Inova Technology (IVTH) CORRESP Correspondence with SEC

January 31, 2009   INOVA TECHNOLOGY RESTATEMENTS

A summary of the adjustments is in the spreadsheet below:

													Cumulative
							Cum		Cum		Cumulative		effect to
	Amortization		Management fee		Total		amort		Mgt fee		earnings effect		restate
7/05		20,036		30,000		50,036		20,036		30,000		50,036		50,036
10/05		30,054		45,000		75,054		50,089		75,000		125,089		125,089
1/06		30,054		45,000		75,054		80,143		120,000		200,143		200,143
4/06		30,054		45,000		75,054		110,196		165,000		275,196		275,196
7/06		30,054		45,000		75,054		140,250		210,000		350,250		350,250
10/06		30,054		45,000		75,054		170,303		255,000		425,303		425,303
1/07		30,054		15,000		45,054		200,357		270,000		470,357		470,357
4/07		30,054				30,054		230,410		270,000		500,410		500,410
7/07		30,054				30,054		260,464		270,000		530,464		530,464
10/07		30,054				30,054		290,517		270,000		560,517		560,517
1/08		30,054				30,054		320,571		270,000		590,571		590,571
4/08		30,054				30,054		350,624		270,000		620,624		90,000
7/08		10,018				10,018		360,642		270,000		630,642		90,000
10/08		0				-		360,642		270,000		630,642		90,000
		360,642		270,000		630,642

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 July 31, 2005. 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, 2005 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 ($508,037) resulting in goodwill of $2,972,945. Therefore the net assets and equity will be increased by this amount.

Also, there were management fees of $15,000 per month from June, 2005 through July, 2005 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 $30,000, which is a reduction of net income and increase to equity.

Inova Technology, Inc. and Subsidiaries

Balance Sheets as of July 31, 2005 (Unaudited)-Restated

	As Previously			Effect of
	Reported			Restatement			Restated			4/30/2005
ASSETS
Current assets
Cash		466,614						466,614			15,367
Accounts receivables		488,426						488,426			405,886
Intangibles					340,606			340,606
Inventory		2,868									3,775
Prepaid and other current assets		18,015						18,015			7,796
Total current assets		975,923						1,313,661			432,824
Fixed assets		28,260						28,260			15,135
Goodwill					2,612,304			2,612,304
Other assets		202									517
Total assets		1,004,385						3,954,225			448,476
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable		513,869						513,869			542,701
Current maturities of long-term debt - related parties		70,460						70,460			49,614
Deferred income		106,655						106,655
Payroll liabilities		1,743						1,743
Short term debt		133,412						133,412			305,398
Other current liabilities		11,887						11,887
Total current liabilities		838,026						838,026			897,713
Long term debt -  net of current maturities								0
Long term debt - related parties, net of current maturities		441,517						441,517			58,800
Total liabilities		1,279,543						1,279,543			956,513
Stockholders' deficit
Convertible preferred stock, $0.001 par value; 25,000,000
shares authorized; 25,000,00 issued and outstanding		25,000						25,000
Common stock, $0.001 par value;150,000,000 shares
authorized; 69,994,000 shares
shares issued and outstanding		69,994						69,994			69,994
Accumulated other comprehensive income		(8,514	)					(8,514	)		(629	)
Additional paid-in capital		2,691,689			2,999,876			5,691,565			2,776,659
Retained deficit		(3,053,327	)		(50,036	)		(3,103,363	)		(3,354,061	)
Total stockholders' deficit		(275,158	)					2,674,682			(508,037	)
Total liabilities and stockholders' deficit		1,004,385						3,954,225			448,476

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended July 31, 2005

(Unaudited)-Restated

	7/31/2005			Restatements			Restated			7/31/2004
Revenues		789,710						789,710			458,268
Refunds											(39,324	)
Cost of revenues		(197,188	)					(197,188	)		(20,000	)
Operating expenses		(220,314	)		(50,036	)		(270,350	)		(11,071	)
Operating loss		372,208			(50,036	)		322,172			387,873
Other income (expense):
Loss on exchange of business assets
Interest income		4,113									1,082
Interest expense
Income (loss) from continuing operations		376,321			(50,036	)		326,285			383,955
Loss from discontinuing operations
Net income (loss)
Basic  income (loss) per share:		69,993,450									69,993,450
Diluted income (loss) per share:		476,472,988									69,993,450
From continuing operations								0
From discontinued operations								0
Total								0
Weighted average common shares								0

Consolidated Statements of Cash Flows

For the 3 months ended July 31, 2005

(Unaudited)-Restated

	7/31/2005			Restatements			Restated			7/31/2004
CASH FLOWS OPERATING ACTIVITIES
Net income/loss		376,320						376,320			383,955
Add: income (loss) from discontinued operations
Loss from continuing operations
Additional shares issued for conversion of debt								-
Depreciation and amortization expense		(389	)					(389	)		589
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses								-
Decrease (increase) in accounts receivable		(34,696	)					(34,696	)		30,049
Increase (decrease) in deferred income		(5,631	)					(5,631	)		145,162
Increase (decrease) in accrued expense								-
Increase (decrease) in inventory								-
Decrease (increase) in current assets		(3,376	)					(3,376	)
Net cash provided by (used in) operating activities		(44,092	)		(50,036	)		(94,128	)		209,333
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable
Purchase of Desert								-
Purchase of treasury stock
Purchase of Right-Tag								-
Purchase of fixed assets		(7,018	)					(7,018	)		(1,948	)
Net cash provided by (used in) investing activities		(7,018	)					(7,018	)		(1,948	)
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		(301,305	)					(301,305	)		1,373
Proceeds from APIC					50,036			50,036
Translation adjustment
Borrowings RE Distributions											(1,943	)
Net cash provided by (used in) financing activities		(301,305	)					(301,305	)		(570	)
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		(352,415	)					(352,415	)		206,815
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		(352,415	)					(352,415	)		206,815
CASH AT BEGINNING OF PERIOD		(819,229	)					(819,229	)		1,797,160
CASH AT END OF PERIOD		466,814						466,814			2,003,975

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/ Bob Bates

Bob Bates, CFO

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, 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, Bob Bates, 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/ Bob Bates, CFO

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, 2005, 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, 2005, as filed with the Securities and Exchange Commission on the date hereof (the "Report" ), I, Bob Bates, 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/ Bob Bates

Bob Bates, CFO

November 14, 2008

October 31, 2005 filing:

Restatements

There were management fees of $15,000 per month from August, 2005 through October, 2005 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

Balance Sheets as of Oct 31, 2005 (Unaudited)-Restated

	As Previously			Effect of
	Reported			Restatement			Restated			4/30/2005
ASSETS
Current assets
Cash		459,859						459,859			15,367
Accounts receivables		595,291						595,291			405,886
Inventory		2,949									3,775
Prepaid and other current assets								0			7,796
Total current assets		1,058,099						1,055,150			432,824
Fixed assets		13,514						13,514			15,135
Goodwill					2,612,304			2,612,304
Intangibles					310,552			310,552
Loan to Related Party		73,259
Other assets											517
Total assets		1,144,872						3,991,520			448,476
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable		356,824						356,824			542,701
Accrued liabilities		50,051						50,051
Current maturities of long-term debt - related parties		166,320						166,320			49,614
Deferred income		160,076						160,076
Short term debt								0			305,398
Other current liabilities								0
Total current liabilities		733,271						733,271			897,713
Long term debt -  net of current maturities								0
Long term debt - related parties, net of current maturities		184,323						184,323			58,800
Other Loans		104,767						104,767
Total liabilities		1,022,361						1,022,361			956,513
Stockholders' deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; 25,000,00 issued and outstanding		25,000						25,000
Common stock, $0.001 par value;150,000,000 shares authorized; 70,288,450 shares shares issued and outstanding		70,426						0 70,426			69,994
137,500 common shares treasury stock		(4,715	)					(4,715	)
Accumulated other comprehensive income								0			(629	)
Additional paid-in capital		2,691,689			2,971,737			5,663,426			2,776,659
Retained deficit		(2,659,889	)		(125,089	)		(2,784,978	)		(3,354,061	)
Total stockholders' deficit		122,511						2,969,159			(508,037	)
Total liabilities and stockholders' deficit		1,144,872						3,991,520			448,476

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended Oct 31 2005

(Unaudited)-Restated

	Three Month period ended									Three Month period ended
	10/31/2005			Restatements			Restated			10/31/2004
Revenues		841,876						841,876			458,268
Refunds		(52,472	)								(39,324	)
Cost of revenues		(297,722	)					(297,722	)		(20,000	)
Operating expenses		(142,453	)		(75,054	)		(217,507	)		(11,071	)
Operating profit/ loss		349,229			(75,054	)		274,175			383,955
Other income (expense):
Loss on exchange of business assets
Interest income		1,545						1,545
Interest expense		(19,320	)					(19,320	)
Other Adjustment		(47,916	)					(47,916	)
Income (loss) from continuing operations		283,538			(75,054	)		208,484			383,955
Loss from discontinuing operations
Net income (loss)
Basic  income (loss) per share:		70,425,950						70,425,950
Diluted income (loss) per share:		704,258,450						704,258,450
From continuing operations								0
From discontinued operations								0
Total								0
Weighted average common shares								0

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 6 months ended Oct 31 2005

(Unaudited)-Restated

	Six Month period ended									6 Month period ended
	10/31/2005			Restatements			Restated			10/31/2004
Revenues		1,631,586						1,631,586			916,536
Refunds		(52,472	)					(52,472	)		(78,648	)
Cost of revenues		(494,910	)		(125,089	)		(619,999	)		(40,000	)
Operating expenses		(424,344	)					(424,344	)		(22,142	)
Operating profit/ loss		659,860			(125,089	)		534,771			775,746
Other income (expense):
Loss on exchange of business assets
Interest income
Interest expense
Income (loss) from continuing operations		659,860			(125,089	)		534,771			775,746
Loss from discontinuing operations
Net income (loss)
Basic  income (loss) per share:		70,425,950						70,425,950
Diluted income (loss) per share:		704,258,450						704,258,450
From continuing operations								0
From discontinued operations								0
Total								0
Weighted average common shares								0

Consolidated Statements of Cash Flows

For the 6 months ended October 31 2005

(Unaudited)-Restated

	Six Month period ended									Six Month period ended
	10/31/2005			Restatements			Restated			10/31/2004
CASH FLOWS OPERATING ACTIVITIES
Net income/loss		659,860			(125,089	)		534,771			775,746
Add: income (loss) from discontinued operations
Loss from continuing operations
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		(249,580	)					(249,580	)
Decrease (increase) in accounts receivable		(311,853	)					(311,853	)		(60,098	)
Increase (decrease) in deferred income		47,790						47,790			(290,324	)
Increase (decrease) in tax liabilities		47,121						47,121
Increase (decrease) in line of credit		(85,542	)					(85,542	)
Decrease (increase) in current assets		10,000						10,000
Increase (decrease) in Other Liabilities		11,887						11,887
Other changes from Operating Activities		14,522						14,522
Net cash provided by (used in) operating activities		156,902			(125,089	)		31,813			425,324
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable
Purchase of Desert								-
Purchase of treasury stock
Purchase of Right-Tag								-
Purchase of fixed assets		7,920						7,920
Net cash provided by (used in) investing activities		7,920						7,920			-
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		(501,087	)					(501,087	)
Change in Notes to Investors		(23,105	)
Proceeds from APIC					125,089			125,089
Translation adjustment
Borrowings RE Distributions
Net cash provided by (used in) financing activities		(524,192	)					(524,192	)
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		(359,370	)					(359,370	)		425,324
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		(359,370	)					(359,370	)		425,324
CASH AT BEGINNING OF PERIOD		(819,228	)					(819,228	)		1,797,160
CASH AT END OF PERIOD		459,858						459,858			2,222,484

January 31, 2006 filing:

Restatements

There were management fees of $15,000 per month from November, 2005 through January, 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

Balance Sheets as of Jan 31, 2006 (Unaudited)-Restated

		As Previously			Effect of
		Reported			Restatement			Restated			4/30/2005
ASSETS
Current assets
Cash			518,798						518,798			15,367
Accounts receivables			480,888						480,888			405,886
Intangibles						280,499			280,499
Inventory			3,510									3,775
Prepaid and other current assets									0			7,796
Total current assets			1,003,196						1,280,185			432,824
Fixed assets			17,311						17,311			15,135
Goodwill						2,612,304			2,612,304
Encumbered Cash (Lock Box)			385,208
Loan to Related Party			73,259
Other assets												517
Total assets			1,478,974						3,909,800			448,476
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable			434,033						434,033			542,701
Accrued liabilities			263,142						263,142
Current maturities of long-term debt - related parties									0			49,614
Short term debt									0			305,398
Total current liabilities			697,175						697,175			897,713
Long term debt - related parties, net of current maturities			382,323						382,323			58,800
Other Loans			92,186						92,186
Total liabilities	��		1,171,684						1,171,684			956,513
Stockholders' deficit
Convertible preferred stock, $0.001 par value; 25,000,000 shares authorized; 25,000,00 issued and outstanding			25,000						25,000
Common stock, $0.001 par value;150,000,000 shares authorized; 70,288,450 shares shares issued and outstanding			70,426						0			69,994
137500 common shares treasury stock			(4,715	)					(4,715	)
Accumulated other comprehensive income									0			(629	)
Additional paid-in capital			2,691,689			2,701,495			5,393,184			2,776,659
Retained deficit			(2,475,210	)		(200,143	)		(2,675,353	)		(3,354,061	)
Total stockholders' deficit			307,190						2,738,116			(508,037	)
Total liabilities and stockholders' deficit			1,478,874						3,909,800			448,476

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended Jan 31 2006

(Unaudited)-Restated

	Three Month period ended									Three Month period ended
	1/31/2006			Restatements			Restated			1/31/2005
Revenues		660,664						660,664			730,806
Refunds		(55,681	)
Cost of revenues		(238,543	)					(238,543	)		(312,116	)
Operating expenses		(182,408	)		(75,054	)		(257,462	)		(563,408	)
Operating profit/ loss		184,032			(75,054	)		108,978			(144,718	)
Other income (expense):
Loss on exchange of business assets
Interest income		1,270
Interest expense		(622	)								(6,112	)
Income (loss) from continuing operations		184,680			(75,054	)		109,626			(150,830	)
Loss from discontinuing operations
Net income (loss)
Basic  income (loss) per share:		70,288,450									41,802,894
Diluted income (loss) per share:		704,259,950									41,802,894
From continuing operations								-
From discontinued operations								-
Total								-
Weighted average common shares								-

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 9 months ended Jan 31 2006

(Unaudited)-Restated

	Nine Month period ended									Nine Month period ended
	1/31/2006			Restatements			Restated			1/31/2005
Revenues		2,292,250						2,292,250			1,575,261
Refunds		(108,153	)
Cost of revenues		(733,453	)					(733,453	)		(419,320	)
Operating expenses		(626,104	)		(200,143	)		(826,247	)		(1,903,574	)
Operating profit/ loss		824,540			(200,143	)		624,397			(747,633	)
Other income (expense):
Loss on exchange of business assets
Interest income
Interest expense
Income (loss) from continuing operations		824,540			(200,143	)		624,397			(747,633	)
Loss from discontinuing operations
Net income (loss)
Basic  income (loss) per share:		70,288,450									40,718,948
Diluted income (loss) per share:		704,259,950									40,718,948
From continuing operations								0
From discontinued operations								0
Total								0
Weighted average common shares								0

April 30, 2006 filing:

Restatements

There were management fees of $15,000 per month from February, 2006 through April, 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

Balance Sheets as of April 30, 2006

(Unaudited)-Restated

	As Previously			Effect of
	Reported			Restatement			Restated			4/30/2005
ASSETS
Current assets
Cash		379,600						379,600			15,367
Accounts receivables		546,766						546,766			405,886
Inventory											3,775
Prepaid and other current assets		73,259						73,259			8,313
Total current assets		999,625						999,625			433,341
Fixed assets		16,661						16,661			15,135
Goodwill					2,612,304			2,612,304
Intangibles					250,445			250,445
Total assets	$	1,016,286					$	3,879,035		$	448,476
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable	$	537,117					$	537,117			542,701
Accrued liabilities		52,496						52,496
Current maturities of long-term debt - related parties		148,458						148,458			49,614
Deferred income		157,622						157,622
Short term debt											305,398
Total current liabilities		895,693						895,693			897,713
Long term debt -  net of current maturities
Long term debt - related parties, net of current maturities											58,800
Total liabilities		895,693						895,693			956,513
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; 150,000,000 shares authorized; 70,288,450 shares shares issued and outstanding		70,288						70,288			69,994
Treasury stock		(4,715	)					(4,715	)
Accumulated other comprehensive income		4,877						4,877			(629	)
Additional paid-in capital		(665,381	)		3,137,945			2,472,564			2,776,659
Retained deficit		690,524			(275,196	)		415,328			(3,354,061	)
Total stockholders' deficit		120,593						2,983,342			(508,037	)
Total liabilities and stockholders' deficit	$	1,016,286					$	3,879,035		$	448,476

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the year ended April 30, 2006

(Unaudited)-Restated

	As Previously
	Reported			Restatements			Restated
Revenues	$	2,652,942					$	2,652,942
Cost of revenues		(954,397	)					(954,397	)
Operating expenses		(995,976	)		(275,196	)		(1,271,172	)
Operating loss		702,569			(275,196	)		427,373
Other income (expense):
Loss on exchange of business assets
Interest income		21,522						21,522
Interest expense		(26,282	)					(26,282	)
Income (loss) from continuing operations		697,809			(275,196	)		422,613
Loss from discontinuing operations
Net income (loss)	$	697,809		$	(275,196	)	$	422,613
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
Weighted average common shares		698,142,579			698,142,579			698,142,579

Consolidated Statements of Cash Flows

For the year ended April 30, 2006

(Unaudited)

	As Previously
	Reported			Restated
CASH FLOWS OPERATING ACTIVITIES
Net loss		697,809		$	422,613
Add: income (loss) from discontinued operations
Loss from continuing operations		697,809			422,613
Additional shares issued for conversion of debt
Depreciation and amortization expense					110,197
Changes in operating assets and liabilities:
Increase (decrease) in A/P and accrued expenses		29,518			29,518
Decrease (increase) in accounts receivable		(366,114	)		(366,114	)
Increase (decrease) in deferred income		45,336			45,336
Increase (decrease) in accrued expense		58,616			58,616
Increase (decrease) in inventory
Decrease (increase) in prepaid expense and other current assets
Net cash provided by (used in) operating activities - continuing operations		465,165			300,166
CASH FLOW INVESTING ACTIVITIES
Increase (decrease) in loans receivable		(73,259	)		(73,259	)
Purchase of treasury stock		(4,715	)		(4,715	)
Purchase of Right-Tag
Purchase of fixed assets		(10,477	)		(10,477	)
Net cash provided by (used in) investing activities - continuing operations		(88,451	)		(88,451	)
CASH FLOW FINANCING ACTIVITIES
Proceeds from notes payable - related parties		(534,535	)		(534,535	)
Proceeds from APIC					165,000
Translation adjustment		(4,876	)		(4,877	)
Net cash provided by (used in) financing activities - continuing operations		(539,411	)		(374,412	)
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		(162,697	)		(162,697	)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		(162,697	)		(162,697	)
CASH AT BEGINNING OF PERIOD		542,297			542,297
CASH AT END OF PERIOD	$	379,600		$	379,600

July 31, 2006 filing:

Restatements

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

Consolidated Statements of Operations

For the 3 months ended July 31, 2006

(Unaudited)- RESTATED

	As Previously
	Reported			Restatements			Restated			31-Jul-05			Restatements			Restated
Revenues	$	599,960					$	599,960			674,275					$	674,275
Cost of revenues		(83,875	)				$	(83,875	)		(3,150	)				$	(3,150	)
Operating expenses		(169,427	)		(75,054	)	$	(244,481	)		(225,455	)		(50,036	)	$	(275,491	)
Operating loss		346,658			(75,054	)		271,604			445,670			(50,036	)		395,634
Other income (expense):
Loss on exchange of business assets
Interest income		76					$	76			4,113					$	4,113
Interest expense							$	-								$	-
Income (loss) from continuing operations		346,734			(75,054	)		271,680			449,783			(50,036	)		399,747
Loss from discontinuing operations
Net income (loss)	$	346,734		$	(75,054	)	$	271,680			449,783		$	(50,036	)	$	399,747
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						680,644,608

Consolidated Statements of Cash Flows

For the 3 months ended July 31, 2006

(Unaudited)

	As Previously						Restated
	Reported			Restated				7/05
CASH FLOWS OPERATING ACTIVITIES
Net loss		346,734		$	271,680			399,747
Add: income (loss) from discontinued operations
Loss from continuing operations		346,734			271,680
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			(57,560	)
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					75,054			50,036
Translation adjustment		1,233			1,233
Net cash provided by (used in) financing activities - continuing operations		1,233			76,287			(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			(358,715	)
CASH AT BEGINNING OF PERIOD		379,600			379,600			819,229
CASH AT END OF PERIOD	$	398,327		$	398,327			460,514

10/31/06 Financials:

Restatements

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.

Consolidated Statements of Cash Flows

For the 6 months ended October 31, 2006

(Unaudited)-Restated

	As Previously
	Reported			Restated			10/31/2005			Restated
CASH FLOWS OPERATING ACTIVITIES
Net loss		510,520		$	360,413			733,321		$	614,532
Add: income (loss) from discontinued operations
Loss from continuing operations		510,520			360,413						614,532
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	)		(204,386	)
Decrease (increase) in accounts receivable		272,386			272,386			(189,405	)		(189,405	)
Increase (decrease) in deferred income		(22,987	)		(22,987	)		160,076			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			8,313
Net cash provided by (used in) operating activities - continuing operations		636,420			486,313						389,130
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	)		(64,253	)
Proceeds from APIC					150,107						119,615
Translation adjustment		(2,190	)		(2,190	)					-
Net cash provided by (used in) financing activities - continuing operations		(2,190	)		147,917						55,362
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		634,230			634,230			444,492			444,492
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
NET CHANGE IN CASH		634,230			634,230						444,492
CASH AT BEGINNING OF PERIOD		379,600			379,600			15,367			15,367
CASH AT END OF PERIOD	$	1,013,830		$	1,013,830			459,859		$	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 $270,000

Consolidated Statements of Cash Flows

For the 9 months ended January 31, 2007

(Unaudited)-Restated

	As Previously
	Reported			Restated			1/31/06			Restated
CASH FLOWS OPERATING ACTIVITIES
Net loss		(1,003,609	)	$	(1,198,772	)		824,540		$	624,397
Add: income (loss) from discontinued operations		(84,888	)		(84,888	)		1,300,728			1,300,728
Loss from continuing operations		(1,088,497	)		(1,283,660	)		2,125,268			1,925,125
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	)		(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	)		(1,310,338	)		2,099,661			1,899,518
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			65,186			65,186
Proceeds from APIC					195,163			(500,515	)		(300,372	)
Translation adjustment		(11,938	)		(11,938	)		629			629
Net cash provided by (used in) financing activities - continuing operations		666,316			861,479						(234,557	)
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		(378,655	)		(378,655	)		1,664,961			1,664,961
NET CASH PROVIDED BY DISCONTINUED OPERATIONS								(1,300,728	)		(1,300,728	)
NET CHANGE IN CASH		(378,655	)		(378,655	)		364,233			364,233
CASH AT BEGINNING OF PERIOD		379,600			379,600			15,367			15,367
CASH AT END OF PERIOD	$	945		$	945			379,600		$	379,600

April 30, 2007

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	)		422,614
Add: income (loss) from discontinued operations		1,151,474			1,151,474			(1,136,399	)
Loss from continuing operations		(135,116	)		(360,330	)		(713,785	)
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
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 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			234,929			1,397,126
Translation adjustment		(5,000	)		(5,000	)		4,877
Net cash provided by (used in) financing activities		868,019			1,093,233
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATIONS		848,931			848,931
NET CASH PROVIDED BY DISCONTINUED OPERATIONS		(1,205,684	)		(1,205,684	)		(162,697	)
NET CHANGE IN CASH		(356,753	)		(356,753	)		(162,697	)
CASH AT BEGINNING OF PERIOD		379,600			379,600			542,297
CASH AT END OF PERIOD	$	22,847		$	22,847			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 $165,000 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 $270,000.

Inova Technology, Inc. and Subsidiaries

Consolidated Statements of Operations

For the 3 months ended July 31, 2007

(Unaudited)- RESTATED

	7/31/07			Restatements			Restated			7/31/06			Restatements			Restated
Revenues		385,112						385,112			486,957						486,957
Cost of revenues		(145,263	)					(145,263	)		(75,776	)					(75,776	)
Operating expenses		(140,197	)		(30,054	)		(170,251	)		(33,598	)		(75,054	)		(108,652	)
Operating loss											377,583
Other income (expense):
Loss on exchange of business assets
Interest income
Interest expense		(31,695	)					(31,695	)		-						-
Income (loss) from continuing operations		67,957						37,903			377,583			(75,054	)		302,529
Loss from discontinuing operations											(30,849	)					(30,849	)
Net income (loss)		67,957						37,903			346,734			(75,054	)		271,680
Basic and diluted income (loss) per share:
From continuing operations		-									0
From discontinued operations		-									-
Total		-									0
Weighted average common shares		725,524,208						725,524,208			703,983,450						703,983,450

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 $270,000.

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 $270,000

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.

Table of Contents

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 $270,000, which increases net loss for fiscal 2007.

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

Table of Contents

Table of Contents

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

October 31, 2008