[X]
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Quarterly
Report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
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For
the quarterly period ended June
30, 2005
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[
]
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Transition
Report pursuant to 13 or 15(d) of the Securities Exchange Act of
1934
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For
the transition period ___________ to __________
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Commission
File Number: 000-27621
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Florida
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95-4720231
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(State
or other jurisdiction of incorporation or organization)
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(IRS
Employer Identification No.)
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220
Mount Saint Hilaire, Quebec, Canada J3H 5Z6
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(Address
of principal executive offices)
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514-313-3432
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(Issuer’s
telephone number)
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_______________________________________________________________
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(Former
name, former address and former fiscal year, if changed since last
report)
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Page
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||
PART
I - FINANCIAL INFORMATION
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||
PART
II - OTHER INFORMATION
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(a) |
Unaudited
Interim Consolidated Balance Sheet as of June 30,
2005;
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(b) |
Unaudited
Interim Consolidated Statement of Operations for the three and
six months
ended June 30, 2005;
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(c) |
Unaudited
Interim Consolidated Statement of Cash Flow for the six months
ended June
30, 2005;
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(d) |
Notes
to Unaudited Interim Consolidated Financial
Statements.
|
Interim Consolidated Balance Sheet |
1
-
2
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Interim Consolidated Statements of Operations and Deficit |
3
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Interim Consolidated Statements of Cash Flows |
4
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Notes to Consolidated Financial Statements |
5
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Assets
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||
Current
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||
Cash
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$
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38,418
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Accounts
receivable
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61,908
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Sales
tax receivable
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7,963
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Inventory
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102,490
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Advance
to affiliated companies
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386,438
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597,217
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||
Internet
telecommunications equipment, net of accumulated
depreciation
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725,779
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$
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1,322,996
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Liabilities
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||
Current
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||
Bank
indebtedness
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$
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3,683
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Accounts
payable
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101,275
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Loans
payable
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222,967
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Loan
payable - parent company
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55,218
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Debentures
payable
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289,325
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672,468
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||
Minority
interest
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(180,847)
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Stockholders’
Deficiency
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||
Capital
stock (note 3)
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45,465
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Capital
in excess of par value
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2,158,345
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Additional
paid up capital
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53,557
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Deficit
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(1,425,992)
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Total
stockholders’ deficit
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831,375
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Total
liabilities and stockholders’ deficiency
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$
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1,322,996
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Three
Months June 30,
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Six
Months June 30,
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||||||||||
2005
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2004
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2005
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2004
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||||||||
Sales
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$
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699,884
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$
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531,200
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$
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1,255,934
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$
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1,067,061
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Cost
of sales
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|||||||||||
Inventory,
beginning of period
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-
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-
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30,814
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-
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|||||||
Purchases
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412,960
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223,545
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933,672
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338,759
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|||||||
412,960
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223,545
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964,486
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338,759
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||||||||
Inventory,
end of year
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-
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-
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102,490
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-
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|||||||
412,960
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223,545
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861,996
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338,759
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||||||||
Gross
profit
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286,924
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307,655
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393,938
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728,302
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|||||||
Operating
expenses
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|||||||||||
Sales
and promotion
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38,286
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76,310
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186,571
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217,118
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|||||||
Professional
and consulting fees
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45,354
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-
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164,732
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-
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|||||||
Travel
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315
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-
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3,126
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-
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|||||||
Telecommunication
and network costs
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11,141
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-
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55,623
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-
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|||||||
Salaries
and wage levies
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-
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20,235
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44,386
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20,235
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|||||||
Interest
on long term debt
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6,590
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-
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8,776
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-
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|||||||
Delivery
and transport
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1,839
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-
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12,122
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-
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|||||||
Telephone
|
479
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-
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3,309
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-
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|||||||
Interest
and service charges
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1,404
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-
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6,471
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-
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|||||||
Office
and general
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17,800
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-
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24,339
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-
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|||||||
Amortization
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53,070
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-
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115,677
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-
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|||||||
Loss
on foreign exchange
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119,799
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-
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119,799
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-
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|||||||
296,077
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96,545
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744,931
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237,353
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||||||||
Earnings
(loss) before minority interests
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(9,153)
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211,110
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(350,993)
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490,949
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|||||
Minority
interest
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88,317
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-
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88,317
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-
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|||||||
Net
earnings (loss)
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$
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79,164
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$
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211,110
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$
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(262,676)
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$
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490,949
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Net
earnings (loss) per share
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$
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0.00
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$
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0.01
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$
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(0.00)
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$
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0.01
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Weighted
average number of shares outstanding
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49,915,159
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40,658,000
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49,915,159
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40,658,000
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2005
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2004
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||||
Operating
activities
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|||||
Net
earnings (loss)
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$
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(262,676)
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$
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490,949
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Add:
Amortization
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115,677
|
-
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Increase
(decrease) in accounts receivable
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(31,270)
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(19,458)
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Increase
(decrease) in sales tax
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9,763
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-
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Increase
(decrease) in inventory
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(18,759)
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-
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Increase
in accounts payable
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9,456
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(30,770)
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Net
cash used in operating activities
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(177,809)
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440,721
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Investing
activities
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|||||
Variation
in assets
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235,735
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(424,309)
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Net
cash provided by investing activities
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235,735
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(424,309)
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Financing
activities
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|||||
Variation
in bank indebtedness
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(413,224)
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-
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Increase
in loan payable
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(137,680)
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-
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Increase
in debentures payable
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289,325
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-
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Issuance
of capital stock
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197,682
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-
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(63,897)
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-
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Net
increase (decrease)
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(5,971)
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16,412
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Cash
and cash equivalents beginning of year
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44,389
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-
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Cash
and cash equivalents end of year
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$
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38,418
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$
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16,412
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Exhibit
Number
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Description
of Exhibit
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10.10
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Share
Exchange Agreement with 3874958 Canada Inc. on July 18, 2003 1
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United
American Corporation
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Date:
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September
22, 2005
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By: /s/Benoit
Laliberte
Benoit
Laliberté
Title: Chief
Executive Officer, Chief Financial Officer &
Director
|
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