-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 S0yQAM+s0K9fIS8mCwZv8ArlTzY3oXFDmFLNKUe1639hEz/V9GDrZwhObVAQVf9o
 kpyne8wZjWR6UmsDFLieVw==

<SEC-DOCUMENT>0000894158-05-000019.txt : 20050719
<SEC-HEADER>0000894158-05-000019.hdr.sgml : 20050719
<ACCEPTANCE-DATETIME>20050719135617
ACCESSION NUMBER:		0000894158-05-000019
CONFORMED SUBMISSION TYPE:	10KSB
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050719
DATE AS OF CHANGE:		20050719

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHEFFIELD PHARMACEUTICALS INC
		CENTRAL INDEX KEY:			0000894158
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				133808303
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10KSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12584
		FILM NUMBER:		05961268

	BUSINESS ADDRESS:	
		STREET 1:		1220 GLENMORE DRIVE
		CITY:			APOPKA
		STATE:			FL
		ZIP:			32712
		BUSINESS PHONE:		407-880-2213

	MAIL ADDRESS:	
		STREET 1:		1220 GLENMORE DRIVE
		CITY:			APOPKA
		STATE:			FL
		ZIP:			32712

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SHEFFIELD MEDICAL TECHNOLOGIES INC
		DATE OF NAME CHANGE:	19940606
</SEC-HEADER>
<DOCUMENT>
<TYPE>10KSB
<SEQUENCE>1
<FILENAME>sffp-ksb.htm
<DESCRIPTION>FORM 10-KSB FOR THE YEAR ENDED DECEMBER 31, 2004
<TEXT>
<html>

<head>
<title>ksb</title>
</head>

<body>
<div>

<hr SIZE="4" NOSHADE COLOR="#000000">

<hr SIZE="2" NOSHADE COLOR="#000000">

<p ALIGN="CENTER"><b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="4">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">Washington, D.C. 20549<br>
</font></b><font SIZE="4" FACE="Times New Roman, Times, Serif">___________________<br>
<br>
<b>FORM 10-KSB</b><br>
___________________</font></p>

<p style="MARGIN: 0in 0in 0pt 0.5in; COLOR: windowtext; TEXT-INDENT: -0.5in"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" face="Wingdings"
size="3">&#253</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 3pt" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font
style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" size="3">ANNUAL REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size="2"><b>For the
fiscal year ended December 31, 2004</b></font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><font
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size="2"><b>or</b></font></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt 0.5in; COLOR: windowtext; TEXT-INDENT: -0.5in"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" face="Wingdings"
size="3">o</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 3pt" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font style="FONT-WEIGHT: bold; FONT-SIZE: 12pt" size="3">TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center">&nbsp;</p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center"><b><font
style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size="2">For the
transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to</font></b></p>

<p style="MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center" align="center">&nbsp;</p>

<p style="FONT-SIZE: 10pt; MARGIN: 0in 0in 0pt; COLOR: windowtext; TEXT-ALIGN: center"
align="center"><b><font style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman"
size="2">Commission file</font><font style="FONT-WEIGHT: bold"> number 01-12584<br>
</font></b></p>

<p ALIGN="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="5"><b>SHEFFIELD
PHARMACEUTICALS, INC.<br>
</b></font><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">(Exact Name Of Registrant
As Specified In Its Charter)</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="CENTER" WIDTH="55%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u>Delaware</u></font></p>
    </div></td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td ALIGN="CENTER" WIDTH="40%" COLSPAN="3"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><font
    FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u><p>13-3808303</u></font></p>
    </div></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="CENTER" WIDTH="55%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="1">(State of Incorporation)</font></p>
    </div></td>
    <td WIDTH="3%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="CENTER" WIDTH="40%" COLSPAN="3"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="1">(I.R.S. Employer Identification No.)</font></p>
    </div></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="CENTER" WIDTH="55%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><font
    FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><p></font>&nbsp;</p>
    </div></td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp; </td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp; </td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp; </td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="CENTER" WIDTH="55%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><font
    FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u><p>1220 Glenmore Drive, Apopka, FL</u></font></p>
    </div></td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td WIDTH="3%">&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td ALIGN="CENTER" WIDTH="40%" COLSPAN="3"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><font
    FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u><p>32712</u></font></p>
    </div></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="CENTER" WIDTH="55%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="1">(Address of Principal Executive Offices)</font></p>
    </div></td>
    <td WIDTH="3%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="CENTER" WIDTH="40%" COLSPAN="3"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="1">(ZIP Code)</font></p>
    </div></td>
  </tr>
</table>

<p align="center">&nbsp;<font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Registrant's
Telephone Number, Including Area Code: (407) 880-2213</font></p>

<p ALIGN="CENTER"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Securities
Registered Pursuant to Section 12(g) of The Act: Common Stock, $0.01</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Indicate by check
mark whether the registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.&nbsp;Yes&nbsp;&nbsp;[
&nbsp; ]&nbsp;&nbsp;No&nbsp;[X]<br>
<br>
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to the best of the
registrant's knowledge, in the 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; ]</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">At December 31,
2004, the Registrant had 29,563,712 shares of common stock outstanding.</font></p>

<p ALIGN="JUSTIFY">&nbsp;</p>

<hr SIZE="2" NOSHADE COLOR="#000000">

<hr NOSHADE SIZE="5" color="#000000">
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<hr NOSHADE SIZE="5" color="#000000">

<hr SIZE="1" NOSHADE COLOR="#000000">

<p ALIGN="CENTER"><a name="TABLE OF CONTENTS"><font size="2"><b>TABLE OF CONTENTS</b></font></a></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <tr VALIGN="BOTTOM">
    <th nowrap ALIGN="LEFT"><font face="Times New Roman" size="2">Item</font><hr SIZE="1"
    NOSHADE COLOR="#000000" ALIGN="LEFT" WIDTH="22%">
    </th>
    <th></th>
    <th></th>
    <th><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></th>
    <th nowrap ALIGN="LEFT"><font face="Times New Roman" size="2">Description</font><hr
    SIZE="1" NOSHADE COLOR="#000000" ALIGN="LEFT" WIDTH="60%">
    </th>
    <th ALIGN="LEFT"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></th>
    <th COLSPAN="3" nowrap><font face="Times New Roman" size="2">Page</font><hr SIZE="1"
    NOSHADE COLOR="#000000" WIDTH="22%">
    </th>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="center" WIDTH="12%" COLSPAN="9" bgcolor="#FFFFFF"><div
    STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"></div><p><font face="Times New Roman" size="2">&nbsp;
    <br>
    <strong>PART I<br>
    </strong></font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 1.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a href="#ITEM 1. DESCRIPTION OF BUSINESS">DESCRIPTION
    OF BUSINESS</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">3</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 2.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a href="#ITEM 2. DESCRIPTION OF PROPERTIES">DESCRIPTION
    OF PROPERTY</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">9</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 3.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a href="#ITEM 3. LEGAL PROCEEDING">LEGAL
    PROCEEDINGS</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">9</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 4.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a
    href="#ITEM 4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS">SUBMISSION OF
    MATTERS TO A VOTE OF SECURITY HOLDERS</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">9</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="CENTER" WIDTH="12%" COLSPAN="9"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">&nbsp; <br>
    <strong>PART II<br>
    </strong></font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp;&nbsp; </font></p>
    </div></td>
  </tr>
  <tr>
    <td></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 5.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a
    href="#ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTER">MARKET
    FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">10</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 6.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a
    href="#ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION">MANAGEMENT'S
    DISCUSSION AND ANALYSIS AND PLAN OF OPERATION</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">10</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 7.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a href="#ITEM 7.&nbsp;FINANCIAL STATEMENTS">FINANCIAL
    STATEMENTS</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" VALIGN="TOP"><font size="2">11</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 8.</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a
    href="#ITEM 8.&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE">CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">11</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">ITEM 8.A</font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    face="Times New Roman" size="2">&nbsp; <a href="#ITEM 8A.&nbsp;CONTROLS AND PROCEDURES">CONTROLS
    AND PROCEDURES</a></font></p>
    </div></td>
    <td WIDTH="3%"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">12</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="CENTER" WIDTH="12%" COLSPAN="9"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    face="Times New Roman" size="2">&nbsp; <br>
    <strong>PART III<br>
    </strong></font><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">&nbsp;&nbsp; </font></p>
    </div></td>
  </tr>
  <tr>
    <td></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 9.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a
    href="#ITEM 9.&nbsp;DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, COMPLIANCE WITH SECTION 16(A)">DIRECTORS
    AND EXECUTIVE OFFICERS OF THE REGISTRANT, COMPLIANCE WITH SECTION 16(A)</a></font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">13</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 10.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 10. EXECUTIVE COMPENSATION">EXECUTIVE COMPENSATION</a></font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">13</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 11.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a
    href="#ITEM 11.&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT">SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</a></font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">14</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 12.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 12.&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS">CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS</a></font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">14</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP" BGCOLOR="#66FFFF">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 13.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K">EXHIBITS AND REPORTS
    ON FORM 8-K</a></font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">14</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr VALIGN="TOP">
    <td ALIGN="LEFT" WIDTH="12%"><div STYLE="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"><p><font
    size="2">ITEM 14.</font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="LEFT" WIDTH="75%"><div STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font
    size="2">&nbsp; <a href="#ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES">PRINCIPAL
    ACCOUNTING FEES AND SERVICES</a></font></p>
    </div></td>
    <td WIDTH="3%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT"><font size="2">14</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
</table>
<b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="3">

<hr SIZE="1" NOSHADE COLOR="#000000">
</font></b>

<hr NOSHADE SIZE="5" color="#000000">
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<hr NOSHADE SIZE="5">

<p ALIGN="CENTER"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><b>PART I</b></font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><b><a
name="ITEM 1. DESCRIPTION OF BUSINESS">ITEM 1. DESCRIPTION OF BUSINESS</a> </b></font><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>

<p align="justify"><font size="2" color="#000000"><u>General Background of the Registrant</u></font></p>

<p align="justify" style="text-align: justify"><font size="2">Sheffield Pharmaceutical,
Inc.<font color="#000000">, a Delaware corporation, </font>was incorporated under Canadian
law in October 1986. In May 1992, the Registrant was domesticated to Wyoming pursuant to a
continuance procedure under Wyoming law. In January 1995, the Registrant's shareholders
approved the proposal to reincorporate the Registrant in Delaware, which reincorporation
was effected on June 13, 1995.</font></p>

<p align="justify" style="text-align: justify"><font size="2">Prior to filing for
bankruptcy in June 2003, the Registrant was a development stage company and, as such, had
been principally engaged in research, development and licensing efforts. The Company
generated minimal operating revenue, sustained significant net operating losses, and
required additional capital that the Company obtained through out-licensing of rights to
its technology, as well as through equity and debt offerings. The Registrant provided
pharmaceutical therapies by combining pulmonary drug delivery technologies with existing
and emerging therapeutic agents and had developed a range of products to treat respiratory
and systemic diseases. Sheffield believed these pulmonary delivery technologies would
allow it to capitalize on the growing drug delivery market by providing both advanced
respiratory treatments and patient-friendly alternatives for therapies that could have
been administered only by injection or other inconvenient means.</font></p>

<p style="text-align: justify"><font size="2">By mid 2003, the Registrant had failed to
reach profitability and was undercapitalized to implement its business plan. The Company's
inability to meet its obligations as they became due and to continue to operate its
business as a going concern resulted in the Company&#146;s decision to seek relief under
Chapter 7 of the Bankruptcy Code. </font></p>

<p align="justify"><font size="2">On June 6, 2003, the Registrant filed a voluntary
Chapter 7 bankruptcy petition under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court
Western District of New York (case no. 03-22303). </font><font face="Times New Roman"
size="2">As a result of the Chapter 7 bankruptcy petition, the Registrant's assets were
transferred to a United States Trustee and the Registrant terminated its business
operations.</font><font size="2"> </font><font face="Times New Roman" size="2">During 2003
and 2004, the Bankruptcy Trustee had disposed of substantially all of the assets of the
Registrant and its subsidiaries. </font><font size="2">On June 7, 2005, the Trustee in
proceedings under Chapter 7, filed a notice of motion for the sale of the Company's
corporate entity and 70,000,000 restricted shares of the Registrant's unissued common
stock. On July 6, 2005, the Bankruptcy Court approved an order authorizing a change in
control and confirming that Glenin Bay Equity, LLC is a good faith purchaser pursuant to
11 USC Section 363(m). The Court order further provided that the Company, subsequent to
the bankruptcy proceeding, is free and clear of all liens, claims and interests of others
and that the sale was free and clear of any and all other real or personal property
interests, including any interests in the former subsidiaries of Sheffield.</font></p>

<p align="justify"><font size="2"><u>Change in Control following Bankruptcy</u></font></p>

<p style="text-align: justify"><font size="2">The material terms of the transaction
confirmed by the Bankruptcy Court authorized Glenin Bay Equity, LLC. to receive 70,000,000
restricted shares of common stock and to appoint new members to the Registrant's board of
directors. On July 8, 2005, Glenin Bay Equity, LLC. appointed </font><font size="2"
color="#000000">Michael F. Manion to the board of directors of the Registrant, which board
subsequently appointed Mr. Manion to be chief executive officer and chief financial
officer of the Registrant (the &quot;Management&quot;).</font></p>

<p><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><u>New Business
Objectives of the Registrant</u></font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">As
a result of the Chapter 7 bankruptcy proceeding, the Registrant has no present operations.
Management determined to direct its efforts and limited resources to pursue potential new
business opportunities. The Registrant does not intend to limit itself to a particular
industry and has not established any particular criteria upon which it shall consider and
proceed with a business opportunity.</font></p>

<p align="justify"><font size="2">Our common stock previously traded on the American Stock
Exchange and subsequently on the NASDAQ OTCBB under the symbol SFFP. In 2003, due to the
Registrant's failure to file periodic and annual reports, the Registrant's shares were
deleted from the NASDAQ OTCBB market, following which the Registrant's common stock has
been subject to quotation on the pink sheets. There is currently only a limited trading
market in the Registrant's shares. There can be no assurance that there will be an active
trading market for our common stock. In the event that an active trading market commences,
there can be no assurance as to the market price of our shares of common stock, whether
any trading market will provide liquidity to investors, or whether any trading market will
be sustained.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Management
intends to devote such time as it deems necessary to carry out the Registrant's affairs.
The exact length of time required for the pursuit of any new potential business
opportunities is uncertain. No assurance can be made that we will be successful in our
efforts. We cannot project the amount of time that our Management will actually devote to
the Registrant's plan of operation.</font></p>

<p ALIGN="JUSTIFY"><font size="2" color="#000000"><u>Plan of Operation</u></font></p>

<p align="justify"><font size="2" color="#000000">We have no present operations or
revenues and our current activities are related to seeking new business opportunities,
including seeking an acquisition or merger with an operating company. If our board of
directors seeks to acquire another business or pursue a new business opportunity,
Management would have substantial flexibility in identifying and selecting a prospective
business. Registrant would not be obligated nor does Management intend to seek
pre-approval from our shareholders. Under the laws of the State of Delaware, the consent
of holders of a majority of the issued and outstanding shares, acting without a
shareholders meeting, can approve an acquisition.</font></p>

<p align="justify"><font size="2" color="#000000">The Registrant is entirely dependent on
the judgment of Management in connection with pursuing a new business opportunity or a
selection process for a target operating company. In evaluating a prospective new business
opportunity or an operating company, we would consider, among other factors, the
following: (i) costs associated with effecting a transaction; (ii) equity interest in and
opportunity to control the prospective candidate; (iii) growth potential of the target
business; (iv) experience and skill of management and availability of additional
personnel; (v) necessary capital requirements; (vi) the prospective candidate's
competitive position; (vii) stage of development of the business opportunity; (viii) the
market acceptance of the business, its products or services; (ix) the availability of
audited financial statements of the potential business opportunity; and (x) the regulatory
environment that may be applicable to any prospective business opportunity. </font></p>

<p align="justify"><font size="2" color="#000000">The foregoing criteria are not intended
to be exhaustive and there may be other criteria that Management may deem relevant. In
connection with an evaluation of a prospective or potential business opportunity,
Management may be expected to conduct a due diligence review.</font></p>

<p align="justify"><font size="2" color="#000000"><u>Liquidity and Capital Resources</u></font></p>

<p align="justify"><font size="2" color="#000000">We will use our limited personnel and
financial resources in connection with seeking new business opportunities, including
seeking an acquisition or merger with an operating company. It may be expected that
entering into a new business opportunity or business combination will involve the issuance
of a substantial number of restricted shares of common stock. If such additional
restricted shares of common stock are issued, our shareholders will experience a dilution
in their ownership interest in the Registrant. If a substantial number of restricted
shares are issued in connection with a business combination, a change in control may be
expected to occur.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">In
connection with our plan to seek new business opportunities and/or effecting a business
combination, we may determine to seek to raise funds from the sale of restricted stock or
debt securities.We have no agreements to issue any debt or equity securities and cannot
predict whether equity or debt financing will become available at terms acceptable to us,
if at all.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">There
are no limitations in our articles of incorporation on our ability to borrow funds or
raise funds through the issuance of restricted common stock to effect a business
combination. Our limited resources and lack of operating history may make it difficult to
do borrow funds or raise capital. Our inability to borrow funds or raise funds through the
issuance of restricted common stock required to effect or facilitate a business
combination may have a material adverse effect on our financial condition and future
prospects, including the ability to complete a business combination. To the extent that
debt financing ultimately proves to be available, any borrowing will subject us to various
risks traditionally associated with indebtedness, including the risks of interest rate
fluctuations and insufficiency of cash flow to pay principal and interest, including debt
of an acquired business.</font></p>

<p><font size="2" color="#000000"><u>Selection and Structuring of a New Business
Opportunity</u></font></p>

<p align="justify"><font size="2">New Management owns 70% of the total issued and
outstanding voting shares. As a result, Management may have substantial flexibility in
identifying and selecting a prospective new business opportunity. The Registrant will be
dependent on the judgment of its Management in connection with the selection of a new
business opportunity. <font color="#000000">I</font></font><font size="2" color="#000000">n
evaluating a prospective business opportunity, we would consider, among other factors, the
following: (i) costs associated with pursuing a new business opportunity; (ii) growth
potential of the potential new business opportunity; (iii) experiences, skills and
availability of additional personnel necessary to pursue a potential new business
opportunity; (iv) necessary capital requirements; (v) the competitive position of the new
business opportunity; (vi) stage of business development; (vii) the market acceptance of
the potential products and services; (viii) proprietary features and degree of
intellectual property; and (ix) the regulatory environment that may be applicable to any
prospective business opportunity.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">The
foregoing criteria are not intended to be exhaustive and there may be other criteria that
Management may deem relevant. In connection with an evaluation of a potential business
opportunity, Management may be expected to conduct a due diligence review and may seek
assistance of independent third parties.</font></p>

<p align="justify"><font color="#000000" face="TIMES NEW ROMAN, TIMES, SERIF" size="2">The
time and costs required to select and evaluate a potential new business opportunity,
including conducting a due diligence review, and to structure a plan to pursue a potential
new business opportunity cannot presently be ascertained. Management will devote such time
as it deems reasonably necessary to carry out plans for potential new business
opportunities. As a result, the time devoted to the Registrant's business may vary
depending upon whether we have identified a new potential business opportunity and decided
to pursue it.</font></p>

<p align="justify"><font size="2" color="#000000"><u>Conflicts of Interest</u></font></p>

<p align="justify"><font size="2" color="#000000">Our Management is not required to commit
its full time to our affairs. As a result, pursuing new business opportunities may require
a greater period of time than if Management would devote their full time to our affairs.
Management is not precluded from serving as officers or directors of any other entity that
is engaged in business activities similar to those of the Registrant. Management has not
identified and is not currently negotiating a new business opportunity for us. In the
future, Management may become associated or affiliated with entities engaged in business
activities similar to those we intend to conduct. In such event, Management may have
conflicts of interest in determining to which entity a particular business opportunity
should be presented. In the event that our Management has multiple business affiliations,
it may have legal obligations to present certain business opportunities to multiple
entities. In the event that a conflict of interest shall arise, Management will consider
factors such as reporting status, availability of audited financial statements, current
capitalization and the laws of applicable jurisdictions. If several business opportunities
or operating entities approach Management with respect to a business combination,
Management will consider the foregoing factors as well as the preferences of the
Management of the operating company. However, Management will act in what it believes will
be in the best interests of the shareholders of the Registrant. The Registrant shall not
enter into a transaction with a target business that is affiliated with Management.</font></p>

<p ALIGN="JUSTIFY"><font size="2" color="#000000"><u>Business Experience of Management</u></font></p>

<p ALIGN="JUSTIFY"><font size="2" color="#000000">Michael F. Manion, our sole officer and
director, had experience in negotiating transactions involving several different private
operating companies. In connection with or upon completion of such transactions, Mr.
Manion resigned his Management position. The following table sets forth business
transactions Management was involved during the last five years.</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%" height="0%">
  <tr>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)" align="right"
    height="17"><p align="left"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Company</font></td>
    <td width="45%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)" align="left"
    height="17"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Type and Date of
    Transaction</font></td>
    <td width="25%"
    style="border-left: 1px solid rgb(0,0,0); border-right: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)"
    align="left" height="17"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Subsequent
    Involvement</font></td>
  </tr>
  <tr>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    align="left" height="0%"><font size="2">Sun City Industries, Inc.<br>
    <br>
    <br>
    </font></td>
    <td width="45%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    align="left" height="0%"><font size="2"><font color="#000000">Merger in June 2004 between
    Sun City Industries, Inc., a reporting non-operating public company </font>and Yangling
    Daiying Biological Engineering Co., an operating company. Sun City subsequently changed
    its name to Worldwide Biotech &amp; Pharmaceutical Co.<font color="#000000"> and became
    the successor reporting company and is subject to quotation on the OTCBB.</font></font></td>
    <td width="25%"
    style="border-left: 1px solid rgb(0,0,0); border-right: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    align="left" height="0%"><font size="2" color="#000000">Mr. Manion resigned as president
    and director following the merger with Worldwide Biotech &amp; Pharmaceutical Co.<br>
    </font></td>
  </tr>
  <tr>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px solid rgb(0,0,0)"
    align="left" height="0%"><font size="2">eChex Worldwide<br>
    <br>
    <br>
    </font></td>
    <td width="45%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px solid rgb(0,0,0)"
    align="left" height="0%"><font size="2" color="#000000">Merger in June 2004 between eChex
    Worldwide, a reporting non-operating public company and BBMF Corp. of Honk Kong, an
    operating company. eChex Worldwide subsequently changed its name to BBMF Corp.and became
    the successor reporting company and is subject to quotation on the OTCBB.</font></td>
    <td width="25%" style="border: 1px solid rgb(0,0,0)" align="left" height="0%"><font
    size="2" color="#000000">Mr. Manion resigned as a director following the merger with BBMF
    Corp.<br>
    <br>
    </font></td>
  </tr>
</table>

<p align="center"><font size="2" color="#000000"><strong><u>RISK FACTORS</u></strong></font></p>

<p ALIGN="JUSTIFY"><font size="2">FORWARD-LOOKING STATEMENTS<br>
This annual report on Form 10-KSB contains forward-looking statements that are based on
current expectations, estimates, forecasts and projections about us, our future
performance, our beliefs and our Management's assumptions. In addition, other written or
oral statements that constitute forward-looking statements may be made by us or on our
behalf. Words such as &quot;expects,&quot; &quot;anticipates,&quot; &quot;targets,&quot;
&quot;goals,&quot; &quot;projects,&quot; &quot;intends,&quot; &quot;plans,&quot;
&quot;believes,&quot; &quot;seeks,&quot; &quot;estimates,&quot; variations of such words
and similar expressions are intended to identify such forward-looking statements. These
statements are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict or assess. Therefore, actual
outcomes and results may differ materially from what is expressed or forecast in such
forward-looking statements. Except as required under the federal securities laws and the
rules and regulations of the SEC, we do not have any intention or obligation to update
publicly any forward-looking statements after the filing of this Form 10-KSB, whether as a
result of new information, future events, changes in assumptions or otherwise.</font></p>

<p align="justify"><font size="2" color="#000000">DEPENDENCE ON KEY PERSONNEL<u><br>
</u>The Registrant is dependent upon the continued services of its Management. To the
extent that their services become unavailable, the Registrant will be required to obtain
other qualified personnel and there can be no assurance, given its limited resources, that
it will be able to recruit and hire qualified persons upon acceptable terms.</font></p>

<p style="text-align: justify"><font size="2">LIMITED RESOURCES; NO PRESENT SOURCE OF
REVENUES<br>
At present, we have no business operations and our business activities are limited to
seeking potential business opportunities. Due to our limited financial and personnel
resources, there is only a limited basis upon which to evaluate our prospects for
achieving our intended business objectives. We have only limited resources and have no
operating income, revenues or cash flow from operations. Our Management is providing us
with limited&nbsp;funding, on an as needed basis, necessary for us to continue our
corporate existence and our business objective to seek new business opportunities, as well
as funding the costs of remaining a reporting company under the Exchange Act. We have no
written agreement with our Management to provide any interim financing for any period. In
addition, we will not generate any revenues unless and until we enter into&nbsp;a new
business or acquire an entity that generates revenues, of which there can be no assurance.
There can be no assurance that any business that we may acquire will generate any material
revenues or operate on a profitable basis.</font></p>

<p style="text-align: justify"><font size="2">BROAD DISCRETION OF MANAGEMENT<br>
Any person who invests in our securities will do so without an opportunity to evaluate the
specific merits or risks of any potential new prospective business in which we may engage.
As a result, investors will be entirely dependent on the broad discretion and judgment of
Management in connection with the selection of a prospective business. There can be no
assurance that determinations made by our Management will permit us to achieve our
business objectives.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">ABSENCE OF SUBSTANTIVE DISCLOSURE RELATING TO PROSPECTIVE BUSINESS <br>
As of the date of filing of this annual report, we have not yet identified any prospective
business or industry in which we may seek to become involved and at present we have no
substantive information concerning any prospective business. There can be no assurance
that any prospective business combination will benefit shareholders or prove to be more
favorable to shareholders than any other investment that may be made by shareholders and
investors.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">THERE IS NO ACTIVE MARKET FOR OUR COMMON STOCK AND NONE MAY DEVELOP OR BE
SUSTAINED<br>
Our common stock previously traded on the NASDAQ OTCBB under the symbol SFFP. In 2003, the
Registrant did not remain current in its reporting obligations under the Exchange Act and
its shares subsequently ceased trading on the NASDAQ OTCBB market. Following deletion from
the OTCBB, the Registrant's common stock has been subject to quotation on the pink sheets.
There is currently only a limited trading market in our common stock. There can be no
assurance that there will be an active trading market for our common stock following a
business combination or commencement of a new business. In the event that an active
trading market commences, there can be no assurance as to the market price of our shares
of common stock, whether any trading market will provide liquidity to investors, or
whether any trading market will be sustained.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">UNSPECIFIED INDUSTRY FOR NEW PROSPECTIVE BUSINESS OPPORTUNITIES;
UNASCERTAINABLE RISKS<br>
There is no basis for shareholders to evaluate the possible merits or risks of potential
new business opportunities or the particular industry in which we may ultimately operate.
To the extent that we effect a business combination with an entity that is financially
unstable or is in its early stage of development or growth, including entities without
established records of revenues or income, we will become subject to numerous risks
inherent in the business and operations of that company. In addition, to the extent that
we effect a business combination with an entity in an industry characterized by a high
degree of risk, we will become subject to the currently unascertainable risks of that
industry. An extremely high level of risk frequently characterizes certain industries that
experience rapid growth. Although Management will endeavor to evaluate the risks inherent
in a particular new prospective business or industry, there can be no assurance that we
will properly ascertain or assess all such risks or that subsequent events may not alter
the risks that we perceive at the time of the consummation of any new business
opportunity.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">CONFLICTS OF INTEREST<br>
Our Management is not required to commit its full time to our affairs. There may be a
conflict of interest in allocating their time in the event that Management engages in
similar business efforts for other entities. Our Management will devote such time, in its
sole discretion, to conduct our business, including the evaluation of potential new
business opportunities and the negotiation and consummation of a business combination. As
a result, the amount of time devoted to our business and affairs may vary significantly
depending upon whether we have identified a new prospective business opportunity or are
engaged in active negotiations related to the consummation of a business combination.</font></p>

<p style="text-align: justify"><font size="2" color="#000000">COMPETITION<br>
We expect to encounter intense competition from other entities seeking to pursue new
business opportunities or business combinations.&nbsp;Many of these entities&nbsp;are
well-established and have extensive experience in connection with identifying new
prospective business opportunities or in effecting business combinations. Many of these
competitors possess greater financial, technical, human and other resources than we do and
there can be no assurance that we will have the ability to compete successfully. Based
upon our limited financial and personnel resources, we may lack the resources as compared
to those of many of our potential competitors.</font></p>

<p align="justify" style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
SIZE="2" color="#000000">REPORTING REQUIREMENTS MAY DELAY OR PRECLUDE ACQUISITION. <br>
Pursuant to the requirements of Section 13 of the Exchange Act, we are required to provide
certain information about significant acquisitions and other material events. We will
continue to be required to file quarterly reports on Form 10-QSB and annual reports on
Form 10-KSB, which annual report must contain our audited financial statements. As a
reporting company under the Exchange Act, following any business combination, we will be
required to file a report on Form 8-K or other form appropriate under the Exchange Act,
which contains audited financial statements of the acquired entity. These audited
financial statements must be filed with the SEC within 71 days following the filing of
Form 8-K disclosing the transaction. While obtaining audited financial statements is
typically the economic responsibility of the acquired company, it is possible that a
potential target company may be a non-reporting company with unaudited financial
statements. The additional time and costs that may be incurred by some potential target
companies to prepare such audited financial statements may significantly delay or may even
preclude consummation of an otherwise desirable transaction. Acquisition prospects that do
not have or are unable to obtain the required audited statements may not be appropriate
for acquisition because we are subject to the reporting requirements of the Exchange Act.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">ADDITIONAL FINANCING REQUIREMENTS<br>
We have no revenues and are dependent upon the willingness of our Management to fund the
costs associated with our reporting obligations under the Exchange Act, and
other&nbsp;administrative costs associated with our corporate existence. As of the date of
this filing, the Registrant has paid a total of $</font><font color="#000000"
face="Times New Roman" size="2">57,500</font><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
SIZE="2" color="#000000"> for general and administrative expenses, including accounting
fees and reinstatement fees. We may not generate any revenues until the consummation of a
business combination or our commencement of new business operations. We anticipate that we
will have available to us sufficient resources to continue to pay accounting and other
professional fees and other miscellaneous expenses that may be required until we commence
business operations or enter into a business combination. In the event that available
resources from our Management prove to be insufficient for the purpose of commencing
operations through a business combination or otherwise, we will be required to seek
additional financing. Our failure to secure additional financing could have a material
adverse affect on our ability to commence a new business or pursue a business combination.
We do not have any arrangements with any bank or financial institution to secure
additional financing and there can be no assurance that any such arrangement would be
available on terms acceptable and in our best interests. We do not have any written
agreement with Management to provide funds for our operating expenses.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">STATE BLUE SKY REGISTRATION; POTENTIAL LIMITATIONS ON RESALE OF THE
SECURITIES<br>
The holders of our shares of common stock registered under the Exchange Act and those
persons who desire to purchase them in any trading market should be aware that there may
be state blue-sky law restrictions upon the ability of investors to resell our securities.
Accordingly, investors should consider the secondary market for the Registrant's
securities to be a limited one.</font></p>

<p align="justify" style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
SIZE="2" color="#000000">It is the intention of the Registrant's management following the
consummation of a business or business combination to seek coverage and publication of
information regarding the Registrant in an accepted publication manual which permits a
manual exemption. The manual exemption permits a security to be distributed in a
particular state without being registered if the Registrant issuing the security has a
listing for that security in a securities manual recognized by the state. However, it is
not enough for the security to be listed in a recognized manual. The listing entry must
contain (1) the names of Registrant's, officers, and directors, (2) Registrant's balance
sheet, and (3) a profit and loss statement for either the fiscal year preceding the
balance sheet or for the most recent fiscal year of operations. Furthermore, the manual
exemption is a nonissuer exemption restricted to secondary trading transactions, making it
unavailable for issuers selling newly issued securities.</font></p>

<p style="text-align: justify"><font size="2" color="#000000">Most of the accepted manuals
are those published in Standard and Poor's, Moody's Investor Service, Fitch's Investment
Service, and Best's Insurance Reports, and many states expressly recognize these manuals.
A smaller number of states declare that they &quot;recognize securities manuals&quot; but
do not specify the recognized manuals. The following states do not have any provisions and
therefore do not expressly recognize the manual exemption: Alabama, Georgia, Illinois,
Kentucky, Louisiana, Montana, South Dakota, Tennessee, Vermont and Wisconsin. </font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">DIVIDENDS UNLIKELY<br>
We do not expect to pay dividends for the foreseeable future because we have no revenues
or any potential business operations. The payment of dividends will be contingent upon our
future revenues and earnings, if any, capital requirements and overall financial
conditions. The payment of any future dividends will be within the discretion of our board
of directors as then constituted. It is our expectation that future management, following
a business combination, will determine to retain any earnings for use in business
operations and accordingly, we do not anticipate declaring any dividends in the
foreseeable future.</font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">POSSIBLE ISSUANCE OF ADDITIONAL SECURITIES<br>
Our Articles of Incorporation, as amended, authorize the issuance of 100,000,000 shares of
common stock, par value $0.01. As of December 31, 2004, we had 29,563,712 shares of common
stock issued and outstanding. We may issue additional shares of common stock or preferred
stock in connection with our intention to pursue new business opportunities or enter into
a business combination. To the extent that additional shares of common stock are issued,
our shareholders would experience dilution of their respective ownership interests in the
Registrant. If we issue shares of common stock in connection with our intent to pursue new
business opportunities, a change in control of the Registrant may occur. The issuance of
additional shares of common stock and convertible preferred stock may adversely affect
the&nbsp;market price of our common stock, in the event that an active trading market
commences, of which there can be no assurance. </font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">COMPLIANCE WITH PENNY STOCK RULES<br>
Our common stock will&nbsp; be considered a &quot;penny stock&quot; as defined in the
Exchange Act and the rules thereunder, unless the price of our shares of common stock is
at least $5.00. We expect that our share price will be less than $5.00. Unless our common
stock is otherwise excluded from the definition of &quot;penny stock,&quot; the penny
stock rules apply. The penny stock rules require a broker-dealer prior to a transaction in
penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure
document prepared by the SEC that provides information about penny stocks and the nature
and level of risks in the penny stock market. The broker-dealer also must provide the
customer with current bid and offer quotations for the penny stock, the compensation of
the broker-dealer and its sales person in the transaction, and monthly account statements
showing the market value of each penny stock held in the customer's account. In addition,
the penny stock rules require that the broker-dealer, not otherwise exempt from such
rules, must make a special written determination that the penny stock is suitable for the
purchaser and receive the purchaser's written agreement to the transaction. These
disclosure rules have the effect of reducing the level of trading activity in the
secondary market for a stock that becomes subject to the penny stock rules. So long as the
common stock is subject to the penny stock rules, it may become more difficult to sell
such securities. Such requirements could result in reduction in the level of trading
activity for our common stock and could make it more difficult for investors to sell our
common stock. </font></p>

<p style="text-align: justify"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"
color="#000000">GENERAL ECONOMIC RISKS<br>
The Registrant's current and future business plans are dependent, in large part, on the
state of the general economy. Adverse changes in economic conditions may may adversely
affect our plan of operation. These conditions and other factors beyond the Registrant's
control include, but are not limited to regulatory changes.</font></p>

<p ALIGN="JUSTIFY"><b><a name="ITEM 2. DESCRIPTION OF PROPERTIES"><font size="2">ITEM 2.
DESCRIPTION OF PROPERTIES</font></a> </b><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">The Registrant's</font><font size="2" color="#000000">
corporate office is located at 1220 Glenmore Drive, Apopka, FL 32712, which space is&nbsp;
provided to us on a rent-free basis by management. These facilities consist of
approximately 300 square feet of office space. The Registrant believes that the office
facilities are sufficient for the foreseeable future and this arrangement will remain in
effect until we find a new business opportunity or consummate a business combination. </font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><b><a
name="ITEM 3. LEGAL PROCEEDING">ITEM 3. LEGAL PROCEEDING</a> </b></font><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>
<font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">

<p ALIGN="JUSTIFY" style="text-align: justify"></font><font color="#000000"
face="Times New Roman" size="2">The Registrant's officers and directors are not aware of
any threatened or pending litigation to which the Registrant is a party or which any of
its property is the subject and which would have any material, adverse effect on the
Registrant. The Registrant, prior to its bankruptcy proceeding, was subject to several
claims. As a result of the confirmed order of the U.S. Bankruptcy Court dated July 6, 2005
pursuant to Section 363(f) of the Bankruptcy Code, the Registrant is free of all liens,
claims and interests of others.</font></p>
<font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">

<p ALIGN="JUSTIFY"><b><a
name="ITEM 4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS">ITEM
4.&nbsp;SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS</a> </b></font><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">During the year ended December 31, 2004, no matters were
submitted to a vote of our security holders.</font></p>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<hr NOSHADE SIZE="5">

<p ALIGN="center"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><b>PART II</b></font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><b><a
name="ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTER">ITEM 5.
MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTER</a> </b></font><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">(a) Market Price Information<br>
</font><font color="#000000" face="Times New Roman" size="2">During 2004, the Registrant's
common stock was subject to quotation on the OTCBB under the symbol SFFP. In connection
with the Registrant filing a Chapter 7 bankruptcy petition on June 6, 2003 and subsequent
delinquency in its reporting requirements, its common stock became subject to quotation on
the pink sheets. To the best knowledge of the Registrant, there has been only a limited
trading market for our common stock for approximately the past two years. The following
table shows the high and low bid prices for the Registrant's common stock during the
fiscal years 2004 and 2003 as reported by the National Quotation Bureau Incorporated.
These prices reflect inter-dealer quotations without adjustments for retail markup,
markdown or commission, and do not necessarily represent actual transactions.</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%" height="0%">
  <tr VALIGN="BOTTOM">
    <th nowrap height="0"></th>
    <th height="0"><font size="1">&nbsp; </font></th>
    <th height="0"><font size="1">&nbsp; </font></th>
    <th height="0"><font size="1">&nbsp;&nbsp;&nbsp; </font></th>
    <th COLSPAN="3" nowrap height="0"><font size="1">High</font></th>
    <th height="0"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;</font></th>
    <th COLSPAN="3" nowrap height="0"><font size="1">Low</font></th>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" bgcolor="#00FFFF" height="0%"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">Year Ended December 31,
    2004</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended December 31,
    2004</font></p>
    </div></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;$</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.01</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;$</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.00</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" bgcolor="#00FFFF" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended September
    30, 2004</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.01</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.00</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended June 30,
    2004</font></p>
    </div></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.005</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.00</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" bgcolor="#00FFFF" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended March 31,
    2004</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.005</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.00</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" height="0%"><font size="2">&nbsp; </font></td>
    <td WIDTH="3%" height="0%"></td>
    <td WIDTH="3%" height="0%"></td>
    <td WIDTH="3%" height="0%"></td>
    <td height="0%"></td>
    <td height="0%"></td>
    <td height="0%"></td>
    <td height="0%"></td>
    <td height="0%"></td>
    <td height="0%"></td>
    <td height="0%"></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" bgcolor="#00FFFF" height="0%"><div
    STYLE="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><p><font size="2">Year Ended December 31,
    2003</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended December 31,
    2003</font></p>
    </div></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;$</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.06</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;$</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.00</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" bgcolor="#00FFFF" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended September
    30, 2003</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.03</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.00</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended June 30,
    2003</font></p>
    </div></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.39</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" height="0%"><font size="2">0.01</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td ALIGN="LEFT" WIDTH="100%" bgcolor="#00FFFF" height="0%"><div
    STYLE="MARGIN-LEFT: 20px; TEXT-INDENT: -10px"><p><font size="2">Quarter ended March 31,
    2003</font></p>
    </div></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.39</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
    <td WIDTH="3%" bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td WIDTH="5%" ALIGN="RIGHT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td ALIGN="RIGHT" bgcolor="#00FFFF" height="0%"><font size="2">0.02</font></td>
    <td WIDTH="5%" ALIGN="LEFT" nowrap bgcolor="#00FFFF" height="0%"><font size="2">&nbsp;&nbsp;</font></td>
  </tr>
</table>

<p><font size="2">(b) Approximate Number of Holders of Common Stock<br>
On December 31, 2004, there were approximately 295 shareholders of record of our common
stock.</font></p>

<p ALIGN="JUSTIFY"><font size="2">(c) Dividends<br>
We currently do not pay cash dividends on our common stock and have no plans to reinstate
a dividend on our common stock.</font></p>

<p ALIGN="JUSTIFY" style="text-align: justify"><font size="2">(d) Sale of Unregistered
Securities<br>
During the three-month period ended December 31, 2004, the Registrant issued no restricted
shares.</font></p>

<p ALIGN="JUSTIFY"><font size="2">(e) Equity Compensation Plans<br>
We have no equity compensation plans.</font></p>

<p ALIGN="JUSTIFY"><b><a
name="ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION"><font size="2">ITEM
6. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION</font></a> </b><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font color="#000000" size="2">The following discussion contains
forward-looking statements. Forward-looking statements give our current expectations or
forecasts of future events. You can identify these statements by the fact that they do not
relate strictly to historical or current facts. They use of words such as
&quot;anticipate,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;project,&quot;
&quot;intend,&quot; &quot;plan,&quot; &quot;believe,&quot; and other words and terms of
similar meaning in connection with any discussion of future operating or financial
performance. From time to time, we also may provide forward-looking statements in other
materials that we release to the public.</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"
color="#000000"><u>Overview<br>
</u>Our current activities are related to seeking a new business opportunity or business
combination. We will use our limited personnel and financial resources in connection with
such activities. It may be expected that entering into a new business opportunity or
business combination will involve the issuance of restricted shares of our common stock. </font></p>

<p align="justify"><font color="#000000" face="Times New Roman" size="2">During the third
quarter of 2003, we discontinued our former business operations in connection with our
filing a Chapter 7 bankruptcy petition. As of the date of this filing and subsequently to
emerging from bankruptcy, the Registrant has paid a total of $57,500 for general and
administrative expenses, including accounting fees and reinstatement fees. While we are
dependent upon interim funding provided by Management to pay professional fees and
expenses, we have no written finance agreement with Management to provide any continued
funding.</font></p>

<p align="justify"><font color="#000000" size="2"><u>Liquidity and Capital Resources</u></font></p>

<p align="justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2" color="#000000">At
December 31, 2004, we had no assets and had no liabilities. As part of our intent to seek
new business opportunities and/or in effecting a business combination, we may determine to
seek to raise funds from the sale of equity or debt securities.We have no agreements to
issue any debt or equity securities and cannot predict whether equity or debt financing
will become available at terms acceptable to us, if at all.</font></p>

<p align="justify"><font color="#000000" size="2">We anticipate that in connection with
the commencement of a new business opportunity or consummation of a business combination,
we will issue a substantial number of additional restricted shares or other securities. If
such additional securities are issued, our shareholders will experience a dilution in
their ownership interest in the Company. If a substantial number of shares are issued in
connection with a business combination, a change in control may be expected to occur.</font></p>

<p align="justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2" color="#000000">There
are no limitations in our articles of incorporation on our ability to borrow funds or
raise funds through the issuance of restricted common stock to effect a business
combination. Our limited resources and lack of operating history may make it difficult to
do borrow funds or raise capital. Our inability to borrow funds or raise funds through the
issuance of restricted common stock that may be required to effect or facilitate a
business combination may have a material adverse effect on our financial condition and
future prospects, including the ability to complete a business combination. To the extent
that debt financing ultimately proves to be available, any borrowing will subject us to
various risks traditionally associated with indebtedness, including the risks of interest
rate fluctuations and insufficiency of cash flow to pay principal and interest, including
debt of an acquired business. </font></p>

<p ALIGN="JUSTIFY"><b><a name="ITEM 7.&nbsp;FINANCIAL STATEMENTS"><font size="2">ITEM
7.&nbsp;FINANCIAL STATEMENTS</font></a> </b><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">The Registrant's financial statements for the fiscal
years ended December 31, 2004 and 2003 are attached to this annual report.</font></p>

<p ALIGN="JUSTIFY"><a
href="#Financial Statements for the Years ended December 31, 2003 and 2002"><font size="2">Financial
Statements for the Fiscal Year ended December 31, 2004 and 2003</font></a></p>

<p ALIGN="JUSTIFY"><b><a
name="ITEM 8.&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE"><font
size="2">ITEM 8.&nbsp;CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE</font></a> </b><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="2">None.</font></p>

<p ALIGN="JUSTIFY"><b><font face="Times New Roman" size="2"><a
name="ITEM 8A.&nbsp;CONTROLS AND PROCEDURES">ITEM 8A.&nbsp;CONTROLS AND PROCEDURES</a> </font></b><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>

<p style="text-align: justify"><font size="2">Evaluation of disclosure controls and
procedures. <font color="#000000">Management was appointed during the third quarter of
2005. As of July 13, 2005, the Company's chief executive officer and chief financial
officer conducted an evaluation regarding the effectiveness of the Company's disclosure
controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the&nbsp;
Exchange Act. Based upon the evaluation of these controls and procedures, our president
and chief financial officer concluded that our disclosure controls and procedures were
effective as of the date of filing this quarterly report.</font></font></p>

<p style="text-align: justify"><font size="2">Changes in internal controls. <font
color="#000000">During the period since management changed on July 8, 2005, no changes
occurred in our internal control over financial reporting that materially affected, or is
reasonably likely to materially affect, our internal control over financial reporting.</font></font></p>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">

<hr NOSHADE SIZE="5">

<p ALIGN="CENTER"><b>PART III</b></font></p>

<p ALIGN="JUSTIFY"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2"><b><a
name="ITEM 9.&nbsp;DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, COMPLIANCE WITH SECTION 16(A)">ITEM
9.&nbsp;DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, COMPLIANCE WITH SECTION 16(A)</a>
</b></font><a href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF"
size="1">Back to Table of Contents</font></a></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%" height="0%">
  <tr>
    <td width="20%" bgcolor="#00FFFF" height="0"><font size="1"><strong>Name</strong></font></td>
    <td width="5%" bgcolor="#00FFFF" height="0"></td>
    <td width="5%" bgcolor="#00FFFF" align="center" height="0"><font size="1"><strong>Age</strong></font></td>
    <td width="5%" bgcolor="#00FFFF" height="0"></td>
    <td width="40%" bgcolor="#00FFFF" height="0"><font size="1"><strong>Title</strong></font></td>
    <td width="5%" bgcolor="#00FFFF" height="0"></td>
    <td width="20%" bgcolor="#00FFFF" align="center" height="0"><font size="1"><strong>Date
    Became Executive Officer</strong></font></td>
  </tr>
  <tr>
    <td width="20%" bgcolor="#FFFFFF" height="0"><font size="2">Michael F. Manion</font></td>
    <td width="5%" bgcolor="#FFFFFF" height="0"></td>
    <td width="5%" bgcolor="#FFFFFF" align="center" height="0"><font size="2">55</font></td>
    <td width="5%" bgcolor="#FFFFFF" height="0"></td>
    <td width="40%" bgcolor="#FFFFFF" height="0"><font size="2">CEO, CFO and Chairman</font></td>
    <td width="5%" bgcolor="#FFFFFF" height="0"></td>
    <td width="20%" bgcolor="#FFFFFF" align="center" height="0"><font size="2">07/2005</font></td>
  </tr>
</table>

<p><font size="2">Our chief executive officer and chief financial officer has held his
position and directorship with us since July 2005. Officers are not elected for a fixed
term of office but hold office until their successors have been elected.</font></p>

<p style="text-align: justify"><font face="Times New Roman" size="2">Michael F. Manion,
55, has been CFO and a director of the Registrant since July 2005. Since 2000, Mr. Manion
has been engaged in the business of reorganizing distressed public companies. </font><font
size="2">From June 2003 until June 2004, Mr. Manion was president and a director of Sun
City Industries Inc., a publicly traded reporting company. Sun City Industries, Inc.
completed its reorganization by entering into a reorganization agreement with Yangling
Daiying Biological Engineering Co. and subsequently changed its name to Worldwide Biotech
&amp; Pharmaceutical Co. From March 2004 until June 2004, Mr. Manion was a director of
eChex Worldwide Corp., a publicly traded reporting company. Mr. Manion resigned as
director in connection with eChex Worldwide entering into a merger agreement with BBMF
Corp. of Honk Kong. Michael F. Manion is a cum laude graduate of the Wharton School of
Business at the University of Pennsylvania.</font></p>

<p ALIGN="JUSTIFY"><b><a name="ITEM 10. EXECUTIVE COMPENSATION"><font size="2">ITEM 10.
EXECUTIVE COMPENSATION</font></a> </b><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<table cellSpacing="0" cellPadding="0" width="100%" align="center" border="0" HEIGHT="0%">
  <tr bgColor="white">
    <td align="center" colSpan="9" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>Summary Compensation Table </strong></font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><font size="1">&nbsp; </font></td>
    <td width="1%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="center" width="18%" colSpan="2" height="0%"><p align="center"><font size="1"><strong>Long
    Term </strong></font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><font size="1">&nbsp; </font></td>
    <td width="1%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="center" width="27%" colSpan="3" height="0%"><p align="center"><font size="1"><strong>Annual
    Compensation </strong></font></td>
    <td align="center" width="18%" colSpan="2" height="0%"><p align="center"><font size="1"><strong>Compensation
    Awards </strong></font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><font size="1">&nbsp; </font></td>
    <td width="2%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="27%" colSpan="3" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="18%" colSpan="2" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><font size="1">&nbsp; </font></td>
    <td width="1%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Other </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Restricted </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Securities </strong></font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><font size="1">&nbsp; </font></td>
    <td width="1%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Annual </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Stock </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Underlying </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>All Other </strong></font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><font size="1">&nbsp; </font></td>
    <td width="1%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><font size="1">&nbsp; </font></td>
    <td align="center" width="9%" height="0%"><p align="center"><font size="1"><strong>Salary </strong></font></td>
    <td align="center" width="9%" height="0%"><p align="center"><font size="1"><strong>Bonus </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Compensation </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Award(s) </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Options </strong></font></td>
    <td align="center" width="9%" height="0%"><font size="1"><strong>Compensation </strong></font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%" bgcolor="#00FFFF"><font size="1">&nbsp; <strong>Name and
    Principal Position </strong></font></td>
    <td width="1%" height="0%" bgcolor="#00FFFF"><font size="1">&nbsp; </font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="right"><font
    size="1"><strong>Year </strong></font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>($)</strong></font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>($)</strong></font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>($)</strong></font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>($) </strong></font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>($)</strong></font></td>
    <td align="center" width="9%" height="0%" bgcolor="#00FFFF"><p align="center"><font
    size="1"><strong>($)</strong></font></td>
  </tr>
  <tr vAlign="bottom" bgColor="white">
    <td width="35%" height="0%"><hr noShade SIZE="2">
    </td>
    <td width="2%" height="0%"><font size="2">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
  </tr>
  <tr>
    <td width="35%" height="0%" style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"><font
    size="2">Michael F. Manion, CEO, CFO and Chairman </font><font size="1">(1)</font></td>
    <td width="1%" height="0%" style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"
    align="center"></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">2005 </font></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">--- </font></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">--- </font></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">--- </font></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">--- </font></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">--- </font></td>
    <td align="right" width="9%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><font size="2">--- </font></td>
  </tr>
  <tr>
    <td width="35%" height="0%"><hr noShade SIZE="2">
    </td>
    <td width="2%" height="0%"><font size="2">&nbsp; </font></td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
    <td align="right" width="9%" height="0%"><hr noShade SIZE="2">
    </td>
  </tr>
  <tr>
    <td colSpan="9" height="0%"><font size="1">(1) Mr. Manion became CEO, CFO and Chairman of
    the Registrant in July 2005.</font></td>
  </tr>
</table>

<p ALIGN="JUSTIFY"><font size="2">The Company has no employment agreement with its new
CEO.</font></p>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<p ALIGN="JUSTIFY"><b><a
name="ITEM 11.&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT"><font
size="2">ITEM 11.&nbsp;SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</font></a>
</b><a href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back
to Table of Contents</font></a></p>

<p style="text-align: justify"><font size="2" color="#000000">The table below discloses
any person (including any &quot;group&quot;) who is known to the Registrant to be the
beneficial owner of more than five (5%) percent of the Registrant's voting securities. As
of July 13, 2005, the Registrant had </font><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
SIZE="2" color="#000000">99,563,712</font><font size="2" color="#000000"> shares issued.</font></p>

<table border="0" cellspacing="0" width="100%" height="32" cellpadding="0">
  <tr>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)" height="10"
    bgcolor="#00FFFF"><p align="center"><font size="1"><strong>Title of Class</strong></font></td>
    <td width="40%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)" height="10"
    bgcolor="#00FFFF"><p align="left"><font size="1"><strong>Name and Address of Beneficial
    Owner</strong></font></td>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)" height="10"
    bgcolor="#00FFFF"><p align="center"><font size="1"><strong>Amount of Beneficial Owner</strong></font></td>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-right: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0)"
    height="10" bgcolor="#00FFFF"><p align="center"><font size="1"><strong>Percent of Common
    Stock(1)</strong></font></td>
  </tr>
  <tr>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    height="1" bgcolor="#FFFFFF"><p align="center"><font size="2">Common Stock</font></td>
    <td width="40%" align="left"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    height="1" bgcolor="#FFFFFF"><font size="2">Michael F. Manion<br>
    1220 Glenmore Drive<br>
    Apopka, Florida 32712</font></td>
    <td width="20%" align="center"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    height="1" bgcolor="#FFFFFF"><font size="2">70,000,000 shares</font></td>
    <td width="20%" align="center"
    style="border-left: 1px solid rgb(0,0,0); border-right: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    height="1" bgcolor="#FFFFFF"><font size="2">70.03%</font></td>
  </tr>
  <tr>
    <td width="20%"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px solid rgb(0,0,0)"
    height="0" bgcolor="#FFFFFF"><p align="center"><font size="2">Common Stock</font></td>
    <td width="40%" align="left"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px solid rgb(0,0,0)"
    height="0" bgcolor="#FFFFFF"><font size="2">Officer and director as a group (1 person)</font></td>
    <td width="20%" align="center"
    style="border-left: 1px solid rgb(0,0,0); border-top: 1px solid rgb(0,0,0); border-bottom: 1px solid rgb(0,0,0)"
    height="0" bgcolor="#FFFFFF"><font size="2">70,000,000 shares</font></td>
    <td width="20%" align="center" style="border: 1px solid rgb(0,0,0)" height="0"
    bgcolor="#FFFFFF"><font size="2">70.03%</font></td>
  </tr>
  <tr>
    <td width="95%"
    style="border-left: 1px none rgb(0,0,0); border-top: 1px none rgb(0,0,0); border-bottom: 1px none rgb(0,0,0)"
    height="15" bgcolor="#FFFFFF" colspan="4"><font size="1">(1) The percentage of common
    stock is based on 99,563,712 common stock outstanding as of July 13, 2005.</font></td>
  </tr>
</table>

<p style="text-align: justify"><font size="2">To the knowledge of the Registrant, there
are no arrangements which may result in a change in control of the Registrant. However, in
the event that the Registrant enters into a business combination with an operating entity,
it may be expected that it will experience a change in control.</font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><b><a
name="ITEM 12.&nbsp;CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS">ITEM 12.&nbsp;CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS</a> </b></font><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" size="2" color="#000000">During
the last two fiscal years, to the knowledge of the Registrant, there was no person who had
or has a direct or indirect material interest in any transaction or proposed transaction
to which the Registrant was or is a party.</font></p>

<p ALIGN="JUSTIFY"><b><a name="ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K"><font size="2">ITEM
13. EXHIBITS AND REPORTS ON FORM 8-K</font></a> </b><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY"><font size="2">(a) The following documents are filed as exhibits to
this report on Form 10-KSB or incorporated by reference herein. Any document incorporated
by reference is identified by a parenthetical reference to the SEC filing that included
such document.</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%" height="0%">
  <tr>
    <td width="8%" bgcolor="#00FFFF" height="0%"><font size="1"><strong>Exhibit No.</strong></font></td>
    <td width="92%" bgcolor="#00FFFF" height="0%"><font size="1"><strong>Description</strong></font></td>
  </tr>
  <tr>
    <td width="8%" bgcolor="#FFFFFF" height="0%"><font size="1">31.1</font></td>
    <td width="92%" bgcolor="#FFFFFF" height="0%"><font size="1">Certification of Chief
    Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of
    the Exchange Act pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></td>
  </tr>
  <tr>
    <td width="8%" bgcolor="#FFFFFF" height="0%"><font size="1">32.1</font></td>
    <td width="92%" bgcolor="#FFFFFF" height="0%"><font size="1">Certification of Chief
    Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></td>
  </tr>
</table>

<p><font size="2">(b)&nbsp;Reports on Form 8-K During the Last Quarter of the Fiscal Year
Covered by this Report:</font></p>

<p><font size="2">The Registrant did not file a Form 8-K during the last quarter of the
fiscal year covered by this annual report.</font></p>

<p ALIGN="JUSTIFY"><b><a name="ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES"><font
size="2">ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES</font></a> </b><a
href="#TABLE OF CONTENTS"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to
Table of Contents</font></a></p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="2">Independent Public
Accountants<br>
The Registrant's Board of Directors has appointed Michael F. Cronin, CPA as independent
public accountant for the fiscal year ending December 31, 2003.</font></p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;</p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
SIZE="2">Principal Accounting Fees<br>
The following table presents the fees for professional audit services rendered by Michael
F. Cronin, CPA for the audit of the Registrant's annual financial statements for the years
ended December 31, 2004, and fees billed for other services rendered by Michael F. Cronin,
CPA during those periods. </font></p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font FACE="TIMES NEW ROMAN, TIMES, SERIF"
SIZE="2">&nbsp; </font></p>

<table style="BORDER-COLLAPSE: collapse" cellSpacing="0" cellPadding="0" width="100%"
align="center" border="0" height="0%">
  <tr>
    <td vAlign="bottom" width="100%" height="0" bgcolor="#00FFFF" colspan="6"><p align="right"><font
    face="Times New Roman" size="1"><b>Year&nbsp;Ended&nbsp;</b></font></td>
  </tr>
  <tr>
    <td vAlign="top" width="55%" height="0"></td>
    <td vAlign="bottom" width="2%" height="0" align="right"></td>
    <td vAlign="bottom" align="right" width="13%" height="0"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="bottom" width="15%" height="0"></td>
    <td vAlign="bottom" width="2%" height="0" align="right"></td>
    <td vAlign="bottom" align="right" width="13%" height="0"
    style="border-bottom: 1px solid rgb(0,0,0)"><font face="Times New Roman" size="1"><b>December
    31, 2004 </b></font></td>
  </tr>
  <tr bgColor="#cceeff">
    <td vAlign="top" width="55%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font size="2">Audit fees
    (1)</font></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"></td>
    <td vAlign="bottom" width="15%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"><font size="2">$ </font></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"><font size="2">--- </font></td>
  </tr>
  <tr>
    <td vAlign="top" width="55%" height="0%"><p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font
    size="2">Audit-related fees (2)</font></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"></td>
    <td vAlign="bottom" width="15%" height="0%"></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"><font size="2">&nbsp; </font></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"><font size="2">--- </font></td>
  </tr>
  <tr bgColor="#cceeff">
    <td vAlign="top" width="55%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"><p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font size="2">Tax fees
    (3)</font></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"></td>
    <td vAlign="bottom" width="15%" height="0%" style="background-color: rgb(255,255,255)"
    bgcolor="#00FFFF"></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"><font size="2">&nbsp; </font></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"
    style="background-color: rgb(255,255,255)" bgcolor="#00FFFF"><font size="2">--- </font></td>
  </tr>
  <tr>
    <td vAlign="top" width="55%" height="0%"><p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font
    size="2">All other fees </font></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"></td>
    <td vAlign="bottom" width="15%" height="0%"></td>
    <td vAlign="bottom" width="2%" height="0%" align="right"><font size="2">&nbsp; </font></td>
    <td vAlign="bottom" align="right" width="13%" height="0%"><font size="2">--- </font></td>
  </tr>
  <tr>
    <td vAlign="top" width="55%" height="0"><font size="2">________________</font></td>
    <td vAlign="bottom" width="2%" height="0" align="right"></td>
    <td vAlign="bottom" align="right" width="13%" height="0"></td>
    <td vAlign="bottom" width="15%" height="0"></td>
    <td vAlign="bottom" width="2%" height="0" align="right"></td>
    <td vAlign="bottom" align="right" width="13%" height="0"></td>
  </tr>
  <tr>
    <td vAlign="top" width="100%" height="0%" colspan="6"><font
    face="TIMES NEW ROMAN, TIMES, SERIF" size="1" color="#000000">(1) Audit fees consist of
    audit and review services, consents and review of documents filed with the SEC. </font></td>
  </tr>
  <tr>
    <td vAlign="top" width="100%" height="0" colspan="6"><font
    face="TIMES NEW ROMAN, TIMES, SERIF" size="1" color="#000000">(2) Audit-related fees
    consist of assistance and discussion concerning financial accounting and reporting
    standards and other accounting issues. </font></td>
  </tr>
  <tr>
    <td vAlign="top" width="100%" height="0" colspan="6"><font
    face="TIMES NEW ROMAN, TIMES, SERIF" size="1" color="#000000">(3) Tax fees consist of
    preparation of federal and state tax returns, review of quarterly estimated tax payments,
    and consultation concerning tax compliance issues. </font></td>
  </tr>
</table>

<p style="text-align: justify; margin-top: 0px; margin-bottom: 0px">&nbsp;</p>

<p style="text-align: justify; margin-top: 0px; margin-bottom: 0px"><font
FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Code of Ethics <br>
In July 2005, the Registrant adopted a Code of Ethics that is designed to deter wrongdoing
and to promote honest and ethical conduct, full, fair, accurate, timely and understandable
disclosure in the Registrant's SEC reports and other public communications. The Code of
Ethics promotes compliance with applicable governmental laws, rules and regulations. </font></p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; TEXT-INDENT: 4%">&nbsp;</p>
<b>

<p style="text-align: justify"></b><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Section
16(a) Compliance<br>
Section 16(a) of the Securities and Exchange Act of 1934 requires the Registrant's
directors and executive officers, and persons who own beneficially more than ten percent
(10%) of the Registrant's Common Stock, to file reports of ownership and changes of
ownership with the Securities and Exchange Commission. Copies of all filed reports are
required to be furnished to the Registrant pursuant to Section 16(a). Based solely on the
reports received by the Registrant and on written representations from reporting persons,
the Registrant was informed that its officer and director has not filed reports required
under Section 16(a).</font></p>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<hr NOSHADE SIZE="5">

<p ALIGN="CENTER"><font size="2"><b>SIGNATURES</b></font></p>

<p ALIGN="JUSTIFY"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2">Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on the date
indicated.</font></p>

<table ALIGN="CENTER" CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
  <tr>
    <td ALIGN="LEFT" WIDTH="15%"><font FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE="2"><u>/s/
    MICHAEL F. MANION</u><br>
    Michael F. Manion<br>
    <i>&nbsp;&nbsp;CEO, CFO&nbsp; and Director<br>
    &nbsp; Dated: July 19, 2005</i></font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<p align="center"><a name="Financial Statements"><strong><font size="2">Financial
Statements</font></strong></a><font size="3"> </font><a href="#TABLE OF CONTENTS"><font
face="TIMES NEW ROMAN, TIMES, SERIF" size="1">Back to Table of Contents</font></a></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%" height="180">
  <tr>
    <td width="90%" height="0"><a
    href="#REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM"><font size="2">Report of
    Independent Registered Public Accounting Firm</font></a></td>
    <td width="10%" align="right" height="0"><font size="2">18</font></td>
  </tr>
  <tr>
    <td width="90%" height="24"><font size="2">Financial Statements</font></td>
    <td width="10%" align="right" height="24"></td>
  </tr>
  <tr>
    <td width="90%" height="0"><font size="2">&nbsp;&nbsp; <a href="#Balance Sheets">Balance
    Sheets</a></font></td>
    <td width="10%" align="right" height="0"><font size="2">19</font></td>
  </tr>
  <tr>
    <td width="90%" height="0"><font size="2">&nbsp;&nbsp; <a href="#Statement of Operations">Statement
    of Operations</a></font></td>
    <td width="10%" align="right" height="0"><font size="2">20</font></td>
  </tr>
  <tr>
    <td width="90%" height="24"><font size="2">&nbsp;&nbsp; <a
    href="#Statements of Cash Flows">Statement of Cash Flows</a></font></td>
    <td width="10%" align="right" height="24"><font size="2">21</font></td>
  </tr>
  <tr>
    <td width="90%" height="0"><font size="2">&nbsp;&nbsp; <a
    href="#Statements of Stockholders' Equity">Statement of Stockholders' Equity</a></font></td>
    <td width="10%" align="right" height="0"><font size="2">22</font></td>
  </tr>
  <tr>
    <td width="90%" height="0"><a href="#BACKGROUND AND SIGNIFICANT ACCOUNTING POLICIES"><font
    size="2">Notes to Financial Statements</font></a></td>
    <td width="10%" align="right" height="0"><font size="2">23</font></td>
  </tr>
  <tr>
    <td width="90%" height="24"><font size="2">&nbsp; </font></td>
    <td width="10%" align="right" height="24"></td>
  </tr>
</table>

<p>&nbsp;</p>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div><font size="2"><b>

<p ALIGN="center"><a name="REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM">REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</a> </b><a href="#Financial Statements"><font
size="1">Back to Table of Contents</font></a></p>

<p ALIGN="JUSTIFY">To the Board of Directors and Stockholders<br>
Uromed Corporation </p>

<p ALIGN="JUSTIFY">I have audited the accompanying balance sheet of Sheffield
Pharmaceuticals, Inc. as of December 31, 2004 and 2003 and the related statements of
operations, changes in stockholders&#146; deficiency and cash flows for the years then
ended. These financial statements are the responsibility of the Company&#146;s management.
My responsibility is to express an opinion on these financial statements based on my
audit.</p>

<p ALIGN="JUSTIFY">I conducted my audit in accordance with auditing standards established
by the Public Company Accounting Oversight Board. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. The company is not required to have, nor was I engaged
to perform, an audit of its internal control over financial reporting. My audit included
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control over
financial reporting. Accordingly, I express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the 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. I believe that my audit provides a reasonable basis for my
opinion.</p>

<p ALIGN="JUSTIFY">In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Sheffield Pharmaceuticals,
Inc. as of December 31, 2004 and 2003 and the results of its operations and its cash flows
for the years then ended in conformity with accounting principles generally accepted in
the United States of America..</p>

<p ALIGN="JUSTIFY">The Company adopted &quot;fresh-start&quot; accounting as of June 7,
2003. The impact of this is more fully described in note 1 of the financial statements.</font></p>
<font size="2">

<p>&nbsp;</p>

<p>Michael F. Cronin, CPA<br>
Rochester, New York </p>

<p>July 10, 2005</font></p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p align="center"><a
name="Financial Statements for the Years ended December 31, 2003 and 2002"><strong><font
size="2">Financial Statements for the Years ended December 31, 2004 and 2003</font></strong></a><font
size="1"> <a href="#Financial Statements">Back to Table of Contents</a></font></p>

<table style="BORDER-BOTTOM: rgb(0,0,0) 1px" height="0%" cellSpacing="0" cellPadding="0"
width="100%" border="0">
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center" bgcolor="#00FFFF"><font
    size="2"><b>Sheffield Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center"><font size="2"><a
    name="Balance Sheets">Balance Sheets</a> </font><font size="1"><a
    href="#Financial Statements">Back to Table of Contents</a></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" colspan="5" align="center">&nbsp; </td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="1">&nbsp;&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="28%" height="0%" colspan="3"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="1">Successor Company</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="1">Successor Company</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="1">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">December 31, 2004</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">December 31, 2003</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><p align="center"><font size="2">ASSETS</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Current Assets:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Cash</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; Prepaid expenses</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#00FFFF"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total current assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#00FFFF"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#00FFFF"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#00FFFF"
    style="border-bottom: 2px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#00FFFF"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#00FFFF"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Total Assets</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 2px double rgb(0,0,0)" bgcolor="#00FFFF"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 2px double rgb(0,0,0)" bgcolor="#00FFFF"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><p align="center"><font size="2">LIABILITIES
    AND STOCKHOLDERS' EQUITY</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Current Liabilities:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accounts
    payable-trade</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"><font size="2">$</font></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Accrued expenses</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#00FFFF"><font size="2">&nbsp;&nbsp;
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#00FFFF"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#00FFFF"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%" bgcolor="#00FFFF"
    style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td vAlign="middle" align="right" width="13%" height="0%" bgcolor="#00FFFF"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Long term debt</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%">0</td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%">&nbsp; </td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">Stockholders' Equity:</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Preferred Stock,
    3,000,000 authorized, $0.01 par value;</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Common stock,
    $0.01 par value; 100,000,000 shares authorized;</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    29,563,712 issued and outstanding</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">295,637</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">295,637</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Additional paid-in
    capital</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">(295,637)</font></td>
    <td vAlign="middle" align="right" width="2%" height="0%"></td>
    <td vAlign="middle" align="right" width="13%" height="0%"><font size="2">(295,637)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp; Retained earnings</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">0</font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    Equity</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">0</font></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%"><font size="2">&nbsp; </font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="70%" height="0%" bgcolor="#00FFFF"><p align="left"><font
    size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities and Stockholders' Equity</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0%" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%" bgcolor="#00FFFF"><font size="2">0</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="2%"
    height="0%" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="13%"
    height="0%" bgcolor="#00FFFF"><font size="2">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" bgcolor="#FFFFFF" colspan="5"><font size="2">&nbsp;
    </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0%" bgcolor="#FFFFFF" colspan="5"><font size="2">See
    Summary of Significant Accounting Policies and Notes to Financial Statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<table height="548" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr>
    <td width="100%" height="0" colspan="5" align="center" bgcolor="#00FFFF"><font size="2"><b>Sheffield
    Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="5" align="center"><font size="2"><a
    name="Statement of Operations">Statement of Operations</a> </font><font size="1"><a
    href="#Financial Statements">Back to Table of Contents</a></font></td>
  </tr>
  <tr>
    <td width="100%" height="0" colspan="5" align="center">&nbsp; </td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="22%" height="0" style="border-bottom: 1px none rgb(0,0,0)"
    colspan="3"><font size="1"><p align="center">Fiscal Years Ended December 31,</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1">2004</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td align="right" width="10%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1">2003</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">Revenue</font></td>
    <td align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td align="right" width="10%" height="0" bgcolor="#00FFFF"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td align="right" width="10%" height="0" bgcolor="#00FFFF"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Costs and Expenses:</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; General and Administrative</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Other</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Interest</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="10%" height="0" bgcolor="#FFFFFF"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 1px none rgb(0,0,0)"
    bgcolor="#FFFFFF"></td>
    <td align="right" width="10%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"
    bgcolor="#FFFFFF"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Total costs and expenses</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Loss from continuing operations before income
    taxes, extraordinary </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; gain and discontinued operations</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Discontinued operations:</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Loss from
    discontinued operations (net of taxes)</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="10%" height="0" bgcolor="#FFFFFF"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td align="right" width="10%" height="0" bgcolor="#FFFFFF"><font size="2">(1,170,555)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Gain on disposal of assets used in
    discontinued operations</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 1px none rgb(0,0,0)"></td>
    <td align="right" width="10%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">16,532,874</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Income from discontinued operations</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">15,362,319</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">Net Income (loss)</font></td>
    <td align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td align="right" width="10%" height="0" bgcolor="#00FFFF"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 2px none rgb(0,0,0)"
    bgcolor="#00FFFF"><font size="2">$</font></td>
    <td align="right" width="10%" height="0" bgcolor="#00FFFF"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">15,362,319</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Preferred stock dividends</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"><font size="2">(611,033)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Net income (loss) available to common
    shareholders</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="10%" height="0"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="10%" height="0"><font size="2">14,751,286</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Basic and diluted per shares amounts:</font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Continued operations</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="10%" height="0"><font size="2">0.00</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="10%" height="0"><font size="2">0.00</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Discontinued operations</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="10%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.00</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 2px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td align="right" width="10%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.50</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Basic and diluted net loss</font></td>
    <td align="right" width="2%" height="0"><font size="2">$</font></td>
    <td align="right" width="10%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.00</font></td>
    <td align="right" width="2%" height="0" style="border-bottom: 2px none rgb(0,0,0)"><font
    size="2">$</font></td>
    <td align="right" width="10%" height="0" style="border-bottom: 2px double rgb(0,0,0)"><font
    size="2">0.50</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="10%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Weighted average shares outstanding (basic and
    diluted)</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" align="right" width="2%" height="0"></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" align="right" width="10%" height="0"><font
    size="2">29,563,712</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" align="right" width="2%" height="0"></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" align="right" width="10%" height="0"><font
    size="2">29,563,712</font></td>
  </tr>
  <tr>
    <td width="130%" height="0" colspan="5"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="130%" height="0" colspan="5"><font size="2">See Summary of Significant
    Accounting Policies and Notes to Financial Statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<table cellSpacing="0" cellPadding="0" width="100%" border="0" height="649">
  <tr>
    <td width="101%" height="0" colspan="5" align="center" bgcolor="#00FFFF"><font size="2"><b>Sheffield
    Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td width="101%" height="0" colspan="5" align="center"><font size="2"><a
    name="Statements of Cash Flows">Statements of Cash Flows</a> </font><a
    href="#Financial Statements"><font size="1">Back to Table of Contents</font></a></td>
  </tr>
  <tr>
    <td width="101%" height="24" colspan="5" align="center"></td>
  </tr>
  <tr>
    <td width="70%" height="24"></td>
    <td width="2%" height="24" align="right"></td>
    <td width="13%" align="right" height="24"><font size="1">Fiscal Year</font></td>
    <td width="2%" height="24" align="right"></td>
    <td width="13%" align="right" height="24"><font size="1">Fiscal Year</font></td>
  </tr>
  <tr>
    <td width="70%" height="1"></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" align="right" height="1"><font size="1">Ended</font></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" align="right" height="1"><font size="1">Ended</font></td>
  </tr>
  <tr>
    <td width="70%" height="1"><font size="1">&nbsp; </font></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" align="right" style="border-bottom: 1px solid rgb(0,0,0)" height="1"><font
    size="1">December 31, 2004</font></td>
    <td width="2%" height="1" align="right"></td>
    <td width="13%" height="1" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="1">December 31, 2003</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash flows from operating activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td align="right" width="13%" height="0"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">Net income (loss)</font></td>
    <td width="2%" height="0" align="right" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td width="13%" height="0" align="right" bgcolor="#00FFFF"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="2">$</font></td>
    <td width="13%" height="0" align="right" bgcolor="#00FFFF"><font size="2">15,362,319</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Adjustments required to reconcile net loss to
    net cash used in operating activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Expenses paid by issuance of equity
    instruments</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">23,780</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Depreciation</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">30,302</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Gain from discontinued operations</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">(16,532,874)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; (Increase) decrease in current
    assets</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">158,697</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Increase (decrease) in accounts
    payable and accrued expenses</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">333,163</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    flows used by operating activities</font></td>
    <td width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 1px" align="right" width="2%" height="0"
    bgcolor="#00FFFF"></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">(624,613)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">Cash flow from investing
    activities:</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Purchase of equipment</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">(21,817)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Cash
    used in investing activities</font></td>
    <td width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#00FFFF"></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">(21,817)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash flows from financing activities:</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Proceeds from
    debt borrowings</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">330,000</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#FFFFFF"><font size="2">&nbsp;&nbsp; Payments on
    long-term debt</font></td>
    <td width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#FFFFFF"></td>
    <td width="13%" height="0" bgcolor="#FFFFFF" align="right"><font size="2">(765)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp; Cash transferred to bankruptcy
    estate</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">(10,000)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net
    cash provided by financing activities</font></td>
    <td width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">0</font></td>
    <td align="right" width="2%" height="0" bgcolor="#00FFFF"></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">319,235</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp; </font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Change in cash</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right"><font size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right"><font size="2">(327,195)</font></td>
  </tr>
  <tr>
    <td width="70%" height="0"><font size="2">Cash - beginning of period</font></td>
    <td width="2%" height="0" align="right"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">0</font></td>
    <td align="right" width="2%" height="0"></td>
    <td width="13%" height="0" align="right" style="border-bottom: 1px solid rgb(0,0,0)"><font
    size="2">327,195</font></td>
  </tr>
  <tr>
    <td width="70%" height="0" bgcolor="#00FFFF"><font size="2">Cash - end of period</font></td>
    <td width="2%" height="0" bgcolor="#00FFFF" align="right"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" align="right" width="2%" height="0"
    bgcolor="#00FFFF"><font size="2">$</font></td>
    <td width="13%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="2">0</font></td>
  </tr>
  <tr>
    <td width="100%" height="0" bgcolor="#FFFFFF" colspan="5"><font size="2">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="100%" height="0" bgcolor="#FFFFFF" colspan="5"><font size="2">See Summary of
    Significant Accounting Policies and Notes to Financial Statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<table height="276" cellSpacing="0" cellPadding="0" width="100%" border="0">
  <tr>
    <td vAlign="middle" width="100%" height="0" colspan="12" align="center" bgcolor="#00FFFF"><font
    size="1"><b>Sheffield Pharmaceuticals, Inc.</b></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0" colspan="12" align="center"><font size="1"><a
    name="Statements of Stockholders' Equity">Statements of Stockholders' Equity</a>&nbsp; <a
    href="#Financial Statements">Back to Table of Contents</a></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0" colspan="12" align="center"><font size="1">&nbsp;
    </font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"></td>
    <td vAlign="middle" width="18%" height="0" align="right" colspan="3"><p align="center"><font
    size="1">Preferred Stock</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="20%" height="0" colspan="3"><p align="center"><font size="1">Common
    Stock</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">Additional</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">Number of</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">Stated Or</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="10%" height="0"><p align="right"><font size="1">Number of</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" width="8%" height="0"><p align="right"><font size="1">Stated Or</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">Paid-In</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" width="8%" height="0"><p align="right"><font size="1">Accumulated</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"></td>
    <td vAlign="middle" width="8%" height="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">Shares</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">Par value</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="10%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="right"><font size="1">Shares</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" width="8%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="right"><font size="1">Par Value</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"
    style="border-bottom: 1px solid rgb(0,0,0)"><p align="right"><font size="1">Capital</font></td>
    <td vAlign="middle" width="2%" height="0"></td>
    <td vAlign="middle" width="8%" height="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="right"><font size="1">Deficit</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0" bgcolor="#00FFFF"><font size="1">Balance at
    December 31, 2001</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"><font size="1">35,631</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"><font size="1">$</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"><font size="1">356</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td vAlign="middle" align="right" width="10%" height="0" bgcolor="#00FFFF"><p
    align="right"><font size="1">29,001,602</font></td>
    <td vAlign="middle" align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td vAlign="middle" align="right" width="8%" height="0" bgcolor="#00FFFF"><font size="1">290,016</font></td>
    <td vAlign="middle" align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td vAlign="middle" align="right" width="8%" height="0" bgcolor="#00FFFF"><p align="right"><font
    size="1">83,120,316</font></td>
    <td vAlign="middle" align="right" width="2%" height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td vAlign="middle" align="right" width="8%" height="0" bgcolor="#00FFFF"><font size="1">(92,496,964)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp; </font></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" align="right" width="10%" height="0"></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; Preferred and
    common stock issued</font></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">3,320</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">34</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" align="right" width="10%" height="0"><font size="1">562,110</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">5,621</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">1,001,379</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">-</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; Preferred stock
    dividends</font></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" align="right" width="10%" height="0"><font size="1">-</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">-</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">3,319,966</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">(2,323,583)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; Revaluation of
    options and warrants</font></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" align="right" width="10%" height="0"><font size="1">-</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">-</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">314,457</font></td>
    <td vAlign="middle" align="right" width="2%" height="0"></td>
    <td vAlign="middle" align="right" width="8%" height="0"><font size="1">-</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; Net loss</font></td>
    <td vAlign="middle" width="8%" height="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">(8,617,582)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0" bgcolor="#00FFFF"><font size="1">Balance at
    December 31, 2002</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"><font size="1">38,951</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"><font size="1">390</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0" bgcolor="#00FFFF"><font size="1">29,563,712</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">295,637</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">87,756,118</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">(103,438,129)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; </font></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0"></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0" bgcolor="#FFFFFF"><font size="1">&nbsp;&nbsp;
    Stock issued for cash</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#FFFFFF" align="right"><font size="1">276</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#FFFFFF" align="right"><font size="1">3</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0" bgcolor="#FFFFFF"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#FFFFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#FFFFFF"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#FFFFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#FFFFFF"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#FFFFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#FFFFFF"><font size="1">-</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0" bgcolor="#FFFFFF"><font size="1">&nbsp;&nbsp;
    Effect of &quot;Fresh Start&quot; accounting</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#FFFFFF" align="right"><font size="1">(39,227)</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#FFFFFF" align="right"><font size="1">(393)</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#FFFFFF" align="right"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0" bgcolor="#FFFFFF"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#FFFFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#FFFFFF"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#FFFFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#FFFFFF"><font size="1">(88,051,755)</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#FFFFFF"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#FFFFFF"><font size="1">118,189,415</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; Net loss</font></td>
    <td vAlign="middle" width="8%" height="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right" style="border-bottom: 1px solid"><font
    size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">(14,751,286)</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0" bgcolor="#00FFFF"><font size="1">Balance at
    December 31, 2003</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 2px none rgb(0,0,0)"><font size="1">0</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"><font size="1">$</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 2px none rgb(0,0,0)"><font size="1">0</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0" bgcolor="#00FFFF"><font size="1">29,563,712</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">295,637</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">(295,637)</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td style="border-bottom: 2px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; </font></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right"></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0"></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0"><font size="1">&nbsp;&nbsp; Net loss</font></td>
    <td vAlign="middle" width="8%" height="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td vAlign="middle" width="8%" height="0" align="right" style="border-bottom: 1px solid"><font
    size="1">-</font></td>
    <td vAlign="middle" width="2%" height="0" align="right"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px solid rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">-</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0"></td>
    <td style="border-bottom: 1px none rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0"><font size="1">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="42%" height="0" bgcolor="#00FFFF"><font size="1">Balance at
    December 31, 2004</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="1">0</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"><font size="1">$</font></td>
    <td vAlign="middle" width="8%" height="0" bgcolor="#00FFFF" align="right"
    style="border-bottom: 2px double rgb(0,0,0)"><font size="1">0</font></td>
    <td vAlign="middle" width="2%" height="0" bgcolor="#00FFFF" align="right"></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="10%"
    height="0" bgcolor="#00FFFF"><font size="1">29,563,712</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">295,637</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">(295,637)</font></td>
    <td style="BORDER-BOTTOM: rgb(0,0,0) 2px" vAlign="middle" align="right" width="2%"
    height="0" bgcolor="#00FFFF"><font size="1">$</font></td>
    <td style="border-bottom: 2px double rgb(0,0,0)" vAlign="middle" align="right" width="8%"
    height="0" bgcolor="#00FFFF"><font size="1">0</font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0" colspan="12"><font size="1"><strong>&nbsp; </strong></font></td>
  </tr>
  <tr>
    <td vAlign="middle" width="100%" height="0" colspan="12"><font size="1">See Summary of
    Significant Accounting Policies and Notes to Financial Statements.</font></td>
  </tr>
</table>
</div>

<p><br style="PAGE-BREAK-BEFORE: always; mso-break-type: section-break" clear="all">
</p>
<div>

<p ALIGN="center"><font size="2"><b>SHEFFIELD PHARMACEUTICALS, INC.</b><br>
<a name="BACKGROUND AND SIGNIFICANT ACCOUNTING POLICIES">BACKGROUND AND SIGNIFICANT
ACCOUNTING POLICIES </a></font><a href="#Financial Statements"><font size="1">Back to
Table of Contents</font></a><font size="2"><br>
December 31, 2004</font></p>
<font size="2"><b>

<p ALIGN="JUSTIFY">The Company</b></p>

<p ALIGN="JUSTIFY">Sheffield Pharmaceuticals, Inc. (the &quot;Company&quot;), was
incorporated in 1986 and changed its domicile to Delaware on June 13, 1995. Prior to
filing for bankruptcy under Chapter 7, Sheffield marketed a portfolio of products utilized
for treatment of pulmonary and respiratory diseases.</p>
<i><u>

<p ALIGN="JUSTIFY">Bankruptcy Proceedings:</u></i><b> </b>On June 6, 2003, the Company
filed a voluntary Chapter 7 petition under the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the Western District of New York (case no. 03-22303). As a result of the filing,
all of our properties were transferred to a United States Trustee and we terminated all of
our business operations. The Bankruptcy Trustee has disposed of substantially all of the
assets. On July 6, 2005, the Bankruptcy Court approved an Order confirming the sale of
debtor's equity interest to Glenin Bay Equity, LLC.<br>
</p>
<u><i>

<p ALIGN="JUSTIFY">Basis of Presentation:</i></u><b> </b>We adopted
&quot;fresh-start&quot; accounting as of June 7, 2003 in accordance with procedures
specified by AICPA Statement of Position (&quot;SOP&quot;) No. 90-7, &quot;Financial
Reporting by Entities in Reorganization under the Bankruptcy Code. The results of the
discontinued component have been reclassified from continuing operations to discontinued
operations. The reclassification reduced sales for December 31, 2003 by $75,000 and
related expenses by $1,000,000.</p>

<p ALIGN="JUSTIFY">The accounts of the former subsidiaries were not included in the
bankruptcy sale and have not been carried forward. </p>

<p ALIGN="JUSTIFY"><b>Significant Accounting Policies</b></p>

<p ALIGN="JUSTIFY"><u><i>Use of Estimates</i></u>: The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make
estimates and assumptions that affect reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statement and
the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from the estimates.</p>

<p ALIGN="JUSTIFY"><i><u>Cash and Cash Equivalents</u>: </i>For financial statement
presentation purposes, the Company considers those short-term, highly liquid investments
with original maturities of three months or less to be cash or cash equivalents.</p>
<u><i>

<p ALIGN="JUSTIFY">Property and Equipment</i></u>: New property and equipment are recorded
at cost. Property and equipment included in the bankruptcy proceedings and transferred to
the Trustee had been valued at liquidation value. Depreciation is computed using the
straight-line method over the estimated useful lives of the assets, generally 5 years.
Expenditures for renewals and betterments are capitalized. Expenditures for minor items,
repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or
retirement due to obsolescence is reflected in the operating results in the period the
event takes place.</p>
<i><u>

<p ALIGN="JUSTIFY">Valuation of Long-Lived Assets</u>:</i> We review the recoverability of
our long-lived assets including equipment, goodwill and other intangible assets, when
events or changes in circumstances occur that indicate that the carrying value of the
asset may not be recoverable. The assessment of possible impairment is based on our
ability to recover the carrying value of the asset from the expected future pre-tax cash
flows (undiscounted and without interest charges) of the related operations. If these cash
flows are less than the carrying value of such asset, an impairment loss is recognized for
the difference between estimated fair value and carrying value. Our primary measure of
fair value is based on discounted cash flows. The measurement of impairment requires
management to make estimates of these cash flows related to long-lived assets, as well as
other fair value determinations.</p>
<i><u>

<p ALIGN="JUSTIFY">Stock Based Compensation:</u> </i>Stock-based awards to non-employees
are accounted for using the fair value method in accordance with SFAS No.&nbsp;123, <i>Accounting
for Stock-Based Compensation</i>, and EITF Issue No.&nbsp;96-18, <i>Accounting for Equity
Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction with
Selling Goods or Services</i>. </p>

<p ALIGN="JUSTIFY">We account for stock-based awards to employees using the intrinsic
value method in accordance with APB Opinion No.&nbsp;25 and FIN No. 44. As permitted by
SFAS No.&nbsp;123, as amended by SFAS No.&nbsp;148, we have chosen to continue to account
for our employee stock-based compensation plans under APB Opinion No.&nbsp;25 and provide
the expanded disclosures specified in SFAS No.&nbsp;123.</p>
<i><u>

<p ALIGN="JUSTIFY">Fair Value of Financial Instruments</u>:</i> Statements of Financial
Accounting Standards No. 107, &quot;Disclosures about Fair Value of Financial
Instruments,&quot; requires disclosure of fair value information about financial
instruments. Fair value estimates discussed herein are based upon certain market
assumptions and pertinent information available to management as of July 10, 2005. The
respective carrying value of certain on-balance sheet financial instruments approximated
their fair values. </p>

<p ALIGN="JUSTIFY">These financial instruments include cash and cash equivalents, accounts
payable and accrued expenses. Fair values were assumed to approximate carrying values for
these financial instruments since they are short-term in nature and their carrying amounts
approximate fair values or they are receivable or payable on demand.</p>
<i><u>

<p ALIGN="JUSTIFY">Earnings per Common Share</u>:</i> Basic net loss per share is computed
using the weighted average number of common shares outstanding during the period. Diluted
net loss per common share is computed using the weighted average number of common and
dilutive equivalent shares outstanding during the period. Dilutive common equivalent
shares consist of options to purchase common stock (only if those options are exercisable
and at prices below the average share price for the period) and shares issueable upon the
conversion of our Preferred Stock. Due to the net losses reported, dilutive common
equivalent shares were excluded from the computation of diluted loss per share, as
inclusion would be anti-dilutive for the periods presented.</p>

<p ALIGN="JUSTIFY">There were no common equivalent shares required to be added to the
basic weighted average shares outstanding to arrive at diluted weighted average shares
outstanding in 2003 or 2002. </p>
<i><u>

<p ALIGN="JUSTIFY">Income Taxes:</u> </i>The Company accounts for income taxes in
accordance with Statement of Financial Accounting Standards No. 109, &quot;Accounting for
Income Taxes,&quot; (&quot;SFAS 109&quot;) which requires recognition of estimated income
taxes payable or refundable on income tax returns for the current year and for the
estimated future tax effect attributable to temporary differences and carry-forwards.
Measurement of deferred income tax is based on enacted tax laws including tax rates, with
the measurement of deferred income tax assets being reduced by available tax benefits not
expected to be realized.</p>
<b>

<p ALIGN="JUSTIFY">Recent Accounting Pronouncements</b></p>

<p ALIGN="JUSTIFY">In December 2004, the FASB issued SFAS No. 123 (revised 2004)
&quot;Share-Based Payment,&quot; or SFAS No. 123(R). SFAS No. 123(R) revises FASB
Statement No. 123 &quot;Accounting for Stock-Based Compensation,&quot; and supersedes APB
Opinion No. 25, and its related implementation guidance. This Statement eliminates the
ability to account for share-based compensation using the intrinsic value method under APB
Opinion No. 25. SFAS No. 123(R) focuses primarily on accounting for transactions in which
an entity obtains employee services in share-based payment transactions. SFAS No. 123(R)
requires a public entity to measure the cost of employee services received in exchange for
an award of equity instruments based on the grant-date fair value of the award (with
limited exceptions). That cost will be recognized over the period during which an employee
is required to provide service in exchange for the award, known as the requisite service
period, which is usually the vesting period. SFAS No. 123(R) is effective for companies
filing under Regulation SB as of the beginning of the first interim or annual reporting
period that begins after December 15, 2005, which for us will be our first quarter of the
year ending December 31, 2006. We anticipate adopting SFAS No. 123(R) beginning in the
quarter ending March 31, 2006. Accordingly, the provisions of SFAS No. 123(R) will apply
to new awards and to awards modified, repurchased, or cancelled after the required
effective date. Additionally, compensation cost for the portion of awards for which the
requisite service has not been rendered that are outstanding as of the required effective
date must be recognized as the requisite service is rendered on or after the required
effective date. These new accounting rules will lead to a decrease in reported earnings.
Although our adoption of SFAS No. 123(R) could have a material impact on our financial
position and results of operations, we are still evaluating the potential impact from
adopting this statement.</p>
<i><b>

<p ALIGN="JUSTIFY"></b></i>In December 2003, the FASB released a revised version of
Interpretation No. 46, &quot;Consolidation of Variable Interest Entities&quot; (&quot;FIN
46&quot;) called FIN 46R, which clarifies certain aspects of FIN 46 and provides certain
entities with exemptions from requirements of FIN 46. FIN 46R only slightly modified the
variable interest model from that contained in FIN 46 and did change guidance in many
other areas. We adopted FIN 46 during 2003. FIN 46R was adopted and implemented in the
first quarter of fiscal 2004 and had no impact on the Company&#146;s financial position or
results of operations.</p>

<p ALIGN="JUSTIFY">In September&nbsp;2004, the EITF reached a consensus regarding Issue
No.&nbsp;04-1, &quot;Accounting for Preexisting Relationships Between the Parties to a
Business Combination&quot; (&quot;EITF 04-1&quot;). EITF 04-1 requires an acquirer in a
business combination to evaluate any preexisting relationship with the acquiree to
determine if the business combination in effect contains a settlement of the preexisting
relationship. A business combination between parties with a preexisting relationship
should be viewed as a multiple element transaction. EITF 04-1 is effective for business
combinations after October&nbsp;13, 2004, but requires goodwill resulting from prior
business combinations involving parties with a preexisting relationship to be tested for
impairment by applying the guidance in the consensus. We will apply EITF 04-1 to
acquisitions subsequent to the effective date and in our future goodwill impairment
testing. </p>

<p ALIGN="JUSTIFY">In December 2004, the FASB issued FASB Staff Position No. FAS 109-2, or
FAS 109-2, <i>&quot;Accounting and Disclosure Guidance for the Foreign Earnings
Repatriation Provision within the American Jobs Creations Act of 2004.&quot;</i> The AJCA
introduces a limited time 85% dividends received deduction on the repatriation of certain
foreign earnings to a U.S. taxpayer (repatriation provision), provided certain criteria
are met. FAS No. 109-2 provides accounting and disclosure guidance for the repatriation
provision. Although FAS 109-2 is effective immediately, we have not begun our analysis and
do not expect to be able to complete our evaluation of the repatriation provision until
after Congress or the Treasury Department provides additional clarifying language on key
elements of the provision</p>

<p ALIGN="JUSTIFY">In December 2004, the FASB issued SFAS No. 153, <i>&quot;Exchanges of
Nonmonetary Assets&#151;an amendment of APB Opinion No. 29,&quot;</i> which is effective
for us starting July 1, 2005. In the past, we were frequently required to measure the
value of assets exchanged in non-monetary transactions by using the net book value of the
asset relinquished. Under SFAS No. 153, we will measure assets exchanged at fair value, as
long as the transaction has commercial substance and the fair value of the assets
exchanged is determinable within reasonable limits. A non-monetary exchange has commercial
substance if the future cash flows of the entity are expected to change significantly as a
result of the exchange. The adoption of SFAS No. 153 is not anticipated to have a material
effect on our consolidated financial position, results of operations or cash flows.</p>
<b><font size="3">

<p ALIGN="center"></font>SHEFFIELD PHARMACEUTICALS. INC.<br>
</b>NOTES TO FINANCIAL STATEMENTS<br>
December 31, 2004</font></p>

<p ALIGN="JUSTIFY"><font size="2"><b>1. &quot;Fresh Start&quot; Accounting:</b></font></p>

<p ALIGN="JUSTIFY"><font size="2">On June 6, 2003 all assets were transferred to the
Chapter 7 trustee in settlement of all outstanding corporate obligations. We adopted
&quot;fresh-start&quot; accounting as of June 7, 2003 in accordance with procedures
specified by AICPA Statement of Position (&quot;SOP&quot;) No. 90-7, &quot;Financial
Reporting by Entities in Reorganization under the Bankruptcy Code.&quot;</font></p>

<p ALIGN="JUSTIFY"><font size="2">All results for periods subsequent to June 6, 2003 are
referred to as those of the &quot;Successor Company&quot;. The results of operations and
cash flows as presented on the 2003 financial statements reflect the predecessor company.
The successor company had no transactions between June 6 and the end of the reporting
period, December 31, 2003. </font></p>

<p ALIGN="JUSTIFY"><font size="2">In accordance with SOP No. 90-7, the reorganized value
of the Company was allocated to the Company's assets based on procedures specified by SFAS
No. 141, &quot;Business Combinations&quot;. Each liability existing at the plan sale date,
other than deferred taxes, was stated at the present value of the amounts to be paid at
appropriate market rates. It was determined that the Company's reorganization value
computed immediately before June 7, 2003 was $0. We adopted &quot;fresh-start&quot;
accounting because holders of existing voting shares immediately before filing and
confirmation of the sale received less than 50% of the voting shares of the emerging
entity and its reorganization value is less than its post-petition liabilities and allowed
claims.</font></p>
<b>

<p ALIGN="JUSTIFY"><font size="2">2. Bankruptcy Proceedings</font></b></p>

<p ALIGN="JUSTIFY"><font size="2">On June 6, 2003, the Registrant filed a voluntary
Chapter 7 petition under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court Western
District of New York (case no. 03-22303). On July 6, 2005, the Bankruptcy Court approved
an Order confirming the sale of the public shell to Glenin Bay Equity, LLC. The
transaction confirmed by the Bankruptcy Court authorized Glenin Bay Equity, LLC. to
receive 70,000,000 shares of common stock or 70.3% of common shares outstanding.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><b>Resultant Change in Control:</b> In connection with
the Order confirming the sale of debtor's interest to Glenin Bay Equity, LLC. approved by
the U.S. Bankruptcy Court Western District of New York on July 6, 2005, the Court
authorized a change in control pursuant to which Michael F. Manion will become our new
director. The new board of directors appointed Michael F. Manion as chief executive
officer and chief financial officer on July 8, 2005. The Court order further provided that
the sale was free and clear of liens, claims and interests of others and that the sale was
free and clear of any and all other real or personal property interests, including any
interests in Sheffield&#146;s subsidiaries. The issuance of 70,000,000 shares of common
stock along with a change in our board has resulted in a change in control.</font></p>
<b>

<p ALIGN="JUSTIFY"><font size="2">3. Income Taxes:</font></b></p>

<p ALIGN="JUSTIFY"><font size="2">Our net operating loss carryovers available to reduce
future income taxes were reduced or eliminated through our bankruptcy proceedings. We have
adopted SFAS 109 which provides for the recognition of a deferred tax asset based upon the
value the loss carry-forwards will have to reduce future income taxes and management's
estimate of the probability of the realization of these tax benefits. </font></p>

<p ALIGN="JUSTIFY"><font size="2">Utilization of federal and state NOL and tax credit
carry forwards may be subject to a substantial annual limitation due to the ownership
change limitations provided by the Internal Revenue Code of 1986, as amended and similar
state provisions. The annual limitation may result in the expiration of NOL and tax credit
carry forwards before full utilization.</font></p>
<b>

<p ALIGN="JUSTIFY"><font size="2">4. Commitments: </font></b></p>

<p ALIGN="JUSTIFY"><font size="2">The Company, prior to its bankruptcy, was a party to
numerous claims and threatened litigation. As a result of the bankruptcy and the
subsequent transfer by the Bankruptcy Trustee of the Company&#146;s corporate shell entity
free of all liens, claims and encumbrances pursuant to Section 363(f) of the US Bankruptcy
Code, the Company is no longer party to any litigation.</font></p>

<p ALIGN="JUSTIFY"><font size="2">The Company is not a party to any leases and does not
have any commitments.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><b>4. Stockholders' Equity:</b></font></p>

<p ALIGN="JUSTIFY"><font size="2"><i>Common Stock</i></font></p>

<p ALIGN="JUSTIFY"><font size="2">On July 7, 2005, pursuant to the Bankruptcy Court Order
dated July 6, 2005, we issued 70 million shares of common stock. All issued shares of
common stock are entitled to vote on a 1 share/1 vote basis.</font></p>

<p ALIGN="JUSTIFY"><font size="2"><i>Preferred Stock</i></font></p>

<p ALIGN="JUSTIFY"><font size="2">On July 7, 2005 the board of directors approved the
cancellation of all pre-bankruptcy preferred shares and approved the cancellation and
extinguishment of all common and preferred share conversion rights of any kind, including
without limitation, warrants, options, convertible debt instruments and convertible
preferred stock of every series and accompanying conversion rights of any kind. </font></p>
<i>

<p ALIGN="JUSTIFY"><font size="2">Stock Based Compensation</font></i></p>

<p ALIGN="JUSTIFY"><font size="2">Stock based compensation is accounted for by using the
intrinsic value based method in accordance with Accounting Principles Board Opinion No.
25, &quot;Accounting for Stock Issued to Employees&quot; (&quot;APB 25&quot;). The Company
has adopted Statements of Financial Accounting Standards No. 123, &quot;Accounting for
Stock Based Compensation, (&quot;SFAS 123&quot;) which allows companies to either continue
to account for stock based compensation to employees under APB 25, or adopt a fair value
based method of accounting. The Company has elected to continue to account for stock based
compensation to employees under APB 25. APB 25 recognizes compensation expense for options
granted to employees only when the market price of the stock exceeds the grant exercise
price at the date of the grant. The amount reflected as compensation expense is measured
as the difference between the exercise price and the market value at the date of the
grant. </font></p>

<p ALIGN="JUSTIFY"><font size="2">There are no employee or non-employee options granted.</font></p>
</div>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>exh31_1.htm
<TEXT>
<html>

<head>
<title>Exhibit 31.1</title>
</head>

<body>

<p><font size="2">Exhibit 31.1</font></p>

<p align="center"><font size="2">CERTIFICATION</font></p>

<p><font size="2">I, Michael F. Manion, certify that:<br>
</font></p>

<blockquote>
  <p><font size="2">(1) I have reviewed this Annual Report of Sheffield Pharmaceuticals,
  Inc.; </font></p>
  <p><font size="2">(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; </font></p>
  <p><font size="2">(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 small business issuer as of, and
  for, the periods presented in this report; </font></p>
  <p><font size="2">(4) I am responsible for establishing and maintaining disclosure
  controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
  internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
  15d-15(f)) for the small business issuer and have: </font></p>
  <blockquote>
    <p><font size="2">(a) 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 small business issuer, 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; </font></p>
    <p><font size="2">(b) Designed such internal control over financial reporting, or caused
    such internal control over financial reporting to be designed under our 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; </font></p>
    <p><font size="2">(c) Evaluated the effectiveness of the small business issuer'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 </font></p>
    <p><font size="2">(d) Disclosed in this report any change in the small business issuer's
    internal control over financial reporting that occurred during the small business issuer's
    most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case
    of an Quarterly report) that has materially affected, or is reasonably likely to
    materially affect, the small business issuer's internal control over financial reporting;
    and </font></p>
  </blockquote>
  <p><font size="2">(5) I have disclosed, based on our most recent evaluation of internal
  control over financial reporting, to the small business issuer's auditors and the audit
  committee of the small business issuer's board of directors (or persons performing the
  equivalent functions): </font></p>
  <blockquote>
    <p><font size="2">(a) All significant deficiencies and material weaknesses in the design
    or operation of internal control over financial reporting which are reasonably likely to
    adversely affect the small business issuer's ability to record, process, summarize and
    report financial information; and </font></p>
    <p><font size="2">(b) Any fraud, whether or not material, that involves management or
    other employees who have a significant role in the small business issuer's internal
    control over financial reporting. </font></p>
  </blockquote>
</blockquote>

<p><font size="2">Date: July 19, 2005 <br>
</font></p>

<p><font size="2"><u>/s/ Michael F. Manion<br>
</u>[Signature] <br>
CEO,CFO and Chairman<br>
[Title] </font></p>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>3
<FILENAME>exh32_1.htm
<TEXT>
<html>

<head>
<title>Exhibit 32.1</title>
</head>

<body>

<p align="left"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Exhibit 32.1</font></p>

<p align="center"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">CERTIFICATION
PURSUANT TO<br>
18 U.S.C. SECTION 1350,<br>
AS ADOPTED PURSUANT TO SECTION 906<br>
OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">In
connection with the Annual Report of Sheffield Pharmaceuticals, Inc. (the
&#147;Company&#148;) on Form 10-KSB for the year ended December 31, 2004 (the
&#147;Report&#148;), as filed with the Securities and Exchange Commission on the date
hereof, I, Michael F. Manion, Chief Executive Officer and Chief Financial Officer of the
Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">1. The
Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and</font></p>

<p style="text-align: justify"><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">2. The
information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</font></p>

<p>&nbsp;</p>

<p><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">/s/ Michael F. Manion</font></p>

<p><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">Michael F. Manion<br>
Chief Executive Officer and Chief Financial Officer<br>
Dated: July 19, 2005</font></p>

<p><font face="TIMES NEW ROMAN, TIMES, SERIF" size="2">A signed original of this written
statement required by Section 906 has been provided to Sheffield Pharmaceuticals, Inc. and
will be retained by the Company and furnished to the Securities and Exchange Commission or
its staff upon request.</font></p>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
