The following discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to future events or our future performance. Actual results may materially differ from those projected in the forward-looking statements as a result of certain risks and uncertainties set forth in this prospectus. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual results will not be different from expectations expressed in this report.

RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007

The following table presents the statement of operations for the three months
ended June 30, 2008 as compared to the three months ended June 30, 2007. The
discussion following the table is based on these results.

                                            June 30, 2008     June 30, 2007

Revenue, net                               $     1,173,557   $       368,823

Cost of sales                                    1,086,774           635,645

Gross profit                                        90,347          (266,822 )

Operating Expenses
Selling expense                                      8,072             7,273
General and administrative expenses                162,670           778,556
Recovery from inventory reserve                    (59,799 )               -
Total operating expenses                           110,943           785,829

Income (loss) from operations                      (20,596 )      (1,052,651 )

Other (Income) Expense
Other (income) expense, net                              -                 -
Miscellaneous (income) expense                      (8,857 )               -
Interest (income) expense                          (11,225 )           7,319

Total Other Expense                                (20,009 )           7,319

Income (loss) before income taxes                     (586 )      (1,059,970 )

Provision for income taxes                               -           (59,269 )

Income (loss) from continuing operations              (586 )      (1,000,701 )

Discontinued operations
Loss on disposal of subsidiary                           -            (8,366 )
Loss from discontinued operations                        -           (37,578 )

Net Income (loss)                          $          (586 ) $    (1,046,645 )

Net sales
Net sales for the three months ended June 30, 2008 totaled $1,173,557 compared to $368,823 for the three months ended June 30, 2007, an increase of $811,890, or approximately 218%. The increase in sales was due to a general increase in business from our customer base.

Cost of Sales
Cost of sales for the three months ended June 30, 2008 totaled $1,086,774 or approximately 93% of net sales compared to $635,645 or 172% of net sales for the three months ended June 30, 2007, an increase of $451,129 or approximately 71%. As a percentage of net sales cost of sales decreased from 172.3% to 92.7%. The decrease as a percentage of net sales was due to our ability to increase our sales while maintaining a level of fixed costs.

Operating Expense
Selling and general and administrative expenses for the three months ended June 30, 2008 totaled $110,943 or approximately 9.5% of net sales compared to $785,829 or approximately 213% of net sales for the three months ended June 30, 2007, a decrease of $674,886 or approximately 86%. The decrease in general and administrative expenses was primarily due to the reduction and consolidation of our United States office and staff. In addition our fees for professional services, legal, audit and accounting decreased during current quarter compared to the period ended in June 2007.

Income (Loss) from Operations
Loss from operations for the three months ended June 30, 2008 totaled $(20,596) or approximately 1.8% of net sales compared to $(1,052,65) or approximately 285% of net sales for the three months ended June 30, 2007, a decrease of $1,032,055 or approximately 98%. The decrease in loss from operations was primarily due to the reasons as stated above related to the increase in our net sales and the decrease in our cost of sales and operating expenses.

Other (Income) Expense
During the three months ended June 30, 2008 we had other expense of $(20,009) compared to other expense of $7,319 for the three months ended June 30, 2007, an decrease in income of $(27,328). This increase is due to an increase in our interest income due to higher cash balances from the sale of one of our subsidiaries, Galaxy View.

Net Income
Net loss for the three months ended June 30, 2008 totaled $(586) compared to $(1,046,645) for the three months ended June 30, 2007, a decrease of $1,046,059 or approximately 99.9%. The decrease in net loss was primarily due to reason described above.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007

The following table presents certain consolidated statement of operations
information for the six months ended June 30, 2008 and 2007. The discussion
following the table is based on these results. Certain columns may not add due
to rounding.

                                       25
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                                            June 30, 2008     June 30, 2007

Revenue, net                               $     1,663,923   $     2,007,811

Cost of sales                                    1,629,024         1,796,629

Gross profit                                        34,899           211,182

Operating Expenses
Selling expense                                     14,736            13,366
General and administrative expenses                295,675         1,050,284
Recovery from inventory reserve                    (59,799 )               -
Total operating expenses                           250,612         1,063,650

Income (loss) from operations                     (215,713 )        (852,468 )

Other (Income) Expense
Other (income) expense, net                        (17,284 )               -
Miscellaneous (income) expense                      (4,317 )               -
Interest (income) expense                          (16,128 )           7,685

Total Other Expense                                (37,729 )           7,685

Income (loss) before income taxes                 (177,984 )        (860,153 )

Provision for income taxes                               -                 -

Income (loss) from continuing operations          (177,984 )        (860,153 )

Discontinued operations
Loss on disposal of subsidiary                           -           (35,635 )
Goodwill impairment                                      -        (1,295,556 )
Loss from discontinued operations                        -           (37,578 )

Net Income (loss)                          $      (177,984 ) $    (2,228,922 )

Net Revenue
Net sales for the six months ended June 30, 2008 totaled $1,633,923 compared to $2,007,811 for the six months ended June 30, 2007, a decrease of $343,888, or approximately 17%. The decrease was due to a fluctuation in our sales. The first quarter sales of 2007 were very high as compared to the second quarter sales of 2007. The opposite happened in the first quarter of 2008 our sales were very low but in the second quarter of 2008 our sales increased. Our sales tend to fluctuate quarter to quarter based on the needs of our customer base.

Cost of Sales
Cost of sales for the six months ended June 30, 2008 totaled $1,629,024 or approximately 98% of net sales compared to $1,796,629 or 89% of net sales for the six months ended June 30, 2007, a decrease of $167,605 or approximately 9%. As a percentage of net sales our cost of sales increased to 98% as compared to 89% in the same period of 2007, and increase of 9%. The increase as a percentage of sales was due to our fixed overhead costs. We can produce more revenue with the same fixed overhead, however our sales decreased from 2007 to 2008.

Operating Expense
General and administrative expenses for the six months ended June 30, 2008 totaled $250,612 or approximately 15% of net revenue compared to $1,063,650 or approximately 53% of net revenue for the six months ended June 30, 2007. The decrease in operating expense of $813,038 or approximately 76% was due to the reduction and consolidation of our United States office and staff. In addition our fees for professional services, legal, audit and accounting decreased during current six months compared to the period ended in June 2007.

Income (Loss) from Operations
Loss from operations for the six months ended June 30, 2008 totaled $(215,713) or approximately 13% of net revenue compared to $(852,468) or approximately 42% of net revenue for the six months ended June 30, 2007, a decrease of $636,755 or approximately 75%. The decrease in loss from operations was primarily due to the decrease in our operating expenses as described above.

Other (Income) Expense
During the six months ended June 30, 2008 we had other income of $37,729 compared to other expense of $7,685 for the three months ended June 30, 2007, an increase in income of $45,414. This increase is due to an increase in our interest income due to higher cash balances from the sale of one of our subsidiaries, Galaxy View.

Net Income (Loss)
Net loss for the six months ended June 30, 2008 totaled $(177,984) compared to $(2,228,922) for the six months ended June 30, 2007, a decrease of $2,050,938 or approximately 92%. The decrease in net loss was primarily due to expenses in the six months ended June 30, 2007 related to losses from discontinued operations of 1,368,769 and the decrease in our net loss from operations as described above.

LIQUIDITY AND CAPITAL RESOURCES

Cash has historically been generated from operations. Operations and liquidity needs are funded primarily through cash flows from operations and short-term borrowings. Cash and cash equivalents were $3,909,943 at June 30, 2008 and current assets totaled $4,823,894 at June 30, 2008. The Company's total current liabilities were $791,984 at June 30, 2008. Working capital at June 30, 2008 was $4,031,910. During the six months ended June 30, 2008 and 2007, net cash provided by (used in) operating activities were $273,526 and $2,327,202, respectively.

Net cash provided by (used in) investing activities totaled $(5,929) for the six months ended June 30, 2008, compared with $(2,643,635) for the same periods ended June 30, 2007.

Net cash provide by (used in) financing activities totaled $(283,680) for the six months ended June 30, 2008. The net cash change was $115,817 and $(259,264) for the six months ended June 30, 2008 and 2007, respectively.

We will continue to evaluate alternative sources of capital to meet our growth requirements, including other asset or debt financing, issuing equity securities and entering into other financing arrangements. There can be no assurance, however, that any of the contemplated financing arrangements described herein will be available and, if available, can be obtained on terms favorable to us.

The sale of Galaxy View for $3 million dollar has helped our cash balance and our working capital. The Company's current operations do not generate sufficient cash to cover its operating costs. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included: 1) acquire profitable operations through issuance of equity instruments, 2) to continue actively seeking additional funding and restructure the acquired subsidiaries to increase profits and minimize the liabilities.

Working Capital Requirements
Historically operations, short term financing and the sale of our company stock have been sufficient to meet our cash needs. We believe that we will be able to generate revenues from sales. However, our actual working capital needs for the long and short term will depend upon numerous factors, including operating results, competition, and the availability of credit facilities, none of which can be predicted with certainty. Future expansion will be limited by the availability of financing products and raising capital.

OFF-BALANCE SHEET ARRANGEMENTS

We have never entered into any off-balance sheet financing arrangements and have never established any special purpose entities. We have not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.