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<SEC-DOCUMENT>0001078782-07-000257.txt : 20070323
<SEC-HEADER>0001078782-07-000257.hdr.sgml : 20070323
<ACCEPTANCE-DATETIME>20070323125103
ACCESSION NUMBER:		0001078782-07-000257
CONFORMED SUBMISSION TYPE:	10KSB
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070323
DATE AS OF CHANGE:		20070323

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRAMEWAVES INC
		CENTRAL INDEX KEY:			0000788611
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS REPAIR SERVICES [7600]
		IRS NUMBER:				820404220
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10KSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	033-02783-S
		FILM NUMBER:		07714544

	BUSINESS ADDRESS:	
		STREET 1:		1981 EAST 4800 SOUTH SUITE 100
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84117

	MAIL ADDRESS:	
		STREET 1:		1981 EAST 4800 SOUTH SUITE 100
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84117

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MESSIDOR LTD
		DATE OF NAME CHANGE:	20010122
</SEC-HEADER>
<DOCUMENT>
<TYPE>10KSB
<SEQUENCE>1
<FILENAME>framewaves10ksb06.htm
<DESCRIPTION>10-KSB DECEMBER 31, 2006
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
<META NAME="author" CONTENT="Cletha A. Walstrand">
<META NAME="date" CONTENT="03/21/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:624px"><P style="margin:0px"><BR>
<BR>
<BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=475.2></TD><TD width=163.2></TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=475.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000" valign=top width=163.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>OMB APPROVAL</P>
</TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=475.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
</TD><TD style="border-right:1px solid #000000" valign=top width=163.2><P style="line-height:14.667px; margin:0px; font-size:12px">OMB Number: 3235-0420</P>
</TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=475.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Washington, D.C. 20549</B></P>
</TD><TD style="border-right:1px solid #000000" valign=top width=163.2><P style="margin:0px">Expires: &nbsp;&nbsp;&nbsp;&nbsp;March 31, 2007</P>
</TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=475.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Form 10-KSB</B></P>
</TD><TD style="border-right:1px solid #000000" valign=top width=163.2><P style="margin:0px">Estimated average burden</P>
</TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=475.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=163.2><P style="margin:0px">Hours per response&#133;1646</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;(Mark One)</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">S</FONT><FONT FACE="Times New Roman"> ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px"><FONT FACE="Times New Roman">For the fiscal year ended December 31, 2006</FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#163;</FONT><FONT FACE="Times New Roman"> TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px"><FONT FACE="Times New Roman">For the transition period from ______________ to________________</FONT></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Commission file number ___________________________________</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>FRAMEWAVES, INC.</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(Name of small business issuer in its charter)</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=230.2></TD><TD width=19.533></TD><TD width=144.8></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Nevada </B></P>
</TD><TD valign=top width=19.533><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=144.8><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>82-0404220</B></P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(State or other jurisdiction of </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>incorporation or organization)</P>
</TD><TD valign=top width=19.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144.8><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(I.R.S. Employer </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=375.8></TD><TD width=20.8></TD><TD width=98.8></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=375.8><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>1981 East 4800 South, Suite 100, Salt Lake City, UT</B></P>
</TD><TD valign=top width=20.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=98.8><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>84117</B></P>
</TD></TR>
<TR><TD valign=top width=375.8><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(Address of principal executive offices) </P>
</TD><TD valign=top width=20.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=98.8><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(Zip Code)</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Issuer&#146;s telephone number <B>(801) 272-9294</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Securities registered under Section 12(b) of the Exchange Act: &nbsp;None</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=306.133></TD><TD width=29.467></TD><TD width=276.267></TD></TR>
<TR><TD valign=top width=306.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Title of each class </P>
</TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=276.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Name of each exchange on which registered</P>
</TD></TR>
<TR><TD valign=top width=306.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=276.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=306.133><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=276.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=306.133><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=top width=29.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=276.267><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Securities registered under Section 12(g) of the Exchange Act: &nbsp;None</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>________________________________________________________________________</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(Title of class)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>_________________________________________________________________________</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(Title of class)</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. &nbsp;<FONT FACE="Wingdings 2">S</FONT> </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Note </B>&#150; Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; text-indent:-144px">SEC 2337 (12-05)</P>
<P style="margin:0px; padding-left:144px"><B>Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.</B></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px; page-break-before:always">Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes <FONT FACE="Wingdings 2">S</FONT> &nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE="Wingdings 2">&#163;</FONT> </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrant&#146;s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="Wingdings 2">S</FONT> </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes <FONT FACE="Wingdings 2">S</FONT> &nbsp;&nbsp;&nbsp;&nbsp;No <FONT FACE="Wingdings 2">&#163;</FONT> </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">State issuer&#146;s revenues for its most recent fiscal year. &nbsp;<B>$-0-</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.) &nbsp;<B>The Company&#146;s voting securities are traded on the Over the Counter (OTC) Electronic Bulletin Board under the symbol FWAV. &nbsp;There was not an active market and no significant trading volume for the issuer&#146;s common stock during fiscal year 2006, therefore the aggregate market value of the voting common equities securities held by non-affiliates of the Registrant at December 31, 2006 is deemed to be $-0-.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Note: If determining whether a person is an affiliate will involve an unreasonable effort and expense, the issuer may calculate the aggregate market value of the common equity held by non-affiliates on the basis of reasonable assumptions, if the assumptions are stated.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes &nbsp;<FONT FACE="Wingdings 2">&#163;</FONT> &nbsp;No <FONT FACE="Wingdings 2">&#163;</FONT> </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>(APPLICABLE ONLY TO CORPORATE REGISTRANTS)</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">State the number of shares outstanding of each of the issuer&#146;s classes of common equity, as of the latest practicable date. &nbsp;&nbsp;<B>1,258,994 shares of common stock, $.001 par value</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>DOCUMENTS INCORPORATED BY REFERENCE</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">If the following documents are incorporated by reference, briefly describe them and identify the part of the Form 10-KSB (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) any annual report to security holders; (2) any proxy or information statement; and (3) any prospectus filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933 (&#147;Securities Act&#148;). The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1990).</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Transitional Small Business Disclosure Format (Check one): Yes <FONT FACE="Wingdings 2">&#163;</FONT> &nbsp;&nbsp;No <FONT FACE="Wingdings 2">S</FONT> </P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px; page-break-before:always"><B>FORWARD-LOOKING STATEMENT NOTICE</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">When used in this report, the words &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;continue,&#148; &#147;estimate,&#148; &#147;project,&#148; &#147;intend,&#148; and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding events, conditions, and financial trends that may affect the Company&#146;s future plans of operations, business strategy, operating results, and financial position. &nbsp;Persons reviewing this report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors. &nbsp;Such factors are discussed under the headings &#148;Item 1. &nbsp;Descriptio
n of Business,&#148; and &#147;Item 6. &nbsp;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations,&#148; and also include general economic factors and conditions that may directly or indirectly impact the Company&#146;s financial condition or results of operations.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PART I</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 1. Description of Business</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Our History</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">FrameWaves, Inc. (the &#147;Company&#148; or &#147;FrameWaves&#148;) was originally incorporated under the name of Messidor Limited on December 23, 1985 as a development stage company for the purpose of engaging in all lawful transactions permitted under the State of Nevada, including the acquisition of various business opportunities to provide profit and maximize shareholder value.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">On December 27, 2000, the shareholders, at a special meeting, changed the Company&#146;s name from Messidor Limited to FrameWaves, Inc. &nbsp;The shareholders also approved the acquisition of Corners, Inc. (&#147;Corners&#148;), a Nevada corporation, whereby the Company exchanged 1,000,000 shares of the Company&#146;s common stock for all of Corner&#146;s issued and outstanding shares of common stock. &nbsp;Corners had incorporated on November 17, 1998 in the State of Nevada to provide custom framing for interior designers in conjunction with business contacts provided by Corners&#146; officers and directors. &nbsp;Since its inception, Corners has had limited operations. </P>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px"><B>Our Business</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">FrameWaves originally intended to use Corners as an operating subsidiary and to actively pursue the custom framing business by utilizing Corners&#146; business contacts to procure contracts for future operations, and to engage in a comprehensive and aggressive marketing campaign, including but not limited to, soliciting unknown but potential business contacts through direct mailings, media, and other mediums that might generate leads to contracts for future operations. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">As of the date of this report, Framewaves has been unsuccessful in implementing its business plan and has no ongoing operations. &nbsp;Due to other obligations the Company&#146;s officers and directors have been unable to devote adequate time to developing the business and have yet to engage in any contract negotiations with frame suppliers, interior designers or retail consumers. Framewaves has had only limited operations since inception and has not generated any revenues since the fourth quarter of 2001. </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Management intends to continue pursuing their original plan of operation. &nbsp;However, there is no assurance that the Company will ever successfully pursue or implement such a business plan. For these reasons, management believes that while it will continue to attempt to implement their framing industry business plan it is in the best interest of the Company and its shareholders to simultaneously seek, investigate, and if warranted, acquire an interest in a different business opportunity. &nbsp;We are not restricting our search to any particular industry or geographical area. &nbsp;We may therefore engage in essentially any business in any industry. &nbsp;Our management has unrestricted discretion in seeking and participating in a business opportunity, subject to the availability of such opportunities, economic conditions and other factors.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always">The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of its business judgment. &nbsp;There is no assurance that we will be able to identify and acquire any business opportunity which will ultimately prove to be beneficial to our company and shareholders.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Because we have no specific business plan or expertise, our activities are subject to several significant risks. &nbsp;In particular, any business acquisition or participation we pursue will likely be based on the decision of management without the consent, vote, or approval of our shareholders.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Sources of Opportunities</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We anticipate that business opportunities may arise from various sources, including officers and directors, professional advisers, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We will seek potential business opportunities from all known sources, but will rely principally on the personal contacts of our officers and directors as well as indirect associations between them and other business and professional people. &nbsp;Although we do not anticipate engaging professional firms specializing in business acquisitions or reorganizations, we may retain such firms if management deems it in our best interests. &nbsp;In some instances, we may publish notices or advertisements seeking a potential business opportunity in financial or trade publications.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Criteria</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We will not restrict our search to any particular business, industry or geographical location. &nbsp;We may acquire a business opportunity in any stage of development. &nbsp;This includes opportunities involving &#147;start up&#148; or new companies. &nbsp;In seeking a business venture, management will base their decisions on the business objective of seeking long-term capital appreciation in the real value of our company. &nbsp;We will not be controlled by an attempt to take advantage of an anticipated or perceived appeal of a specific industry, management group, or product.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">In analyzing prospective business opportunities, management will consider the following factors:</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">available technical, financial and managerial resources;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">working capital and other financial requirements;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the history of operations, if any;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">prospects for the future;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the nature of present and expected competition;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the quality and experience of management services which may be available and the depth of the management;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the potential for further research, development or exploration;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the potential for growth and expansion;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the potential for profit;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the perceived public recognition or acceptance of products, services, trade or service marks, name identification; and other relevant factors.</FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Generally, our management will analyze all available factors and make a determination based upon a composite of available facts, without relying on any single factor.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Methods of Participation of Acquisition</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Management will review specific business opportunities and then select the most suitable opportunities based on legal structure or method of participation. &nbsp;Such structures and methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures, other contractual arrangements, and may involve a reorganization, merger or consolidation transaction. &nbsp;Management may act directly or indirectly through an interest in a partnership, corporation, or other form of organization.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>4</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always"><B>Procedures</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">As part of the our investigation of business opportunities, officers and directors may meet personally with management and key personnel of the firm sponsoring the business opportunity. &nbsp;We may visit and inspect material facilities, obtain independent analysis or verification of certain information provided, check references of management and key personnel, and conduct other reasonable measures.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We will generally ask to be provided with written materials regarding the business opportunity. &nbsp;These materials may include the following:</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">descriptions of product, service and company history; management resumes;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">financial information;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">available projections with related assumptions upon which they are based;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">an explanation of proprietary products and services;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">evidence of existing patents, trademarks or service marks or rights thereto;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">present and proposed forms of compensation to management;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">a description of transactions between the prospective entity and its affiliates;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">relevant analysis of risks and competitive conditions;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">a financial plan of operation and estimated capital requirements;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">and other information deemed relevant.</FONT></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Competition</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We expect to encounter substantial competition in our efforts to acquire a business opportunity. &nbsp;The primary competition is from other companies organized and funded for similar purposes, small venture capital partnerships and corporations, small business investment companies and wealthy individuals.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Employees</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company currently has no employees. &nbsp;Executive officers will devote only such time to the affairs of the Company as they deem appropriate, which is estimated to be approximately 20 hours per month per person. &nbsp;The need for employees will be addressed at such time operations prove successful.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 2. Description of Property</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company utilizes office space at 1981 East 4800 South, Suite 100, Salt Lake City, Utah, 84117, provided by Thomas A. Thomsen, an officer and director of the Company. &nbsp;The Company does not pay rent for this office space. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 3. Legal Proceedings</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company is not a party to any legal proceedings, and to the best of its knowledge, no such proceedings by or against the Company have been threatened.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 4. Submission of Matters to a Vote of Security Holders</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:24px; font-size:14.667px">None.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>5</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always" align=center><B>PART II</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 5. Market for Common Equity and Related Stockholder Matters</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Our common stock is listed on the Over the Counter Bulletin Board under the symbol FWAV. &nbsp;There is currently no trading volume for our securities. &nbsp;At March 20, 2007, the Company had 473 shareholders owning 1,258,994 shares of FrameWaves&#146; issued and outstanding common stock.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=209.2></TD><TD width=53.733></TD><TD width=68.733></TD><TD width=55></TD><TD width=57.667></TD><TD width=54.133></TD><TD width=82.067></TD><TD width=59.6></TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=177.467 colspan=3><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>CLOSING BID</B></P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=195.8 colspan=3><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>CLOSING ASK</B></P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>2006</B></P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>High</B></P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Low</B></P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>High</B></P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Low</B></P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">January 3 through March 31</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">April 3 through June 30</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">July 3 through September 29</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">October 2 through December 29</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>-0-</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=177.467 colspan=3><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>CLOSING BID</B></P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=195.8 colspan=3><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>CLOSING ASK</B></P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>2005</B></P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>High</B></P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Low</B></P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>High</B></P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Low</B></P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">January 2 through March 31</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">April 1 through June 30</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">July 1 through September 30</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=53.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">October 1 through December 31</P>
</TD><TD valign=top width=53.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=68.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=55><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>.12</P>
</TD><TD valign=top width=57.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=54.133><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD><TD valign=top width=82.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>3.05</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The above quotations, as provided by Pink Sheets, LLC, represent prices between dealers and do not include retail markup, markdown or commission. &nbsp;In addition, these quotations do not represent actual transactions.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">FrameWaves has not paid any dividends since its inception, and it is not likely that any dividends on its common stock will be declared at any time in the foreseeable future. &nbsp;Any dividends will be subject to the discretion of FrameWaves' Board of Directors, and will depend upon, among other things, the operating and financial condition of FrameWaves, its capital requirements and general business conditions. &nbsp;Our ability to pay dividends is also subject to limitations imposed by Nevada law. Under Nevada law, dividends may be paid to the extent that a corporation&#146;s assets exceed its liabilities and it is able to pay its debts as they become due in the usual course of business. &nbsp;There can be no assurance that any dividends on FrameWaves common stock will be paid in the future.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Recent Sales of Unregistered Securities.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following is a detailed list of securities sold within the past three years without registration under the Securities Act. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">On December 1, 2004, the company issued 50,000 shares of its common stock to a non-affiliate, minority shareholder for $.14 per share for an aggregate cash price of $7,000. The shares were issued in a private transaction, not involving any public solicitation or commissions, and without registration in reliance on the exemption provided by Section 4(2) of the Securities Act.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">There were no other sales of unregistered securities within the past thee years.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>6</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px; page-break-before:always"><B>Item 6.</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px"><B>Management&#146;s Discussion and Analysis or Plan of Operation.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Years Ended December 31, 2006 and 2005</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company did not generate any revenue during the years ended December 31, 2006 and 2005.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">General and administrative expenses at December 31, 2006 were $5,753 compared to general and administrative expenses of $6,192 for the year ended December 31, 2005. &nbsp;Interest expense at December 31, 2006 was $564 compared to $-0- for the year ended December 31, 2005. &nbsp;Expenses in both years were largely due to accounting, legal and other professional costs.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">As a result of the foregoing, the Company realized equal net losses of $6,317 for the year ended December 31, 2006 and $6,192 for the year ended December 31, 2005. &nbsp;The Company&#146;s net loss is attributable to a lack of business and ongoing professional costs associated with preparing the Company&#146;s public reports.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Years Ended December 31, 2005 and 2004</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company did not generate any revenue during the years ended December 31, 2005 and 2004.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">General and administrative expenses at December 31, 2005 were $6,192 compared to general and administrative expenses of $6,504 for the year ended December 31, 2004. &nbsp;Expenses in both years were largely due to accounting, legal and other professional costs.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">As a result of the foregoing, the Company realized equal net losses of $6,192 for the year ended December 31, 2005 and $6,504 for the year ended December 31, 2004. &nbsp;The Company&#146;s net loss is attributable to a lack of business and ongoing professional costs associated with preparing the Company&#146;s public reports.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Liquidity and Capital Resources</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">At December 31, 2006, assets consisted of &nbsp;$2,889 in cash. &nbsp;Liabilities consisted of $4,915 in accounts payable, $564 in accrued interest and a $10,000 note payable to a stockholder, leaving the Company without any working capital. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">On October 17, 2005, the Company borrowed $10,000 from Susan Santage, an officer and director of the Company. &nbsp;The note is unsecured, bears interest at 8% starting April 18, 2006 and is due on demand.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Currently, the Company has no material commitments for capital expenditures. &nbsp;Management anticipates that operating expenses for the next twelve months will be approximately $5,000 to $7,000. &nbsp;Management understands that it does not have sufficient cash to meet its immediate operational needs and will require additional capital to cover ongoing operating expenses. &nbsp;Management may attempt to raise additional capital for its current operational needs through loans from its officers, debt financing, equity financing or a combination of financing options. &nbsp;However, there are no existing understandings, commitments or agreements for such an infusion; nor can there be assurances to that effect.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company has adopted a code of ethics that applies to the Company&#146;s principal executive officer, principal financial officer, principal accounting officer or controller. &nbsp;The Company will provide, at no cost, a copy of the Code of Ethics to any shareholder of the Company upon receiving a written request sent to the Company&#146;s address shown on Page 1 of this report.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 7. Financial Statements </B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The financial statements of the Company appear at the end of this report beginning with the Index to Financial Statements on page 13.</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>7</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 8. &nbsp;Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">None.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 8A. &nbsp;Controls and Procedures</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; text-indent:24px; font-size:14.667px">(a)</P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Evaluation of Disclosure Controls and Procedures. &nbsp;The Company's management, with the participation of the chief executive officer and the chief financial officer, carried out an evaluation of the effectiveness of the Company's &quot;disclosure, controls and procedures&quot; (as defined in the Securities Exchange Act of 1934 (the &quot;Exchange Act&quot;) Rules 13a-15(e) and 15-d-15(e) as of the end of the period covered by this annual report (the &quot;Evaluation Date&quot;). &nbsp;Based upon that evaluation, the chief executive officer and the chief financial officer concluded that, as of the Evaluation Date, the Company's disclosure, controls and procedures are effective, providing them with material information relating to the Company as required to be disclosed in the reports the Company files or submits under the Exchange Act on a timely basis.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; text-indent:24px; font-size:14.667px">(b)</P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">Changes in Internal Control over Financial Reporting. &nbsp;There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer, that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 8B. &nbsp;Other Information</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">There are no further disclosures. No information was required to be disclosed in a Form 8-K during the fourth quarter, 2006.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PART III</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>Item 9.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; text-indent:60px; font-size:14.667px"><B>Directors, Executive Officers, Promoters and Control Persons; Compliance With Section </B></P>
<P style="line-height:17.333px; margin:0px; text-indent:624px; font-size:14.667px"><B>16(a) of the Exchange Act.</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following table sets forth the name, age, and position of each officer and director of the Company. &nbsp;All directors hold office until the next annual meeting of stockholders or until their successors are duly elected and qualified. Officers serve at the discretion of the Board of Directors.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company has no audit committee financial expert, as defined under Section 228.401, serving on its audit committee because it has no audit committee and is not required to have an audit committee because it is not a listed security as defined in Section 240.10A-3.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=178.533></TD><TD width=47.267></TD><TD width=227.733></TD><TD width=128.8></TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px"><U>Name</U></P>
</TD><TD valign=bottom width=47.267><P style="line-height:17.333px; margin:0px; font-size:14.667px"><U>Age</U></P>
</TD><TD valign=bottom width=227.733><P style="line-height:17.333px; margin:0px; font-size:14.667px"><U>Positions</U></P>
</TD><TD valign=bottom width=128.8><P style="line-height:17.333px; margin:0px; font-size:14.667px"><U>Since</U></P>
</TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=bottom width=47.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=227.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">Thomas A. Thomsen</P>
</TD><TD valign=bottom width=47.267><P style="line-height:17.333px; margin:0px; font-size:14.667px">31</P>
</TD><TD valign=bottom width=227.733><P style="line-height:17.333px; margin:0px; font-size:14.667px">President and Director</P>
</TD><TD valign=bottom width=128.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">November, 2000</P>
</TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=bottom width=47.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=227.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">Dianne Hatton-Ward</P>
</TD><TD valign=bottom width=47.267><P style="line-height:17.333px; margin:0px; font-size:14.667px">50</P>
</TD><TD valign=bottom width=227.733><P style="line-height:17.333px; margin:0px; font-size:14.667px">Vice President and Director</P>
</TD><TD valign=bottom width=128.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">November, 2000</P>
</TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=bottom width=47.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=227.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.8><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=178.533><P style="line-height:17.333px; margin:0px; font-size:14.667px">Susan Santage</P>
</TD><TD valign=bottom width=47.267><P style="line-height:17.333px; margin:0px; font-size:14.667px">45</P>
</TD><TD valign=bottom width=227.733><P style="line-height:17.333px; margin:0px; font-size:14.667px">Secretary/ Treasurer and Director</P>
</TD><TD valign=bottom width=128.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">November, 2000</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following is information on the business experience of each officer and director:</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Thomas A. Thomsen</B>, President and Director. &nbsp;Mr. Thomsen graduated from the University of Utah in May of 2000 with a BS in Finance. &nbsp;Since March of 1999, Mr. Thomsen has worked for Interwest Transfer Company, and provides stock analysis, issuances and transfers. &nbsp;From 1990 to 1999, Mr. Thomsen was employed by the Granite School District whereby he provided security and maintenance for Granger High School.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>8</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always"><B>Dianne Hatton-Ward</B>, Vice President and Director. &nbsp;Ms. Hatton-Ward is currently a part-time student at Westminster College. &nbsp;Since 1994, Ms. Hatton-Ward has worked as control scheduler for Qwest Communications International, Inc., a telecommunications company, where she is responsible for the design and support of several applications like client interfacing, job applications and job-flows.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Susan Santage</B>, Secretary, Treasurer<B> </B>and Director. &nbsp;Ms. Santage graduated from Salt Lake Community College in 1989 with an AAS in Graphic Design. &nbsp;In 1984, Ms. Santage graduated from the Salt Lake School of Interior Design. &nbsp;From 1989 to the present date, Ms. Santage has engaged in freelance graphic design where she has contracted with several companies including Break-thru Industries, KLCY Radio Station, Phoenix Aviation, Inc., and the Salt Lake Community College.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 10. Executive Compensation</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company has no agreement or understanding, express or implied, with any director, officer or principal stockholder, or their affiliates or associates, regarding compensation in the form of salary, bonuses, stocks, options, warrants or any other form of remuneration, for services performed on behalf of the Company. &nbsp;Nor are there compensatory plans or arrangements, including payments to any officer in relation to resignation, retirement, or other termination of employment, or any change in control of the Company, or a change in the officer&#146;s responsibilities following a change in control of the Company.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 11. Security Ownership of Certain Beneficial Owners and Management</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following table sets forth as of March 20, 2006, the name and shareholdings of each person known to us that either directly or beneficially holds more than 5% of our 1,258,994 issued and outstanding shares of common stock, par value $.001. The table also lists the name and shareholdings of each director and of all officers and directors as a group. &nbsp;Except as otherwise indicated, the persons named in the table have sole voting and dispositive power with respect to all shares beneficially owned, subject to community property laws where applicable.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=319.2></TD><TD width=168></TD><TD width=144></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Name and Address of Directors,</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Executive Officers and 5% Beneficial Owners</B></P>
</TD><TD valign=top width=168><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Amount and Nature of Beneficial Ownership</B></P>
</TD><TD valign=top width=144><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Percent of Class of Common Stock</B></P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=168><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Thomas A. Thomsen &nbsp;(1) (2)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">1981 East 4800 South, Suite 100 </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Salt Lake City, Utah &nbsp;84117<B> </B></P>
</TD><TD valign=top width=168><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>86,285</P>
</TD><TD valign=top width=144><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>6.9%</P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=168><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Dianne Hatton-Ward &nbsp;(1)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">1981 East 4800 South, Suite 100 </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Salt Lake City, Utah &nbsp;84117</P>
</TD><TD valign=top width=168><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>333,333</P>
</TD><TD valign=top width=144><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>26.5%</P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=168><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Susan Santage &nbsp;(1)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">1981 East 4800 South, Suite 100 </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Salt Lake City, Utah &nbsp;84117</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=168><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>333,333</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=144><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>26.5%</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Directors and Executive Officers as a Group: &nbsp;Three Persons</P>
</TD><TD valign=top width=168><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>752,951</P>
</TD><TD valign=top width=144><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>59.8%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-48px; font-size:14.667px">(1)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px">Officer and director of the Company.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-48px; font-size:14.667px">(2)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px">Thomas Thomsen owns 83,334 shares directly, and 2,951 shares indirectly through European Holdings, Inc. &nbsp;Mr. Thomsen owns and controls European Holdings, Inc.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>9</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always"><B>Item 12. &nbsp;Certain Relationships and Related Transactions</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Company utilizes office space at 1981 East 4800 South, Suite 100, Salt Lake City, Utah, 84117, provided by Thomas A. Thomsen, an officer and director of the Company. &nbsp;The Company does not pay rent for this office space.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">On October 17, 2005, the Company borrowed $10,000 from Susan Santage, an officer and director of the Company. &nbsp;The note is unsecured, bears interest at 8% starting April 18, 2006 and is due on demand.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Item 13. &nbsp;Exhibits and Reports on Form 8-K </B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">a) Exhibits</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=108></TD><TD width=342></TD><TD width=102></TD></TR>
<TR><TD valign=top width=108><P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>Exhibit</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px"><B>Title</B></P>
</TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Location</B></P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:18.667px; margin:0px; font-size:16px">Exhibit 3(i)</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Amended and Restated Articles of Incorporation*</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2000 10-KSB</P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:16.4px; margin:0px; padding-left:96px; text-indent:-96px; font-size:16px">Exhibit 3(ii)</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Amended and Restated Bylaws*</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2000 10-KSB</P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:16.4px; margin:0px; padding-left:96px; text-indent:-96px; font-size:16px">Exhibit 14</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Code of Ethics**</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2002 10-KSB</P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:17.333px; margin:0px; font-size:14.667px">31.1</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Attached</P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:17.333px; margin:0px; font-size:14.667px">31.2</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Attached</P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:17.333px; margin:0px; font-size:14.667px">32.1</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Certification of the Principal Executive Officer &nbsp;pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002***</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Attached</P>
</TD></TR>
<TR><TD valign=top width=108><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=342><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=102><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=108><P style="line-height:17.333px; margin:0px; font-size:14.667px">32.2</P>
</TD><TD valign=top width=342><P style="line-height:17.333px; margin:0px; font-size:14.667px">Certification of the Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002***</P>
</TD><TD valign=top width=102><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Attached</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:15.267px; margin:0px; font-size:14.667px" align=justify>* Incorporated by reference. Filed as exhibit to 2000 10-KSB filed January 26, 2001</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:15.267px; margin:0px; font-size:14.667px" align=justify>**Incorporated by reference. Filed as exhibit to 2002 10-KSB filed March 26, 2003</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:15.267px; margin:0px; font-size:14.667px" align=justify>***The Exhibit attached to this Form 10-KSB shall not be deemed &quot;filed&quot; for purposes of Section 18 of the Securities Exchange Act of 1934 (the &quot;Exchange Act&quot;) or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify><B>Item 14. Principal Accountant Fees and Services</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify><U>Audit Fee</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal account for the audit of FrameWaves, Inc. and Subsidiary&#146;s annual financial statement and review of financial statements included in FrameWaves, Inc. and Subsidiary&#146;s 10-QSB reports and services normally provided by the accountant in connection with statutory and regulatory filings or engagements were $2,870 for fiscal year ended 2006 and $2,600 for fiscal year ended 2005.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>10</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always" align=justify><U>Audit-Related Fees</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">There were no fees for other audit related services for fiscal year ended 2005 and 2006.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><U>Tax Fees</U></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The fees for tax compliance were $100 and $525 for the years ended December 31, 2006 and 2005, respectively.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><U>All Other Fees</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">There were no other aggregate fees billed in either of the last two fiscal years for products and services provided by the principal accountant, other than the services reported above.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee. &nbsp;Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services. &nbsp;We do not rely on pre-approval policies and procedures.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>SIGNATURES</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:48px; font-size:14.667px">In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">FRAMEWAVES, INC.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px">Date: March 22, 2007</P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px"><I><U>/s/ Thomas A. Thomsen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Thomas A. Thomsen</P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Chief Executive Officer</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px">Date: March 22, 2007</P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px"><I><U>/s/ Susan Santage &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Susan Santage</P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Chief Financial Officer</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">In accordance with the Exchange Act, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=319.2></TD><TD width=319.2></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 22, 2007</P>
</TD><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I><U>/s/ Thomas A. Thomsen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Thomas A. Thomsen</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Director &nbsp;</P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 22, 2007</P>
</TD><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I><U>/s/ Susan Santage &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Susan Santage</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Director &nbsp;</P>
</TD></TR>
<TR><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=319.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 22, 2007</P>
</TD><TD valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I><U>/s/ Dianne Hatton-Ward &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Dianne Hatton-Ward</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Director</P>
</TD></TR>
</TABLE>
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<BR></P>
<P style="margin:0px" align=center>11</P>
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<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>CONSOLIDATED FINANCIAL STATEMENTS</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>DECEMBER 31, 2006 AND 2005</P>
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<P style="margin:0px" align=center>12</P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>TABLE OF CONTENTS</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=419.467></TD><TD width=18.8></TD><TD width=45.6></TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center><U>Page</U></P>
</TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">Report of Independent Registered </P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;Public Accounting Firm</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>F-1</P>
</TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">Financial Statements:</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;Consolidated Balance Sheets</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>F-2</P>
</TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;Consolidated Statements of Operations</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>F-3</P>
</TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;Consolidated Statements of Stockholders' Equity</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>F-4</P>
</TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;Consolidated Statements of Cash Flows</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>F-6</P>
</TD></TR>
<TR><TD valign=top width=419.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=419.467><P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px">&nbsp;&nbsp;Notes to Consolidated Financial Statements</P>
<P style="line-height:18.667px; margin:0px; text-indent:336px; font-size:16px">&nbsp;</P>
</TD><TD valign=top width=18.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=45.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>F-8</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>13</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:18.667px; margin:0px; text-indent:53.933px; font-size:16px; page-break-before:always" align=justify>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>To the Board of Directors and Stockholders</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>of FrameWaves, Inc. and Subsidiary</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>We have audited the accompanying consolidated balance sheets of FrameWaves, Inc. (a Nevada corporation) and subsidiary as of December 31, 2006 and 2005, and the related consolidated statements of operations, stockholders equity and cash flows for the years ended December 31, 2006, 2005 and 2004. &nbsp;These consolidated financial statements are the responsibility of the Company&#146;s management. &nbsp;Our responsibility is to express an opinion on these consolidated financial statements based on our audits.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). &nbsp;Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. &nbsp;An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. &nbsp;We believe that our audits provide a reasonable basis for our opinion.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of FrameWaves, Inc. and subsidiary as of December 31, 2006 and 2005, and the results of their operations and their cash flows for the years ended December 31, 2006, 2005 and 2004 in conformity with U.S. generally accepted accounting principles.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As disclosed in Note 10 to the financial statements, the Company incurred a net loss of $6,317 and $6,192, respectively, during the years ended December 31, 2006 and 2005, and as of December 31, 2006, the Company's current liabilities exceeded its current assets by $12,590. These factors create an uncertainty as to the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon additional capital contributions from the sale of stock and the ability to generate operating revenue. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify><I><U>/s/ Burnam and Schumm &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>Burnam and Schumm</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>Salt Lake City, Utah</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify>January 23, 2007</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-1</P>
<P style="margin:0px"><BR></P>
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<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>CONSOLIDATED BALANCE SHEETS</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>DECEMBER 31, 2006 and 2005</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=300.6></TD><TD width=22.4></TD><TD width=69.4></TD><TD width=16.067></TD><TD width=22.4></TD><TD width=70.4></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">Assets</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2006</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">Current Assets:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;Cash </P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,745</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,745</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,745</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">Liabilities and Stockholders' Equity</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">Current Liabilities:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,915</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>1,018</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>564</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>--</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Note payable, stockholder</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>10,000</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>10,000</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>15,479</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>11,018</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">Stockholders' Equity:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.001 par value</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100,000,000 shares authorized,</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,258,994 issued and outstanding</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>1,259</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>1,259</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>38,847</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>38,847</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Deficit accumulated during the</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;development stage</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(52,696)</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(46,379)</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(12,590)</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(6,273)</P>
</TD></TR>
<TR><TD valign=top width=300.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders'</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=70.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=300.6><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=69.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD><TD valign=top width=16.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=70.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,745</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:normal; margin:0px; padding-left:-1.4px; font-size:14.667px" align=center>The accompanying notes are an integral part of the consolidated financial statements.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-2</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; padding-left:-1.4px; font-size:16px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; text-indent:20.6px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>CONSOLIDATED STATEMENTS OF OPERATIONS</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=150.067></TD><TD width=22.4></TD><TD width=61.067></TD><TD width=22.4></TD><TD width=61.067></TD><TD width=15.733></TD><TD width=22.4></TD><TD width=61.067></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=31></TD><TD width=86.533></TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>For the period</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>1993</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(Quasi -</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>Reorganization)</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>Through</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=83.467 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2006</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2005</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2004</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">Revenues</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=86.533><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>1,267</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">Expenses, general</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">and administrative</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>5,753</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>6,192</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>6,504</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=86.533><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>53,399</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">Operating loss</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(5,753)</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(6,192)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(6,504)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(52,132)</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">Other income </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">(expense):</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(564)</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=86.533><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(564)</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">Net Loss</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(6,317)</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(6,192)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(6,504)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=86.533><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(52,696)</P>
</TD></TR>
<TR><TD valign=top width=150.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=86.533><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=150.067><P style="line-height:18.667px; margin:0px; font-size:16px">Net loss per share</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(.01)</P>
</TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(.01)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=86.533><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(.09)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; padding-right:-3.867px; font-size:14.667px" align=center>The accompanying notes are an integral part of the consolidated financial statements.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-3</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:14.667px; margin:0px; font-size:12px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center>CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center>YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=236.467></TD><TD width=73.067></TD><TD width=21.733></TD><TD width=62.533></TD><TD width=15.733></TD><TD width=21.733></TD><TD width=77.2></TD><TD width=16.8></TD><TD width=23.533></TD><TD width=69.933></TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Deficit</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Accumulated</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Additional</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>During the</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=157.333 colspan=3><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Common Stock</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Paid-in</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Development</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Shares</P>
</TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Amount</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Capital</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=93.467 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Stage</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Balance, December 31, 1993</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>65,600</P>
</TD><TD valign=top width=21.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>66</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(66)</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common stock issued for cash</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;and services at $.10/ share </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;on November 3, 2000</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>100,000</P>
</TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>100</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>9,900</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Contribution by shareholder </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;for Company expenses paid</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;directly by shareholder</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>22,196</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common stock issued in </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;acquisition of subsidiary,</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;Corners, Inc. on</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;December 27, 2000</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,000,000</P>
</TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,000</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(90)</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common stock issued due to </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;rounding up shareholders with </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;less than 100 shares after</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;100 for 1 reverse stock split</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;effective December 27, 2000</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>43,394</P>
</TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>43</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(43)</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net loss accumulated for</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">the period December 31, 1993 </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">(quasi-reorganization)</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">through December 31, 2003</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(33,683)</P>
</TD></TR>
<TR><TD valign=top width=236.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=77.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=69.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=236.467><P style="line-height:17.333px; margin:0px; font-size:14.667px">Balance, December 31, 2003</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,208,994</P>
</TD><TD valign=top width=21.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,209</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=77.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>31,897</P>
</TD><TD valign=top width=16.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=23.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=69.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(33,683)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>The accompanying notes are an integral part of the consolidated financial statements.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-4</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - CONTINUED</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=237.867></TD><TD width=73.067></TD><TD width=15.733></TD><TD width=21.733></TD><TD width=62.533></TD><TD width=15.933></TD><TD width=22.2></TD><TD width=78.267></TD><TD width=16.267></TD><TD width=22.2></TD><TD width=93.467></TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Deficit</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Accumulated</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Additional</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>During the</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=173.067 colspan=4><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Common Stock</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Paid-in</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Development</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Shares</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Amount</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Capital</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Stage</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Balance, December 31, 2003</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,208,994</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,209</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>31,897</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(33,683)</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common stock issued for cash</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;at $.14/ share on </P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;December 1, 2004</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>50,000</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>50</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>6,950</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net loss for the year</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;ended December 31, 2004</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>--</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>--</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-- &nbsp;&nbsp;</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(6,504)</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Balance, December 31, 2004</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,258,994</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,259</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>38,847</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(40,187)</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net loss for the year</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;ended December 31, 2005</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(6,192)</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Balance, December 31, 2005</P>
</TD><TD valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,258,994</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,259</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>38,847</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(46,379)</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net loss for the year</P>
</TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;ended December 31, 2006</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(6,317)</P>
</TD></TR>
<TR><TD valign=top width=237.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=73.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=93.467><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=237.867><P style="line-height:17.333px; margin:0px; font-size:14.667px">Balance, December 31, 2006</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=73.067><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,258,994</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=21.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=62.533><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,259</P>
</TD><TD valign=top width=15.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=78.267><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>38,847</P>
</TD><TD valign=top width=16.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=93.467><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$(52,696)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin:0px; text-indent:20.6px; font-size:16px" align=center>The accompanying notes are an integral part of the consolidated financial statements.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-5</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=226.6></TD><TD width=22.4></TD><TD width=57.2></TD><TD width=15.733></TD><TD width=22.333></TD><TD width=59.733></TD><TD width=15.733></TD><TD width=22.333></TD><TD width=57.2></TD><TD width=15.733></TD><TD width=27.6></TD><TD width=84.6></TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>For the period</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>December 31, 1993</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>(Quasi -</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Reorganization)</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>Through</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>December 31, </P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2005</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2004</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=112.2 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">Cash flows from</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">operating activities:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;Net loss</P>
</TD><TD valign=top width=22.4><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(6,317)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(6,192)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(6,504)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(52,696)</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">Adjustments to </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;reconcile net income</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;to cash provided by</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;operating activities: &nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;Contribution from </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholder</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>22,196</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for services</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>5,000</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in accounts </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payable and </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accrued interest</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>4,461</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(3,073)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>1,474</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>5,479</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net cash used </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">by operating </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">activities:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(1,856)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(9,265)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(5,030)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>(20,021)</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">Cash flows from </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">investing activities:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;Cash received in</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquisition of</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subsidiary</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>910</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">Cash flows from </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">financing activities:</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;Issuance of </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;common stock </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>7,000</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>12,000</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;related party </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;note payable</P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>10,000</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>10,000</P>
</TD></TR>
<TR><TD valign=top width=226.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net cash provided by </P>
</TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=57.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=226.6><P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;&nbsp;financing activities &nbsp;</P>
</TD><TD valign=top width=22.4><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=59.733><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>10,000</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.333><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=57.2><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>7,000</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=27.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=84.6><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right>22,000</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; padding-right:-12.467px; font-size:16px" align=center>The accompanying notes are an integral part of the consolidated financial statements.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-6</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=175.533></TD><TD width=22.733></TD><TD width=61.067></TD><TD width=15.733></TD><TD width=22.4></TD><TD width=50.4></TD><TD width=16.733></TD><TD width=22.4></TD><TD width=50.4></TD><TD width=19.933></TD><TD width=31.933></TD><TD width=85.6></TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>For the period</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>1993</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(Quasi -</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>Reorganization)</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>Through</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>December 31,</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2006</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2005</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2004</P>
</TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=117.533 colspan=2><P style="line-height:18.667px; margin:0px; font-size:16px" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">Net increase (decrease)</P>
</TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">in cash</P>
</TD><TD valign=top width=22.733><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>(1,856)</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>735</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>1,970</P>
</TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">Cash, beginning </P>
</TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">of period</P>
</TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,745</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,010</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,040</P>
</TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=85.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">&nbsp;</P>
</TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">Cash, end of period</P>
</TD><TD valign=top width=22.733><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,745</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>4,010</P>
</TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=85.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>2,889</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">Interest paid</P>
</TD><TD valign=top width=22.733><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=85.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=175.533><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=61.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=50.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=175.533><P style="line-height:18.667px; margin:0px; font-size:16px">Income taxes paid</P>
</TD><TD valign=top width=22.733><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=61.067><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=16.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=22.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=50.4><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD><TD valign=top width=19.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=31.933><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>$</P>
</TD><TD style="border-bottom:4px double #000000" valign=top width=85.6><P style="line-height:18.667px; margin:0px; font-size:16px" align=right>-</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin:0px; padding-right:-12.467px; font-size:16px" align=center>The accompanying notes are an integral part of the consolidated financial statements.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>F-7</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=center>FRAMEWAVES, INC. AND SUBSIDIARY</P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>(A Development Stage Company)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</P>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:-12px; font-size:16px" align=justify>1.</P>
<P style="line-height:18.667px; margin:0px; padding-left:-12px; text-indent:61.4px; font-size:16px" align=justify><U>Summary of Business and Significant Accounting Policies</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; text-indent:49.4px; font-size:16px" align=justify>a.</P>
<P style="line-height:18.667px; margin:0px; text-indent:97.4px; font-size:16px" align=justify><U>Summary of Business</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:97.4px; font-size:16px" align=justify>The Company was incorporated under the laws of the State of Nevada on December 23, 1985. &nbsp;The Company was formed to pursue business opportunities. &nbsp;The Company was unsuccessful in its operations. &nbsp;During 1993, Management determined it was in the best interest of the Company to discontinue its previous operations. &nbsp;The Company is considered to have re-entered into a new development stage on December 31, 1993. &nbsp;Because the Company discontinued its previous operations and is selling new potential business opportunities, the Company adopted quasi-reorganization accounting procedures to provide the Company a Afresh start@ for accounting purposes.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:97.4px; font-size:16px" align=justify>The Company has not commenced principal operations and is considered a &quot;Development Stage Company&quot; as defined by the Financial Accounting Standards Board No. 7.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; text-indent:49.4px; font-size:16px" align=justify>b.</P>
<P style="line-height:18.667px; margin:0px; text-indent:97.4px; font-size:16px" align=justify><U>Principles of Consolidation</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:97.4px; font-size:16px" align=justify>The consolidated financial statements contain the accounts of the Company and its wholly-owned subsidiary, Corners, Inc. &nbsp;All significant intercompany balances and transactions have been eliminated.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; text-indent:49.4px; font-size:16px" align=justify>c.</P>
<P style="line-height:18.667px; margin:0px; text-indent:97.4px; font-size:16px" align=justify><U>Cash Flows</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:97.4px; font-size:16px" align=justify>For purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with a maturity of three months or less to be cash or cash equivalents.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; text-indent:49.4px; font-size:16px" align=justify>d.</P>
<P style="line-height:18.667px; margin:0px; text-indent:97.4px; font-size:16px" align=justify><U>Net Loss Per Share</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:97.4px; font-size:16px" align=justify>The net loss per share calculation is based on the weighted average number of shares outstanding during the period.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; text-indent:49.4px; font-size:16px" align=justify>e.</P>
<P style="line-height:18.667px; margin:0px; text-indent:97.4px; font-size:16px" align=justify><U>Use of Estimates</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:97.4px; font-size:16px" align=justify>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. &nbsp;Accordingly, actual results could differ from those estimates.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>F-8</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=justify><U>Notes to Financial Statements - Continued</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:60px; font-size:16px" align=justify>f.</P>
<P style="line-height:18.667px; margin:0px; padding-left:60px; text-indent:48px; font-size:16px" align=justify><U>Revenue Recognition</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:108px; font-size:16px" align=justify>Revenue is recognized on the accrual basis of accounting when earned. The Company&#146;s primary business generated revenue from picture framing. The Company has not had any revenue since 2001.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:108px; text-indent:-48px; font-size:16px" align=justify>g.</P>
<P style="line-height:18.667px; margin:0px; padding-left:108px; font-size:16px" align=justify><U>Fair Value of Financial Instruments</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:108px; font-size:16px" align=justify>The amounts reported for cash and accounts payable and other financial instruments, none of which are held for trading purposes, are considered to approximate fair values based upon comparable market information available at the respective balance sheet date.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px" align=justify>2.</P>
<P style="line-height:18.667px; margin:0px; text-indent:51.467px; font-size:16px" align=justify><U>Quasi-Reorganization</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>December 7, 2000, the shareholders of the Company approved to &nbsp;adopt quasi-reorganization accounting procedures. &nbsp;Quasi-reorganization accounting allowed the Company to eliminate its previous accumulated deficit of approximately $235,000 against additional paid-in capital. &nbsp;Therefore, the adoption of quasi-reorganization accounting procedures gave the Company a Afresh start@ for accounting purposes. &nbsp;The Company is also considered as re-entering a new development stage on December 31, 1993, as it discontinued all of its previous operations. &nbsp;These financial statements have been restated to reflect the change. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:51.467px; text-indent:-51.467px; font-size:16px" align=justify>3.</P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; text-indent:-3.467px; font-size:16px" align=justify><U>Note Payable, Stockholder</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>On October 17, 2005, the Company borrowed $10,000 from an individual who is also a director and stockholder of the Company. At December 31, 2006 and 2005, the outstanding balance is $10,000. The note is unsecured, bears interest at 8% and is due on demand.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:51.467px; text-indent:-51.467px; font-size:16px" align=justify>4.</P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; text-indent:-3.467px; font-size:16px" align=justify><U>Stock Split</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>On December 27, 2000, the Company approved a 100 for 1 reverse split of the issued and outstanding common stock but no shareholder=s ownership shall be less than 100 shares. &nbsp;An additional 43,394 shares were issued as a result of rounding up to the 100 share minimum.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>The 100 for 1 reverse split has been retroactively applied in the accompanying financial statements.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>F-9</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin:0px; font-size:16px; page-break-before:always" align=justify><U>Notes to Financial Statements - Continued</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:51.467px; text-indent:-51.467px; font-size:16px" align=justify>5.</P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; text-indent:-3.467px; font-size:16px" align=justify><U>Amended Articles of Incorporation</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>On December 27, 2000, the Company amended its articles of incorporation to change its name from Messidor Limited to FrameWaves, Inc. &nbsp;In addition, the Company decreased its authorized shares from 500,000,000 to 110,000,000 shares of stock of which 100,000,000 shall be designated common stock and 10,000,000 shall be designated preferred stock. &nbsp;At December 31, 2006, no preferred stock has been issued by the Company. &nbsp;The Company has the authorization to issue the preferred stock in one or more series and to determine the voting rights, preferences as to dividends and liquidation, conversion rights, and other rights of each series.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px" align=justify>6.</P>
<P style="line-height:18.667px; margin:0px; text-indent:51.467px; font-size:16px" align=justify><U>Issuance of Common Stock</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>On November 3, 2000, the Company issued 100,000 shares of its $.001 &nbsp;par &nbsp;value &nbsp;common &nbsp;stock &nbsp;for &nbsp;an &nbsp;aggregate &nbsp;price of &nbsp;$10,000. $5,000 was received in cash and $5,000 for services rendered.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>On December 1, 2004, the company issued 50,000 shares of its common stock for $.14 per share for an aggregate cash price of $7,000.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px" align=justify>7.</P>
<P style="line-height:18.667px; margin:0px; text-indent:51.467px; font-size:16px" align=justify><U>Stock Options and Warrants</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>The Company has designated 2,000,000 shares of its authorized and unissued common stock to a future stock option plan. &nbsp;At December 31, 2006, there are no options or warrants outstanding to acquire the Company=s common stock.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:51.467px; text-indent:-51.467px; font-size:16px" align=justify>8.</P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify><U>Acquisition of Subsidiary</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>On December 27, 2000, the Company acquired 100% of the outstanding common shares of Corners, Inc. in exchange for the issuance of 1,000,000 shares of its previously authorized but unissued common stock. &nbsp;Corners, Inc. was purchased at book value of $910 or $.001 per share. &nbsp;The acquisition has been accounted for on the purchase method and 100% of the purchase price was allocated to cash. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=justify><U>Notes to Financial Statements - Continued</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px" align=justify>9.</P>
<P style="line-height:18.667px; margin:0px; text-indent:51.467px; font-size:16px" align=justify><U>Income Taxes</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify>The Company has had no taxable income under Federal or State tax laws. The Company has loss carryforwards totaling $47,696 that may be offset against future federal income taxes. If not used, the carryforwards will expire between 2020 and 2026. Due to the Company being in the development stage and incurring net operating losses, a valuation allowance has been provided to reduce the deferred tax assets from the net operating losses to zero. Therefore, there are no tax benefits recognized in the accompanying statement of operations.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>F-10</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; padding-left:51.467px; text-indent:-51.467px; font-size:16px; page-break-before:always" align=justify>10.</P>
<P style="line-height:18.667px; margin:0px; padding-left:51.467px; font-size:16px" align=justify><U>Going Concern</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:18.667px; margin:0px; padding-left:48px; font-size:16px" align=justify>As shown in the accompanying financial statements, the Company incurred a net loss of $6,317 during year ended December 31, 2006 and accumulated losses of $52,696 since quasi-reorganization at December 31, 1993. The Company's current liabilities exceed its current assets by $12,590 at December 31, 2006. These factors create an uncertainty as to the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the success of raising additional capital through the issuance of common stock and the ability to generate sufficient operating revenue. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>F-11</P>
<P style="margin:0px"><BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>framewaves10ksb06ex311.htm
<DESCRIPTION>EX. 31.1 SECTION 302 CEO CERTIFICATION
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 31.1</TITLE>
<META NAME="date" CONTENT="03/21/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:576px"><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right><B>Exhibit 31.1</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Certification Pursuant to pursuant to Rule 13a-14(a) or Rule 15d-14(a) </B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>of the Securities Exchange Act of 1934, as amended</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>I, Thomas A. Thomsen Chief Executive Officer of Framewaves, Inc. (the &quot;Company&quot;), certify that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>1. I have reviewed this annual report on Form 10-KSB of the Company;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>4. As the registrant's certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and I have:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>a)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>b)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>c)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>d)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the &nbsp;registrant's internal control over financial reporting.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>5. As the registrant's certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>a)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely </P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Exhibit 31.1 (continued)</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Certification Pursuant to pursuant to Rule 13a-14(a) or Rule 15d-14(a) </B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>of the Securities Exchange Act of 1934, as amended</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>affect the registrant's ability to record, process, summarize and report financial information; and</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>b)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>any fraud, whether or not material, that involves management or other employees &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;who have a significant role in the registrant's internal control over financial reporting.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px"><I><U>/s/ Thomas A. Thomsen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Thomas A. Thomsen</P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Chief Executive Officer </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 21, 2007</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>framewaves10ksb06ex312.htm
<DESCRIPTION>EX. 31.2 SECTION 302 CFO CERTIFICATION
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 31.2</TITLE>
<META NAME="date" CONTENT="03/21/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:576px"><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right><B>Exhibit 31.2</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Certification Pursuant to pursuant to Rule 13a-14(a) or Rule 15d-14(a) </B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>of the Securities Exchange Act of 1934, as amended</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">I, Susan Santage Chief Financial Officer of Framewaves, Inc. (the &quot;Company&quot;), certify that:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>1. I have reviewed this annual report on Form 10-KSB of the Company;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>4. As the registrant's certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and I have:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>a)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>b)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>c)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>d)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the &nbsp;registrant's internal control over financial reporting.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>5. As the registrant's certifying officer, I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>a)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:17.333px; margin:0px; font-size:14.667px; page-break-before:always"><B>Exhibit 31.2 (continued)</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Certification Pursuant to pursuant to Rule 13a-14(a) or Rule 15d-14(a) </B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>of the Securities Exchange Act of 1934, as amended</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>affect the registrant's ability to record, process, summarize and report financial information; and</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-size:14.667px" align=justify>b)</P>
<P style="line-height:17.333px; margin:0px; padding-left:72px; font-size:14.667px" align=justify>any fraud, whether or not material, that involves management or other employees &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;who have a significant role in the registrant's internal control over financial reporting.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; padding-left:288px; text-indent:48px; font-size:14.667px"><I><U>/s/ Susan Santage &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; text-indent:336px; font-size:14.667px">Susan Santage</P>
<P style="line-height:17.333px; margin:0px; padding-left:288px; text-indent:48px; font-size:14.667px">Chief Financial Officer </P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 21, 2007</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>framewaves10ksb06ex321.htm
<DESCRIPTION>EX. 32.1 SECTION 906 CEO CERTIFICATION
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 32.1</TITLE>
<META NAME="date" CONTENT="03/21/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:576px"><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right><B>Exhibit 32.1</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>CERTIFICATION PURSUANT TO</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>18 U.S.C. SECTION 1350,</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>AS ADOPTED PURSUANT TO</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>In connection with the Annual Report of Framewaves, Inc. a Nevada corporation (the &#147;Company&#148;), on Form 10-KSB for the annual period ending December 31, 2006 as filed with the Securities and Exchange Commission (the &#147;Report&#148;), I, Thomas A. Thomsen, Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350), that to my knowledge:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and</P>
<P style="margin:0px" align=justify><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; text-indent:384px; font-size:14.667px"><I><U>Thomas A. Thomsen &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; padding-left:336px; text-indent:48px; font-size:14.667px">Thomas A. Thomsen</P>
<P style="line-height:17.333px; margin:0px; padding-left:336px; text-indent:48px; font-size:14.667px">Chief Executive Officer </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 21, 2007</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>framewaves10ksb06ex322.htm
<DESCRIPTION>EX. 32.2 SECTION 906 CFO CERTIFICATION
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Exhibit 32.2</TITLE>
<META NAME="date" CONTENT="03/21/2007">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:576px"><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=right><B>Exhibit 32.2</B></P>
<P style="margin:0px"><BR></P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>CERTIFICATION PURSUANT TO</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>18 U.S.C. SECTION 1350,</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>AS ADOPTED PURSUANT TO</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px">In connection with the Annual Report of Framewaves, Inc. a Nevada corporation (the &#147;Company&#148;), on Form 10-KSB for the annual period ending December 31, 2006 as filed with the Securities and Exchange Commission (the &#147;Report&#148;), I, Susan Santage, Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350), that to my knowledge:</P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and</P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. </P>
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<P style="line-height:17.333px; margin:0px; text-indent:384px; font-size:14.667px"><I><U>/s/ Susan Santage &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></I></P>
<P style="line-height:17.333px; margin:0px; padding-left:336px; text-indent:48px; font-size:14.667px">Susan Santage</P>
<P style="line-height:17.333px; margin:0px; padding-left:336px; text-indent:48px; font-size:14.667px">Chief Financial Officer </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Date: March 21, 2007</P>
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