Inova Technology (IVTH) CORRESP Correspondence with SEC

The following wording will appear in each filing, after the history of the organization:

Restatement of Previously Issued Financial Statements

The Company restated its consolidated financial statements, as more fully discussed in Item 9. The Company restated its consolidated balance sheet, its consolidated statements of income, of changes in shareholders' equity and of cash flows as of October 31, 2006. The restatement corrects for errors made in the financial statements related to management fees and goodwill from the Web’s Biggest transaction.

Basic and diluted net income (loss) per share

Basic loss per share is computed using the weighted average number of shares of common stock outstanding during each period. Diluted loss per share includes the dilutive effects of common stock equivalents on an “as if converted” basis. For the years ended 2008 and 2007, potential dilutive securities had an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.

July 31, 2006 filing:

Restatements

The company determined that the original accounting for the merger with Web’s Biggest was incorrect. The company should have accounted for the merger as a reverse acquisition whereby the shares retained by the registrant’s shareholders would be fair valued using the closing price of the registrant’s shares (purchase price) and compared to the fair value of the net assets at the time of merger. The company determined the purchase price was (70,425,950 shares x 6/1/05 closing price of $.035 = $2,464,908). The fair value of the net assets was $236,917 resulting in goodwill of $2,227,991. Therefore the net assets and equity will be increased by this amount.

Also, there were management fees of $15,000 per month from May, 2006 through July, 2006 which were not paid but which are now being realized as an increase in expense and in paid in capital. This is a total of $45,000, which is a reduction of net income and increase to equity.

Inova Technology, Inc. and Subsidiaries	30-Apr-06
Balance Sheets as of July 31, 2006 (Unaudited)-RESTATED

	As Previously			Effect of						As Previously			Effect of
	Reported			Restatement			Restated			Reported			Restatement			Restated
ASSETS
Current assets		398,327						398,327			379,600						379,600
Cash
Restricted cash - escrow
Accounts receivables		849,959						849,959			546,766						546,766
Inventory
Prepaid and other current assets		73,259						73,259			73,259						73,259
Total current assets		1,321,545						1,321,545			999,625						999,625
Fixed assets		16,661						16,661			16,661						16,661
Goodwill					2,612,304			2,612,304						2,612,304			2,612,304
Intangibles					250,455			250,455						250,455			250,455
Total assets	$	1,338,206					$	4,200,955		$	1,016,286					$	3,879,035
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	544,307					$	544,307		$	537,117					$	537,117
Accrued liabilities		47,110						47,110			52,496						52,496
Current maturities of long-term debt - related parties		148,458						148,458			148,458						148,458
Current maturities of long-term debt
Deferred income		129,771						129,771			157,622						157,622
Short term debt
Total current liabilities		869,646						869,646			895,693						895,693
Long term debt - net of current maturities
Long term debt - related parties, net of current maturities
Total liabilities		869,646						869,646			895,693						895,693
Stockholders’ deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; none issued and outstanding		25,000						25,000			25,000						25,000
Common stock, $0.001 par value; 150,000,000 shares authorized; 70,288,450 shares shares issued and outstanding		70,288						70,288			70,288						70,288
Treasury stock		(4,715	)					(4,715	)		(4,715	)					(4,715	)
Accumulated other comprehensive income		6,110						6,110			4,877						4,877
Additional paid-in capital		(665,381	)		2,982,749			2,317,368			(665,381	)		3,047,945			2,382,564
Retained deficit		1,037,258			(120,000	)		917,258			690,524			(185,196	)		505,326
Total stockholders’ deficit		468,560						3,331,309			120,593						2,983,342
Total liabilities and stockholders’ deficit	$	1,338,206					$	4,200,955		$	1,016,286					$	3,879,035

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended July 31, 2006

(Unaudited)- RESTATED

	As Previously			Management
	Reported			Fee			Restated			31-Jul-05
Revenues	$	599,960					$	599,960			674,275
Cost of revenues		(83,875	)				$	(83,875	)		(3,150	)
Operating expenses		(169,427	)		(45,000	)	$	(214,427	)		(225,455	)
Operating loss		346,658			(45,000	)		301,658			445,670
Other income (expense):
Loss on exchange of business assets
Interest income		76					$	76			4,113
Interest expense							$	—
Income (loss) from continuing operations		346,734			(45,000	)		301,734			449,783
Loss from discontinuing operations
Net income (loss)	$	346,734		$	(45,000	)	$	301,734			449,783
Basic and diluted income (loss) per share:
From continuing operations	$	0.00		$	—		$	0.00			—
From discontinued operations	$	—		$	—		$	—			—
Total	$	0.00		$	—		$	0.00			0
Weighted average common shares		703,983,450						703,983,450			680,644,608

Consolidated Statements of Cash Flows

For the 3 months ended July 31, 2006

(Unaudited)

	As Previously
	Reported			Restated			7/05
CASH FLOWS OPERATING ACTIVITIES
Net loss		346,734		$	301,734			456,083
Add: income (loss) from discontinued operations
Loss from continuing operations		346,734			301,734
Additional shares issued for conversion of debt
Depreciation and amortization expense								389
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses					—
Decrease (increase) in accounts receivable		(303,193	)		(303,193	)		(498,955	)
Increase (decrease) in deferred income		(27,851	)		(27,851	)		(5,631	)
Increase (decrease) in accrued expense		1,804			1,804			984,943
Increase (decrease) in inventory					—
Decrease (increase) in other current assets					—			(7,621	)
Net cash provided by (used in) operating activities		17,494			(27,506	)
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable					—
Purchase of treasury stock					—
Purchase of Right-Tag					—
Purchase of fixed assets					—			(24,801	)
Net cash provided by (used in) investing activities - continuing operations		—			—
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties					—
Proceeds from APIC					45,000
Translation adjustment		1,233			1,233
Net cash provided by (used in) financing activities - continuing operations		1,233			46,233			(1,256,822	)
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		18,727			18,727
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		18,727			18,727			(352,415	)
CASH AT BEGINNING OF PERIOD		379,600			379,600			819,229
CASH AT END OF PERIOD	$	398,327		$	398,327			466,814

Also, for each filing the signatures will be updated to have current dates, as indicated in the manner below:

Item 6. Exhibits

(A) Exhibits

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly

authorized.

EDGETECH SERVICES INC.

By: /s/ Adam Radly

Adam Radly, President & CEO

Date: November 14, 2008

By: /s/ Paul Aunger

Paul Aunger, Treasurer -

Date: November 14, 2008

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

REQUIRED BY RULE 13A - 14(A) OR RULE 15D - 14(A)

I, Adam Radly, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Edgetech Services Inc.

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;

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;

4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have

(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;

(b) 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

(c) 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 annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5.The small business issuer's other certifying officer(s) and 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):

(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

(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.

Date: November 14, 2008/s/ Adam Radly

Chief Executive Officer

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

REQUIRED BY RULE 13A - 14(A) OR RULE 15D - 14(A)

I, Paul Aunger, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Edgetech Services Inc.

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;

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;

4. The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have

(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;

(b) 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

(c) 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 annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5.The small business issuer's other certifying officer(s) and 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):

(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

(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.

Date: November 14, 2008/s/ Paul Aunger

TREASURER

Exhibit 32.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

REQUIRED BY RULE 13A - 14(B) OR RULE 15D - 14(B) AND 18 U.S.C. 1350

In connection with the Quarterly Report of Edgetech Services Inc.

On Form 10-QSB for the period ended July 31, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report" ), I, Adam Radly, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ Adam Radly

Adam Radly

Chief Executive Officer

November 14, 2008

Exhibit 32.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

REQUIRED BY RULE 13A - 14(B) OR RULE 15D - 14(B) AND 18 U.S.C. 1350

In connection with the Quarterly Report of Edgetech Services Inc.

On Form 10-QSB for the period ended July 31, 2006, as filed with the Securities and Exchange Commission on the date hereof (the "Report" ), I, Paul Aunger, TREASURER of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ Paul Aunger

Paul Aunger

TREASURER

November 14, 2008

10/31/06 Financials:

Restatements

The company determined that the original accounting for the merger with Web’s Biggest was incorrect. The company should have accounted for the merger as a reverse acquisition whereby the shares retained by the registrant’s shareholders would be fair valued using the closing price of the registrant’s shares (purchase price) and compared to the fair value of the net assets at the time of merger. The company determined the purchase price was (70,425,950 shares x 6/1/05 closing price of $.035 = $2,464,908). The fair value of the net assets was $236,917 resulting in goodwill of $2,227,991. Therefore the net assets and equity will be increased by this amount.

Also, there were management fees of $15,000 per month from August, 2006 through October, 2006 which were not paid but which are now being realized as an increase in expense and in paid in capital. This is a total of $45,000, which is a reduction of net income and increase to equity.

Inova Technology, Inc. and Subsidiaries	30-Apr-06
Balance Sheets as of October 31, 2006 (Unaudited)-Restated

	As Previously Reported			Effect of Restatement			Restated			As Previously Reported			Effect of Restatement			Restated
ASSETS
Current assets		1,013,830						1,013,830			379,600						379,600
Cash
Restricted cash - escrow
Accounts receivables		274,380						274,380			546,766						546,766
Inventory
Prepaid and other current assets		53,935						53,935			73,259						73,259
Total current assets		1,342,145						1,342,145			999,625						999,625
Fixed assets		16,661						16,661			16,661						16,661
Goodwill					2,612,904			2,612,904						2,612,304			2,612,304
Intangibles					250,445			250,445						250,445			250,445
Total assets	$	1,358,806					$	4,222,155		$	1,106,286					$	3,879,035
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	442,178					$	442,178		$	537,117					$	537,117
Accrued liabilities		41,050						41,050			52,496						52,496
Current maturities of long-term debt - related parties		114,707						114,707			148,458						148,458
Current maturities of long-term debt
Deferred income		134,635						134,635			157,622						157,622
Short term debt
Total current liabilities		732,570						732,570			895,693						895,693
Long term debt - net of current maturities
Long term debt - related parties, net of current maturities
Total liabilities		732,570						732,570			895,693						895,693
Stockholders’ deficit
Convertible preferred stock $0.001 par value; 25,000,000 shares authorized; none issued and outstanding		25,000						25,000			25,000						25,000
Common stock, $0.001 par value; 150,000,000 shares authorized; 70,288,450 shares shares issued and outstanding		70,288						70,288			70,288						70,288
Treasury stock		(4,715	)					(4,715	)		(4,715	)					(4,715	)
Accumulated other comprehensive income		2,687						2,687			4,877						4,877
Additional paid-in capital		(665,381	)		3,028,349			2,362,968			(665,381	)		3,047,945			2,382,564
Retained deficit		1,198,357			(165,000	)		1,033,357			690,524			(185,196	)		505,328
Total stockholders’ deficit		626,236						3,489,585			120,593						2,983,342
Total liabilities and stockholders’ deficit	$	1,358,806					$	4,222,155		$	1,016,286					$	3,879,035

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended October 31, 2006

(Unaudited)-Restated

	As Previously			Management
	Reported			Fee			Restated			10/31/2005
Revenues	$	482,421					$	482,421			789,404
Cost of revenues		(120,923	)				$	(120,923	)		(297,722	)
Operating expenses		(197,852	)		(45,000	)	$	(242,852	)		(142,453	)
Operating loss		163,646			(45,000	)		118,646			349,229
Other income (expense):
Loss on exchange of business assets
Interest income		141					$	141			1,545
Interest expense							$	—			(67,236	)
Income (loss) from continuing operations		163,787			(45,000	)		118,787			283,538
Loss from discontinuing operations
Net income (loss)	$	163,787		$	(45,000	)	$	118,787
Basic and diluted income (loss) per share:
From continuing operations	$	0.00		$	(0.00	)	$	0.00			—
From discontinued operations	$	—		$	—		$	—			—
Total	$	0.00		$	(0.00	)	$	0.00			0
Weighted average common shares		703,983,450			703,983,450			703,983,450			680,644,608

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 6 months ended October 31, 2006

(Unaudited)-Restated

	As Previously			Management
	Reported			Fee			Restated			10/31/05
Revenues	$	1,082,381					$	1,082,381			1,463,679
Cost of revenues		(204,798	)				$	(204,798	)		(294,572	)
Operating expenses		(367,279	)		(90,000	)	$	(457,279	)		(367,908	)
Operating loss		510,304			(90,000	)		420,304			801,199
Other income (expense):
Loss on exchange of business assets
Interest income		217					$	217			5,658
Interest expense							$	—			(67,236	)
Income (loss) from continuing operations		510,521			(90,000	)		420,521			739,621
Loss from discontinuing operations
Net income (loss)	$	510,521		$	(90,000	)	$	420,521			739,621
Basic and diluted income (loss) per share:
From continuing operations	$	0.00		$	(0.00	)	$	0.00			0
From discontinued operations	$	—		$	—		$	—			0
Total	$	0.00		$	(0.00	)	$	0.00			0
Weighted average common shares		703,983,450			703,983,450			703,983,450			680,644,608

Consolidated Statements of Cash Flows

For the 3 months ended October 31, 2006

(Unaudited)-Restated

	As Previously
	Reported			Restated			10/31/2005
CASH FLOWS OPERATING ACTIVITIES
Net loss		510,520		$	420,521			733,321
Add: income (loss) from discontinued operations
Loss from continuing operations		510,520			420,521
Additional shares issued for conversion of debt
Depreciation and amortization expense								826
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses					—			(204,386	)
Decrease (increase) in accounts receivable		272,386			272,386			(189,405	)
Increase (decrease) in deferred income		(22,987	)		(22,987	)		160,076
Increase (decrease) in accrued expense		(132,499	)		(132,499	)
Increase (decrease) in inventory					—
Decrease (increase) in prepaid expense and other current assets		9,000			9,000			8,313
Net cash provided by (used in) operating activities - continuing operations		636,420			546,421
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable					—
Purchase of treasury stock					—
Purchase of Right-Tag					—
Purchase of fixed assets					—
Net cash provided by (used in) investing activities - continuing operations		—			—
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties					—			(64,253	)
Proceeds from APIC					90,000
Translation adjustment		(2,190	)		(2,190	)
Net cash provided by (used in) financing activities - continuing operations		(2,190	)		87,810
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		634,230			634,231			444,492
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		634,230			634,231
CASH AT BEGINNING OF PERIOD		379,600			379,600			15,367
CASH AT END OF PERIOD	$	1,013,830		$	1,013,831			459,859

Financials for January 31, 2007:

Restatements

There were management fees of $15,000 per month from prior years which were not paid but which are now being realized as an increase in paid in capital and reduction of retained earnings for a total of $180,000

Inova Technology, Inc. and Subsidiaries	30-Apr-06
Balance Sheets as of January 31, 2007 (Unaudited)-Restated

	As Previously			Effect of						As Previously			Effect of
	Reported			Restatement			Restated			Reported			Restatement			Restated
ASSETS		945						945			379,600						379,600
Current assets
Cash
Restricted cash - escrow
Accounts receivables		204,075						204,075			546,766						546,766
Inventory
Prepaid and other current assets								—			73,259						73,259
Total current assets		205,020						205,020			999,625						999,625
Fixed assets		19,262						19,262			16,661						16,661
Goodwill					2,612,304			2,612,304						2,612,304			2,612,304
Deposit on acquisition of Desert					250,445			250,445						250,445			250,445
Total assets	$	224,282					$	3,087,031		$	1,016,286					$	3,879,035
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable	$	282,000					$	282,000		$	537,117					$	537,117
Accrued liabilities		30,797						30,797			52,496						52,496
Current maturities of long-term debt - related parties		801,724						801,724			148,458						148,458
Current maturities of long-term debt
Deferred income								—			157,622						157,622
Short term debt
Total current liabilities		1,114,521						1,114,521			895,693						895,693
Long term debt - net of current maturities
Long term debt - related parties, net of current maturities
Total liabilities		1,114,521						1,114,521			895,693						895,693
Stockholders' deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; none issued and outstanding		25,000						25,000			25,000						25,000
Common stock, $0.001 par value; 150,000,000 shares authorized; 70,288,450 shares shares issued and outstanding		70,288						70,288			70,288						70,288
Treasury stock								—			(4,715	)					(4,715	)
Accumulated other comprehensive income		(7,061	)					(7,061	)		4,877						4,877
Additional paid-in capital		(665,381	)		3,042,749			2,377,368			(665,381	)					2,382,584
Retained deficit		(313,085	)		(180,000	)		(493,085	)		690,524			3,047,945			505,328
Total stockholders' deficit		(890,239	)					1,972,510			120,593			(185,196	)		2,983,342
Total liabilities and stockholders' deficit	$	224,282					$	3,087,031		$	1,016,266					$	3,879,035

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended January 31, 2007

(Unaudited)-Restated

	As Previously			Management
	Reported			Fee			Restated			1/31/06
Revenues	$	490,643					$	490,643			46,909
Cost of revenues		(473,055	)				$	(473,055	)		(198,532	)
Operating expenses		(169,095	)		(15,000	)	$	(184,095	)		(122,678	)
Operating loss		(151,507	)		(15,000	)		(166,507	)
Other income (expense):
Loss on exchange of business assets		(1,226,061	)				$	(1,226,061	)
Interest income		119					$	119
Interest expense		(20,609	)				$	(20,609	)		(622	)
Income (loss) from continuing operations		(1,398,058	)		(15,000	)		(1,413,058	)		(274,923	)
Loss from discontinuing operations		(38,124	)					(38,124	)		459,603
Net income (loss)	$	(1,436,182	)	$	(15,000	)	$	(1,451,182	)		184,680
Basic and diluted income (loss) per share:
From continuing operations	$	(0.02	)	$	(0.00	)	$	(0.02	)		(0.00	)
From discontinued operations	$	(0.00	)	$	—		$	(0.00	)		0.01
Total	$	(0.02	)	$	(0.00	)	$	(0.02	)		0
Weighted average common shares		70,288,450			70,288,450			70,288,450			70,288,450

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 9 months ended January 31, 2007

(Unaudited)-Restated

	As Previously			Management
	Reported			Fee			Restated			1/31/06
Revenues	$	978,757					$	978,757			482,043
Cost of revenues		(408,197	)				$	(408,197	)		(629,375	)
Operating expenses		(412,724	)		(105,000	)	$	(517,724	)		(328,856	)
Operating loss		157,836			(105,000	)		52,836			(476,188	)
Other income (expense):
Loss on exchange of business assets		(1,226,061	)					(1,226,061	)
Interest income		336					$	336
Interest expense		(20,609	)				$	(20,609	)
Income (loss) from continuing operations		(1,088,498	)		(105,000	)		(1,193,498	)		(476,188	)
Loss from discontinuing operations		84,888						84,888			1,300,728
Net income (loss)	$	(1,003,610	)	$	(105,000	)	$	(1,108,610	)		824,540
Basic and diluted income (loss) per share:
From continuing operations	$	(0.00	)	$	(0.00	)	$	(0.00	)		(0.01	)
From discontinued operations	$	0.00		$	—		$	0.00			0.02
Total	$	(0.00	)	$	(0.00	)	$	(0.00	)		0.01
Weighted average common shares		703,983,450			703,983,450			703,983,450			70,288,450

Consolidated Statements of Cash Flows

For the 9 months ended January 31, 2007

(Unaudited)-Restated

	As Previously
	Reported			Restated			1/31/06
CASH FLOWS OPERATING ACTIVITIES
Net loss		(1,003,609	)	$	(1,108,610	)		824,540
Add: income (loss) from discontinued operations		(84,888	)		(84,888	)		1,300,728
Loss from continuing operations		(1,088,497	)		(1,193,498	)		2,125,268
Additional shares issued for conversion of debt
Depreciation and amortization expense
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		(212,201	)		(212,201	)		(25,607	)
Decrease (increase) in accounts receivable		343,145			343,145
Increase (decrease) in deferred income		(157,622	)		(157,622	)
Increase (decrease) in accrued expense					—
Increase (decrease) in inventory					—
Decrease (increase) in prepaid expense and other current assets					—
Net cash provided by (used in) operating activities - continuing operations		(1,115,175	)		(1,220,176	)
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable		73,259			73,259
Purchase of treasury stock					—
Purchase of Right-Tag					—
Purchase of fixed assets		(3,055	)		(3,055	)
Net cash provided by (used in) investing activities - continuing operations		70,204			70,204
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		678,254			678,254			(74,012	)
Proceeds from APIC					105,000
Translation adjustment		(11,938	)		(11,938	)		629
Net cash provided by (used in) financing activities - continuing operations		666,316			771,316
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		(378,655	)		(378,656	)		(575,178	)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS								1,078,609
NET CHANGE IN CASH		(378,655	)		(378,656	)		503,431
CASH AT BEGINNING OF PERIOD		379,600			379,600			15,367
CASH AT END OF PERIOD	$	945		$	944			518,798

April 30, 2007

Inova Technology, Inc. and Subsidiaries	30-Apr-06
Balance Sheets as of April 30, 2007 (Unaudited)-Restated

	As Previously			Effect of						As Previously			Effect of
	Reported			Restatement			Restated			Reported			Restatement			Restated
ASSETS
Current assets								0			379,600						379,600
Cash	$	22,847					$	22,847
Restricted cash - escrow		339,758					$	339,758
Accounts receivables		208,408						208,408			546,766						546,766
Inventory
Prepaid and other current assets								—			73,259						73,259
Total current assets		571,013						571,013			999,625						999,625
Fixed assets		1,039						1,039			16,661						16,661
Goodwill					2,612,304			2,612,304						2,612,304			2,612,304
Intangibles					130,231			130,231						250,445			250,445
Total assets	$	572,052					$	3,314,587		$	1,016,286					$	3,879,035
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	532,962					$	532,962		$	537,117					$	537,117
Accrued liabilities		5,811						5,811			52,496						52,496
Current maturities of long-term debt - related parties		662,690						662,690			148,458						148,458
Current maturities of long-term debt
Deferred income								—			157,622						157,622
Short term debt
Total current liabilities		1,201,463						1,201,463
Long term debt - net of current maturities		439,545						439,545			895,693						895,693
Long term debt - related parties, net of current maturities
Total liabilities		1,641,008						1,641,008			895,693						895,693
Stockholders’ deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; none issued and outstanding											25,000						25,000
Common stock, $0.001 par value; 3,000,000,000 shares authorized; 725,524,208 shares shares issued and outstanding		725,524						725,524			70,288						70,288
Treasury stock								—			(4,715	)					(4,715	)
Accumulated other comprehensive income								—			4,877						4,877
Additional paid-in capital		(1,203,291	)		2,792,304			1,589,013			(665,381	)		3,047,945			2,382,564
Retained deficit		(591,180	)		(49,769	)		(640,958	)		690,524			(185,196	)		505,328
Total stockholders’ deficit		(1,068,956	)					1,673,579			120,593						2,983,342
Total liabilities and stockholders’ deficit	$	572,052					$	3,314,587		$	1,016,286					$	3,879,035

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Year ended April 30, 2007

(Unaudited)

	As Previously									Restated
	Reported			Adjustments			Restated			4/30/06
Revenues	$	1,615,187					$	1,615,187			1,391,923
Cost of revenues		(578,336	)		(120,214	)	$	(698,550	)		(823,487	)
Operating expenses		(1,136,141	)		(105,000	)	$	(1,241,141	)		(1,178,561	)
Operating loss		(99,290	)		(225,214	)		(324,504	)		(610,125	)
Other income (expense):
Loss on exchange of business assets		(1,236,362	)				$	(1,236,362	)
Interest income		5,790					$	5,790			16,645
Interest expense		(41,616	)				$	(41,616	)		(35,182	)
Income (loss) from continuing operations		(1,371,478	)		(225,214	)		(1,596,692	)		(628,662	)
Loss from discontinuing operations		84,888						84,888			1,136,399
Net income (loss)	$	(1,286,590	)	$	(225,214	)	$	(1,511,804	)	$	507,737
Basic and diluted income (loss) per share:
From continuing operations	$	(0.02	)	$	(0.00	)	$	(0.02	)		(0	)
From discontinued operations	$	0.00		$	—		$	0.00			—
Total	$	(0.02	)	$	(0.00	)	$	(0.02	)		—
Weighted average common shares		70,288,450			70,288,450			70,288,450			680,644,608

Consolidated Statements of Cash Flows

For the year ended April 30, 2007

(Unaudited)

	As Previously						Restated
	Reported			Restated			4/30/06
CASH FLOWS OPERATING ACTIVITIES
Net loss		(1,286,590	)	$	(1,511,804	)		507,737
Add: income (loss) from discontinued operations		1,151,474			1,151,474			(1,136,399	)
Loss from continuing operations		(135,116	)		(360,330	)		(628,662	)
Additional shares issued for conversion of debt
Depreciation and amortization expense
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		28,475			28,475
Decrease (increase) in accounts receivable		427,311			427,311			(366,114	)
Increase (decrease) in deferred income					—			45,336
Increase (decrease) in accrued expense					—			88,134
Increase (decrease) in inventory					—
Decrease (increase) in other current assets					—
Net cash provided by (used in) operating activities		320,670			95,456
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable					—			(73,259	)
Purchase of treasury stock					—
Purchase of Right-Tag		(339,758	)		(339,758	)
Purchase of fixed assets					—			(10,477	)
Net cash provided by (used in) investing activities		(339,758	)		(339,758	)
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		863,304			863,304			(534,535	)
Proceeds from APIC		9,715			114,715			180,481
Translation adjustment		(5,000	)		(5,000	)		4,877
Net cash provided by (used in) financing activities		868,019			973,019
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		848,931			728,717
NET CASH PROVIDED BY DISCONTINUED OPERATIONS		(1,205,684	)		(1,205,684	)		220,698
NET CHANGE IN CASH		(356,753	)		(476,967	)		(162,697	)
CASH AT BEGINNING OF PERIOD		379,600			379,600			542,297
CASH AT END OF PERIOD	$	22,847		$	(97,367	)		379,600

Restatements

There were management fees of $15,000 per month from May, 2006 through November, 2006 which were not paid but which are now being realized as an increase in expense and in paid in capital. This is a total of $105,000, which is a reduction of net income and increase to equity. There was an additional $75,000 from the prior year which is a reduction of retained earnings and increase of paid in capital.

July 31, 2007

Restatements

There were management fees of $15,000 per month from prior years which were not paid but which are now being realized as an increase in paid in capital and reduction of retained earnings for a total of $180,000.

Inova Technology, Inc and Subsidiaries	4/30/07
Balance Sheet as of July 31, 2007 (Unaudited)-Restated

	As Previously  Reported			Effect of  Restatement			Restated			As Previously  Reported			Effect of  Restatement			Restated
ASSETS
Current assets								0									0
Cash	$	45,698					$	45,698		$	22,847					$	22,847
Restricted cash - escrow							$	—			339,758					$	339,758
Accounts receivables		181,238						181,238			208,408						208,408
Inventory		12,850						12,850
Prepaid and other current assets		4,089						4,089									—
Total current assets		244,875						244,875			571,013						571,013
Fixed assets		3,254						3,254			1,039						1,039
Goodwill		436,572			2,612,304			3,048,876						2,612,304			2,612,304
Intangibles					130,231			130,231						130,231			130,231
Total assets	$	684,701					$	3,427,236		$	572,052					$	3,314,587
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accounts payable	$	531,776					$	531,776		$	532,962					$	532,962
Accrued liabilities		56,665						56,665			5,811						5,811
Current maturities of long-term debt - related parties		438,256						438,256			662,690						662,690
Current maturities of long-term debt		99,160						99,160
Deferred income								—									—
Short term debt
Total current liabilities		1,125,857						1,125,857			1,201,463						1,201,463
Long term debt - net of current maturities		404,827						404,827			439,545						439,545
Long term debt - related parties, net of current maturities
Total liabilities		1,530,684						1,530,684			1,641,008						1,641,008
Stockholders’ deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value; 3,000,000,000 shares authorized; 725,524,208 shares shares issued and outstanding		728,089						728,089			725,524						725,524
Treasury stock								—									—
Accumulated other comprehensive income								—									—
Additional paid-in capital		(1,050,838	)		2,922,535			1,871,697			(1,203,291	)		2,792,304			1,589,013
Retained deficit		(523,234	)		(180,000	)		(703,234	)		(591,189	)		(49,769	)		(640,958	)
Total stockholders’ deficit		(845,983	)					1,896,552			(1,068,956	)					1,673,579
Total liabilities and stockholders’ deficit	$	684,701					$	3,427,236		$	572,052					$	3,314,587

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended July 31, 2007

(Unaudited)- RESTATED

	7/31/07			7/31/06
Revenues		385,112			599,960
Cost of revenues		(145,263	)		(83,875	)
Operating expenses		(140,197	)		(214,427	)
Operating loss					301,658
Other income (expense):
Loss on exchange of business assets
Interest income					76
Interest expense		(31,695	)		—
Income (loss) from continuing operations		67,957			301,734
Loss from discontinuing operations
Net income (loss)		67,957			301,734
Basic and diluted income (loss) per share:
From continuing operations		—			0
From discontinued operations		—			—
Total		—			0
Weighted average common shares		725,524,208			703,983,450

Consolidated Statements of Cash Flows

For the 3 months ended July 31, 2007

(Unaudited)

	7/31/07			7/31/06
CASH FLOWS OPERATING ACTIVITIES
Net loss		67,957			301,734
Add: income (loss) from discontinued operations
Loss from continuing operations					301,734
Additional shares issued for conversion of debt		2,225
Depreciation and amortization expense
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		40,878			—
Decrease (increase) in accounts receivable		31,190			(303,193	)
Increase (decrease) in deferred income					(27,851	)
Increase (decrease) in accrued expense					1,804
Increase (decrease) in inventory		540			—
Decrease (increase) in other current assets		10,784			—
Net cash provided by (used in) operating activities					(27,506	)
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable					—
Purchase of treasury stock					—
Purchase of Right-Tag					—
Purchase of fixed assets		(2,215	)		—
Net cash provided by (used in) investing activities					—
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		(127,508	)		—
Proceeds from APIC					45,000
Translation adjustment					1,233
Net cash provided by (used in) financing activities					46,233
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		23,851			18,727
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH					18,727
CASH AT BEGINNING OF PERIOD		22,847			379,600
CASH AT END OF PERIOD		46,698			398,327

October 31, 2007

Restatements

There were management fees of $15,000 per month from prior years which were not paid but which are now being realized as an increase in paid in capital and reduction of retained earnings for a total of $180,000.

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended October 31, 2007

(Unaudited)-Restated

	10/31/07			10/31/06
Revenues		90,954			482,421
Cost of revenues		(65,255	)		(120,923	)
Operating expenses		(112,566	)		(242,852	)
Operating loss					118,646
Other income (expense):
Loss on exchange of business assets
Interest income					141
Interest expense		(127,163	)		—
Income (loss) from continuing operations		(214,030	)		118,787
Loss from discontinuing operations
Net income (loss)		(214,030	)		118,787
Basic and diluted income (loss) per share:
From continuing operations		—			0
From discontinued operations		—			—
Total		—			0
Weighted average common shares		725,864,137			703,983,450

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 6 months ended October 31, 2007

(Unaudited)-Restated

	10/31/07			10/31/06
Revenues		476,066			1,082,381
Cost of revenues		(210,518	)		(204,798	)
Operating expenses		(235,623	)		(457,279	)
Operating loss		29,925			420,304
Other income (expense):
Loss on exchange of business assets
Interest income					217
Interest expense		(175,998	)		—
Income (loss) from continuing operations		(146,073	)		420,521
Loss from discontinuing operations
Net income (loss)		(146,073	)		420,521
Basic and diluted income (loss) per share:
From continuing operations		—			0
From discontinued operations		—			—
Total		—			0
Weighted average common shares		725,964,173			703,983,450

Consolidated Statements of Cash Flows

For the 6 months ended October 31, 2007

(Unaudited)-Restated

	10/31/07			10/31/2006
CASH FLOWS OPERATING ACTIVITIES
Net loss		(146,073	)		420,521
Add: income (loss) from discontinued operations
Loss from continuing operations					420,521
Additional shares issued for conversion of debt		80,150
Depreciation and amortization expense		9,129
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		40,736			—
Decrease (increase) in accounts receivable		127,739			272,386
Increase (decrease) in deferred income					(22,987	)
Increase (decrease) in accrued expense		58,305			(132,499	)
Increase (decrease) in inventory		272			—
Decrease (increase) in other current assets		335,899			9,000
Net cash provided by (used in) operating		506,157			546,421
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable					—
Purchase of Desert		(100,000	)		—
Purchase of Right-Tag		(325,000	)		—
Purchase of fixed assets		(2,215	)		—
Net cash provided by (used in) investing		(427,215	)		—
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		(76,899	)		—
Proceeds from APIC					90,000
Translation adjustment					(2,190	)
Net cash provided by (used in) financing activities		2,043			87,810
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS					634,231
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH					634,231
CASH AT BEGINNING OF PERIOD		22,847			379,600
CASH AT END OF PERIOD		24,890			1,013,831

January 31, 2008

Restatements

There were management fees of $15,000 per month from prior years which were not paid but which are now being realized as an increase in paid in capital and reduction of retained earnings for a total of $180,000

Inova Technology, Inc. and Subsidiaries

Balance Sheets as of January 31, 2008 (Unaudited)

	As Previously			Effect of
	Reported			Restatement			Restated			1/31/07
ASSETS
Current assets
Cash	$	295,687					$	295,687			945
Restricted cash - escrow							$	—			204,075
Accounts receivables		2,472,877						2,472,877
Inventory		334,085						334,085
Prepaid and other current assets		28,751						28,751
Total current assets		3,131,400						3,131,400			205,020
Fixed assets		166,692						166,692			19,262
Goodwill		4,711,572			2,972,945			7,684,517			2,612,304
Deposit on acquisition of Desert								—			250,445
Total assets	$	8,009,664					$	10,982,609			3,087,031
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable	$	1,410,032					$	1,410,032			282,000
Accrued liabilities		221,478						221,478			30,797
Current maturities of long-term debt - related parties		4,435,395						4,435,395			801,724
Current maturities of long-term debt								—
Deferred income		390,568						390,568
Short term debt		99,160						99,160
Total current liabilities		6,556,633						6,556,633			1,114,521
Long term debt - net of current maturities		1,724,468						1,724,468
Long term debt - related parties, net of current maturities
Total liabilities		8,281,101						8,281,101			1,114,521
Stockholders' deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; none issued and outstanding											25,000
Common stock, $0.001 par value; 3,000,000,000 shares authorized; 949,217,911 shares shares issued and outstanding		949,219						949,219			70,288
Treasury stock								—
Accumulated other comprehensive income								—			(7,061	)
Additional paid-in capital		367,803			3,152,945			3,520,748			2,377,368
Retained deficit		(1,588,459	)		(180,000	)		(1,768,459	)		(493,085	)
Total stockholders' deficit		(271,437	)					2,701,508			1,972,510
Total liabilities and stockholders' deficit	$	8,009,664					$	10,982,609			3,087,031

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended January 31, 2008

(Unaudited)-Restated

	1/31/08			1/31/07
Revenues		1,018,853			490,643
Cost of revenues		(676,320	)		(473,055	)
Operating expenses		(752,705	)		(184,095	)
Operating loss		(410,172	)		(166,507	)
Other income (expense):
Loss on exchange of business assets					(1,226,061	)
Interest income					119
Interest expense					(20,609	)
Income (loss) from continuing operations		(851,194	)		(1,413,058	)
Loss from discontinuing operations					(38,124	)
Net income (loss)					(1,451,182	)
Basic and diluted income (loss) per share:
From continuing operations		(0	)		(0	)
From discontinued operations		(0	)		(0	)
Total		(0	)		(0	)
Weighted average common shares		758,682,436			70,288,450

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 9 months ended January 31, 2008

(Unaudited)-Restated

	1/31/08			1/31/07
Revenues		1,494,919			978,757
Cost of revenues		(886,838	)		(408,197	)
Operating expenses		(1,007,178	)		(517,724	)
Operating loss		(399,097	)		52,836
Other income (expense):
Loss on exchange of business assets					(1,226,061	)
Interest income					336
Interest expense		(598,170	)		(20,609	)
Income (loss) from continuing operations		(997,267	)		(1,193,498	)
Loss from discontinuing operations					84,888
Net income (loss)					(1,108,610	)
Basic and diluted income (loss) per share:
From continuing operations		(0	)		(0	)
From discontinued operations		0			0
Total		(0	)		(0	)
Weighted average common shares		737,431,815			703,983,450

Consolidated Statements of Cash Flows

For the 9 months ended January 31, 2008

(Unaudited)-Restated

	1/31/08			1/31/07
CASH FLOWS OPERATING ACTIVITIES
Net loss		(997,267	)		(1,108,610	)
Add: income (loss) from discontinued operations					(84,888	)
Loss from continuing operations					(1,193,498	)
Additional shares issued for conversion of debt		268,444
Depreciation and amortization expense		208,690
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		874,139			(212,201	)
Decrease (increase) in accounts receivable		146,246			343,145
Increase (decrease) in deferred income					(157,622	)
Increase (decrease) in accrued expense		390,568			—
Increase (decrease) in inventory		(27,952	)		—
Decrease (increase) in current assets		317,776			—
Net cash provided by (used in) operating activities		1,180,644			(1,220,176	)
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable					73,259
Purchase of Desert		(3,725,000	)
Purchase of treasury stock					—
Purchase of Right-Tag		(325,000	)		—
Purchase of fixed assets		(2,215	)		(3,055	)
Net cash provided by (used in) investing activities		(4,052,215	)		70,204
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		3,128,891			678,254
Proceeds from APIC		15,520			105,000
Translation adjustment					(11,938	)
Net cash provided by (used in) financing activities		3,144,411			771,316
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		272,840			(378,656	)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		272,840			(378,656	)
CASH AT BEGINNING OF PERIOD		22,847			379,600
CASH AT END OF PERIOD		295,687			944

April 30, 2008

The following wording is being added regarding controls:

Due to the small size of the company and the amount of time required to set up proper controls we have not yet reviewed/approved all control activities, such as policies and procedures, so this is considered a weakness at this time.

During the year ended April 30, 2008, Inova restated its prior year financial statements for the following transactions:

Inova’s acquisition of Web’s Biggest:

During 2008, Inova determined that the original accounting for the merger with Web’s Biggest in 2005 was incorrect. Both companies were operating companies and the intent of the combined entity was to continue on with both operations. Inova should have accounted for the transaction as a reverse acquisition whereby Web’s Biggest purchased Inova and fair value and purchase accounting would apply. The purchase price was $2,464,908 (70,425,950 shares issued at their market value of $0.035 per share on June 1, 2005) and the fair value of the net liabilities assumed was $508,037, resulting in goodwill and intangible assets totaling $2,972,945. Inova recorded goodwill of $2,612,304 and intangible asset of $360,641 through additional paid in capital. Inova also recorded $230,410 amortization of intangible asset through reduction of retained earnings. An impairment analysis at April 30, 2008 has been undertaken and a reduction to goodwill of $324,310 has been booked.

Unrecorded management fees:

During 2008, Inova identified that there were management fees of $15,000 per month for prior periods which were not recognized but which are now being realized as an increase in expense and in paid in capital. This totaled $180,000, which increases net loss for fiscal 2007.

INOVA TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

				(Restated)
	April 30,			April 30,
	2008			2007 (Restated)
ASSETS
Current assets
Cash	$	12,167		$	22,847
Restricted cash - escrow		—			339,758
Accounts receivables, net		769,918			208,408
Contract receivables, net		2,233,252			—
Inventory		101,679			—
Cost in excess of billing		198,655			—
Prepaid and other current assets		234,645			—
Total current assets		3,550,316			571,013
Fixed assets, net		183,926			1,039
Intangible assets, net		845,332			130,231
Goodwill		5,904,782			2,612,304
Total assets	$	10,484,356		$	3,314,587
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,746,889		$	532,962
Accrued liabilities		270,061			5,811
Deferred income		403,792			—
Notes payable - related parties		1,200,855			662,690
Notes payable, net		2,648,678			—
Total current liabilities		6,270,275			1,201,463
Notes payable - net of current maturities		2,812,133			439,545
Total liabilities		9,082,408			1,641,008
Stockholders' equity
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; 4,951,000 shares issued and outstanding		4,951			4,951
Common stock, $0.001 par value; 3,000,000,000 shares authorized; 600,000,000 shares issued and outstanding		600,000			600,000
Additional paid-in capital		2,774,658			2,070,227
Accumulated deficit		(1,977,661	)		(1,001,599	)
Total stockholders' equity		1,401,948			1,673,579
Total liabilities and stockholders' equity	$	10,484,356		$	3,314,587

See summary of accounting policies and notes to consolidated financial statements.

INOVA TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the years ended April 30, 2008 and 2007

				(Restated)
	2008			2007
Revenues	$	5,442,402		$	1,615,187
Cost of revenues		(4,109,518	)		(578,336	)
Operating expenses		(2,195,557	)		(1,436,355	)
Operating loss		(862,673	)		(399,504	)
Other income (expense):
Interest income		—			1,367
Other income		—			9,300
Interest expense		(113,389	)		(41,616	)
Loss from continuing operations		(976,062	)		(430,454	)
Income from discontinued operations		—			84,888
Loss from disposal of discontinued operations		—			(1,236,362	)
Net loss		(976,062	)		(1,581,927	)
Translation adjustment		—			(4,877	)
Comprehensive loss	$	(976,062	)	$	(1,586,804	)
Basic and diluted income (loss) per share:
- from continuing operations	$	(0.00	)	$	(0.00	)
- from discontinued operations		—			(0.00	)
Basic and diluted income (loss) per share		(0.00	)		(0.01	)
Weighted average common shares outstanding		600,000,000			332,590,991

NET LOSS PER SHARE

The basic and diluted net loss per share is calculated based on the weighted-average number of common shares outstanding during the year.

See summary of accounting policies and notes to consolidated financial statements.

INOVA TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended April 30, 2008 and 2007

				(Restated)
	2008			2007
CASH FLOWS OPERATING ACTIVITIES
Net loss	$	(976,062	)	$	(1,581,927	)
Less: income (loss) from discontinued operations		—			1,151,474
Loss from continuing operations		(976,062	)		(430,453	)
Adjustments to reconcile net income to net cash used provided by operating activities:
Bad debt expense		17,753			—
Depreciation expense		11,792			25,216
Management fees		—			180,000
Amortization expense		940,442			120,214
Changes in operating assets and liabilities:
Increase (decrease) in accounts receivable		(375,712	)		402,095
Increase (decrease) in inventory		(7,830	)		—
Increase (decrease) in cost in excess of billing		112,156			—
Increase (decrease) in prepaid assets		(130,524	)		—
Increase (decrease) in A/P and accrued expenses		822,366			28,475
Increase (decrease) in deferred income		403,792			—
Net cash provided by operating activities of continuing operations		818,173			325,547
Net cash used by operating activities of discontinuing operations		—			(1,278,943	)
Net cash provided by (used by) operating activities		818,173			(953,396	)
CASH FLOW INVESTING ACTIVITIES
Purchase of RightTag		—			(339,758	)
Purchase of Desert Communication		(3,725,000	)		—
Purchase of fixed assets		(27,540	)		—
Net cash used in investing activities of continuing operations		(3,752,540	)		(339,758	)
Net cash provided by investing activities of discontinuing operations		—			73,259
Net cash provided by investing activities		(3,752,540	)		(266,499	)
CASH FLOW FINANCING ACTIVITIES
##Proceeds from loans		3,269,820			—
Repayments made on notes payable		(358,401	)		—
Proceeds from borrowings on notes payable - related parties		469,513			1,167,557
Repayments made on notes payable - related parties		(472,765	)		(304,253	)
Capital contributions made by related party		15,520			—
Sale of treasury stock					4,715
Net cash provided by financing activities of continuing operations		2,923,687			868,019
Effect of foreign currency translation		—			(4,877	)
NET CHANGE IN CASH		(10,680	)		(356,753	)
CASH AT BEGINNING OF YEAR		22,847			379,600
CASH AT END OF YEAR	$	12,167		$	22,847
SUPPLEMENTAL INFORMATION:
Interest paid	$	106,496		$	15,147
Income taxes paid		—			—
NON-CASH INVESTINGAND FINANCING ACTIVITIES:
Common stock issued for partial payment of notes payable	$	—		$	92,326
Preferred stock converted to common stock		—			20,049
Common stock issued for conversion of preferred stock		—			508,310
Seller financed purchase of Desert Communication		2,630,801			—
Beneficial conversion feature discount on notes payable		75,856			—
Discount to notes payable on relative fair value of warrants		613,056			—

See summary of accounting policies and notes to consolidated financial statements.

INOVA TECHNOLOGY, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY

Years ended April 30, 2007 (Restated) and 2008

	Common Stock				Preferred Stock						Treasury Stock												Accumulated
	Shares		Par (0.001)		Shares			Par (0.001)			Shares			Amount			APIC			OCI			Deficit			Total
Balances at April 30, 2006		70,288,450	$	70,288		25,000,000		$	25,000			137,500		$	(4,715	)	$	2,307,564		$	4,877		$	580,328		$	2,983,342
Shares issued to pay notes payable		21,264,758		21,264														71,061									92,325
Shares issued to acquire Data Management						25,000,000			25,000									(25,000	)								—
Shares received for sale of Web's Biggest, LTD						(25,000,000	)		(25,000	)								25,000									—
Reversal of treasury stock purchase		137,500		138								(137,500	)		4,715			(138	)								4,715
Preferred shares converted to common shares (restated)		508,309,292		508,310		(20,049,000	)		(20,049	)								(488,261	)								—
Management fees (restated)																		180,000									180,000
Translation adjustment																					(4,877	)					(4,877	)
Net loss (restated)																								(1,581,927	)		(1,581,927	)
Balances at April 30, 2007 (Restated)		600,000,000		600,000		4,951,000			4,951			—			—			2,070,226			—			(1,001,599	)		1,673,578
Capital contributions from related party																		15,520									15,520
Beneficial conversion feature																		75,856									75,856
Warrant discount																		613,056									613,056
Net loss																								(976,062	)		(976,062	)
Balances at April 30, 2008		600,000,000	$	600,000		4,951,000		$	4,951			—		$	—		$	2,774,658		$	—		$	(1,977,661	)	$	1,401,948

See summary of accounting policies and notes to consolidated financial statements.

July 31, 2008

Inova Technology, Inc. and Subsidiaries

Consolidated Balance Sheets (unaudited)

	July 31,			April 30,
	2008			2008
ASSETS
Current assets
Cash	$	256,805		$	12,167
Accounts receivables, net		—			769,918
Contract receivables, net		3,067,870			2,233,252
Inventory		103,658			101,679
Cost in excess of billing		180,958			198,655
Prepaid and other current assets		580,771			234,645
Total current assets		4,190,062			3,550,316
Fixed assets, net		186,268			183,926
Intangible assets, net		737,224			845,332
Goodwill		5,904,782			5,904,782
Total assets	$	11,018,336		$	10,484,356
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Accounts payable	$	2,382,941		$	1,746,889
Accrued liabilities		146,233			270,061
Deferred income		520,475			403,792
Note payable - related parties		227,237			1,200,855
Note payable, net		1,205,722			2,648,678
Total current liabilities		4,482,608			6,270,275
Long term debt - net of current maturities		3,181,738			2,812,133
Total liabilities		7,664,346			9,082,408
Stockholders' equity
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; 0 and 4,951,000 issued and outstanding		—			4,951
Common stock, $0.001 par value; 3,000,000,000 shares authorized; 964,870,775 shares and 600,000,000 shares issued and outstanding, respectively		964,871			600,000
Additional paid-in capital		4,064,963			2,774,658
Accumulated deficit		(1,675,844	)		(1,977,661	)
Total stockholders' equity		3,353,990			1,401,948
Total liabilities and stockholders' equity	$	11,018,336		$	10,484,356

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Income

For the three months ended July 31, 2008 and July 31, 2007 (unaudited)

	07/31/08			07/31/07 Restated
Revenues	$	5,892,315		$	385,112
Cost of revenues		(4,040,229	)		(145,263	)
Operating expenses		(1,287,347	)		(140,197	)
Operating income		564,739			99,652
Interest expense		(262,923	)		(31,695	)
Net income	$	301,816		$	67,957
Basic and diluted income per share	$	0.00		$	0.00
Weighted average common shares		964,870,775			600,000,000

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

For the three months ended July 31, 2008 and 2007 (unaudited)

	July 31, 2008			July 31, 2007			Restated
CASH FLOWS OPERATING ACTIVITIES
Net income	$	301,816		$	67,957
Adjustments to reconcile net income to cash provided by operating activities:
Amortization expense		277,875			2,225
Depreciation expense		9,214			—
Accrued management fees		30,000			—
Interest expense from conversion of debt to equity		126,340			—
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		649,024			40,878
Increase (decrease) in accounts receivable		(64,700	)		31,190
Increase (decrease) in deferred income		116,683			—
Increase (decrease) in inventory		15,718			540
Increase (decrease) in prepaid/other assets		(346,126	)		10,784
Net cash provided by operating activities		1,115,844			153,574
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets		(11,556	)		(2,215	)
Net cash used in investing activities		(11,556	)		(2,215	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans		671,125			110,000
Repayment of loans		(1,493,075	)		(237,508	)
Repayment of loans - related parties		(37,700	)		—
Net cash used in financing activities		(859,650	)		(127,508	)
NET CHANGE IN CASH		244,638			23,851
CASH AT BEGINNING OF PERIOD		12,167			22,847
CASH AT END OF PERIOD	$	256,805		$	46,698
SUPPLEMENTAL INFORMATION:
Interest paid	$	42,209		$	15,127
Income taxes paid		—			—
NONCASH INVESTING AND FINANCING ACTIVITIES:
Discount on note payable - BCF	$	280,942		$	54,427
Discount on note payable - Warrants		166,183			54,428
Common stock issued for debt		1,087,247			—
Preferred stock converted to common stock		120,573			—
Net liabilities assumed under the Right Tag acquisition		—			111,572