ones Technologies, Inc. All
          significant intercompany accounts and transactions have been eliminated
          in
          consolidation.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Use
          of
          Estimates - The preparation of financial statements in conformity with
          US GAAP
          requires management to make estimates and assumptions that affect the reported
          assets and liabilities and disclosure of contingent assets and liabilities
          at
          the date of the financial statements, and the reported revenues and expenses
          during the reported periods. Management bases its estimates and assumptions
          on
          historical experience and on various other assumptions that it believes
          are
          reasonable under the circumstances. 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="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
          and
          Cash Equivalents - The Company considers temporary liquid investments with
          an
          original maturity of three months or less to be cash equivalents.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
          Receivable - Accounts receivable are stated at the amount management expects
          to
          collect from outstanding balances. An allowance for doubtful accounts is
          provided for those accounts receivable considered to be uncollectible,
          based
          upon historical experience and management&#8217;s evaluation of outstanding accounts
          receivable at the end of the year. At December 31, 2005, the Company had
          no
          accounts receivable.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Property
          and Equipment - Property and equipment are stated at cost. Depreciation
          is
          computed using the straight line method over estimated useful lives of
          three to
          five years. Leasehold improvements are amortized over the shorter of the
          lease
          term or the estimated useful life. The Company capitalizes costs associated
          with
          acquiring and installing software to be used for internal purposes. At
          December
          31, 2005, the Company had no property and equipment.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Impairment
          of Long Lived Assets - Long lived assets, other than goodwill, are reviewed
          for
          impairment whenever events or changes in circumstances indicate that the
          carrying amount of the assets might not be recoverable. The Company does
          not
          perform a periodic assessment of assets for impairment in the absence of
          such
          information or indicators. Conditions that would necessitate an impairment
          assessment include a significant decline in the observable market value
          of an
          asset, a significant change in the extent or manner in which an asset is
          used,
          or a significant adverse change that would indicate that the carrying amount
          of
          an asset or group of assets is not recoverable. For long lived assets to
          be held
          and used, the Company recognizes an impairment loss only if its carrying
          amount
          is not recoverable through its undiscounted cash flows and measures the
          impairment loss based on the difference between the carrying amount and
          fair
          value. Long lived assets held for sale are reported at the lower of cost
          or fair
          value less costs to sell. At December 31, 2005, the Company had no long-lived
          assets.</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">Basic
          and
          Diluted Loss Per Share - In accordance with the Financial Accounting Standards
          Board&#8217;s (&#8220;FASB&#8221;) SFAS No. 128, &#8220;Earnings Per Share,&#8221; the basic loss per common
          share, which excludes dilution, is computed by dividing the net loss available
          to common stockholders by the weighted average number of common shares
          outstanding. Diluted loss per common share reflects the potential dilution
          that
          could occur if all potential common shares had been issued and if the additional
          common shares were dilutive. As a result of net losses for all periods
          presented, there is no difference between basic and diluted loss per common
          share. Potential shares of common stock to be issued upon the exercise
          of
          options and warrants amounted to 4,763,054 and 4,488,054 shares at December
          31,
          2005 and 2004, respectively.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
          Based Compensation - In December 2004, FASB issued SFAS No. 123R, &#8220;Share Based
          Payment.&#8221; SFAS No. 123R establishes the accounting for grants of stock options
          and other transactions in which an entity exchanges its equity instruments
          for
          goods or services. It also addresses transactions in which an entity incurs
          liabilities in exchange for goods or services that are based on the fair
          value
          of the entity&#8217;s equity instruments or that may be settled by the issuance of
          those equity instruments. SFAS No. 123R (1) revises SFAS No. 123, &#8220;Accounting
          for Stock Based Compensation,&#8221; (2) supersedes Accounting Principles Bulletin
          (&#8220;APB&#8221;) Opinion No. 25, &#8220;Accounting for Stock Issued to Employees,&#8221; and (3)
          establishes fair value as the measurement objective for share based payment
          transactions. The Company adopted SFAS No. 123R effective January 1, 2006
          in
          accordance with the standard&#8217;s early adoption provisions. Prior to January 1,
          2006, the Company&#8217;s Board of Directors had not approved the granting of any
          employee stock options. As such, the Company decided that it will follow
          the
          provisions of SFAS No. 123R on a prospective basis, and will record compensation
          expense related to the granting of stock options to employees should that
          occur
          in 2006.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
          and Development - Research and development costs are charged to operations
          as
          incurred, and totaled $104,500 for 2005 and $195,563 for 2004. Some of
          the
          Company&#8217;s products include infrastructure media delivery technology. The costs
          to develop such technology have not been capitalized, as the Company is
          still
          determining the market requirements for its technology.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fair
          Value of Financial Instruments - The estimated fair values for financial
          instruments under SFAS No. 107, &#8220;Disclosures about Fair Value of Financial
          Instruments,&#8221; are determined at discrete points in time based on relevant market
          information. These estimates involve uncertainties and cannot be determined
          with
          precision. For certain of the Company&#8217;s financial instruments, including certain
          assets, accounts payable, accrued liabilities and debt, the carrying amounts
          approximate fair value due to their maturities.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Concentrations
          of Credit Risk - Credit risk represents the accounting loss that would
          be
          recognized at the reporting date if counterparties failed completely to
          perform
          as contracted. The Company&#8217;s product revenues are anticipated from, and will
          likely be concentrated in the technology industry, which is highly competitive
          and rapidly changing. Significant technological changes in the industry
          or
          customer requirements, or the emergence of competitive products with new
          capabilities or technologies, could adversely affect operating results.
          Concentrations of credit risk (whether on or off balance sheet) that arise
          from
          financial instruments exist for groups of customers or counterparties when
          they
          have similar economic characteristics that would cause their ability to
          meet
          contractual obligations to be similarly affected by changes in economic
          or other
          conditions described below.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
          instruments that subject the Company to credit risk could consist of cash
          balances maintained in excess of federal depository insurance limits and
          accounts receivable, which have no collateral or security. The Company
          maintains
          its cash accounts with high credit quality financial institutions. At times,
          cash deposits may be in excess of Federal Deposit Insurance Corporation
          limits.
          To date, the Company has not experienced any such losses and believes it
          is not
          exposed to any significant credit risk.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Income
          Taxes - The Company accounts for income taxes using the asset and liability
          method, as set forth in SFAS No. 109, &#8220;Accounting for Income Taxes,&#8221; wherein
          deferred tax assets and liabilities are recognized for the future tax
          consequences attributable to differences between financial statement carrying
          amounts of existing assets and liabilities and their respective tax bases.
          Deferred tax assets and liabilities are measured using enacted tax rates
          expected to apply to taxable income in the years in which the temporary
          differences are expected to be recovered or settled. Reserves against deferred
          tax assets are provided when management cannot conclude their realization
          probability.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recently
          Issued Accounting Pronouncements - In December 2004, FASB issued SFAS No.
          153,
&#8220;Exchanges of Non-monetary Assets&#8221;. SFAS No. 153 amends the guidance in APB
          Opinion No. 29, &#8220;Accounting for Non-monetary Transactions&#8221;, to eliminate certain
          exceptions for non monetary exchanges of similar productive assets, and
          replaces
          it with a general exception for exchanges of non-monetary assets that do
          not
          have commercial substance. The Company does not believe that the adoption
          of
          SFAS No. 153 will have a material effect on its financial position, results
          of
          operations, or cash flows.</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">In
          September 2004, the Emerging Issues Task Force (&#8220;EITF&#8221;) issued EITF No. 04 8,
&#8220;The Effect of Contingently Convertible Instruments on Diluted Earnings
          per
          Share.&#8221; EITF No. 04 8 provides new guidance on when the dilutive effect of
          contingently convertible securities with a market price trigger should
          be
          included in diluted earnings per share. The new guidance states that these
          securities should be included in the diluted earnings per share computation
          regardless of whether the market price trigger has been met. The guidance
          in
          EITF 04 8 is effective for all periods ending after December 15, 2004 and
          would
          be applied by retroactively restating previously reported earnings per
          share.
          The adoption of this pronouncement is not expected to have a material effect
          on
          the Company&#8217;s 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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Results
          of Operations</em></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"><em>Three-Month
          Period Ended March 31, 2006</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="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">The
          Company had no revenues for the three months ended March 31, 2006, or for
          the
          corresponding period ended March 31, 2005. Its spending for the three months
          ended March 31, 2006 increased from the same period in 2005, as it increased
          spending on research and development from $21,125 to $45,000 as well spending
          on
          sales and marketing from $22,050 to $32,900. For the period ended March
          31,
          2006, the Company&#8217;s general and administrative expenses of $167,659 were
          primarily related to costs for management fees and expenses, and professional
          fees including legal costs. Some of these expenses have been accrued as
          of March
          31, 2006. The Company&#8217;s interest expense of $51,730 includes a charge of $43,202
          related to the beneficial conversion of convertible 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: 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"><em>Twelve
          months ended December 31, 2005 and 2004</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company had no revenues for the twelve months ended December 31, 2005,
          or for
          the corresponding period ended December&#160;31, 2004. The Company's spending
          for the twelve months ended December 31, 2005 decreased from the same period
          in
          2004, as the Company had limited financial resources. The Company's sales
          and
          marketing expenses decreased to $24,527 in 2005 from $74,784 in 2004, and
          research&#160;and development spending decreased from $195,563 to $104,500
          during the same period. In 2005, the Company&#8217;s total general and administrative
          expenses of $340,327 were&#160;primarily&#160;related to costs for management
          fees and expenses, and professional fees including legal costs, most of
          which
          have been accrued as of 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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Product
          Development</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company's research and development expenses totaled $104,500 in 2005, compared
          to $195,563 in 2004. The majority of the Company's development costs are
          focused
          on meeting its technical plan, which calls for further developments and
          enhancements of software to enable the Company to cater to a wider audience
          of
          users and thereby remain competitive.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="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"><em>Liquidity
          and Capital Resources</em></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">At
          March
          31, 2006, the Company had a negative working capital of $1,175,000 as compared
          to a negative working capital of $1,406,118 at December 31, 2005. During
          the
          three months ended March 31, 2006, net cash used in operations was $366,031
          and
          consisted principally of a net loss of $297,289 and was offset by stock
          based
          compensation and services of $34,192 and other non-cash charges (including
          interest) of $51,756. Cash flows were also affected by the conversion of
          Notes
          to common stock for $359,302.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company's current cash on hand at March 31, 2006 would not be adequate
          to fund
          the Company's operations for more than a short period if the Company was
          to
          continue to use cash in operating activities at the same rate as in prior
          months. The Company will need to rely upon continued borrowing and/or sales
          of
          additional equity instruments to support its continued growth. </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"><em>Recent
          and Expected Losses</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
          can
          be no assurance that the Company will generate positive revenues from its
          operating activities, or that it will achieve and sustain a profit during
          any
          future period, particularly if operations remain at current levels.
          Specifically, for the fiscal year ended December&#160;31, 2005, the Company
          incurred a net pre-tax loss of $542,521 and, for the fiscal year ended
          December
          31, 2004, the Company incurred a net pre-tax loss of $1,691,379. The Company's
          auditors, Armando C. Ibarra, CPA, P.C., issued an opinion in connection
          with the
          Company's financial statements for the fiscal year ended December&#160;31, 2005
          noting substantial doubt about the Company&#8217;s ability to continue as a going
          concern.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="8%">
                    <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>ITEM
                      3.</strong></font></div>
                  </td>
                  <td align="left" valign="top" width="59%">
                    <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"><strong>Description
                        of Property</strong></font></div>
                    </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 style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <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">The
            Company&#8217;s executive offices are located at 7119 Sunset Boulevard, Suite #318,
            Los Angeles, California 90046.</font></div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
            <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" width="100%">

                  <tr>
                    <td align="left" valign="top" width="8%">
                      <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>ITEM
                        4.</strong></font></div>
                    </td>
                    <td align="left" valign="top" width="59%">
                      <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"><strong>Security
                          Ownership of Certain Beneficial Owners and Management and
                          Related&#160;Stockholder
                          Matters</strong></font></div>
                      </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 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">The
          following table sets forth certain information known to the Company with
          respect
          to the beneficial ownership of the Company's common stock as of August
          11, 2006
          by (i) all persons who are beneficial owners of five percent (5%) or more
          of the
          Company's common stock, (ii) each current director, (iii) the executive
          officers
          named in the Summary Compensation Table of the Executive Compensation section
          of
          this Form 8-K and (iv) all current directors and executive officers as
          a group.
          As of August 4, 2006, there were 93,382,384 shares of common stock outstanding.
          Unless otherwise indicated, each of the stockholders has sole voting and
          investment power with respect to the shares beneficially owned, subject
          to
          community property laws, where applicable.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
          <div align="left">
            <table border="0" cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="24%" 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">Name
                      and Address of </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
                      Owner(1)</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td colspan="2" valign="top" width="36%" 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">Common
                      Stock </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">Beneficially
                      Owned</font></div>
                  </td>
                  <td valign="top" width="2%">&#160;</td>
                  <td colspan="2" valign="top" width="36%" 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">Series
                      A Convertible Preferred </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
                      Beneficially Owned</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="24%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <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; FONT-FAMILY: Times New Roman">Shares</font></div>
                  </td>
                  <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; FONT-FAMILY: Times New Roman">Percentage</font></div>
                  </td>
                  <td valign="top" width="2%">&#160;</td>
                  <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; FONT-FAMILY: Times New Roman">Shares</font></div>
                  </td>
                  <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; FONT-FAMILY: Times New Roman">Percentage</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="24%">
                    <div style="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">Mark
                      Laisure</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <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; FONT-FAMILY: Times New Roman">14,001,000(2)</font></div>
                  </td>
                  <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; FONT-FAMILY: Times New Roman">14.99%</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td valign="top" width="18%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,000</font></div>
                  </td>
                  <td valign="top" width="18%">
                    <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">50%</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="24%">
                    <div style="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
                      Fairbairn</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <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; FONT-FAMILY: Times New Roman">15,001,000(3)</font></div>
                  </td>
                  <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; FONT-FAMILY: Times New Roman">16.06%</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td valign="top" width="18%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,000</font></div>
                  </td>
                  <td valign="top" width="18%">
                    <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">50%</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="24%">
                    <div style="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
                      Fetzek</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td valign="top" width="18%">
                    <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">--</font></div>
                  </td>
                  <td valign="top" width="18%">
                    <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">--</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="18%">&#160;</td>
                  <td align="left" valign="top" width="18%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="24%">
                    <div style="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">Volker
                      Anhaeusser</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td valign="top" width="18%">
                    <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">--</font></div>
                  </td>
                  <td valign="top" width="18%">
                    <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">--</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="18%">&#160;</td>
                  <td align="left" valign="top" width="18%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="24%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                      current directors and executive officers as a group </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">(4
                      persons)</font></div>
                  </td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="bottom" 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; FONT-FAMILY: Times New Roman">29,002,000</font></div>
                  </td>
                  <td align="left" valign="bottom" 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; FONT-FAMILY: Times New Roman">31.06%</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%">&#160;</td>
                  <td valign="bottom" width="18%">
                    <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">2,000</font></div>
                  </td>
                  <td valign="bottom" width="18%">
                    <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">100%</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">________________</font></div>
          <div>
            <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">&#160;</td>
                  <td style="width: 18pt;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
                  </td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      address for each of the individuals listed in the table is
                      care of Zeros
                      &amp; Ones, Inc., 7119 Sunset Boulevard, Suite #318, Los Angeles,
                      California 90046.</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 align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">&#160;</td>
                  <td style="width: 18pt;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
                  </td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                      1,000 shares of common stock with respect to which Mr. Laisure&#8217;s 1,000
                      shares of Series A Convertible Preferred Stock are convertible
                      into upon
                      the (i) written election of all the holders of the Series A
                      Convertible
                      Preferred Stock or (ii) the death of all the holders of the
                      Series A
                      Convertible Preferred 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 align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

                <tr valign="top" style="line-height: 1.25;">
                  <td style="width: 18pt;">&#160;</td>
                  <td style="width: 18pt;">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
                  </td>
                  <td>
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                      1,000 shares of common stock with respect to which Mr. Fairbairn&#8217;s 1,000
                      shares of Series A Convertible Preferred Stock are convertible
                      into upon
                      the (i) written election of all the holders of the Series A
                      Convertible
                      Preferred Stock or (ii) the death of all the holders of the
                      Series A
                      Convertible Preferred Stock.</font></div>
                  </td>
                </tr>

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

                <tr>
                  <td align="left" valign="top" width="8%">
                    <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>ITEM
                      5.</strong></font></div>
                  </td>
                  <td align="left" valign="top" width="59%">
                    <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"><strong>Directors,
                        Executive Officers, Promoters, and Control
                        Persons</strong></font></div>
                    </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 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">The
          Company&#8217;s directors and executive officers are as follows:</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" width="100%">

              <tr>
                <td align="left" valign="bottom" width="22%" 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</strong></font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</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>Age</strong></font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td valign="bottom" width="40%" 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>Positions
                    and Offices Held</strong></font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</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>Since</strong></font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="22%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mark
                    M Laisure</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td valign="top" width="9%">
                  <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">36</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <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="top" width="40%">
                  <div style="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,
                    Chief Executive Officer, President, Chief Financial Officer,
                    Secretary and
                    Chairman of the Board</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td align="justify" valign="top" width="13%">
                  <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">May
                    16, 2003</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="22%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Scott
                    Fairbairn</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td valign="top" width="9%">
                  <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">40</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <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="top" width="40%">
                  <div style="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
                    Technology Officer and Director</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td align="justify" valign="top" width="13%">
                  <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">November
                    21, 2003</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="22%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
                    Fetzek</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td valign="top" width="9%">
                  <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">47</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <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="top" width="40%">
                  <div style="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, Business Development</font></div>
                </td>
                <td align="left" valign="middle" width="2%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
                <td align="justify" valign="top" width="13%">
                  <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">April
                    1, 2004</font></div>
                </td>
              </tr>
              <tr bgcolor="white">
                <td align="left" valign="top" width="22%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Volker
                    Anhaeusser </font></div>
                </td>
                <td align="left" valign="middle" width="2%">&#160;</td>
                <td valign="top" width="9%">
                  <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">50</font></div>
                </td>
                <td align="left" valign="middle" width="2%">&#160;</td>
                <td align="left" valign="top" width="40%">
                  <div style="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="left" valign="middle" width="2%">&#160;</td>
                <td align="justify" valign="top" width="13%">
                  <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">April
                    5, 2006</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; FONT-FAMILY: Times New Roman"><em>Mark
          M. Laisure, Age 36</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mark
          Laisure, the Company's Chief Executive Officer, President, Chief Financial
          Officer, Secretary and Chairman of the Board, joined the Company in May,
          2003 as
          its President and Vice-Chairman of the Board of Directors. In May 2005,
          Mr.
          Laisure became the Company&#8217;s Chief Executive Officer, and in December 2005 was
          elected Chairman of the Board, Chief Financial Officer and Secretary. Mr.
          Laisure&#8217;s career started in securities brokerage and investment banking, serving
          as a principal for both UBS PaineWebber and Shields &amp; Company. In 1998 he
          was a member of the founding team of Inktomi Corporation, a leading provider
          of
          OEM Web search and paid inclusion services. In 1999, Mr. Laisure joined
          Military
          Commercial Technologies, Inc. (MILCOM), a venture-backed company that conceives,
          creates and launches technology companies in partnership with defense
          contractors, commercial companies, federal laboratories and other leading-edge
          research and development sources. At MILCOM, Mr. Laisure participated in
          the
          launch and growth of several affiliate companies and remains a member of
          its
          Board of Directors. Mr. Laisure co-founded iNetNow, Inc. in 2002, which
          pioneered the enhanced information delivery space and established alliances
          with
          Lycos, Telefonica and i3Mobile. Mr. Laisure is no longer associated with
          iNetNow, Inc. or Inktomi Corporation.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Scott
          Fairbairn, Age 40</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Scott
          Fairbairn has been the Company&#8217;s Chief Technology Officer since 2003 and became
          a member of the Board of Directors on April 4, 2006. In 1996, Mr. Fairbairn
          founded Breakthrough Technologies, Inc. (&#8220;Breakthrough&#8221;) and became a recognized
          leader in enterprise-class rapid application development services. Breakthrough
          developed and licensed a suite of platform components for XML-based content
          delivery, caching services, and data-driven internet applications used
          in many
          of its deployments which had features that pre-dated Microsoft's .NET strategy.
          Breakthrough also incubated and developed the core technologies behind
          RocketStream, a patent-pending suite of technologies and products capable
          of
          delivering synchronized, high-fidelity video, audio, text, and VOIP data
          over a
          centralized network to worldwide participants in less than &#188; of a second.
          RocketStream is a second-generation packet delivery platform ideally suited
          for
          interactive applications, multiplayer gaming, mobile content delivery,
          and
          accelerated media delivery over congested IP networks. Mr. Fairbairn is
          the
          President of Rocketstream Holding Corporation and RocketStream, Inc. and
          has
          held those positions since the companies were founded in 2006 and 2002,
          respectively.</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"><em>Thomas
          Fetzek, Age 47</em></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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thomas
          Fetzek has been the Company&#8217;s Vice President of Business Development since 2004.
          From 1996 to 2003, Mr. Fetzek served as the Chief Executive Officer of
          Secura-Code Corporation, a creator of patented Interactive Dynamic Personal
          Identification Number (PIN) Technology. Secura-Code Corporation&#8217;s PIN technology
          focuses on the strengthening of access control systems that are used to
          identify
          users.</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"><em>Volker
          Anhaeusser, Age 50</em></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="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Volker
          Anhaeusser has been a member of the Board of Directors since April 2006.
          Mr.
          Anhaeusser serves as a principal member and shareholder of the German law
          firm
          of Anhaeusser, Unger, &amp; Bergien, whose specialty is corporate and business
          law. Dr. Anhaeusser serves on the Board of Directors of several German
          and
          US-based corporations with operations in software technology, Internet
          communications, pharmaceuticals, and corporate finance, including GROUP
          Technologies AG, AGIVERA AG, STAAR Surgical (USA), and Canon-STAAR (Tokyo,
          Japan).</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="8%">
                    <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>ITEM
                      6.</strong></font></div>
                  </td>
                  <td align="left" valign="top" width="59%">
                    <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"><strong>Executive
                        Compensation</strong></font></div>
                    </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 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">The
          following Summary Compensation Table sets forth, for the years indicated,
          all
          cash compensation paid, distributed or accrued for services, including
          salary
          and bonus amounts, rendered in all capacities by the Company&#8217;s Chief Executive
          Officer and all other executive officers who received or are entitled to
          receive
          remuneration in excess of $100,000 during the stated periods.</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"><em>Summary
          Compensation Table</em></font></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"><br></font>
          <div>&#160;</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; FONT-FAMILY: Times New Roman"><strong>Annual
          Compensation</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>
          <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

              <tr>
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">
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                <td width="2%">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" colspan="2" valign="bottom" width="10%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mark
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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="9%" 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">2005</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="9%" 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">41,664</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="9%" 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>
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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="9%" 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>
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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="9%" 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">41,664</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="#ccffcc">
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Chairman,
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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="9%" 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">2004</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="9%" 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">87,100</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="9%" 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>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="9%" 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>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="9%" 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">87,100</font></div>
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                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="43%" 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="9%" 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">2003</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="9%" 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">16,000</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="9%" 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>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="9%" 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>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="right" valign="bottom" width="9%" 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">16,000</font></div>
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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="43%">&#160;</td>
                <td width="2%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="9%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="9%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="9%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="9%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
                <td align="right" valign="bottom" width="9%">&#160;</td>
                <td align="left" valign="bottom" width="1%">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc 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">Robert
                    J. Holtz,</font></div>
                </td>
                <td width="2%" 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="9%" 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">2005</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="9%" 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>
                <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="9%" 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>
                <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="9%" 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>
                <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="9%" 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>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc 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"><em>CEO
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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: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="9%" 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">2004</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="9%" 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">106,000</font></div>
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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: #ccffcc thin solid;">&#160;</td>
                <td align="right" valign="bottom" width="9%" 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>
                <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="9%" 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>
                <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="9%" 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">106,000</font></div>
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                <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="43%" style="border-bottom: white thin solid;">&#160;</td>
                <td width="2%" 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="9%" style="border-bottom: white 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">2003</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="9%" style="border-bottom: white 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">18,500</font></div>
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                <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="9%" style="border-bottom: white 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: 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="9%" style="border-bottom: white 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: 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="9%" style="border-bottom: white 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">18,500</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#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 id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="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"><em>Director
          Compensation</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
          Directors have been compensated for their services as Directors.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Employment
          Contracts</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
          officers have entered into any employment contracts with the
          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>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <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>ITEM
                    7.</strong></font></div>
                </td>
                <td align="left" valign="top" width="59%">
                  <div style="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>Certain
                    Relationships and Related
                    Transactions</strong></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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          May
          10, 2006, the Company entered into a Share Exchange Agreement with RocketStream
          Holding Corporation, a Nevada corporation (&#8220;RHC&#8221;), and all of RHC&#8217;s
          shareholders, two of whom were (i) Mark Laisure, the Company&#8217;s Chairman of the
          Board of Directors, Chief Executive Officer, President, Chief Financial
          Officer
          and Secretary and (ii) Scott Fairbairn, the Company&#8217;s Chief Technology Officer
          and a member of the Company&#8217;s Board of Directors (collectively, the &#8220;Share
          Exchange&#8221;). In connection with the Share Exchange, the Company acquired all of
          the outstanding shares of RHC through a voluntary share exchange with each
          of
          RHC&#8217;s shareholders pursuant to an exchange ratio equal to 1 share of RHC common
          stock in exchange for 1,000 shares of the Company&#8217;s common stock. In
          consideration for 100% of the outstanding shares of RHC, the Company issued
          48,235,000 shares of its common stock, of which Mark Laisure and Scott
          Fairbairn
          received 14,000,000 and 15,000,000 shares, respectively. </font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
          <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" width="100%">

                <tr>
                  <td align="left" valign="top" width="8%">
                    <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>ITEM
                      8.</strong></font></div>
                  </td>
                  <td align="left" valign="top" width="59%">
                    <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"><strong>Description
                        of Securities</strong></font></div>
                    </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 style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="id_0_12"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company is authorized to issue 200,000,000 shares of common stock and 2,000,000
          shares of preferred stock. </font></a></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Common
          Stock</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          holders of common stock are entitled to one vote per share. The Company's
          Articles of Incorporation do not provide for cumulative voting. The holders
          of
          common stock are entitled to receive ratably such dividends, if any, as
          may be
          declared by the Board of Directors out of legally available funds. However,
          the
          current policy of the Board of Directors is to retain earnings, if any,
          for
          operations and growth. Upon liquidation, dissolution or winding-up, the
          holders
          of common stock are entitled to share ratably in all assets that are legally
          available for distribution. The holders of common stock have no preemptive,
          subscription, redemption or conversion rights. The rights, preferences
          and
          privileges of holders of common stock are subject to, and may be adversely
          affected by, the rights of the holders of any series of preferred stock,
          which
          may be designated solely by action of the Board of Directors and issued
          in the
          future.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Preferred
          Stock</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Board
          of Directors is authorized, subject to any limitations prescribed by law,
          without further vote or action by the shareholders, to issue from time
          to time
          shares of preferred stock in one or more series. Each such series of preferred
          stock shall have such number of shares, designations, preferences, voting
          powers, qualifications, and special or relative rights or privileges as
          shall be
          determined by the board of directors, which may include, among others,
          dividend
          rights, voting rights, liquidation preferences, conversion rights and preemptive
          rights.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Series
          A Convertible Preferred Stock</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          July
          24, 2006, the Company&#8217;s Board of Directors designated 2,000 shares of preferred
          stock as Series A Convertible Preferred Stock. As of August 4, 2006, there
          were
          no shares of Series A Convertible Preferred Stock issued and
          outstanding.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Voting
          Rights:</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          At each
          meeting of the shareholders of the Company (and for purposes of written
          actions
          of shareholders in lieu of meetings) with respect to any and all matters
          presented to the shareholders of the Company for their action or consideration,
          should the holders of all shares of Series A Convertible Preferred Stock
          vote
          alike with respect to a certain matter, then each share of Series A Convertible
          Preferred Stock shall represent 100,000 votes, with the holders of both
          the
          Series A Convertible Preferred Stock and common stock voting together as
          a
          single class. However, should the holders of the shares of Series A Convertible
          Preferred Stock vote differently with respect to a certain matter, then
          each
          share of Series A Convertible Preferred Stock shall represent only one
          vote,
          with the holders of the Series A Convertible Preferred Stock and common
          stock
          voting together as a single class.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
          so
          long as any shares of Series A Convertible Preferred Stock remains outstanding,
          in addition to any other vote or consent required by law, the vote or written
          consent of the holders of at least a majority in interest of the outstanding
          Series A Convertible Preferred Stock, voting as a separate class, shall
          be
          necessary for any amendment, alteration, or repeal of any provision of
          the
          Company&#8217;s Articles of Incorporation or any other corporate action that requires
          shareholder vote or consent.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Conversion:
          </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
          the
          (i) written election of all the holders of the Series A Convertible Preferred
          Stock or (ii) the death of all the holders of the Series A Convertible
          Preferred
          Stock, each share of Series A Convertible Preferred Stock shall automatically
          convert into one (1) share of common stock.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PART
          II.</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>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <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>ITEM
                    1.</strong></font></div>
                </td>
                <td align="left" valign="top" width="64%">
                  <div style="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>Market
                    Price of and Dividends on the Registrants Common Equity and Related
                    Stockholder Matters</strong></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; FONT-FAMILY: Times New Roman">Presently,
          the common stock currently trades under the symbol &#8220;ZROS.PK.&#8221; on the &#8220;Pink
          Sheets&#8221; that are operated by Pink Sheets LLC. This market is thinly traded and
          lacks the liquidity of other public markets with which some investors may
          have
          more experience. There is no assurance that a more liquid trading market
          will
          develop or, if developed, can be sustained. A purchaser of shares may,
          therefore, be unable to resell any securities should he or she desire to
          do so.
          Furthermore, it is unlikely that a lending institution would accept the
          Company&#8217;s securities as pledged collateral for loans unless a regular trading
          market develops.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          following table sets forth the quarterly high and low closing sales prices
          of
          the common stock during 2004, 2005 and 2006 as reported by the &#8220;Pink Sheets.&#8221;
Such prices represent prices between dealers and do not include retail
          mark-ups,
          mark-downs or commissions and may not represent actual
          transactions.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" id="ftable" width="70%">

              <tr>
                <td valign="bottom" width="71%" 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>2004</strong></font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td 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"><strong>High</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td 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"><strong>Low</strong></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="71%" 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">First
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.24</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.12</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="71%" 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">Second
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.26</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.13</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="71%" 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">Third
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.18</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.10</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="71%" style="border-bottom: white 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">Fourth
                    Quarter</font></div>
                </td>
                <td width="2%" style="border-bottom: white thin solid;">&#160;</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.43</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white 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">0.12</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</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 align="left">
          <table cellpadding="0" cellspacing="0" id="ftable" width="70%">

              <tr>
                <td valign="bottom" width="71%" 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>2005</strong></font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td 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"><strong>High</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td 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"><strong>Low</strong></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="71%" 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">First
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.32</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.13</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="71%" 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">Second
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.16</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.06</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="71%" 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">Third
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.12</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.08</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="71%" style="border-bottom: white 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">Fourth
                    Quarter</font></div>
                </td>
                <td width="2%" style="border-bottom: white thin solid;">&#160;</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.11</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white 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">0.04</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
              </tr>

          </table>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" id="ftable" width="70%">

              <tr>
                <td valign="bottom" width="71%" 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>2006</strong></font></div>
                </td>
                <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td 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"><strong>High</strong></font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
                <td 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"><strong>Low</strong></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="71%" 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">First
                    Quarter</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">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.13</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</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">0.06</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="71%" style="border-bottom: white 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">Second
                    Quarter</font></div>
                </td>
                <td width="2%" style="border-bottom: white thin solid;">&#160;</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.23</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                </td>
                <td align="right" valign="bottom" width="11%" style="border-bottom: white 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">0.10</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</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; FONT-FAMILY: Times New Roman"><em>Common
          Stock Holders</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
          of
          March 31, 2006, there were approximately 510 holders of record of common
          stock.
</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"><em>Series
          A Convertible Preferred Stock</em></font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
        <div style="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
          of
          March 31, 2006 there were no preferred shares 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 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">
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          Company has not declared any cash dividends on its common stock during
          the past
          two fiscal years. In addition, the Company currently intends to retain
          any
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          and
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          future.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          July
          2000, the Company&#8217;s Board of Directors authorized the adoption of the 2000
          Employee Stock Incentive Plan (the "Plan"). The Plan permits the granting
          of
          stock options to any employee or director of the Company. Under the terms
          of the
          Plan, 4,500,000 shares are authorized for issuance upon the exercise of
          options.
          Under the Plan, options can be granted with an exercise price equal to
          the fair
          market value of the Company&#8217;s stock on the date of the grant and expire ten (10)
          years after the grant date. Vesting is over a four-year period commencing
          with
          the employee&#8217;s hire date, with portions of a grant becoming exercisable at one
          year after the vesting start date and then one-thirty-sixth (1/36) per
          month to
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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; FONT-FAMILY: Times New Roman">In
          July
          2006, the Company&#8217;s Board of Directors adopted the 2006 Incentive Stock Option
          Plan that provides for the issuance of qualified stock options to employees.
          Under the terms of this plan, under which 10,000,000 shares of common stock
          were
          reserved for issuance, options to purchase common stock shall be granted
          at not
          less than fair market value, become exercisable over a 4 year period from
          the
          date of grant (vesting occurs annually on the grant date at 25% of the
          grant),
          and expire 10 years from the date of grant. As of August 10, 2006, no options
          had been awarded under this plan.</font></div>
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              <tr>
                <td align="left" valign="bottom" width="36%" style="border-bottom: medium none;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plan
                    Category</font></div>
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                    of securities to be issued upon exercise of outstanding options,
                    warrants
                    and rights</font></div>
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                    exercise price of outstanding options, warrants and rights</font></div>
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                <td align="justify" colspan="2" valign="bottom" width="19%" style="border-bottom: medium none;">
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                    of securities remaining available for future issuance under equity
                    compensation plans (excluding securities reflected in column
                    (a))</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              </tr>
              <tr>
                <td align="left" valign="bottom" width="36%" style="border-bottom: medium none;">&#160;</td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="19%" 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">(a)</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="19%" 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">(b)</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                <td colspan="2" valign="bottom" width="19%" 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">(c)</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                    compensation plans approved by security holders</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="18%" 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 style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">--</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;">
                  <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="18%" 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 style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">--</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="18%" 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">14,500,000</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="36%" 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">Equity
                    compensation plans not approved by security holders</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="18%" 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="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="18%" 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="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="18%" style="border-bottom: white;">
                  <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 style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">--</font></div>
                  </div>
                </td>
                <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              </tr>

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

                <tr>
                  <td align="left" valign="top" width="8%">
                    <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>ITEM
                      2.</strong></font></div>
                  </td>
                  <td align="left" valign="top" width="75%">
                    <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"><strong>Legal
                        Proceedings</strong></font></div>
                    </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>
        <div style="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">The
          Company is not a party to any legal proceedings 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>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <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>ITEM
                    3.</strong></font></div>
                </td>
                <td align="left" valign="top" width="75%">
                  <div style="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>Changes
                    in and Disagreements with Accountants on Accounting and Financial
                    Disclosure</strong></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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
          as of July 31, 2006, the Company replaced Armando C. Ibarra, CPA, P.C.
          as its
          independent accountants. Armando C. Ibarra, CPA, P.C. had previously been
          engaged as the principal accountant to audit the Company&#8217;s financial statements.
          The reason for the replacement of Armando C. Ibarra, CPA, P.C. is that
          on July
          28, 2006, the Company was informed by Armando C. Ibarra, CPA, P.C. that
          it would
          no longer be providing attestation services to public companies.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          light
          of Armando C. Ibarra, CPA, P.C.&#8217;s resignation, the Company engaged Chang G.
          Park, CPA, Ph. D. (&#8220;Park&#8221;) to serve as the Company&#8217;s new independent registered
          accounting firm, effective as of July 31,2006. Park is located at 371 E
          Street,
          Chula Vista, California 91910.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          reports of Armando C. Ibarra, CPA, P.C. on the Company&#8217;s financial statements
          were qualified as to the Company&#8217;s ability to continue as a going
          concern.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          decision to change accountants was ratified by the Company&#8217;s Board of Directors
          on August 8, 2006.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
          the Company&#8217;s two most recent fiscal years and the subsequent interim periods,
          there were no disagreements with Armando C. Ibarra, CPA, P.C. on any matter
          of
          accounting principles or practices, financial statement disclosure, or
          auditing
          scope or procedure which, if not resolved to the satisfaction of Armando
          C.
          Ibarra, CPA, P.C., would have caused it to make reference to the matter
          in
          connection with its reports. There were no "reportable events" as that
          term is
          described in Item 304(a)(1)(v) of Regulation S-B.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company has made the contents of this Form 8-K available to Armando C.
          Ibarra,
          CPA, P.C. and requested it to furnish a letter to the SEC as to whether
          Armando
          C. Ibarra, CPA, P.C. agrees or disagrees with, or wishes to clarify the
          Company's expression of their views. A copy of Armando C. Ibarra, CPA,
          P.C.&#8217;s
          letter to the SEC is included 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="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
          the Company&#8217;s two most recent fiscal years, and the subsequent interim period,
          prior to July 31, 2006, the Company did not consult Park regarding either:
          (i)
          the application of accounting principles to a specified transaction, completed
          or proposed, or the type of audit opinion that might be rendered on the
          Company's financial statements, or (ii) any matter that was either the
          subject
          of a disagreement as defined in Item 304(a)(1)(iv) of Regulation S-B or
          a
          reportable event as described in Item 304(a)(1)(v) of Regulation
          S-B.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><a name="id_0_17"/>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <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>ITEM
                    4.</strong></font></div>
                </td>
                <td align="left" valign="top" width="75%">
                  <div style="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>Recent
                    Sale of Unregistered
                    Securities</strong></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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          October 20, 2003 the Company issued 335,000 shares of common stock to Mammoth
          Corporation in full satisfaction of $44,550 of fees then due and payable.
          The
          Company relied on Section 4(2) of the Securities Act, and Regulation D
          promulgated thereunder, as providing an exemption from registering the
          sale of
          these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div 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">On
          July
          28, 2004 the Company issued 300,000 shares of common stock to IC Capital
          LLC in
          full satisfaction of $33,600 of fees then due and payable. The Company
          relied on
          Section 4(2) of the Securities Act, and Regulation D promulgated thereunder,
          as
          providing an exemption from registering the sale of these shares of common
          stock
          under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          April
          9, 2004, the Company issued 650,000 shares of common stock upon the exercise
          of
          common stock options held by Allen Crawford a former employee. No cash
          was
          received by the Company related to this exercise.</font><font style="DISPLAY: inline">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
          The
          Company relied on Section 4(2) of the Securities Act, and Regulation D
          promulgated thereunder, as providing an exemption from registering the
          sale of
          these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div 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">On
          February 16, 2005, the Company issued 3,000,000 shares of common stock
          to
          ClearVision, Inc. as a deposit for future marketing services. The Company
          relied
          on Section 4(2) of the Securities Act, and Regulation D promulgated thereunder,
          as providing an exemption from registering the sale of these shares of
          common
          stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div 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">On
          October 9, 2005, the Company issued 2,000,000 shares of common stock to
          Richardson &amp; Patel LLP as a retainer for future legal services. The Company
          relied on Section 4(2) of the Securities Act, and Regulation D promulgated
          thereunder, as providing an exemption from registering the sale of these
          shares
          of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div 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">On
          October 28, 2005 the Company issued 2,792,851 shares of common stock pursuant
          to
          the conversion of $407,392 of Convertible Notes, at the request of the
          noteholder, Henry Mountain, LLC. The Company relied on Section 4(2) of
          the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          October 28, 2005 the Company issued 1,734,131 shares of common stock pursuant
          to
          the conversion of $281,409 of Convertible Notes, at the request of the
          noteholder, Carroll Edwards. The Company relied on Section 4(2) of the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          November 2, 2005, the Company issued 800,000 shares of its Common Stock
          to Real
          Asset Management LLC for financial-related services, in full satisfaction
          of
          $44,800 of fees then due and payable. The Company relied on Section 4(2)
          of the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
        </div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
              <hr style="COLOR: black" noshade size="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          November 2, 2005, the Company issued 797,872 shares of its Common Stock
          to
          Transworld Consulting, a product marketing company, in full satisfaction
          of
          $150,000 of fees then due and payable. The Company relied on Section 4(2)
          of the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 6, 2006 the Company issued 1,010,350 shares of common stock pursuant
          to
          the conversion of $100,000 of Convertible Notes, at the request of the
          noteholder, Joel Yanchuck. The Company relied on Section 4(2) of the Securities
          Act, and Regulation D promulgated thereunder, as providing an exemption
          from
          registering the sale of these shares of common stock under the Securities
          Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 6, 2006, the Company issued 101,040 shares of common stock to William
          Latorre for financial services, in satisfaction of $10,000 of fees then
          due and
          payable. The Company relied on Section 4(2) of the Securities Act, and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 10, 2006, the Company issued 760,000 shares of common stock to
          Wilshire
          Palisakes Law Group for legal services, in satisfaction of $76,000 of fees
          then
          due and payable. The Company relied on Section 4(2) of the Securities Act,
          and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 22, 2006, the Company issued 442,758 shares of common stock to
          Greg
          Suess for $60,000 of product marketing consulting services. The Company
          relied
          on Section 4(2) of the Securities Act, and Regulation D promulgated thereunder,
          as providing an exemption from registering the sale of these shares of
          common
          stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          March
          2004 the Company entered into a consulting agreement with Greg Suess, a
          product
          marketing consultant, for services. His compensation was payable in Common
          Stock
          which was earned during 2004 and issued on January 22, 2006. The agreement
          also
          called for the registration of the shares issued for services, and provided
          for
          a penalty of 5,000 shares, payable in common stock, for each week that
          the
          registration statement was not filed and effective with the SEC. The Company
          did
          not file a registration statement with the SEC as specified in the agreement
          during 2004 or 2005. Accordingly, during 2004, the Company incurred an
          obligation to Mr. Suess to issue him 280,000 shares of common stock and
          recorded
          an expense of $38,745, and during 2005 incurred an obligation to issue
          Mr. Suess
          490,000 shares of common stock and recorded an expense of $41,370. The
          Company
          issued these shares on January 22, 2006. The Company relied on Section
          4(2) of
          the Securities Act, and Regulation D promulgated thereunder, as providing
          an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 22, 2006, the Company issued 600,000 shares of its common stock
          to Greg
          Suess in return for his exercise of options to purchase 300,000 shares
          of common
          stock. The Company received consideration of $60,000 for this exercise.
          The
          Company relied on Section 4(2) of the Securities Act, and Regulation D
          promulgated thereunder, as providing an exemption from registering the
          sale of
          these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 22, 2006 the Company issued 639,860 shares of common stock pursuant
          to
          the conversion of $54,900 of Convertible Notes, at the request of the
          noteholder, James Fuchs. The Company relied on Section 4(2) of the Securities
          Act, and Regulation D promulgated thereunder, as providing an exemption
          from
          registering the sale of these shares of common stock under the Securities
          Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          January 22, 2006 the Company issued 36,080 shares of common stock pursuant
          to
          the conversion of $5,000 of Convertible Notes, at the request of the noteholder,
          Nina Cohen. The Company relied on Section 4(2) of the Securities Act, and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          May 4,
          2006, the Company issued 700,000 shares of its Common Stock to Wilshire
          Palisakes Law Group for legal services, in satisfaction of $75,000 of fees
          then
          due and payable. The Company relied on Section 4(2) of the Securities Act,
          and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          May
          10, 2006, the Company entered into a Share Exchange Agreement (the &#8220;Share
          Exchange Agreement&#8221;) with RocketStream Holding Corporation, a Nevada corporation
          (&#8220;RHC&#8221;), and all of its shareholders (the &#8220;Share Exchange&#8221;). In connection with
          the Share Exchange, the Company acquired all of the outstanding shares
          of RHC
          through a voluntary share exchange with each of its shareholders pursuant
          to an
          exchange ratio equal to 1 share of RHC common stock in exchange for 1,000
          shares
          of the Company&#8217;s common stock. In consideration of 100% of the outstanding
          shares of RHC, the Company issued 48,235,000 shares of its unregistered
          common
          stock to the 52 shareholders of RHC. The Company relied upon Section 4(2)
          of the
          Securities Act for the offer and sale. We believed that Section 4(2) was
          available because the offer and sale did not involve a public offering
          and there
          was not general solicitation or general advertising involved in the offer
          or
          sale. We also relied upon Rule 506 of Regulation D as all investors qualified
          as
&#8220;accredited investors&#8221; under the Securities Act.</font></div>
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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="2">
            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          July
          25, 2006 the Company issued 1,250,000 shares of common stock pursuant to
          the
          conversion of $125,000 of Convertible Notes, at the request of the noteholder,
          Steven Abbadessa. The Company relied on Section 4(2) of the Securities
          Act, and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
          July
          25, 2006 the Company issued 337,382 shares of common stock pursuant to
          the
          conversion of $25,000 of Convertible Notes, at the request of the noteholder,
          Nancy Havens. The Company relied on Section 4(2) of the Securities Act,
          and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font size="2">On
          August 8, 2006 the Company issued 1,000 shares of
          Series A Convertible Preferred Stock to each of Mark M. Laisure and Scott
          Fairbairn in consideration of services rendered. The Company relied on
          Section
          4(2) of the Securities Act, and Regulation D promulgated thereunder, as
          providing an exemption from registering the sale of these shares of Series
          A
          Convertible Preferred Stock under the Securities Act.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr>
                <td align="left" valign="top" width="8%">
                  <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>ITEM
                    5.</strong></font></div>
                </td>
                <td align="left" valign="top" width="75%">
                  <div style="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>Indemnification
                    of Officers and Directors</strong></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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
          to the provisions of Nevada Revised Statutes, or NRS, 78.7502, every Nevada
          corporation has authority to indemnify any person who was or is a party
          or is
          threatened to be made a party to any threatened, pending, or completed
          action,
          suit or proceeding, except an action by or in the right of the corporation,
          by
          reason of the fact that such person is or was a director, officer, employee,
          or
          agent of the corporation, or is or was serving at the request of the corporation
          as a director, officer, employee, or agent of another corporation, partnership,
          joint venture, trust, or other enterprise, against expenses, including
          attorneys' fees, judgments, fines, and amounts paid in settlement actually
          and
          reasonably incurred in connection with the action, suit, or proceeding
          if such
          person acted in good faith and in a manner which such person reasonably
          believed
          to be in or not opposed to the best interest of the corporation, and, with
          respect to any criminal action or proceeding, had no reasonable cause or
          belief
          his conduct was unlawful.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
          to the provisions of NRS 78.7502, every Nevada corporation also has the
          authority to indemnify any person who was or is a party or is threatened
          to be
          made a party to any threatened, pending, or completed action or suit by
          or in
          the right of the corporation to procure a judgment in its favor by reason
          of the
          fact that such person is or was a director, officer, employee, or agent
          of the
          corporation, or is or was serving at the request of the corporation as
          a
          director, officer, employee, or agent of another corporation, partnership,
          joint
          venture, trust, or other enterprise against expenses including amounts
          paid in
          settlement and attorneys' fees actually and reasonably incurred by such
          person
          in connection with the defense or settlement of the action or suit if such
          person acted in good faith and in a manner which such person reasonably
          believed
          to be in or not opposed to the best interests of the corporation. No
          indemnification shall be made, however, for any claim, issue or matter
          as to
          which a person has been adjudged by a court of competent jurisdiction to
          be
          liable to the corporation or for amounts paid in settlement to the corporation,
          unless and only to the extent that the court determines that in view of
          all the
          circumstances, the person is fairly and reasonably entitled to indemnity
          for
          such expenses as the court deems proper.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
          the
          extent any person referred to in the two immediately preceding paragraphs
          is
          successful on the merits or otherwise in defense of any action, suit, or
          proceeding, the NRS provides that such person must be indemnified by the
          corporation against expenses including attorneys' fees, actually and reasonably
          incurred by him in connection with the defense.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NRS
          78.751 requires the corporation to obtain a determination that any discretionary
          indemnification is proper under the circumstances. Such a determination
          must be
          made by the corporation's stockholders; its board of directors by majority
          vote
          of a quorum consisting of directors who were not parties to the action,
          suit, or
          proceeding; or under certain circumstances, by independent legal
          counsel.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
          addition, NRS 78.138.7 provides that directors and officers are not personally
          liable to the corporation or its stockholders for any damages resulting
          from
          their breach of fiduciary duties unless it is proven that the act or omission
          constituted a breach of fiduciary duty and the breach involved intentional
          misconduct, fraud, or a knowing violation of law.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          Company&#8217;s Articles of Incorporation provide that a director or officer of the
          Company shall not be liable to the Company or its shareholders for damages
          for
          breach of fiduciary duty as a director or officer except for (i) acts or
          omissions that involve intentional misconduct, fraud or a knowing violation
          of
          the law or (ii) the payment of unlawful distributions to
          shareholders.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
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          both the Company&#8217;s Articles of Incorporation and Bylaws provide that every
          person who was, or is a party to or is threatened to be made a party to,
          or is
          threatened to be made a party to, or is involved in any action, suit or
          proceeding, whether civil, criminal, administrative or investigative, by
          reason
          of the fact that he, or a person of whom he is a legal representative,
          is or was
          a director or officer of the Company, or is or was serving at the request
          of the
          Company as a director or officer of another corporation, or as its
          representative in a partnership, joint venture, trust or other enterprise,
          shall
          be indemnified and held harmless to the fullest extent permissible under
          the
          laws of the State of Nevada from time to time, against all expenses, liability,
          and loss (including attorneys&#8217; fees, judgments, fines, and amounts paid, or to
          be paid in settlement) reasonably incurred, or suffered by him in connection
          therewith.</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"><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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; FONT-FAMILY: Times New Roman"><strong>Financial
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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>
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          Financial Statements of Businesses Acquired. In accordance with Item 9.01(a),
          RocketStream, Inc.&#8217;s audited financial statements for the fiscal years ended
          December 31, 2004 and 2005 are filed in this Form 8-K as Exhibit
          99.1.</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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          Pro
          Forma Financial Information. In accordance with Item 9.01(b), the Company&#8217;s pro
          forma financial statements are filed in this Form 8-K as Exhibit
          99.2.</font></div>
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          exhibits listed in the following Exhibit Index are filed as part of this
          Form
          8-K.</font></div>
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                    No.</font></div>
                </td>
                <td width="2%" style="border-bottom: medium none;">&#160;</td>
                <td align="left" valign="top" width="86%" style="border-bottom: medium none;">
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                </td>
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                <td align="left" valign="top" width="12%">&#160;</td>
                <td width="2%">&#160;</td>
                <td align="left" valign="top" width="86%">&#160;</td>
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                <td align="left" valign="top" width="86%">
                  <div style="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">Letter
                    from Armando C. Ibarra, CPA, P.C., dated as of August 11,
                    2006</font></div>
                </td>
              </tr>
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                <td align="left" valign="top" width="12%">
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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; FONT-FAMILY: Times New Roman">RocketStream,
                    Inc. Financial Statements for the fiscal years ended December
                    31, 2004 and
                    2005</font></div>
                </td>
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              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="12%">
                  <div style="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">99.2</font></div>
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                    Pro forma Financial Statements for the fiscal year ended December
                    31,
                    2005</font></div>
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          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="id_0_9"/><a name="id_0_10"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></a></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
          <div style="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">Pursuant
            to the requirement of the Securities Exchange Act of 1934, the Registrant
            has
            duly caused this report to be signed on its behalf by the undersigned
            hereunto
            duly authorized.</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <tr valign="top" bgcolor="#ffffff">
                  <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
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                      &amp; ONES, INC.</font></div>
                  </td>
                </tr>
                <tr valign="top" bgcolor="#ffffff">
                  <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
                  <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
                  <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
                </tr>
                <tr valign="top" bgcolor="#ffffff">
                  <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;August
                    11, 2006</font></td>
                  <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
                  <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;Mark
                    M.
                    Laisure</font></td>
                </tr>
                <tr valign="top" bgcolor="#ffffff">
                  <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
                  <td align="left">
                    <hr style="COLOR: black" align="left" noshade size="2" width="80%">
                    <div 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">Mark
                      M. Laisure</font></div>
                  </td>
                </tr>
                <tr valign="top" bgcolor="#ffffff">
                  <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
                  <td>
                    <div style="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">Chairman
                      of the Board , Chief Executive Officer and</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">Chief
                      Financial Officer (Principal Executive Officer and</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">Principal
                      Financial and Accounting
                      Officer</font></div>
                  </td>
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{"company-data": {"conformed-name": "ZEROS & ONES INC", "cik": "0000845807", "assigned-sic": "7372", "irs-number": "880241079", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "033-26531-LA", "film-number": "061027012"}, "business-address": {"street1": "1714 16TH STREET", "city": "SANTA MONICA", "state": "CA", "zip": "90404", "phone": "3103939992"}, "mail-address": {"street1": "1714 16TH STREET", "city": "SANTA MONICA", "state": "CA", "zip": "90404"}, "former-company": [{"former-conformed-name": "COMMERCIAL LABOR MANAGEMENT INC", "date-changed": "19950417"}, {"former-conformed-name": "XL CORP", "date-changed": "19940405"}, {"former-conformed-name": "TOKYO RAIDERS", "date-changed": "19900628"}]}
UNITED
          STATES
SECURITIES
          AND EXCHANGE COMMISSION
WASHINGTON,
          DC 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):  April 11, 2006 (April 5,
        2006)
ZEROS
        & ONES, INC.
(Exact
        Name of Registrant as Specified in Charter)
Nevada
33-26531-LA
88-0241079
(State
                  or Other Jurisdiction
(Commission
(IRS
                  Employer
of
                  Incorporation)
File
                  Number)
Identification
                  No.)
7119
                  Sunset Blvd. #318
Los
                  Angeles, California
90046
(Address
                  of Principal Executive Offices)
(Zip
                  Code)
Registrant's
        telephone number, including area code: (800) 710-6637
Not
        Applicable
(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):
o
Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
        Act
        (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
        Act
        (17 CFR 240.13e-4(c))
Item
          5.01 Changes in Control of Registrant
PART
          I.
This
          Current Report on Form 8-K (the "Form 8-K") contains forward-looking
          statements including, without limitation, statements concerning the future
          of
          the industry in which Zeros & Ones, Inc. (the "Company") operates, its
          product development plans, business strategy, financial estimates, continued
          acceptance of its products and dependence on significant distributors and
          customers. In some cases, you can identify forward-looking statements by
          terminology such as "may", "will", "should", "expects", "plans", "anticipates",
"believes", "estimates", "predicts", "potential", "continue" or the negative of
          such terms or other comparable terminology. You should not place undue
          reliance
          on the forward-looking statements contained in this document. When considering
          forward-looking statements, you should keep in mind the risk factors and
          other
          cautionary statements made in this Form 8-K. Forward-looking statements,
          particularly those concerning anticipated events relating to the development
          and
          marketing of the Company's products and services, and the timing or magnitude
          of
          those events, are inherently uncertain. The risk factors discussed below
          and
          other considerations noted throughout this Form 8-K could cause the
          Company's actual results to differ significantly from those contained in any
          forward-looking statements.
Although
          the Company believes that the expectations reflected in the forward-looking
          statements are reasonable, the Company cannot guarantee future results,
          levels
          of activity, performance, or achievements. The Company is under no duty
          to
          update any of the forward-looking statements after the date of this
          Form 8-K to conform forward-looking statements to actual
          results.
ITEM
                      1.
Description
                        of Business
The
          Company is a holding company focused on identifying and developing different
          media-based technologies, media assets, and strategic partnerships, and
          bringing
          those together to deliver next-generation commercial and consumer
          solutions.
Founding
          and Merger
The
          Company was founded in 1994 by Robert J. Holtz ("Holtz"). At that time, the
          Company was focused on delivering products and services to the entertainment
          industry. In July 1999, the Company, along with several other companies
          with
          technologies, products, and services focused on digital convergence, were
          acquired by Commercial Labor Management, Inc., a publicly traded company
          (the
"Consolidation"). Immediately following the Consolidation, Commercial Labor
          Management, Inc. changed its name to "Zeros & Ones, Inc.", and each of the
          constituent corporations were combined into a single entity with the
          Consolidation being accounted for in a manner similar to a pooling of
          interests.
Market
          Conditions and Business Events
Due
          to
          sustained adverse market conditions following the Consolidation, in 2003
          the
          Company redirected its management focus in the technology and entertainment
          industries by seeking to identify and develop nascent media-based technologies,
          acquiring fresh media assets, and forging various strategic alliances in
          order
          to deliver next-generation commercial and consumer solutions. Unfortunately,
          this approach failed to generate any material new revenue for the Company,
          and
          before long, the Company became delinquent with the Securities and Exchange
          Commission (the "SEC") in filing its mandatory reports, schedules and
          statements, as prescribed by the Securities Exchange Act of 1934, as amended
          (the "Exchange Act"), and the Securities Act of 1933, as amended ("Securities
          Act"). Moreover, in early 2005, the Company's stock was suspended from trading
          on the Over-The-Counter Bulletin Board and since then has traded principally
          on
          the "Pink Sheets."
In
          addition to the general market's failure to embrace the Company's products and
          services, the Company was adversely impacted in the post-Consolidation
          period
          due to a lengthy legal dispute with Allied Boston Group ("Allied").
          Specifically, pursuant to a 2001 Stock Exchange Agreement, the Company
          issued a
          substantial portion of its available common stock to Allied in exchange
          for a
          commensurate amount of Allied's common equity. Allied, however, failed to
          complete the transaction, while retaining the Company's common stock, thus
          forcing the Company to commence litigation against Allied in order to formally
          unwind the stock exchange and recover the Company's stock. While this litigation
          ultimately settled in November 2004 with the cancellation of the shares
          previously issued to Allied, due to Allied's actions, from 2001 to 2004, the
          Company did not have sufficient authorized capital to continue operating
          as
          expected, having to cancel certain stock based acquisitions (which was
          a
          fundamental part of its growth strategy at the time) and planned equity
          offerings.
Management
          Change
On
          May
          31, 2005, Mark M. Laisure ("Laisure"), then the Company's President, replaced
          Holtz as the Company's Chairman and Chief Executive Officer. While Holtz
          remained a member of the Board of Directors, he subsequently resigned his
          seat,
          effective December 21, 2005.
Current
          Plan of Operations
The
          Company is principally a provider of sophisticated software solutions that
          delivers media-rich content efficiently over the Internet. The Company,
          however,
          is seeking to expand its offerings through the development and/or acquisition
          of
          proprietary technologies that would compliment both its existing portfolio
          of
          offerings and its targeted customer base. The Company believes that technology
          has created a world where everyone is connected - at home, in the office,
          and in
          transit. In the last decade, the Internet has empowered consumers with
          choice,
          immediate gratification, and the ability to quickly evaluate, purchase,
          consume,
          contribute, and share information in an unprecedented manner. The technology
          and
          entertainment industries are two of the wealthiest and dynamic industries
          in the
          world, yet they work, play, and create using very different approaches
          to
          business.
The
          Company sees these two industries as complementary, if not overlapping.
          Many
          technology companies are already entering the entertainment industry and
          becoming a viable force in their respective markets. Likewise, the Company
          believes that the entertainment industry is realizing the true economic
          and
          long-term value of its media, the content itself, as the future driver
          for
          technology adoption by consumers. With the rapid transition from a predominantly
          analog world into a fully digital environment, the Company intends to position
          itself to capitalize on these changing dynamics by acquiring intellectual
          property, developing strategic partnerships, and leveraging industry
          relationships to streamline and enhance the business models surrounding
          content
          creation, media distribution, and consumer commerce.
Employees
The
          Company has one full-time and two part-time employees, and continues to
          rely on
          a number of independent consultants who provide administrative, business
          development, and management services similar to such services that would
          be
          provided by full and part-time employees. The Company has also entered
          into
          consulting agreements to obtain marketing, media relations and financing
          services.
RISK
          FACTORS
Going
          Concern Opinion
The
          Company has no established source of consistent revenue and has incurred
          significant losses since inception. There can be no assurance as to when,
          if
          ever, the Company will generate positive operating income. The continued
          failure
          to achieve significant revenues or profitability will materially and adversely
          affect the Company's business, financial condition, and results of operations.
          Furthermore, the Company's independent auditors, Armando C. Ibarra, CPA,
          P.C.,
          issued an opinion in connection with the Company's financial statements
          for the
          fiscal year ended December 31, 2005 raising a substantial doubt about the
          Company's ability to continue as a going concern.
Competitive
          Business Environment
The
          technology and data transmission industry is highly competitive and the
          Company's management expects this competition to intensify in the future.
          The
          industry is characterized by rapidly changing technologies and customer
          demands
          for newer and better products. Third party competitors of the Company may
          develop products and technologies that could render the Company's products
          and
          technologies obsolete. Many of the Company's competitors have greater resources,
          including financial and scientific personnel, marketing and sales capacity,
          established distribution networks, significant goodwill and greater brand
          name
          recognition. As a result, these competitors may be in a better position
          than the
          Company to respond quickly to, or significantly influence, rapid technological
          change and consumer demand.
Competition
          within the technology and data transmission industry is characterized by
          several
          key factors, including, but not limited to, the following:
1.
Rapid
                    changes in technology and customer requirements
.
                    New opportunities for existing and new competitors can quickly
                    render
                    existing technologies less
                    valuable.
2.
Relatively
                    low barriers to entry
.
                    Startup capital requirements for technology companies can be
                    very small,
                    and software distribution over the Internet is inexpensive and
                    easily
                    outsourced.
3.
Significant
                    price competition
.
                    Direct distribution of competing products, particularly over
                    the Internet,
                    may cause prices and margins to decrease in traditional sales
                    channels.
4.
Consolidations
                    and mergers
.
                    Technology companies and their individual products have a high
                    rate of
                    mergers, product line sales, and other transfers and consolidations;
                    consequently, there is a tendency to have a higher concentration
                    of able
                    competitors within the industry.
Slowdown
          in Demand for Digital Technology
A
          slowdown affecting the general growth in demand for data transmission and
          related products and services could harm the Company's plan of operations
          and
          prospects for achieving profitability. The markets for the Company's potential
          products and services depend upon economic conditions that affect the broader
          computer technology and related markets. Downturns in any of these markets
          may
          cause end-users to delay or cancel orders for such products and
          services.
Patents,
          Proprietary Technology and Other Intellectual Property
As
          the
          Company develops or acquires new assets that could have commercial value
          and
          would be protected under current or future patent laws, the Company will
          need to
          rely on a combination of copyright, trademark and patent laws, trade secrets,
          confidentiality procedures and contractual provisions to protect its proprietary
          technology. For example, the Company seeks to avoid disclosure of any trade
          secrets by requiring those persons with access to the Company's proprietary
          information to execute confidentiality agreements with the Company. The
          Company
          also relies on unpatented proprietary know-how in developing its products
          and
          services, and employs various methods, including confidentiality agreements
          with
          employees, consultants and others, to protect its trade secrets and
          know-how.
Irrespective
          of the foregoing, the Company cannot be sure that these methods of protecting
          its proprietary technology, information and know-how will afford complete
          protection. Patents may not be enforceable or provide the Company with
          meaningful protection from competitors. If a competitor was to infringe
          on the
          Company's patents, the costs of enforcing the Company's patent rights might
          be
          substantial or even prohibitive. Likewise, the Company cannot be sure that
          others will not independently develop any trade secrets and know-how or
          obtain
          access to them.
ITEM
                    2.
Management's
                    Discussion and Analysis or Plan of
                    Operation
The
          following information should be read in conjunction with the consolidated
          financial statements and the notes thereto contained elsewhere in this
          Form 8-K.
The
          following discussion and analysis provides information that management
          believes
          is relevant to an assessment and understanding of its results of operations
          and
          financial condition, and is used by management in assessing the Company's
          performance and making managerial decisions. The following significant
          events
          impacted the Company's financial condition during this past fiscal year
          and will
          have a significant influence on its condition in future reporting
          periods.
Purchase
          of Rocketstream Holding Corporation
On
          May
          10, 2006, the Company entered into a Share Exchange Agreement (the "Share
          Exchange Agreement") with Rocketstream Holding Corporation, a Nevada corporation
          ("RHC"), and all of its shareholders (the "Share Exchange"). In connection with
          the Share Exchange, the Company acquired all of the outstanding shares
          of RHC
          through a voluntary share exchange with each of RHC's shareholders pursuant to
          an exchange ratio equal to 1 share of RHC common stock in exchange for
          1,000
          shares of the Company's common stock. In consideration of 100% of the
          outstanding shares of RHC, the Company issued 48,235,000 shares of the
          Company's
          unregistered common stock to the 52 shareholders of RHC. RHC is the sole
          shareholder of RocketStream, Inc., a Georgia corporation ("RocketStream").
The
          number of shares of common stock of the Company issued and outstanding
          prior to
          the Share Exchange was approximately 43,560,002 shares, and immediately
          after
          the Share Exchange was approximately
91,795,002
          shares
.
The
          Share
          Exchange Agreement constitutes a related party transaction. Mark Laisure
          held
          14,000 shares of RHC and Scott Fairbairn held 15,000 shares of RHC. Pursuant
          to
          the Share Exchange, Mark Laisure received 14,000,000 shares of
the
          Company's
common
          stock and Scott Fairbairn received 15,000,000 shares of
the
          Company's
common
          stock. Mark Laisure is
the
          Company's
Chairman
          of the Board, Chief Executive Officer, President, Chief Financial Officer,
          Secretary and a member of its Board of Directors. Scott Fairbairn is the
          Company's Chief Technology Officer and a member of its Board of Directors. Mr.
          Fairbairn is also President of RHC and RocketStream.
Convertible
          Notes
In
          May
          2003, the Company commenced an offering of convertible notes, at various
          interest rates, ranging from 8% to 12% per annum, with a maturity of 1
          year (the
"Notes"). The terms of each Note provide that the holder of a Note may, at its
          option, convert the principal and interest of such Note into shares of
          the
          Company's common stock at any time at a conversion price equal to the average of
          the last five (5) trading days closing price, less a discount ranging from
          25%
          to 35%. The Company issued approximately $180,000 of Notes during 2006,
          $135,000
          of Notes during the year ended December 31, 2005, $512,527 of Notes during
          the
          year ended December 31, 2004, and $474,000 of Notes during the year ended
          December 31, 2003.
Critical
          Accounting Policies
In
          accordance with SEC guidance, those material accounting policies that the
          Company believes are the most critical to an investor's understanding of
          the
          Company's financial results and condition are discussed below. Certain
          of these
          policies are particularly important to the portrayal of the Company's financial
          position and results of operations and require the application of significant
          judgment by the Company's management to determine the appropriate assumptions
          to
          be used in the determination of certain estimates.
Basis
          of
          Presentation - The accompanying financial statements have been prepared
          in
          conformity with accounting principles generally accepted in the United
          States
          ("US GAAP"), which contemplate continuation of the Company as a going concern.
          However, the Company is subject to the risks and uncertainties associated
          with a
          new business, has no established source of revenue, and has incurred significant
          losses from operations. These matters raise substantial doubt about the
          Company's ability to continue as a going concern. The Company has not been
          profitable and has sustained substantial net losses from operations. There
          can
          be no assurance that it will ever generate positive revenues from its operating
          activities, or that it will achieve and sustain a profit during any future
          period, particularly if operations remain at current levels. Failure to
          achieve
          significant revenues or profitability would materially and adversely affect
          the
          Company's business, financial condition, and results of operations. The
          accompanying financial statements do not include any adjustments relating
          to the
          recoverability and classification of recorded asset amounts, or amounts
          and
          classification of liabilities that might be necessary should the Company
          be
          unable to continue as a going concern.
Management
          does not believe that that the Company's present funds are sufficient to sustain
          the Company for the balance of 2006. While the Company anticipates to generate
          revenue from normal operations during the second half of 2006, the Company
          remains uncertain as to whether it will report enough revenue to achieve
          a
          profit from normal operations, and expects that additional capital will
          be
          required to offset both ongoing losses and the costs associated with revenue
          growth. Moreover, the Company has no commitments from outside investors
          to help
          finance the Company's operations for the rest of 2006.
Principles
          of Consolidation - The consolidated financial statements include the accounts
          of
          the Company and its subsidiary, Zeros & Ones Technologies, Inc. All
          significant intercompany accounts and transactions have been eliminated
          in
          consolidation.
Use
          of
          Estimates - The preparation of financial statements in conformity with
          US GAAP
          requires management to make estimates and assumptions that affect the reported
          assets and liabilities and disclosure of contingent assets and liabilities
          at
          the date of the financial statements, and the reported revenues and expenses
          during the reported periods. Management bases its estimates and assumptions
          on
          historical experience and on various other assumptions that it believes
          are
          reasonable under the circumstances. Actual results could differ from those
          estimates.
Cash
          and
          Cash Equivalents - The Company considers temporary liquid investments with
          an
          original maturity of three months or less to be cash equivalents.
Accounts
          Receivable - Accounts receivable are stated at the amount management expects
          to
          collect from outstanding balances. An allowance for doubtful accounts is
          provided for those accounts receivable considered to be uncollectible,
          based
          upon historical experience and management's evaluation of outstanding accounts
          receivable at the end of the year. At December 31, 2005, the Company had
          no
          accounts receivable.
Property
          and Equipment - Property and equipment are stated at cost. Depreciation
          is
          computed using the straight line method over estimated useful lives of
          three to
          five years. Leasehold improvements are amortized over the shorter of the
          lease
          term or the estimated useful life. The Company capitalizes costs associated
          with
          acquiring and installing software to be used for internal purposes. At
          December
          31, 2005, the Company had no property and equipment.
Impairment
          of Long Lived Assets - Long lived assets, other than goodwill, are reviewed
          for
          impairment whenever events or changes in circumstances indicate that the
          carrying amount of the assets might not be recoverable. The Company does
          not
          perform a periodic assessment of assets for impairment in the absence of
          such
          information or indicators. Conditions that would necessitate an impairment
          assessment include a significant decline in the observable market value
          of an
          asset, a significant change in the extent or manner in which an asset is
          used,
          or a significant adverse change that would indicate that the carrying amount
          of
          an asset or group of assets is not recoverable. For long lived assets to
          be held
          and used, the Company recognizes an impairment loss only if its carrying
          amount
          is not recoverable through its undiscounted cash flows and measures the
          impairment loss based on the difference between the carrying amount and
          fair
          value. Long lived assets held for sale are reported at the lower of cost
          or fair
          value less costs to sell. At December 31, 2005, the Company had no long-lived
          assets.
Basic
          and
          Diluted Loss Per Share - In accordance with the Financial Accounting Standards
          Board's ("FASB") SFAS No. 128, "Earnings Per Share," the basic loss per common
          share, which excludes dilution, is computed by dividing the net loss available
          to common stockholders by the weighted average number of common shares
          outstanding. Diluted loss per common share reflects the potential dilution
          that
          could occur if all potential common shares had been issued and if the additional
          common shares were dilutive. As a result of net losses for all periods
          presented, there is no difference between basic and diluted loss per common
          share. Potential shares of common stock to be issued upon the exercise
          of
          options and warrants amounted to 4,763,054 and 4,488,054 shares at December
          31,
          2005 and 2004, respectively.
Stock
          Based Compensation - In December 2004, FASB issued SFAS No. 123R, "Share Based
          Payment." SFAS No. 123R establishes the accounting for grants of stock options
          and other transactions in which an entity exchanges its equity instruments
          for
          goods or services. It also addresses transactions in which an entity incurs
          liabilities in exchange for goods or services that are based on the fair
          value
          of the entity's equity instruments or that may be settled by the issuance of
          those equity instruments. SFAS No. 123R (1) revises SFAS No. 123, "Accounting
          for Stock Based Compensation," (2) supersedes Accounting Principles Bulletin
          ("APB") Opinion No. 25, "Accounting for Stock Issued to Employees," and (3)
          establishes fair value as the measurement objective for share based payment
          transactions. The Company adopted SFAS No. 123R effective January 1, 2006
          in
          accordance with the standard's early adoption provisions. Prior to January 1,
          2006, the Company's Board of Directors had not approved the granting of any
          employee stock options. As such, the Company decided that it will follow
          the
          provisions of SFAS No. 123R on a prospective basis, and will record compensation
          expense related to the granting of stock options to employees should that
          occur
          in 2006.
Research
          and Development - Research and development costs are charged to operations
          as
          incurred, and totaled $104,500 for 2005 and $195,563 for 2004. Some of
          the
          Company's products include infrastructure media delivery technology. The costs
          to develop such technology have not been capitalized, as the Company is
          still
          determining the market requirements for its technology.
Fair
          Value of Financial Instruments - The estimated fair values for financial
          instruments under SFAS No. 107, "Disclosures about Fair Value of Financial
          Instruments," are determined at discrete points in time based on relevant market
          information. These estimates involve uncertainties and cannot be determined
          with
          precision. For certain of the Company's financial instruments, including certain
          assets, accounts payable, accrued liabilities and debt, the carrying amounts
          approximate fair value due to their maturities.
Concentrations
          of Credit Risk - Credit risk represents the accounting loss that would
          be
          recognized at the reporting date if counterparties failed completely to
          perform
          as contracted. The Company's product revenues are anticipated from, and will
          likely be concentrated in the technology industry, which is highly competitive
          and rapidly changing. Significant technological changes in the industry
          or
          customer requirements, or the emergence of competitive products with new
          capabilities or technologies, could adversely affect operating results.
          Concentrations of credit risk (whether on or off balance sheet) that arise
          from
          financial instruments exist for groups of customers or counterparties when
          they
          have similar economic characteristics that would cause their ability to
          meet
          contractual obligations to be similarly affected by changes in economic
          or other
          conditions described below.
Financial
          instruments that subject the Company to credit risk could consist of cash
          balances maintained in excess of federal depository insurance limits and
          accounts receivable, which have no collateral or security. The Company
          maintains
          its cash accounts with high credit quality financial institutions. At times,
          cash deposits may be in excess of Federal Deposit Insurance Corporation
          limits.
          To date, the Company has not experienced any such losses and believes it
          is not
          exposed to any significant credit risk.
Income
          Taxes - The Company accounts for income taxes using the asset and liability
          method, as set forth in SFAS No. 109, "Accounting for Income Taxes," wherein
          deferred tax assets and liabilities are recognized for the future tax
          consequences attributable to differences between financial statement carrying
          amounts of existing assets and liabilities and their respective tax bases.
          Deferred tax assets and liabilities are measured using enacted tax rates
          expected to apply to taxable income in the years in which the temporary
          differences are expected to be recovered or settled. Reserves against deferred
          tax assets are provided when management cannot conclude their realization
          probability.
Recently
          Issued Accounting Pronouncements - In December 2004, FASB issued SFAS No.
          153,
"Exchanges of Non-monetary Assets". SFAS No. 153 amends the guidance in APB
          Opinion No. 29, "Accounting for Non-monetary Transactions", to eliminate certain
          exceptions for non monetary exchanges of similar productive assets, and
          replaces
          it with a general exception for exchanges of non-monetary assets that do
          not
          have commercial substance. The Company does not believe that the adoption
          of
          SFAS No. 153 will have a material effect on its financial position, results
          of
          operations, or cash flows.
In
          September 2004, the Emerging Issues Task Force ("EITF") issued EITF No. 04 8,
"The Effect of Contingently Convertible Instruments on Diluted Earnings
          per
          Share." EITF No. 04 8 provides new guidance on when the dilutive effect of
          contingently convertible securities with a market price trigger should
          be
          included in diluted earnings per share. The new guidance states that these
          securities should be included in the diluted earnings per share computation
          regardless of whether the market price trigger has been met. The guidance
          in
          EITF 04 8 is effective for all periods ending after December 15, 2004 and
          would
          be applied by retroactively restating previously reported earnings per
          share.
          The adoption of this pronouncement is not expected to have a material effect
          on
          the Company's financial statements.
Results
          of Operations
Three-Month
          Period Ended March 31, 2006
The
          Company had no revenues for the three months ended March 31, 2006, or for
          the
          corresponding period ended March 31, 2005. Its spending for the three months
          ended March 31, 2006 increased from the same period in 2005, as it increased
          spending on research and development from $21,125 to $45,000 as well spending
          on
          sales and marketing from $22,050 to $32,900. For the period ended March
          31,
          2006, the Company's general and administrative expenses of $167,659 were
          primarily related to costs for management fees and expenses, and professional
          fees including legal costs. Some of these expenses have been accrued as
          of March
          31, 2006. The Company's interest expense of $51,730 includes a charge of $43,202
          related to the beneficial conversion of convertible notes.
Twelve
          months ended December 31, 2005 and 2004
The
          Company had no revenues for the twelve months ended December 31, 2005,
          or for
          the corresponding period ended December 31, 2004. The Company's spending
          for the twelve months ended December 31, 2005 decreased from the same period
          in
          2004, as the Company had limited financial resources. The Company's sales
          and
          marketing expenses decreased to $24,527 in 2005 from $74,784 in 2004, and
          research and development spending decreased from $195,563 to $104,500
          during the same period. In 2005, the Company's total general and administrative
          expenses of $340,327 were primarily related to costs for management
          fees and expenses, and professional fees including legal costs, most of
          which
          have been accrued as of December 31, 2005.
Product
          Development
The
          Company's research and development expenses totaled $104,500 in 2005, compared
          to $195,563 in 2004. The majority of the Company's development costs are
          focused
          on meeting its technical plan, which calls for further developments and
          enhancements of software to enable the Company to cater to a wider audience
          of
          users and thereby remain competitive.
Liquidity
          and Capital Resources
At
          March
          31, 2006, the Company had a negative working capital of $1,175,000 as compared
          to a negative working capital of $1,406,118 at December 31, 2005. During
          the
          three months ended March 31, 2006, net cash used in operations was $366,031
          and
          consisted principally of a net loss of $297,289 and was offset by stock
          based
          compensation and services of $34,192 and other non-cash charges (including
          interest) of $51,756. Cash flows were also affected by the conversion of
          Notes
          to common stock for $359,302.
The
          Company's current cash on hand at March 31, 2006 would not be adequate
          to fund
          the Company's operations for more than a short period if the Company was
          to
          continue to use cash in operating activities at the same rate as in prior
          months. The Company will need to rely upon continued borrowing and/or sales
          of
          additional equity instruments to support its continued growth.
Recent
          and Expected Losses
There
          can
          be no assurance that the Company will generate positive revenues from its
          operating activities, or that it will achieve and sustain a profit during
          any
          future period, particularly if operations remain at current levels.
          Specifically, for the fiscal year ended December 31, 2005, the Company
          incurred a net pre-tax loss of $542,521 and, for the fiscal year ended
          December
          31, 2004, the Company incurred a net pre-tax loss of $1,691,379. The Company's
          auditors, Armando C. Ibarra, CPA, P.C., issued an opinion in connection
          with the
          Company's financial statements for the fiscal year ended December 31, 2005
          noting substantial doubt about the Company's ability to continue as a going
          concern.
ITEM
                      3.
Description
                        of Property
The
            Company's executive offices are located at 7119 Sunset Boulevard, Suite #318,
            Los Angeles, California 90046.
ITEM
                        4.
Security
                          Ownership of Certain Beneficial Owners and Management and
                          Related Stockholder
                          Matters
The
          following table sets forth certain information known to the Company with
          respect
          to the beneficial ownership of the Company's common stock as of August
          11, 2006
          by (i) all persons who are beneficial owners of five percent (5%) or more
          of the
          Company's common stock, (ii) each current director, (iii) the executive
          officers
          named in the Summary Compensation Table of the Executive Compensation section
          of
          this Form 8-K and (iv) all current directors and executive officers as
          a group.
          As of August 4, 2006, there were 93,382,384 shares of common stock outstanding.
          Unless otherwise indicated, each of the stockholders has sole voting and
          investment power with respect to the shares beneficially owned, subject
          to
          community property laws, where applicable.
Name
                      and Address of
Beneficial
                      Owner(1)
Common
                      Stock
Beneficially
                      Owned
Series
                      A Convertible Preferred
Stock
                      Beneficially Owned
Shares
Percentage
Shares
Percentage
Mark
                      Laisure
14,001,000(2)
14.99%
1,000
50%
Scott
                      Fairbairn
15,001,000(3)
16.06%
1,000
50%
Thomas
                      Fetzek
--
--
Volker
                      Anhaeusser
--
--
All
                      current directors and executive officers as a group
(4
                      persons)
29,002,000
31.06%
2,000
100%
________________
(1)
The
                      address for each of the individuals listed in the table is
                      care of Zeros
                      & Ones, Inc., 7119 Sunset Boulevard, Suite #318, Los Angeles,
                      California 90046.
(2)
Includes
                      1,000 shares of common stock with respect to which Mr. Laisure's 1,000
                      shares of Series A Convertible Preferred Stock are convertible
                      into upon
                      the (i) written election of all the holders of the Series A
                      Convertible
                      Preferred Stock or (ii) the death of all the holders of the
                      Series A
                      Convertible Preferred Stock.
(3)
Includes
                      1,000 shares of common stock with respect to which Mr. Fairbairn's 1,000
                      shares of Series A Convertible Preferred Stock are convertible
                      into upon
                      the (i) written election of all the holders of the Series A
                      Convertible
                      Preferred Stock or (ii) the death of all the holders of the
                      Series A
                      Convertible Preferred Stock.
ITEM
                      5.
Directors,
                        Executive Officers, Promoters, and Control
                        Persons
The
          Company's directors and executive officers are as follows:
Name
Age
Positions
                    and Offices Held
Since
Mark
                    M Laisure
36
Director,
                    Chief Executive Officer, President, Chief Financial Officer,
                    Secretary and
                    Chairman of the Board
May
                    16, 2003
Scott
                    Fairbairn
40
Chief
                    Technology Officer and Director
November
                    21, 2003
Thomas
                    Fetzek
47
Vice
                    President, Business Development
April
                    1, 2004
Volker
                    Anhaeusser
50
Director
April
                    5, 2006
Mark
          M. Laisure, Age 36
Mark
          Laisure, the Company's Chief Executive Officer, President, Chief Financial
          Officer, Secretary and Chairman of the Board, joined the Company in May,
          2003 as
          its President and Vice-Chairman of the Board of Directors. In May 2005,
          Mr.
          Laisure became the Company's Chief Executive Officer, and in December 2005 was
          elected Chairman of the Board, Chief Financial Officer and Secretary. Mr.
          Laisure's career started in securities brokerage and investment banking, serving
          as a principal for both UBS PaineWebber and Shields & Company. In 1998 he
          was a member of the founding team of Inktomi Corporation, a leading provider
          of
          OEM Web search and paid inclusion services. In 1999, Mr. Laisure joined
          Military
          Commercial Technologies, Inc. (MILCOM), a venture-backed company that conceives,
          creates and launches technology companies in partnership with defense
          contractors, commercial companies, federal laboratories and other leading-edge
          research and development sources. At MILCOM, Mr. Laisure participated in
          the
          launch and growth of several affiliate companies and remains a member of
          its
          Board of Directors. Mr. Laisure co-founded iNetNow, Inc. in 2002, which
          pioneered the enhanced information delivery space and established alliances
          with
          Lycos, Telefonica and i3Mobile. Mr. Laisure is no longer associated with
          iNetNow, Inc. or Inktomi Corporation.
Scott
          Fairbairn, Age 40
Scott
          Fairbairn has been the Company's Chief Technology Officer since 2003 and became
          a member of the Board of Directors on April 4, 2006. In 1996, Mr. Fairbairn
          founded Breakthrough Technologies, Inc. ("Breakthrough") and became a recognized
          leader in enterprise-class rapid application development services. Breakthrough
          developed and licensed a suite of platform components for XML-based content
          delivery, caching services, and data-driven internet applications used
          in many
          of its deployments which had features that pre-dated Microsoft's .NET strategy.
          Breakthrough also incubated and developed the core technologies behind
          RocketStream, a patent-pending suite of technologies and products capable
          of
          delivering synchronized, high-fidelity video, audio, text, and VOIP data
          over a
          centralized network to worldwide participants in less than ¼ of a second.
          RocketStream is a second-generation packet delivery platform ideally suited
          for
          interactive applications, multiplayer gaming, mobile content delivery,
          and
          accelerated media delivery over congested IP networks. Mr. Fairbairn is
          the
          President of Rocketstream Holding Corporation and RocketStream, Inc. and
          has
          held those positions since the companies were founded in 2006 and 2002,
          respectively.
Thomas
          Fetzek, Age 47
Thomas
          Fetzek has been the Company's Vice President of Business Development since 2004.
          From 1996 to 2003, Mr. Fetzek served as the Chief Executive Officer of
          Secura-Code Corporation, a creator of patented Interactive Dynamic Personal
          Identification Number (PIN) Technology. Secura-Code Corporation's PIN technology
          focuses on the strengthening of access control systems that are used to
          identify
          users.
Volker
          Anhaeusser, Age 50
Volker
          Anhaeusser has been a member of the Board of Directors since April 2006.
          Mr.
          Anhaeusser serves as a principal member and shareholder of the German law
          firm
          of Anhaeusser, Unger, & Bergien, whose specialty is corporate and business
          law. Dr. Anhaeusser serves on the Board of Directors of several German
          and
          US-based corporations with operations in software technology, Internet
          communications, pharmaceuticals, and corporate finance, including GROUP
          Technologies AG, AGIVERA AG, STAAR Surgical (USA), and Canon-STAAR (Tokyo,
          Japan).
ITEM
                      6.
Executive
                        Compensation
The
          following Summary Compensation Table sets forth, for the years indicated,
          all
          cash compensation paid, distributed or accrued for services, including
          salary
          and bonus amounts, rendered in all capacities by the Company's Chief Executive
          Officer and all other executive officers who received or are entitled to
          receive
          remuneration in excess of $100,000 during the stated periods.
Summary
          Compensation Table
Annual
          Compensation
Name
                    and Position
Year
Salary
                    ($)
Bonus
                    ($)
Other
                  ($)
Annual
Compensation
                    ($)
Mark
                    M. Laisure,
2005
41,664
--
--
41,664
Chairman,
                    CEO and President
2004
87,100
--
--
87,100
2003
16,000
--
--
16,000
Robert
                    J. Holtz,
2005
--
--
--
--
CEO
                    (until December 21, 2005)
2004
106,000
--
--
106,000
2003
18,500
--
--
18,500
Director
          Compensation
No
          Directors have been compensated for their services as Directors.
Employment
          Contracts
No
          officers have entered into any employment contracts with the
          Company.
ITEM
                    7.
Certain
                    Relationships and Related
                    Transactions
On
          May
          10, 2006, the Company entered into a Share Exchange Agreement with RocketStream
          Holding Corporation, a Nevada corporation ("RHC"), and all of RHC's
          shareholders, two of whom were (i) Mark Laisure, the Company's Chairman of the
          Board of Directors, Chief Executive Officer, President, Chief Financial
          Officer
          and Secretary and (ii) Scott Fairbairn, the Company's Chief Technology Officer
          and a member of the Company's Board of Directors (collectively, the "Share
          Exchange"). In connection with the Share Exchange, the Company acquired all of
          the outstanding shares of RHC through a voluntary share exchange with each
          of
          RHC's shareholders pursuant to an exchange ratio equal to 1 share of RHC common
          stock in exchange for 1,000 shares of the Company's common stock. In
          consideration for 100% of the outstanding shares of RHC, the Company issued
          48,235,000 shares of its common stock, of which Mark Laisure and Scott
          Fairbairn
          received 14,000,000 and 15,000,000 shares, respectively.
ITEM
                      8.
Description
                        of Securities
The
          Company is authorized to issue 200,000,000 shares of common stock and 2,000,000
          shares of preferred stock.
Common
          Stock
The
          holders of common stock are entitled to one vote per share. The Company's
          Articles of Incorporation do not provide for cumulative voting. The holders
          of
          common stock are entitled to receive ratably such dividends, if any, as
          may be
          declared by the Board of Directors out of legally available funds. However,
          the
          current policy of the Board of Directors is to retain earnings, if any,
          for
          operations and growth. Upon liquidation, dissolution or winding-up, the
          holders
          of common stock are entitled to share ratably in all assets that are legally
          available for distribution. The holders of common stock have no preemptive,
          subscription, redemption or conversion rights. The rights, preferences
          and
          privileges of holders of common stock are subject to, and may be adversely
          affected by, the rights of the holders of any series of preferred stock,
          which
          may be designated solely by action of the Board of Directors and issued
          in the
          future.
Preferred
          Stock
The
          Board
          of Directors is authorized, subject to any limitations prescribed by law,
          without further vote or action by the shareholders, to issue from time
          to time
          shares of preferred stock in one or more series. Each such series of preferred
          stock shall have such number of shares, designations, preferences, voting
          powers, qualifications, and special or relative rights or privileges as
          shall be
          determined by the board of directors, which may include, among others,
          dividend
          rights, voting rights, liquidation preferences, conversion rights and preemptive
          rights.
Series
          A Convertible Preferred Stock
On
          July
          24, 2006, the Company's Board of Directors designated 2,000 shares of preferred
          stock as Series A Convertible Preferred Stock. As of August 4, 2006, there
          were
          no shares of Series A Convertible Preferred Stock issued and
          outstanding.
Voting
          Rights:
At each
          meeting of the shareholders of the Company (and for purposes of written
          actions
          of shareholders in lieu of meetings) with respect to any and all matters
          presented to the shareholders of the Company for their action or consideration,
          should the holders of all shares of Series A Convertible Preferred Stock
          vote
          alike with respect to a certain matter, then each share of Series A Convertible
          Preferred Stock shall represent 100,000 votes, with the holders of both
          the
          Series A Convertible Preferred Stock and common stock voting together as
          a
          single class. However, should the holders of the shares of Series A Convertible
          Preferred Stock vote differently with respect to a certain matter, then
          each
          share of Series A Convertible Preferred Stock shall represent only one
          vote,
          with the holders of the Series A Convertible Preferred Stock and common
          stock
          voting together as a single class.
For
          so
          long as any shares of Series A Convertible Preferred Stock remains outstanding,
          in addition to any other vote or consent required by law, the vote or written
          consent of the holders of at least a majority in interest of the outstanding
          Series A Convertible Preferred Stock, voting as a separate class, shall
          be
          necessary for any amendment, alteration, or repeal of any provision of
          the
          Company's Articles of Incorporation or any other corporate action that requires
          shareholder vote or consent.
Conversion:
Upon
          the
          (i) written election of all the holders of the Series A Convertible Preferred
          Stock or (ii) the death of all the holders of the Series A Convertible
          Preferred
          Stock, each share of Series A Convertible Preferred Stock shall automatically
          convert into one (1) share of common stock.
PART
          II.
ITEM
                    1.
Market
                    Price of and Dividends on the Registrants Common Equity and Related
                    Stockholder Matters
Presently,
          the common stock currently trades under the symbol "ZROS.PK." on the "Pink
          Sheets" that are operated by Pink Sheets LLC. This market is thinly traded and
          lacks the liquidity of other public markets with which some investors may
          have
          more experience. There is no assurance that a more liquid trading market
          will
          develop or, if developed, can be sustained. A purchaser of shares may,
          therefore, be unable to resell any securities should he or she desire to
          do so.
          Furthermore, it is unlikely that a lending institution would accept the
          Company's securities as pledged collateral for loans unless a regular trading
          market develops.
The
          following table sets forth the quarterly high and low closing sales prices
          of
          the common stock during 2004, 2005 and 2006 as reported by the "Pink Sheets."
Such prices represent prices between dealers and do not include retail
          mark-ups,
          mark-downs or commissions and may not represent actual
          transactions.
2004
High
Low
First
                    Quarter
$
0.24
$
0.12
Second
                    Quarter
$
0.26
$
0.13
Third
                    Quarter
$
0.18
$
0.10
Fourth
                    Quarter
$
0.43
$
0.12
2005
High
Low
First
                    Quarter
$
0.32
$
0.13
Second
                    Quarter
$
0.16
$
0.06
Third
                    Quarter
$
0.12
$
0.08
Fourth
                    Quarter
$
0.11
$
0.04
2006
High
Low
First
                    Quarter
$
0.13
$
0.06
Second
                    Quarter
$
0.23
$
0.10
Common
          Stock Holders
As
          of
          March 31, 2006, there were approximately 510 holders of record of common
          stock.
Series
          A Convertible Preferred Stock
As
          of
          March 31, 2006 there were no preferred shares outstanding.
Dividends
The
          Company has not declared any cash dividends on its common stock during
          the past
          two fiscal years. In addition, the Company currently intends to retain
          any
          future earnings to support the development and expansion of its business
          and
          does not anticipate paying cash dividends in the foreseeable
          future.
Equity
          Compensation Plan
In
          July
          2000, the Company's Board of Directors authorized the adoption of the 2000
          Employee Stock Incentive Plan (the "Plan"). The Plan permits the granting
          of
          stock options to any employee or director of the Company. Under the terms
          of the
          Plan, 4,500,000 shares are authorized for issuance upon the exercise of
          options.
          Under the Plan, options can be granted with an exercise price equal to
          the fair
          market value of the Company's stock on the date of the grant and expire ten (10)
          years after the grant date. Vesting is over a four-year period commencing
          with
          the employee's hire date, with portions of a grant becoming exercisable at one
          year after the vesting start date and then one-thirty-sixth (1/36) per
          month to
          complete the four-year vesting.
In
          July
          2006, the Company's Board of Directors adopted the 2006 Incentive Stock Option
          Plan that provides for the issuance of qualified stock options to employees.
          Under the terms of this plan, under which 10,000,000 shares of common stock
          were
          reserved for issuance, options to purchase common stock shall be granted
          at not
          less than fair market value, become exercisable over a 4 year period from
          the
          date of grant (vesting occurs annually on the grant date at 25% of the
          grant),
          and expire 10 years from the date of grant. As of August 10, 2006, no options
          had been awarded under this plan.
Plan
                    Category
Number
                    of securities to be issued upon exercise of outstanding options,
                    warrants
                    and rights
Weighted-average
                    exercise price of outstanding options, warrants and rights
Number
                    of securities remaining available for future issuance under equity
                    compensation plans (excluding securities reflected in column
                    (a))
(a)
(b)
(c)
Equity
                    compensation plans approved by security holders
--
$
--
14,500,000
Equity
                    compensation plans not approved by security holders
--
--
--
ITEM
                      2.
Legal
                        Proceedings
The
          Company is not a party to any legal proceedings at this time.
ITEM
                    3.
Changes
                    in and Disagreements with Accountants on Accounting and Financial
                    Disclosure
Effective
          as of July 31, 2006, the Company replaced Armando C. Ibarra, CPA, P.C.
          as its
          independent accountants. Armando C. Ibarra, CPA, P.C. had previously been
          engaged as the principal accountant to audit the Company's financial statements.
          The reason for the replacement of Armando C. Ibarra, CPA, P.C. is that
          on July
          28, 2006, the Company was informed by Armando C. Ibarra, CPA, P.C. that
          it would
          no longer be providing attestation services to public companies.
In
          light
          of Armando C. Ibarra, CPA, P.C.'s resignation, the Company engaged Chang G.
          Park, CPA, Ph. D. ("Park") to serve as the Company's new independent registered
          accounting firm, effective as of July 31,2006. Park is located at 371 E
          Street,
          Chula Vista, California 91910.
The
          reports of Armando C. Ibarra, CPA, P.C. on the Company's financial statements
          were qualified as to the Company's ability to continue as a going
          concern.
The
          decision to change accountants was ratified by the Company's Board of Directors
          on August 8, 2006.
During
          the Company's two most recent fiscal years and the subsequent interim periods,
          there were no disagreements with Armando C. Ibarra, CPA, P.C. on any matter
          of
          accounting principles or practices, financial statement disclosure, or
          auditing
          scope or procedure which, if not resolved to the satisfaction of Armando
          C.
          Ibarra, CPA, P.C., would have caused it to make reference to the matter
          in
          connection with its reports. There were no "reportable events" as that
          term is
          described in Item 304(a)(1)(v) of Regulation S-B.
The
          Company has made the contents of this Form 8-K available to Armando C.
          Ibarra,
          CPA, P.C. and requested it to furnish a letter to the SEC as to whether
          Armando
          C. Ibarra, CPA, P.C. agrees or disagrees with, or wishes to clarify the
          Company's expression of their views. A copy of Armando C. Ibarra, CPA,
          P.C.'s
          letter to the SEC is included as Exhibit 16.1 to this Form 8-K.
During
          the Company's two most recent fiscal years, and the subsequent interim period,
          prior to July 31, 2006, the Company did not consult Park regarding either:
          (i)
          the application of accounting principles to a specified transaction, completed
          or proposed, or the type of audit opinion that might be rendered on the
          Company's financial statements, or (ii) any matter that was either the
          subject
          of a disagreement as defined in Item 304(a)(1)(iv) of Regulation S-B or
          a
          reportable event as described in Item 304(a)(1)(v) of Regulation
          S-B.
ITEM
                    4.
Recent
                    Sale of Unregistered
                    Securities
On
          October 20, 2003 the Company issued 335,000 shares of common stock to Mammoth
          Corporation in full satisfaction of $44,550 of fees then due and payable.
          The
          Company relied on Section 4(2) of the Securities Act, and Regulation D
          promulgated thereunder, as providing an exemption from registering the
          sale of
          these shares of common stock under the Securities Act.
On
          July
          28, 2004 the Company issued 300,000 shares of common stock to IC Capital
          LLC in
          full satisfaction of $33,600 of fees then due and payable. The Company
          relied on
          Section 4(2) of the Securities Act, and Regulation D promulgated thereunder,
          as
          providing an exemption from registering the sale of these shares of common
          stock
          under the Securities Act.
On
          April
          9, 2004, the Company issued 650,000 shares of common stock upon the exercise
          of
          common stock options held by Allen Crawford a former employee. No cash
          was
          received by the Company related to this exercise.
The
          Company relied on Section 4(2) of the Securities Act, and Regulation D
          promulgated thereunder, as providing an exemption from registering the
          sale of
          these shares of common stock under the Securities Act.
On
          February 16, 2005, the Company issued 3,000,000 shares of common stock
          to
          ClearVision, Inc. as a deposit for future marketing services. The Company
          relied
          on Section 4(2) of the Securities Act, and Regulation D promulgated thereunder,
          as providing an exemption from registering the sale of these shares of
          common
          stock under the Securities Act.
On
          October 9, 2005, the Company issued 2,000,000 shares of common stock to
          Richardson & Patel LLP as a retainer for future legal services. The Company
          relied on Section 4(2) of the Securities Act, and Regulation D promulgated
          thereunder, as providing an exemption from registering the sale of these
          shares
          of common stock under the Securities Act.
On
          October 28, 2005 the Company issued 2,792,851 shares of common stock pursuant
          to
          the conversion of $407,392 of Convertible Notes, at the request of the
          noteholder, Henry Mountain, LLC. The Company relied on Section 4(2) of
          the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.
On
          October 28, 2005 the Company issued 1,734,131 shares of common stock pursuant
          to
          the conversion of $281,409 of Convertible Notes, at the request of the
          noteholder, Carroll Edwards. The Company relied on Section 4(2) of the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act
On
          November 2, 2005, the Company issued 800,000 shares of its Common Stock
          to Real
          Asset Management LLC for financial-related services, in full satisfaction
          of
          $44,800 of fees then due and payable. The Company relied on Section 4(2)
          of the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.
On
          November 2, 2005, the Company issued 797,872 shares of its Common Stock
          to
          Transworld Consulting, a product marketing company, in full satisfaction
          of
          $150,000 of fees then due and payable. The Company relied on Section 4(2)
          of the
          Securities Act, and Regulation D promulgated thereunder, as providing an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.
On
          January 6, 2006 the Company issued 1,010,350 shares of common stock pursuant
          to
          the conversion of $100,000 of Convertible Notes, at the request of the
          noteholder, Joel Yanchuck. The Company relied on Section 4(2) of the Securities
          Act, and Regulation D promulgated thereunder, as providing an exemption
          from
          registering the sale of these shares of common stock under the Securities
          Act.
On
          January 6, 2006, the Company issued 101,040 shares of common stock to William
          Latorre for financial services, in satisfaction of $10,000 of fees then
          due and
          payable. The Company relied on Section 4(2) of the Securities Act, and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.
On
          January 10, 2006, the Company issued 760,000 shares of common stock to
          Wilshire
          Palisakes Law Group for legal services, in satisfaction of $76,000 of fees
          then
          due and payable. The Company relied on Section 4(2) of the Securities Act,
          and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.
On
          January 22, 2006, the Company issued 442,758 shares of common stock to
          Greg
          Suess for $60,000 of product marketing consulting services. The Company
          relied
          on Section 4(2) of the Securities Act, and Regulation D promulgated thereunder,
          as providing an exemption from registering the sale of these shares of
          common
          stock under the Securities Act.
In
          March
          2004 the Company entered into a consulting agreement with Greg Suess, a
          product
          marketing consultant, for services. His compensation was payable in Common
          Stock
          which was earned during 2004 and issued on January 22, 2006. The agreement
          also
          called for the registration of the shares issued for services, and provided
          for
          a penalty of 5,000 shares, payable in common stock, for each week that
          the
          registration statement was not filed and effective with the SEC. The Company
          did
          not file a registration statement with the SEC as specified in the agreement
          during 2004 or 2005. Accordingly, during 2004, the Company incurred an
          obligation to Mr. Suess to issue him 280,000 shares of common stock and
          recorded
          an expense of $38,745, and during 2005 incurred an obligation to issue
          Mr. Suess
          490,000 shares of common stock and recorded an expense of $41,370. The
          Company
          issued these shares on January 22, 2006. The Company relied on Section
          4(2) of
          the Securities Act, and Regulation D promulgated thereunder, as providing
          an
          exemption from registering the sale of these shares of common stock under
          the
          Securities Act.
On
          January 22, 2006, the Company issued 600,000 shares of its common stock
          to Greg
          Suess in return for his exercise of options to purchase 300,000 shares
          of common
          stock. The Company received consideration of $60,000 for this exercise.
          The
          Company relied on Section 4(2) of the Securities Act, and Regulation D
          promulgated thereunder, as providing an exemption from registering the
          sale of
          these shares of common stock under the Securities Act.
On
          January 22, 2006 the Company issued 639,860 shares of common stock pursuant
          to
          the conversion of $54,900 of Convertible Notes, at the request of the
          noteholder, James Fuchs. The Company relied on Section 4(2) of the Securities
          Act, and Regulation D promulgated thereunder, as providing an exemption
          from
          registering the sale of these shares of common stock under the Securities
          Act.
On
          January 22, 2006 the Company issued 36,080 shares of common stock pursuant
          to
          the conversion of $5,000 of Convertible Notes, at the request of the noteholder,
          Nina Cohen. The Company relied on Section 4(2) of the Securities Act, and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.
On
          May 4,
          2006, the Company issued 700,000 shares of its Common Stock to Wilshire
          Palisakes Law Group for legal services, in satisfaction of $75,000 of fees
          then
          due and payable. The Company relied on Section 4(2) of the Securities Act,
          and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.
On
          May
          10, 2006, the Company entered into a Share Exchange Agreement (the "Share
          Exchange Agreement") with RocketStream Holding Corporation, a Nevada corporation
          ("RHC"), and all of its shareholders (the "Share Exchange"). In connection with
          the Share Exchange, the Company acquired all of the outstanding shares
          of RHC
          through a voluntary share exchange with each of its shareholders pursuant
          to an
          exchange ratio equal to 1 share of RHC common stock in exchange for 1,000
          shares
          of the Company's common stock. In consideration of 100% of the outstanding
          shares of RHC, the Company issued 48,235,000 shares of its unregistered
          common
          stock to the 52 shareholders of RHC. The Company relied upon Section 4(2)
          of the
          Securities Act for the offer and sale. We believed that Section 4(2) was
          available because the offer and sale did not involve a public offering
          and there
          was not general solicitation or general advertising involved in the offer
          or
          sale. We also relied upon Rule 506 of Regulation D as all investors qualified
          as
"accredited investors" under the Securities Act.
On
          July
          25, 2006 the Company issued 1,250,000 shares of common stock pursuant to
          the
          conversion of $125,000 of Convertible Notes, at the request of the noteholder,
          Steven Abbadessa. The Company relied on Section 4(2) of the Securities
          Act, and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.
On
          July
          25, 2006 the Company issued 337,382 shares of common stock pursuant to
          the
          conversion of $25,000 of Convertible Notes, at the request of the noteholder,
          Nancy Havens. The Company relied on Section 4(2) of the Securities Act,
          and
          Regulation D promulgated thereunder, as providing an exemption from registering
          the sale of these shares of common stock under the Securities Act.
On
          August 8, 2006 the Company issued 1,000 shares of
          Series A Convertible Preferred Stock to each of Mark M. Laisure and Scott
          Fairbairn in consideration of services rendered. The Company relied on
          Section
          4(2) of the Securities Act, and Regulation D promulgated thereunder, as
          providing an exemption from registering the sale of these shares of Series
          A
          Convertible Preferred Stock under the Securities Act.
ITEM
                    5.
Indemnification
                    of Officers and Directors
Pursuant
          to the provisions of Nevada Revised Statutes, or NRS, 78.7502, every Nevada
          corporation has authority to indemnify any person who was or is a party
          or is
          threatened to be made a party to any threatened, pending, or completed
          action,
          suit or proceeding, except an action by or in the right of the corporation,
          by
          reason of the fact that such person is or was a director, officer, employee,
          or
          agent of the corporation, or is or was serving at the request of the corporation
          as a director, officer, employee, or agent of another corporation, partnership,
          joint venture, trust, or other enterprise, against expenses, including
          attorneys' fees, judgments, fines, and amounts paid in settlement actually
          and
          reasonably incurred in connection with the action, suit, or proceeding
          if such
          person acted in good faith and in a manner which such person reasonably
          believed
          to be in or not opposed to the best interest of the corporation, and, with
          respect to any criminal action or proceeding, had no reasonable cause or
          belief
          his conduct was unlawful.
Pursuant
          to the provisions of NRS 78.7502, every Nevada corporation also has the
          authority to indemnify any person who was or is a party or is threatened
          to be
          made a party to any threatened, pending, or completed action or suit by
          or in
          the right of the corporation to procure a judgment in its favor by reason
          of the
          fact that such person is or was a director, officer, employee, or agent
          of the
          corporation, or is or was serving at the request of the corporation as
          a
          director, officer, employee, or agent of another corporation, partnership,
          joint
          venture, trust, or other enterprise against expenses including amounts
          paid in
          settlement and attorneys' fees actually and reasonably incurred by such
          person
          in connection with the defense or settlement of the action or suit if such
          person acted in good faith and in a manner which such person reasonably
          believed
          to be in or not opposed to the best interests of the corporation. No
          indemnification shall be made, however, for any claim, issue or matter
          as to
          which a person has been adjudged by a court of competent jurisdiction to
          be
          liable to the corporation or for amounts paid in settlement to the corporation,
          unless and only to the extent that the court determines that in view of
          all the
          circumstances, the person is fairly and reasonably entitled to indemnity
          for
          such expenses as the court deems proper.
To
          the
          extent any person referred to in the two immediately preceding paragraphs
          is
          successful on the merits or otherwise in defense of any action, suit, or
          proceeding, the NRS provides that such person must be indemnified by the
          corporation against expenses including attorneys' fees, actually and reasonably
          incurred by him in connection with the defense.
NRS
          78.751 requires the corporation to obtain a determination that any discretionary
          indemnification is proper under the circumstances. Such a determination
          must be
          made by the corporation's stockholders; its board of directors by majority
          vote
          of a quorum consisting of directors who were not parties to the action,
          suit, or
          proceeding; or under certain circumstances, by independent legal
          counsel.
In
          addition, NRS 78.138.7 provides that directors and officers are not personally
          liable to the corporation or its stockholders for any damages resulting
          from
          their breach of fiduciary duties unless it is proven that the act or omission
          constituted a breach of fiduciary duty and the breach involved intentional
          misconduct, fraud, or a knowing violation of law.
The
          Company's Articles of Incorporation provide that a director or officer of the
          Company shall not be liable to the Company or its shareholders for damages
          for
          breach of fiduciary duty as a director or officer except for (i) acts or
          omissions that involve intentional misconduct, fraud or a knowing violation
          of
          the law or (ii) the payment of unlawful distributions to
          shareholders.
Furthermore,
          both the Company's Articles of Incorporation and Bylaws provide that every
          person who was, or is a party to or is threatened to be made a party to,
          or is
          threatened to be made a party to, or is involved in any action, suit or
          proceeding, whether civil, criminal, administrative or investigative, by
          reason
          of the fact that he, or a person of whom he is a legal representative,
          is or was
          a director or officer of the Company, or is or was serving at the request
          of the
          Company as a director or officer of another corporation, or as its
          representative in a partnership, joint venture, trust or other enterprise,
          shall
          be indemnified and held harmless to the fullest extent permissible under
          the
          laws of the State of Nevada from time to time, against all expenses, liability,
          and loss (including attorneys' fees, judgments, fines, and amounts paid, or to
          be paid in settlement) reasonably incurred, or suffered by him in connection
          therewith.
Item
          9.01
Financial
          Statements and Exhibits
(a)
          Financial Statements of Businesses Acquired. In accordance with Item 9.01(a),
          RocketStream, Inc.'s audited financial statements for the fiscal years ended
          December 31, 2004 and 2005 are filed in this Form 8-K as Exhibit
          99.1.
(b)
          Pro
          Forma Financial Information. In accordance with Item 9.01(b), the Company's pro
          forma financial statements are filed in this Form 8-K as Exhibit
          99.2.
(d)
          Exhibits.
The
          exhibits listed in the following Exhibit Index are filed as part of this
          Form
          8-K.
Exhibit
                    No.
Description
16.1
Letter
                    from Armando C. Ibarra, CPA, P.C., dated as of August 11,
                    2006
99.1
RocketStream,
                    Inc. Financial Statements for the fiscal years ended December
                    31, 2004 and
                    2005
99.2
Unaudited
                    Pro forma Financial Statements for the fiscal year ended December
                    31,
                    2005
SIGNATURES
Pursuant
            to the requirement 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.
ZEROS
                      & ONES, INC.
Date: August
                    11, 2006
By:
/s/ Mark
                    M.
                    Laisure
Mark
                      M. Laisure
Chairman
                      of the Board , Chief Executive Officer and
Chief
                      Financial Officer (Principal Executive Officer and
Principal
                      Financial and Accounting
                      Officer