Twelve Months Ended December 31, 2008 as compared to Twelve Months Ended December 31, 2007

The following table sets forth, for the periods indicated, certain information related to our operations, expressed in dollars and as a percentage of our net sales:

                                          Twelve Months Ended December 31,
                                         2008        %       2007          %
                                     ------------  ------ -----------   ------
Net sales                           $ 12,176,183  100.0%  $14,969,926   100.0 %

Cost of sales                         11,114,864   91.3%   11,176,984    74.7 %
                                    ------------  ------   -----------  ------
Gross profit                           1,061,319    8.7%    3,792,942    25.3 %

Operating Expenses:
Selling, general and administrative    3,894,990   32.0%    4,224,916    28.2 %
                                    ------------  ------   -----------  -------
Loss from operations                  (2,833,671) (23.3)%    (431,974)   (2.9)%


Other income (expense)
Interest income (expense), net           (10,807)  (0.1)%     149,319     1.0 %
Other income (expense), net              245,205    2.0 %     800,557     5.3 %
Merger related expenses and costs            --      --    (3,246,768)  (21.7)%
                                    ------------  ------   -----------  -------
Total other income (expense)             234,398    1.9%   (2,296,892)  (15.4)%
                                    ------------  ------   -----------  -------
Loss before provision for
    income taxes                      (2,599,273)  (21.4)%  2,728,866)  (18.2)%
                                    ------------  ------   -----------  -------
Income tax (provision) benefit           (38,246)  (0.3)%      38,246     0.3 %
                                    ------------  ------   -----------  -------
Net loss                            $ (2,637,519)  (21.7)%$(2,690,620)  (17.9)%

Results of Operations

During the year ended December 31, 2008, the U.S. housing market was impacted by a lack of consumer confidence, decreased housing affordability, and

large supplies of resale and new home inventories and related pricing pressures.

These factors contributed to weakened demand for new homes, slower sales, higher cancellation rates, and increased price discounts and selling incentives to attract homebuyers, compared with the years ended December 31, 2007 and 2006, when we had experienced record growth in our operations. As a result, gross margins recorded during the year ended December 31, 2008 decreased from the same periods in the prior years.

We continue to operate our business with the expectation that these difficult market conditions will continue to impact us for at least the near term. We have adjusted our approach to land acquisition and construction practices, continuing to shorten our pipeline, reduce production volumes, and balance home price and profitability with sales volume. We are slowing down planned inventory purchases and payments. However, we continue to purchase economic quantities of inventory where it makes economic and strategic sense to do so. We believe that these measures will help to strengthen our market position and allow us to take advantage of opportunities that may develop in the future.

Net sales

Net sales totaled $12,176,183 for the twelve months ended December 31, 2008, as compared to $14,969,926 for the same period in 2007, or a decrease of 18.7%. The Las Vegas Sun reported that new home sales are down 58 percent in Las Vegas and permit activity is down 57 percent from a year ago. The year to date 2008 metro Phoenix housing market continues at a pace 19% below that of last year. Our revenue is derived from new construction of residential housing and is directly related to new home sales and permits for new residential construction. The decreased activity of new residential home construction has been pronounced in Las Vegas, Nevada and Phoenix, Arizona and has resulted in reduced sales level and gross margin.

Cost of sales

Cost of sales, including all installation expenses, during the twelve months ended December 31, 2008 was 91.3% of net sales, as compared to 74.7% in 2007. We are anticipating competition to increase and downward pressure on our gross margin during the next year as current and potential competitors seek new revenue streams.

A breakdown of our components of costs of goods sold as a percentage of sales by quarter between 2008 and 2007 is as follows:

                    First      Second        Third          Fourth
  2008
 Sales           $1,924,828   $3,499,340   $3,711,073    $3,040,941
Material             64%          67%          67%            92%
 Labor               24%          20%          21%            20%
 Other                2%           3%           5%             3%
---------    ---------    ---------     ----------
 TOTAL               90%          90%          93%           115%

 2007
 Sales           $3,730,008   $4,881,033   $4,166,195    $2,192,600
Material             54%          50%          52%            56%
 Labor               21%          17%          19%            27%
 Other                5%           1%           2%             5%
---------    ---------    ---------     ----------
 TOTAL               76%          70%          72%            89%

Prices on steel strand, rebar and plastic all experienced significant price increases starting in March 2008, which we were unable to pass on to customers. Since then, prices have begun to return closer to historic levels as demand has dropped considerably.

During the Fourth Quarter of 2008, it was discovered that the new accounting software implemented at the end of 2007 contained a number of set-up errors which resulted in overstating our inventory and otherwise creating erroneous results. Although we maintain our inventories on a first-in, first- out accounting system, the new accounting software was set up erroneously to record our inventory on an average cost basis, resulting in higher inventory valuations due to the increasing inventory material costs in 2008. In addition, it was discovered that, in measuring the cost of extruding and fabricating steel wire used in our post-tension services and sales, an average cost per foot for extrusion, to include labor, plastic, grease and other materials, and for fabrication, to include labor and other costs, was added to the cost of the extruded and fabricated wire. At the same time, our cost of sales was calculated by adding the material costs (including the add-on for costs of extrusion and fabrication), the costs of direct labor and other fixed production costs. This resulted in the double counting of the cost elements calculated in the per foot add-on cost for fabricated and extruded wire. These 2008 errors were corrected in the fourth quarter by the following adjustments:

            Cost Double Counting in 2008                        $ 1,407,617
            Adjustment for FIFO vs Average cost       $  (303,406)
                                                       ----------
     Total adjustment                                 $ 1,104,211

A fourth quarter adjustment was made to increase cost of sales and to decrease inventory by $1,104,211.

Also during the fourth quarter of 2008, the Company reversed a September 30,

2008 entry that was made to record inventory and a corresponding payable to a vendor of $1,421,062 for inventory received from the vendor under a purchase order that had been cancelled. The Company and the vendor agreed during the fourth quarter to treat the inventory as a consignment.

Inventory was $3,212,092 at September 30, 2008 and $646,033 at December 31, 2008. The two fourth quarter adjustments totaling $2,525,273 were the primary reason for the decrease.

Selling, general and administrative expenses

Selling, general and administrative expenses for the year ended December 31, 2008 were $3,894,990 or 32% of net sales as compared to $4,224,916 or 28.2% of net sales during the same period of the prior year. We hired marketing

personnel to launch our Commercial Division, incurred continuing legal expenses and incurred consulting fees related to being a public company. Our Chief Executive Officer and Chief Operating Officer, who together own approximately 76% of the outstanding shares of common stock, had salaries of $500,000 per year; however beginning in September, 2008, the salaries were reduced to $250,000 per annum.

Provision for income taxes

The Company did not record a provision for income taxes prior to 2007, as PTNV was an S corporation until April 2007. The Company recorded a Deferred Tax Asset at December 31, 2007 of $38,246 to reflect the expected benefit of a 2007 loss carry-forward. For the year ended December 31, 2008, the Company wrote off the Deferred Tax Asset and established a full valuation allowance against any tax benefits of the prior and current year operating losses, because there is no assurance that the net operating losses will be available for use by the Company.

OUTLOOK

As a result of the increasingly challenging operating environment that developed in 2007 and continued in 2008, we entered 2009 with a substantial decrease in backlog compared to year-earlier levels. This substantial decrease in our backlog reflects lower backlog levels in each of our regions and stems largely from declining orders for new homes.

While it is too early to extrapolate our experience in the first three months of 2009 to the remainder of the year, we do not expect current difficult market conditions in U.S. housing markets to improve significantly, or at all, in 2009. These conditions, which include an oversupply of new and resale home inventories in certain markets, uncertainty in the relevant credit markets due to the recent problems with sub-prime mortgages, lack of affordability in some areas and greater competition, have encouraged many homebuilders and other sellers of residential real estate to aggressively employ discounts, incentives and price concessions to close home sales. Until the supply of unsold homes is reduced and affordability improves, we expect the current oversupply of new and resale homes to continue. Because the markets in which we operate have experienced varying degrees of difficulty, we expect them to improve at different rates with some markets recovering faster than others.

We believe the general health of the U.S. economy, including still historically low interest rates but growing unemployment levels, and the increased attention form the US and state governments to the economy in general and the home-building industry in particular, bodes well for the eventual recovery of the homebuilding industry and our long-term future financial performance. However, in the near-term, economic data suggest that U.S. consumer demand for residential housing at current prices remains soft. The U.S. Census Bureau recently reported that single-family housing starts in December 2008 were approximately 33.3% lower than in December 2007, while the median sales price for new homes for December 2008 is approximately 37.8% below the year-earlier period. Meanwhile, as speculative investors exit the market and consumers delay or cancel home purchases, an oversupply of unsold inventory continues to produce supply/demand imbalances. We believe it will take time for individual housing markets to work through excess supply and that conditions will not improve until late-2009 or 2010 at the earliest.

In light of the present operating environment, we anticipate that our unit revenues, gross margins, net income and earnings per share in 2009 will remain flat for our current operations. If current net order or selling price trends worsen, or if economic factors, including inflation, interest rates, consumer confidence or employment, deteriorate, our 2009 performance will likely worsen as well. Entering the new year, we remain focused on the disciplines of our operational business model to manage through this downturn. Specifically, we are continuing to align our organization with anticipated flat unit sales volumes in 2009, and we are actively seeking opportunities to improve our cost structure and maximize performance. Longer term, we believe that our disciplined operating approach and strong financial position will allow us to capitalize on improvements in the U.S. housing market as they occur.

Critical Accounting Policies and Estimates

The accompanying consolidated financial statements were prepared in conformity with United States generally accepted accounting principles. When more than one accounting principle, or the method of its application, is generally accepted, we select the principle or method that is appropriate in our specific circumstances (see Note 1 of our Consolidated Financial Statements). Application of these accounting principles requires us to make estimates about the future resolution of existing uncertainties; as a result, actual results could differ from these estimates. In preparing these consolidated financial statements, we have made our best estimates and judgments of the amounts and disclosures included in the consolidated financial statements, giving due regard to materiality.

The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant inter-company balances and transactions have been eliminated in consolidation.

Revenues from fixed-price construction contracts are recorded using the completed contract method whereby revenues are earned when the contract is substantially completed. Contracts are considered substantially completed when the concrete slab has been poured. Revenue from sales of materials only is recorded upon shipment of the materials. Contract costs include all direct material and labor as well as those indirect costs related to contract performance such as indirect labor, supplies, tools, repairs, and depreciation. Selling, general, and administrative costs are charged to expense as incurred.

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less when purchased, to be cash equivalents. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash. The Company maintains its cash accounts at high quality financial institutions with balances, at times, in excess of federally insured limits. As of December 31, 2008, the Company held $268,260 in cash in excess of the federally insured limit of $250,000. The Company has substantial cash balances which are invested in a money market account with a bank.

The carrying amounts reported in the balance sheet for cash and cash Equivalents and the line of credit approximate fair value based on the short- term maturity of these instruments and the market interest rates.

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company extends unsecured credit to its customers in the ordinary course of business but mitigates the associated risks by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is established and determined based on managements assessment of known requirements, aging of receivables, payment history, the customer?s current credit worthiness and the economic environment. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. The Company follows the practice of filing statutory ?mechanics? liens on construction projects where collection problems are anticipated. The liens serve as collateral for those accounts receivable.

During 2008, it was determined that our allowance for doubtful accounts at the end of 2007, a total of $240,275, was excessive. This amount was reduced at the end of 2008 to $75,000, an amount deemed to be more in line with our actual bad debt experience, and the resulting reduction of $110,956 was included in Other Income.

Inventory consists of finished goods and is stated at the lower of cost or market using the first-in first-out method. During 2008, it was discovered that the operating software installed at the end of 2007, was actually reporting our inventory on an average cost basis, resulting in substantial inventory variances during the year. The results of this software error were corrected in the amount of $1,104,211 at December 31, 2008, and the Company is engaged in a complete re-installation of the software to correct this and other continuing installation errors.

During 2008, a supplier of raw wire delivered a large shipment of wire to our Nevada location, but we advised the supplier that the order for the wire had been cancelled and that we would not take delivery. The supplier requested that we hold the wire pending further instructions, which we have done. This wire is not included in our inventory, and no payable has been recorded for the supplies. During the year, we used a portion of the wire in our operations and requested the supplier to invoice us for the wire used, at current prevailing prices, which was done. We have now agreed upon a reduced price for the remaining inventory and will add it to our inventory as a purchase at the agreed reduced price as it is used.

Equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which range from 5 to 7 years. Leasehold improvements are amortized over the lesser of the estimated life of the asset or the lease term. The lease terms for buildings leased from shareholders are one year with options to renew for an additional year. Expenditures for maintenance and repairs are charged to operations as incurred. Renewals and betterments are capitalized. Upon retirement or other disposition of equipment, the cost and related accumulated depreciation are removed from the accounts and the resulting gains or losses are reflected in earnings.

Capital leases, which transfer substantially the entire benefits and risks incident to the ownership of the property to the Company, are accounted for as the acquisition of an asset and the incurrence of an obligation. Under this method of accounting, the cost of the leased asset is amortized principally using the straight-line method over its estimated useful life, the obligation including interest thereon, is liquidated over the life of the lease. Depreciation expense on equipment under a capital lease is included with that of owned equipment.

Income taxes are accounted for in accordance with the provisions of SFAS No.
109. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized, but no less than quarterly. Due to the uncertainty whether the accumulated losses will be available to offset future revenues, no deferred tax asset has been reported.

For the purposes of these financial statements, parties are considered to be related if one party has the ability, directly or indirectly, to control the party or exercise significant influence over the other party in making financial and operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. John Hohman and Edward Hohman, our principal executive officers and majority shareholders, are considered to be related parties.

Net earnings and loss per share is computed in accordance with Statement of Financial Standards No. 128, Earnings Per Share (?SFAS No. 128??). SFAS No. 128 requires the presentation of both basic and diluted earnings per share. Basic net earnings and loss per common share is computed using the weighted average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur through the potential effect of common shares issuable upon the exercise of stock options, warrants and convertible securities. The calculation assumes: (i) the exercise of stock options and warrants based on the treasury stock method; and (ii) the conversion of convertible preferred stock only if an entity records earnings from continuing operations, as such adjustments would otherwise be anti- dilutive to earnings per share from continuing operations.

Seasonality

Our quarterly installation and operating results may vary significantly from quarter to quarter as a result of seasonal changes as well as weather. Historically, sales are highest during the second and third quarters as a result of more favorable weather conditions.