~~U.S.~~UNITED ~~SECURITIES AND EXCHANGE COMMISSION~~STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

~~Quarterly Report under Section 13 or 15~~(dMark One) of

~~The Securities~~x ~~Act~~QUARTERLY ofREPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~December 31, 2009

~~Commission File~~¨ ~~Number~~TRANSITION ~~333-135037~~REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

~~NanoTech~~For ~~Entertainment,~~the ~~Inc.~~transition period from _________________ to _________________

~~(fka~~Commission ~~Aldar~~file ~~Group, Inc).~~number 333-149184

NanoTech Entertainment, Inc. (Exact name of registrant as specified in its charter)

Nevada 20-1379559

Nevada		20-1379559
(State or jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3887 Pacific Street Las Vegas, Nevada 89121 (~~State~~ Address of ~~(IRS Employer~~ principal executive offices)

~~Incorporation)~~ 702 518 7410 (~~ID Number~~Issuer's telephone number)

~~7230 Indian~~(Former ~~Creek Lane~~name, ~~Suite~~former ~~201,~~address ~~Las~~and ~~Vegas~~former fiscal year, NVif ~~89149~~changed since last report)

~~Registrants’s~~Indicate ~~Telephone~~by ~~Number:~~ check mark whether the registrant (~~253~~1) ~~549-4336~~has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant ~~(1)~~ has ~~filed~~submitted ~~all~~electronically ~~reports~~and posted on its corporate Web site, if any, every Interactive Data File required to be ~~filed~~submitted byand ~~Section~~posted 13pursuant orto ~~15(d)~~Rule 405 of ~~the~~Regulation ~~Securities~~S-T ~~Exchange~~(§232.405 ~~Act~~ of ~~1934~~this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to ~~file~~submit ~~such reports)~~ and ~~(2)~~post ~~has been subject to~~ such ~~filing~~files). ~~requirements~~Yes ~~for~~x No ~~the past 90 days.~~¨

~~Yes~~Indicate by ~~[X]~~a check mark whether the registrant is a large accelerated filer, an Noaccelerated ~~[_]~~filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

~~Indicate by~~Large ~~check mark whether the registrant is a large~~ accelerated filer, ~~an accelerated~~¨ Accelerated filer, a¨ ~~non~~Non-accelerated filer, or¨ aSmaller ~~smaller~~ reporting ~~company. See~~ ~~the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting~~ company” ~~in Rule 12b-2 of the Exchange Act. (Check one):~~x

~~Large~~Indicate ~~Accelerated~~by ~~Filer~~check mark whether the registrant is a shell company (as defined in Rule ~~[ ] Accelerated Filer~~12b-2 ~~[ ]~~of the Exchange Act. ¨ Yes x No

~~Non-Accelerated~~As of the ~~Filer~~date of this filing, the registrant had 15,910,000 shares of common stock, $.001 ~~[ ] Smaller reporting~~par ~~company~~value, ~~[X]~~issued and outstanding.

~~(Do~~TABLE ~~not check if a smaller reporting company)~~OF CONTENTS

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). [X] Yes [ ] No

		PAGE

PART I — FINANCIAL INFORMATION		3

ITEM 1. FINANCIAL STATEMENTS		3

ITEM 2. MANAGEMENT’S DISCUSSON AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		18

PART II — OTHER INFORMATION		22

ITEM 1. LEGAL PROCEEDINGS		22

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		22

ITEMS 3. DEFAULTS UPON SENIOR SECURITIES		22

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS		23

ITEM 5. OTHER INFORMATION		23

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K		23

SIGNATURES		24

As of the date of this filing, the registrant had 12,767,000 shares of common stock, $0.001 par value, issued and outstanding.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The accompanying condensed unaudited financial statements of NanoTech Entertainment, Inc. (fka Aldar Group, Inc.), a Nevada corporation are condensed and, therefore, do not include all disclosures normally required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the Company's most recent annual financial statements for the year ended June 30, 2008 included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on October 14, 2008. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying condensed financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying condensed financial statements for the period ended March 31, 2009 are not necessarily indicative of the operating results that may be expected for the full year ending June 30, 2009.

~~NANOTECH~~PART ~~ENTERTAINMENT,~~I ~~INC.~~— FINANCIAL INFORMATION

~~(fka~~ITEM ~~ALDAR~~1. ~~GROUP,~~FINANCIAL ~~INC.)~~STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (A"SEC"), and should be ~~Development~~read ~~Stage~~in conjunction with the audited financial statements and notes thereto contained in the Company)'s June 30, 2009 Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the periods presented have been reflected herein. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.

BALANCE SHEETS

		March 31,		June 30,
		2009		2008
		(unaudited)
ASSETS
Current Assets:
Cash	$	6,781	$	470
Accounts receivable		572		6,459
Prepaid expenses		-		645
Note receivable – related party (Note 3)		26,765		-
Total current assets		34,118		7,574
Property and Equipment (Note 2):
Horses		12,500		34,512
Office furniture		2,200		2,200
Total property and equipment		14,700		36,712
Less: Accumulated depreciation		(6,302)		(15,863)
Net property and equipment		8,398		20,849
Other Assets:
Stallion syndicates, net of accumulated amortization (Note 2)		2,678		6,071
Total Assets	$	45,194	$	34,494
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable - trade	$	38,136	$	45,475
Accounts payable - related party (Note 3)		75,344		49,193
Short-term notes payable - related party (Note 3)		4,200		6,500
Accrued interest, short-term notes payable - related party (Note 3)		1,278		215
Total current liabilities		118,958		101,383
Long-term Liabilities:
Long-term notes payable - related parties (Note 3)		-		20,000
Convertible debentures (Note 4)		30,200		-
Total long-term liabilities		30,200		20,000
Total liabilities		149,158		121,383
Stockholders’ Deficit (Note 5):
Common stock, $.001 share par value, 75,000,000 shares
authorized, 4,906,000 and 4,533,000 shares issued and outstanding		4,906		4,533
Additional paid-in capital		271,104		238,977
Deficit accumulated during the development stage		(379,974)		(330,399)
Total stockholders’ deficit		(103,964)		(86,889)
Total Liabilities and Stockholders’ Deficit	$	45,194	$	34,494
See notes to unaudited financial statements

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~STATEMENTS OF~~Balance ~~OPERATIONS (unaudited)~~Sheets

		Three		Nine		Three		Nine		July 15, 2004
		December 31,				June 30,
		Months		Months		Months		Months		(Inception) to
		2009				2009
		Ended		Ended		Ended		Ended	March 31,
		(unaudited)
		March 31, 2009				March 31, 2008				2009
ASSETS
Income
Current assets:
Race winnings	$	-	$	2,440	$	-	$	7,999	$	13,429
Cash		$	19,037			$	35,536
Breeding sales		-		-		-		6,200		6,200
Inventory (Note B)			11,050				8,800
Total Income		-		2,440		-		14,199		19,629
Prepaid expenses			7,500				2,500
Operating Expenses
Prepaid royalties (Note I)			100,000				55,000
Boarding fees		4,242		18,265		6,817		29,188		84,397
Total current assets			137,587				101,836
Training fees		-		1,820		1,208		6,586		19,750
Property and equipment (Note B)			3,945				3,071
Depreciation and amortization		705		2,603		2,363		7,498		22,540
Less: accumulated depreciation			(2,182	)			(1,524	)
Breeding fees		-		-		-		-		4,500
Net property and equipment			1,763				1,547
Consulting expense - related party		-		2,109		3,586		19,069		108,756
Total assets		$	139,350			$	103,383
Consulting expense – other		450		450		-		-		27,847
LIABILITIES AND STOCKHOLDERS’ DEFICIT
General and administrative expenses		5,046		21,054		20,428		41,708		130,897
LIABILITIES
Total Operating Expenses		10,443		46,301		34,402		104,049		398,687
Current liabilities:
Net Loss from Operations		(10,443)		(43,861)		(34,402)		(89,850)		(379,058)
Accounts payable		$	130,724			$	81,553
Other Income (Expenses)
Cash drawn in excess of bank balance			5,375				5,174
Interest expense - related party		(242)		(2,463)		-		-		(2,678)
Accrued liabilities – related parties (Note C)			1,325,112				981,906
Interest expense – other		(702)		(1,176)		-		-		(1,176)
Royalties payable (Note I)			80,521				31,771
Gain (loss) on sale of assets (Note 2)		-		(2,075)		(355)		(355)		(2,430)
Accrued interest, convertible debentures (Note F)			1,364				458
Insurance proceeds		-		-		-		-		5,000
Accrued interest, notes payable (Note D)			31,171				17,586
Other income		-		-		-		-		368
Accrued interest, notes payable – related party (Note C)			15,398				9,223
Total Other Income (Expenses)		(944)		(5,714)		-		(355)		(916)
Convertible debentures, net (Note F)			19,904				15,778
Net Loss Before Provision for Income Taxes		(11,387)		(49,575)		(34,757)		(90,205)		(379,974)
Notes payable – current (Note D)			32,500				30,000
Provision for Income Taxes		-		-		-		-		-
Notes payable – current, related party (Note C)			81,408				80,500
Net Loss Available to Common Stockholders	$	(11,387)	$	(49,575)	$	(34,757)	$	(90,205)	$	(379,974)
Total current liabilities			1,723,477				1,253,949
Net Loss Per Basic & Diluted Share	$	(0.00)	$	(0.01)	$	(0.00)	$	(0.02)
Long-Term Liabilities
Weighted Average Number of
Notes payable – noncurrent (Note D)			250,000				250,000
Common Shares Outstanding		4,689,467		4,584,394		4,529,089		4,509,979
Total liabilities			1,973,477				1,503,949
STOCKHOLDERS’ DEFICIT (Note E)
Common stock, $.001 par value, 75,000,000
shares authorized, 15,665,000 and 14,437,000 shares
issued and outstanding as of December 31, 2009 and
June 30, 2009, respectively			15,665				14,437
Additional paid-in capital			471,324				360,502
Services prepaid with common stock			(9,792	)			-
Deficit accumulated during the development stage			(2,311,324	)			(1,775,505	)
Total stockholders’ deficit			(1,834,127	)			(1,400,566	)
Total liabilities and stockholders’ deficit		$	139,350			$	103,383

~~See~~The accompanying notes toare ~~unaudited~~an ~~financial~~integral part of these financial statements.

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~STATEMENT OF CHANGES IN~~Statements ~~STOCKHOLDERS’~~of ~~EQUITY (DEFICIT) (unaudited)~~Operations

~~Period of July 15, 2004~~ (~~Inception~~unaudited) ~~to March 31, 2009~~

	Common Stock					Additional			Deficit Accum			Total
		Three Months Ended							Six Months Ended							November 13, 2007 (inception) to
	Number					Paid-In			During Dev.			Stockholders’
		December 31,							December 31,							December 31,
	of Shares			Amount		Capital			Stage			Equity (Deficit)
		2009			2008				2009				2008			2009
Balance, July 15, 2004 (Inception)	-		$	-	$	-		$	-		$	-
Revenues:
Common Stock:
Sales, net		$	10,345		$	12,029			$	17,136			$	17,559		$	72,987
Shares issued for cash	1,000,000			1,000		-			-			1,000
Less: costs of goods sold			(1,992	)		(688	)			(2,965	)			(748	)		(13,295	)
Shares issued for services	10,000			10		-			-			10
Gross profit			8,353			11,341				14,171				16,811			59,692
Net Loss	-			-		-			(26,944)			(26,944)
Operating Expenses:
Balance, June 30, 2005	1,010,000			1,010		-			(26,944)			(25,934)
Selling, general and administrative			247,655			223,213				523,286				445,598			2,117,306
Common Stock:
Other Income (Expenses)
Shares issued for cash	1,050,000			1,050		103,950			-			105,000
Interest expense			(13,352	)		(8,042	)			(26,704	)			(18,058	)		(239,098	)
Stock dividend	1,260,000			1,260		(1,260)			-			-
Net loss before income taxes			(252,654	)		(219,914	)			(535,819	)			(446,845	)		(2,296,712	)
Net Loss	-			-		-			(68,843)			(68,843)
Provision for income taxes			-			-				-				-			-
Balance, June 30, 2006	3,320,000			3,320		102,690			(95,787)			10,223
Net loss before discontinued operations			(252,654	)		(219,914	)			(535,819	)			(446,845	)		(2,296,712	)
Common Stock:
Discontinued operations:
Shares issued for cash	1,105,000			1,105		109,395			-			110,500
Loss from discontinued operations (net)			-			-				-				-			(14,612	)
Net Loss	-			-		-			(132,458)			(132,458)
Net loss available to common stockholders		$	(252,654	)	$	(219,914	)		$	(535,819	)		$	(446,845	)	$	(2,311,324	)
Balance, June 30, 2007	4,425,000			4,425		212,085			(228,245)			(11,735)
Continuing operations
Common Stock:
Basic		$	(0.02	)	$	(0.03	)		$	(0.04	)		$	(0.07	)
Shares issued for cash	108,000			108		26,892			-			27,000
Diluted		$	(0.02	)	$	(0.03	)		$	(0.04	)		$	(0.07	)
Net Loss	-			-		-			(102,154)			(102,154)
Weighted average shares outstanding
Balance, June 30, 2008	4,533,000			4,533		238,977			(330,399)			(86,889)
Basic			15,455,727			6,480,000				15,147,456				6,480,000
Common Stock:
Diluted			15,757,727			6,480,000				15,449,456				6,480,000
Shares issued for cash	196,000			196		14,604			-			14,800
Shares issued for conversion of debentures	167,000			167		16,533			-			16,700
Shares issued for repayment of debt	10,000			10		990			-			1,000
Net Loss	-			-		-			(49,575)			(49,575)
Balance, March 31, 2009 (unaudited)	4,906,000		$	4,906	$	271,104		$	(379,974)		$	(103,964)

~~See~~The accompanying notes toare ~~unaudited~~an ~~financial~~integral part of these financial statements.

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~STATEMENTS~~Statements of OFCash ~~CASH FLOWS (unaudited)~~Flows

						July 15, 2004
		Nine Months Ended				(Inception) to
	March 31,				March 31,
		2009		2008		2009
Cash Flows from Operating Activities:
Net loss	$	(49,575)	$	(90,205)	$	(379,974)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization		2,603		7,498		22,540
Loss on disposal of horses and syndicates		2,075		355		2,430
Common stock issued for services				-		10
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		5,887		(6,083)		(572)
Decrease in prepaid expenses		645		1,863		-
Increase in accounts payable		4,827		19,949		50,302
Increase in accounts payable - related party		26,151		10,586		73,844
Increase in accrued interest, notes payable - related party		2,463		-		2,678
Net Cash Used in Operating Activities		(4,924)		(56,037)		(228,742)
Cash Flows from Investing Activities:
Issuance of notes receivable		(26,765)		-		(26,765)
Purchase of horses and stallion syndicates		-		-		(49,012)
Proceeds from sale of horses		-		4,000		4,000
Purchase of office furniture		-		-		(2,200)
Net Cash Provided by (Used in) Investing Activities		(26,765)		4,000		(73,977)
Cash Flows from Financing Activities:
Proceeds from sale of common stock		14,800		27,000		258,300
Proceeds from issuance of convertible debentures		25,500		-		25,500
Proceeds from related party notes payable		-		26,500		40,500
Payments on related party notes payable		(2,300)		-		(14,800)
Net Cash Provided by Financing Activities		38,000		53,500		309,500
Net (Decrease) Increase in Cash		6,311		1,463		6,781
Cash, Beginning of the Period		470		710		-
Cash, End of the Period	$	6,781	$	2,173	$	6,781
Supplemental Cash Flow Information:
Cash paid for interest	$	-	$	-	$	-
Cash paid for income taxes	$	-	$	-	$	-
Non-Cash Investing and Financing Activities:
1,260,000 common shares issued as stock dividend	$	-	$	-	$	1,260
10,000 common shares issued as debt settlement	$	1,000	$	-	$	1,000
Conversion of notes payable – related party plus accrued interest to convertible debentures	$	21,400	$	-	$	21,400
Conversion of debentures into 167,000 shares of common stock	$	16,700		-	$	16,700
Transfer of horses and stallion syndicate to vendor for payment of debt	$	11,168	$	-	$	11,168

(unaudited)

See notes to unaudited financial statements

							November 13,
	Six Months Ended						2007 (Inception) to
	December 31,						December 31,
	2009			2008			2009

Cash flows from operating activities:
Net loss	$	(535,819	)	$	(446,845	)	$	(2,311,324	)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation expense		658			512			2,885
Amortization of debt discount		4,126			-			35,504
Common stock issued for finder fees		-			-			162,000
Common stock issued for services		16,050			-			36,050
Amortization of services prepaid with common stock		5,208			-			5,208
Interest on debt converted to common stock		-			-			124,500
Loss on disposal of fixed assets		-			-			10,373
Changes in operating assets and liabilities:
Decrease in accounts receivable		-			-			572
Increase in inventory		(2,250	)		(8,471	)		(11,050	)
Increase in prepaid expenses		(5,000	)		-			(7,500	)
Decrease in prepaid expenses – related party		-			57,576			-
Increase in prepaid royalties		(45,000	)		(52,500	)		(100,000	)
Increase in accounts payable		49,171			41,479			92,445
Increase in accrued liabilities – related party		343,206			281,250			1,252,221
Increase in accrued interest, convertible debentures		906			-			1,213
Increase in accrued interest, notes payable		13,585			-			31,171
Increase in accrued interest, notes payable – related party		6,175			-			13,541
Increase in royalties payable		48,750			36,875			80,521
Net cash used in operating activities		(100,234	)		(90,124	)		(581,670	)

Cash flows from investing activities:
Net cash received in reverse recapitalization		-			-			31,769
Purchase of property and equipment		(874	)		-			(3,945	)
Cash flows provided by (used in) investing activities		(874	)		-			27,824

Cash flows from financing activities:
Increase in cash drawn in excess of bank balance		201			-			5,375
Proceeds from issuance of convertible debentures		-			-			21,300
Proceeds from issuance of common stock		81,000			-			188,000
Proceeds from notes payable – related party		908			25,000			78,408
Repayment of notes payable – related party		-			-			(2,700	)
Proceeds from notes payable		2,500			25,000			282,500
Net cash provided by financing activities		84,609			50,000			572,883

Increase (decrease) in cash		(16,499	)		(40,124	)		19,037
Cash, beginning of period		35,536			41,801			-
Cash, end of period	$	19,037		$	1,677		$	19,037

(continued)

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~Statements ~~UNAUDITED~~of ~~FINANCIAL~~Cash ~~STATEMENTS~~Flows (cont’d)

~~For the nine months ended March 31, 2009 and 2008~~(unaudited)

and the Period of July 15, 2004 (Inception) to March 31, 2009

					November 13,
	Six Months Ended				2007 (Inception) to
	December 31,				December 31,
	2009		2008		2009

Non-cash investing and financing activities:
Issuance of common stock upon conversion of debentures	$	-	$	-	$	40,000
Issuance of common stock upon conversion of loan	$	-	$	-	$	500
Issuance of common stock in settlement of vendor debt	$	-	$	-	$	1,000
Conversion of notes payable to convertible debentures	$	-	$	-	$	21,400

Supplemental cash flow information:
Interest paid in cash	$	1,916	$	18,295	$	31,973
Income taxes paid in cash	$	-	$	-	$	-

~~NOTE~~The ~~1: Summary~~accompanying notes are an integral part of ~~Significant Accounting~~these ~~Policies~~financial statements.

Nature of Operations:

NanoTech Entertainment, Inc. (fka Aldar Group, Inc.) (the “Company”) is a Nevada corporation organized on July 15, 2004 for the purpose of purchasing and selling thoroughbred horses. Since inception, the Company has operated in Washington State, where it has conducted operations in other areas of the horse and thoroughbred industry, such as purchasing, training, breeding, racing and selling of mares, weanlings, yearlings, adult race horses, and stallion shares and syndications. In light of the acquisition of NanoTech Entertainment, Inc. (NanoTech) (Note 9), the Company changed its name to NanoTech Entertainment, Inc. on May 8, 2009 to better reflect the direction of the Company.

Development Stage Company:

The Company has realized minimal revenues from its planned business purpose and, accordingly, is considered to be in its development stage as defined in SFAS No. 7, “Accounting and Reporting by Development Stage Enterprises.”

Property and Equipment:

Property and equipment consists of office equipment, horses, and partial interest in a race horse, all of which are stated at cost. Depreciation is calculated over the estimated useful lives ranging from 3 to 7 years using the straight-line method (see Note 2).

Stallion Syndicates:

The Company owns syndicate shares in stallions, which represent rights to breed the Company’s mares with specific stallions. The syndicates are considered intangible assets and are amortized over their determinable finite life of 7 years in accordance with SFAS No. 142, “Goodwill and Other Intangible Assets” (see Note 2).

Use of Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes:

The Company is taxed as a “C” corporation under the Internal Revenue Code. Accordingly, a provision has been made for the tax effects of transactions reported in the financial statements (see Note 6).

Cash Equivalents:

The Company considers all short-term investments with an original maturity of three months or less to be cash equivalents.

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~ Notes ~~UNAUDITED~~to ~~FINANCIAL~~Unaudited ~~STATEMENTS~~Financial ~~(continued)~~Statements

~~For the~~Six ~~nine~~Months ~~months~~Ended ~~ended~~December ~~March~~ 31, 2009 and 2008,

and the Period of ~~July~~November 1513, ~~2004~~ 2007 (Inception) to ~~March~~December 31, 2009

~~NOTE 1: Summary~~A. ~~of Significant Accounting Policies (continued)~~ORGANIZATION

~~Reclassifications~~NanoTech Entertainment, Inc. (“NEI”) was incorporated under the laws of the state of Nevada on November 13, 2007. On April 30, 2009, NEI entered into a Sale and Acquisition Agreement (the “Agreement”) with Aldar Group, Inc. (“AGI”), a Nevada corporation, wherein AGI acquired 100% of NEI’s issued and outstanding common stock through the issuance of 6,480,000 common shares. As a result of the Agreement, AGI changed its name to NanoTech Entertainment, Inc. (“NTI”) (“the Company”) to better reflect the direction of the newly formed entity. For accounting purposes, the share exchange transaction was treated as a capital transaction where AGI, as the shell corporation and legal acquirer, issued stock for the net monetary assets of NEI, the accounting acquirer, accompanied by a recapitalization. The accounting is similar in form to a reverse acquisition, except that goodwill or other intangibles are not recorded. All references to NTI’s common stock have been restated to reflect the equivalent numbers of AGI’s common shares (Note E).

~~Certain~~The ~~immaterial~~accompanying ~~amounts~~financial statements include those of NEI for the period of inception on November 13, 2007 through December 31, 2009. The financial statements of AGI are consolidated from ~~prior~~the ~~years~~date ~~have~~of ~~been~~the ~~reclassified~~Agreement through June 30, 2009, subsequent to ~~conform~~which the NEI Nevada corporation was dissolved and the AGI Nevada corporation amended its Articles of Incorporation to ~~current~~effect its name change to NanoTech Entertainment, Inc. (“NTI”), thereby ~~year~~discontinuing all AGI operations and assuming all of the former NEI assets, liabilities, and operations. Prior to June 30, 2009, all significant intercompany balances and transactions were eliminated in consolidation. Subsequent to June 30, 2009, the financial ~~statement~~statements consist ~~presentation~~solely of NTI.

~~Net~~The ~~Earnings~~Company ~~(Loss)~~operates ~~Per~~as ~~Share:~~a virtual manufacturer, developing technology and games, and then licensing such products to third parties for manufacturing and ultimate distribution.

~~The Company~~DEVELOPMENT ~~has~~STAGE adopted SFAS No. 128, “Earnings per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement, and a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.COMPANY

~~NOTE~~The ~~2: Property~~Company ~~and~~is ~~Equipment~~considered to be in the development stage as defined in Statement of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic No. 915. The Company’s efforts have been devoted primarily to raising capital, borrowing funds and attempting to implement its ~~Stallion~~planned, ~~Syndicates~~principal activities.

		March 31, 2009		June 30, 2008
Property and equipment is summarized as follows:
	Property and equipment:
	Horses	$	12,500	$	34,512
	Office furniture		2,200		2,200
	Total property and equipment		14,700		36,712
	Accumulated depreciation:
	Horses		5,506		15,303
	Office furniture		796		560
	Total property and equipment		6,302		15,863
	Net property and equipment	$	8,398	$	20,849
Stallion syndicates are summarized as follows:
	Stallion syndicates	$	5,000	$	9,000
	Accumulated amortization		(2,322)		(2,929)
	Net stallion syndicates	$	2,678	$	6,071

Depreciation expense of $1,924 and $5,838, and stallion syndicate amortization of $679 and $1,660 are included in operating expenses in the statement of operations for the nine months ended March 31, 2009 and 2008, respectively.

In September and October 2008, the Company sold one of its horses, its one-third interest in a thoroughbred racehorse, and one of its stallion syndicates to an unrelated party to settle debt totaling $11,168, resulting in a net loss of $2,075 during the nine months ended March 31, 2009 as follows:

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~ Notes ~~UNAUDITED~~to ~~FINANCIAL~~Unaudited ~~STATEMENTS~~Financial ~~(continued)~~Statements

~~For the~~Six ~~nine~~Months ~~months~~Ended ~~ended~~December ~~March~~ 31, 2009 and 2008,

and the Period of ~~July~~November 1513, ~~2004~~ 2007 (Inception) to ~~March~~December 31, 2009

~~NOTE 2: Property~~B. ~~and~~SIGNIFICANT ~~Equipment, Stallion~~ACCOUNTING ~~Syndicates (continued)~~POLICIES

	Historical	Carrying	Debt	Gain
Asset	Cost	Value	Settled	(Loss)
Horse	$ 12,500	$ 7,887	$ 5,000	$ (2,887)
Racehorse ownership interest	9,512	2,642	1,668	(974)
Stallion syndicate	4,000	2,714	4,500	1,786
Total (Net)	$ 26,012	$13,243	$ 11,168	$ (2,075)

USE OF ESTIMATES

~~NOTE~~The ~~3: Related~~preparation ~~Party~~of the Company’s financial statements in conformity with accounting ~~Transactions~~principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company.

~~Notes~~CASH ~~Payable~~AND CASH EQUIVALENTS

~~In February~~Cash and cash ~~March~~equivalents ~~2008~~include cash in banks, ~~the~~money ~~Company~~market ~~entered~~funds, ~~into~~and ~~notes~~certificates ~~payable~~of term ~~totaling~~deposits ~~$20~~with maturities of less than three months from inception,~~000~~ which ~~with~~are ~~two~~readily ~~stockholders. The~~convertible ~~notes~~to ~~carried~~known 7%amounts ~~annual~~of ~~interest~~cash and ~~were due~~which, in ~~February~~the ~~and~~opinion ~~March~~of management, ~~2011. Interest~~are ~~started~~subject ~~accruing~~to inan ~~July~~insignificant risk of loss in ~~2008~~value. InThe ~~March~~Company’s ~~2009,~~cash ~~the~~balances ~~principal~~totaled ($2019,~~000)~~037 and ~~interest (~~$135,~~400)~~536 as of ~~were~~December ~~converted~~31, to2009 ~~convertible~~and ~~debentures~~June ~~totaling~~30, ~~$21~~2009,~~400~~ ~~(see Note 4)~~respectively.

On March 27, 2008, the Company entered into a demand promissory note with its President for $6,500 due October 31, 2008. The note bears interest of 10% during the term of the note, or 25% per annum on the unpaid balance after maturity. The note was initially secured by the Company’s one-third ownership interest in a thoroughbred racehorse. In September 2008, the ownership interest was sold (Note 2), from which time forward the note will be unsecured. In March 2009, the Company made a payment of $2,300 on the loan. Interest expense in the amount of $1,058 has been accrued for the nine months ended March 31, 2009, resulting in accrued interest of $1,278 at March 31, 2009.INVENTORY

~~Affiliate~~The ~~Transactions~~Company’s inventory is stated at the lower of cost or market using the FIFO costing method. Inventory on hand totaled $11,050 and $8,800 at December 31, 2009 and June 30, 2009, respectively, and consisted entirely of finished goods gaming equipment available and ready for sale.

~~On August~~PROPERTY ~~19,~~AND 2004 the Company entered into a consulting agreement with an entity affiliated with a stockholder (the Affiliate). The Affiliate was engaged to perform consulting services for the Company for a term of six months commencing August 19, 2004, in exchange for $15,000 and 10,000 shares of common stock. This agreement has been renewed for various periods since inception with payment terms equating to $2,500 per month. The agreement expired December 31, 2007 and was not renewed for another term. Since the expiration of the consulting services agreement, the Company has been charged service-specific fees by the Affiliate on an as needed basis. For the period of July 15, 2004 (inception) through March 31, 2009, the Affiliate has rendered consulting services to the Company totaling $108,756.EQUIPMENT

~~During~~The ~~the~~Company’s ~~year~~property ~~ended~~and ~~June~~equipment ~~30,~~is ~~2006,~~comprised ~~the~~of ~~Affiliate~~office ~~advanced~~and ~~the~~computer ~~Company $14~~equipment,~~000, of~~ which ~~$1,500~~are ~~and~~stated ~~$11,000~~at ~~was~~cost. Depreciation ~~repaid~~is ~~during~~calculated over the estimated useful lives ranging from 3 to 7 years ~~ended~~using ~~June~~the ~~30,~~straight ~~2007~~– ~~and~~line ~~2006, respectively~~method. The ~~outstanding~~Company ~~balance~~is ofin ~~$1,500~~the atdevelopment ~~March~~stage and has only acquired minimal operating assets. At December 31, 2009 and June 30, ~~2008~~2009, isthe Company ~~included~~had inproperty ~~the~~and ~~‘Payable~~equipment toof ~~Affiliate’~~$3,945 ~~balances~~and in$3,071, ~~the~~and ~~below~~accumulated ~~activity~~depreciation ~~summary~~of $2,182 and $1,524, respectively. ~~Interest~~Depreciation ~~has~~expense totaled ~~not~~$658 ~~been~~and ~~imputed~~$512 onfor the ~~advances~~six ~~due to~~months ~~its~~ended ~~nominal~~December ~~amount~~31, 2009 and 2008, respectively.

REVENUE RECOGNITION

Revenues for gaming equipment sales are recognized when risks associated with ownership have passed to unaffiliated customers, and when all criteria of ASB Topic No. 605 (SAB Topic 13) have been met. Typically, this occurs when finished products are shipped.

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~ Notes ~~UNAUDITED~~to ~~FINANCIAL~~Unaudited ~~STATEMENTS~~Financial ~~(continued)~~Statements

~~For the~~Six ~~nine~~Months ~~months~~Ended ~~ended~~December ~~March~~ 31, 2009 and 2008,

and the Period of ~~July~~November 1513, ~~2004~~ 2007 (Inception) to ~~March~~December 31, 2009

~~NOTE 3: Related~~B. ~~Party~~SIGNIFICANT ~~Transactions~~ ACCOUNTING POLICIES (~~continued~~CONT’D)

~~Affiliate Transactions~~NET INCOME (~~continued~~LOSS) PER SHARE OF COMMON STOCK

~~During~~ASC Topic ~~the~~No. ~~period~~260 requires presentation of ~~November~~basic ~~2005~~and ~~through~~diluted ~~March~~EPS ~~2008,~~on the ~~Affiliate~~face ~~leased~~of ~~office~~the ~~space~~statement inof ~~Las~~operations ~~Vegas,~~for ~~Nevada~~all inentities ~~behalf~~with complex capital structures and requires a reconciliation of the ~~Company~~numerator atand ~~$400~~denominator ~~per~~of ~~month,~~the ~~plus~~basic aEPS ~~refundable~~computation ~~security~~to ~~deposit~~the numerator and denominator of ~~$1,200~~the diluted EPS computation. In ~~June~~the ~~2008~~accompanying financial statements, ~~the~~basic ~~security~~loss ~~deposit~~per ~~was~~share ~~applied~~is tocomputed ~~rent~~by ~~owing~~dividing ~~and~~net loss by the ~~lease~~weighted ~~was~~average ~~not~~number ~~renewed~~of ~~for~~shares of ~~another~~common ~~term.~~stock outstanding during the period, while diluted loss per share ~~Rent~~takes ~~expense~~into ~~with~~consideration the ~~affiliate~~convertible ~~totaling~~bonds $0(Note F) and ~~$2,400~~their ~~for~~related interest ~~the~~and ~~nine~~debt ~~months~~discount. The potential conversion of the bonds ~~ended~~would ~~March~~have 31no effect on loss per share due to the Company’s continuing losses, so ~~2009~~basic and ~~2008,~~diluted ~~respectively~~loss per share are the same. The Company has no other potentially dilutive securities, issuch ~~included~~as inoptions ~~General~~or ~~and~~warrants, currently ~~Administrative~~issued ~~expenses~~and outstanding.

The Affiliate regularly incurs expenses in behalf of the Company in the normal course of business. Activity with the Affiliate is summarized as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2009			2008			2009			2008
BASIC
Net loss	$	(252,654	)	$	(219,914	)	$	(535,819	)	$	(446,845	)
Weighted average common shares outstanding		15,455,727			6,480,000			15,147,456			6,480,000
Net loss per share (Basic)	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.07	)

DILUTED
Net loss (Basic)	$	(252,654	)	$	(219,914	)	$	(535,819	)	$	(446,845	)
Convertible bond interest expense		2,516			-			5,032			-
Unamortized convertible bond issuance costs		(10,296	)		-			(10,296	)		-
Net loss (Diluted)	$	(260,434	)	$	(219,914	)	$	(541,083	)	$	(446,845	)

Weighted average common shares outstanding (Basic)		15,455,727			6,480,000			15,147,456			6,480,000
Convertible preferred shares		-			-			-			-
Convertible bonds and notes		302,000			-			302,000			-
Options		-			-			-			-
Warrants		-			-			-			-
Weighted average common shares outstanding (Diluted)		15,757,727			6,480,000			15,449,456			6,480,000
Net loss per share (Diluted)	$	(0.02	)	$	(0.03	)	$	(0.04	)	$	(0.07	)

~~Payable~~RECENTLY-ISSUED toACCOUNTING ~~Affiliate July 15, 2004 (Inception)...................................................................................... $ -~~PRONOUNCEMENTS

~~Consulting~~In June ~~fees~~2009 the FASB established the Accounting Standards Codification ("Codification" or "ASC") as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). Rules and interpretive releases of the Securities and Exchange Commission ("SEC") issued under authority of federal securities laws are also sources of GAAP for SEC registrants.~~......................................................................................................................................~~ Existing GAAP was not intended to 6be changed as a result of the Codification,~~250~~ and accordingly the change did not impact our financial statements. The ASC does change the way the guidance is organized and presented.

Operating expenses incurred in behalf of the Company.................................................................... 809

Amounts paid to Affiliate....................................................................................................................... (609)

Payable to Affiliate June 30, 2005.......................................................................................................... 26,450

Consulting fees........................................................................................................................................ 30,000

Lease expense.......................................................................................................................................... 3,300

Proceeds from notes payable................................................................................................................ 14,000

Operating expenses incurred in behalf of the Company................................................................... 11,327

Amounts paid to Affiliate...................................................................................................................... (38,579)

Payable to Affiliate June 30, 2006......................................................................................................... 46,498

Consulting fees........................................................................................................................................ 30,000

Lease expense............................................................................................................................................ 4,800

Operating expenses incurred in behalf of the Company..................................................................... 16,640

Amounts paid to Affiliate........................................................................................................................ (58,856)

Payable to Affiliate June 30, 2007........................................................................................................... 39,082

Consulting fees......................................................................................................................................... 18,000

Lease expense........................................................................................................................................... 3,600

Operating expenses incurred in behalf of the Company.................................................................... 8,937

Amounts paid to Affiliate....................................................................................................................... (20,426)

Payable to Affiliate June 30, 2008.......................................................................................................... 49,193

Consulting fees......................................................................................................................................... 2,109

Operating expenses incurred in behalf of the Company..................................................................... 25,542

Amounts paid to Affiliate........................................................................................................................ (1,500)

Payable to Affiliate March 31, 2009........................................................................................................ $ 75,344

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~ Notes ~~UNAUDITED~~to ~~FINANCIAL~~Unaudited ~~STATEMENTS~~Financial ~~(continued)~~Statements

~~For the~~Six ~~nine~~Months ~~months~~Ended ~~ended~~December ~~March~~ 31, 2009 and 2008,

and the Period of ~~July~~November 1513, ~~2004~~ 2007 (Inception) to ~~March~~December 31, 2009

~~NOTE 3: Related~~B. ~~Party~~SIGNIFICANT ~~Transactions~~ ACCOUNTING POLICIES (~~continued~~CONT’D)

~~Note~~RECENTLY-ISSUED ACCOUNTING PRONOUNCEMENTS ~~Receivable~~(CONT’D)

OnStatement ~~various~~of ~~dates~~Financial ~~throughout~~Accounting ~~the~~Standards ~~three~~("SFAS") ~~months~~SFAS ~~ended~~No. ~~March~~165 ~~31,~~(ASC ~~2009,~~Topic ~~the Company advanced $26~~855),~~765~~ to"Subsequent ~~NanoTech Entertainment~~Events," ~~Inc~~SFAS No. 166 (~~NanoTech~~ASC Topic 810), a"Accounting ~~private~~for ~~company~~Transfers of ~~the~~Financial ~~Company~~Assets-an ~~has~~Amendment ~~acquired~~of ~~(see~~FASB ~~Note~~Statement 9)No. ~~These~~ ~~advances~~140," ~~are~~SFAS No. 167 ~~non-interest~~(ASC ~~bearing~~Topic ~~and~~810), ~~due~~"Amendments to onFASB ~~January~~Interpretation 1No. 46(R)," ~~2010~~and SFAS No. ~~The~~168 ~~Company~~(ASC ~~initially~~Topic ~~was~~105), ~~granted~~"The ~~the~~FASB ~~right~~Accounting toStandards Codification ~~convert~~and the ~~loan~~Hierarchy toof ~~100,000~~Generally ~~additional~~Accepted ~~shares~~Accounting ~~($.08 per~~Principles-a ~~share)~~replacement of ~~NanoTech’s~~FASB ~~common~~Statement ~~stock~~No. in162," ~~lieu~~were ofrecently ~~cash repayment~~issued. ~~Due~~SFAS ~~to the~~No. ~~Company’s~~165, ~~acquisition~~166, of167, ~~NanoTech~~and on168 ~~April~~have ~~30,~~no ~~2009~~current ~~(Note~~applicability ~~9),~~to the ~~conversion~~Company or their ~~option~~effect ~~has~~on the financial statements would not have been ~~eliminated~~significant.

~~NOTE~~Accounting ~~4: Convertible~~Standards Update ("ASU") ASU No. 2009-05 (ASC Topic 820), which amends Fair ~~Debentures~~Value Measurements and Disclosures - Overall, ASU No. 2009-13 (ASC Topic 605), Multiple-Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985), Certain Revenue Arrangements that include Software Elements, and various other ASU's No. 2009-2 through ASU No. 2010-18 which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.

~~In March 2009, the Company issued convertible debentures bearing interest at 6% with a term of two years~~C. ~~The~~ ~~debenture~~RELATED ~~principle~~PARTY and accrued interest may be converted into shares of the Company’s common stock in the first year at a conversion price of $0.10 or in the second year at a price which is 80% of the three lowest closing bid prices during the ten days prior to conversion. During the nine months ended March 31, 2009, the Company issued debentures totaling $46,900 comprised of $25,500 cash, and notes payable of $20,000 and accrued interest of $1,400 (See Note 3 – ‘Notes Payable’). A total of $16,700 of debentures were converted to shares at $0.10 during the period. At March 31, 2009, the Company has debentures of $30,200 outstanding. Since the second year conversion price is indeterminable and the first year conversion price approximates the fair market value of the Company’s stock, the convertible debentures are considered ‘out of the money,’ so no beneficial conversion feature has been provided for.TRANSACTIONS

~~NOTE~~NOTES ~~5: Stockholders’ Equity~~PAYABLE

~~The~~Several of the Company’s ~~has~~current ~~authorized~~and ~~75,000,000~~former ~~shares~~officers have provided funding in the form of ~~common~~notes ~~stock~~payable, ~~with~~totaling a$81,408 ~~par~~and ~~value~~$80,500 as of ~~$.001~~ December 31, 2009 and noJune 30, ~~preferred~~2009, ~~stock~~respectively. ~~There~~The ~~were~~notes acarry ~~total~~interest rates ranging from 0% to 20%, resulting in interest expense of 4$6,~~906,000~~175 and $613 for the six months 4ended December 31,~~533~~ 2009 and 2008,~~000~~ ~~shares~~respectively, ofand ~~common~~accrued ~~stock~~interest ~~issued~~of $15,398 and ~~outstanding~~$9,223 atas ~~March~~of December 31, 2009 and June 30, ~~2008~~2009, respectively. The ~~which~~notes isare ~~the~~due ~~result~~on ofdemand and therefore classified as current liabilities. Interest has not been imputed due to its nominal impact on the ~~following~~financial ~~transactions:~~statements.

~~On August~~ACCRUED 19, 2004, the Company issued 10,000 shares of common stock at $.001 par value to an Affiliate of the Company for services rendered, valued at $10 in connection with the consulting agreement described in Note 3 above.LIABILITIES

OnThe ~~January~~Company ~~31,~~has ~~2006,~~employment ~~the~~agreements ~~Company~~with ~~declared~~its current and ~~issued~~former aofficers ~~common stock dividend of~~whereby ~~1,260,000~~the ~~shares~~officers atare ~~$.001~~entitled ~~par value~~ to ~~stockholders~~the ofannual ~~record~~salaries aspayable ~~of January 31,~~as ~~2006.~~follows:

OnSalary ~~January~~for ~~30, 2009,~~ the ~~Company~~Year ~~issued~~Ended ~~10,000~~June ~~shares of common stock at $.001 par value to a creditor for settlement of debt valued at $1~~30,~~000.~~

In March 2009, the Company issued 167,000 shares of common stock at $.10 per share for conversion of $16,700 of convertible debentures (See Note 4).

	2008		2009		2010		2011		2012		Total
David Foley	$	175,000	$	400,000	$	500,000	$	275,000	$	-	$	1,350,000
Robert DeKett		75,000		162,500		192,500		105,000		-		535,000
Ted Campbell		-		-		36,000		72,000		30,000		138,000
Total	$	250,000	$	562,500	$	728,500	$	452,000	$	30,000	$	2,023,000

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~ Notes ~~UNAUDITED~~to ~~FINANCIAL~~Unaudited ~~STATEMENTS~~Financial ~~(continued)~~Statements

~~For the~~Six ~~nine~~Months ~~months~~Ended ~~ended~~December ~~March~~ 31, 2009 and 2008,

and the Period of ~~July~~November 1513, ~~2004~~ 2007 (Inception) to ~~March~~December 31, 2009

~~NOTE 5: Stockholders’~~C. ~~Equity~~ RELATED PARTY TRANSACTIONS (~~continued~~CONT’D)

~~For the~~ACCRUED ~~period~~LIABILITIES ~~of July 15, 2004~~ (~~inception~~CONT’D) ~~through March 31, 2009, the Company issued the following stock for cash:~~

	Number of		Total
Date	Shares	Price	Proceeds
7/16/2004	175,000	$ 0.001	$ 175
7/22/2004	175,000	0.001	175
11/4/2004	650,000	0.001	650
12/19/2005	150,000	0.10	15,000
12/31/2005	100,000	0.10	10,000
3/3/2006	20,000	0.10	2,000
4/17/2006	150,000	0.10	15,000
5/8/06	30,000	0.10	3,000
6/23/06	600,000	0.10	60,000
8/11/06	5,000	0.10	500
8/18/06	305,000	0.10	30,500
9/18/06	15,000	0.10	1,500
9/19/06	40,000	0.10	4,000
10/24/06	10,000	0.10	1,000
11/20/06	25,000	0.10	2,500
2/8/07	615,000	0.10	61,500
2/22/07	25,000	0.10	2,500
5/1/07	65,000	0.10	6,500
8/14/07	100,000	0.25	25,000
2/13/08	8,000	0.25	2,000
1/16/09	100,000	0.10	10,000
2/19/09	96,000	0.05	4,800
	3,459,000		$ 258,300

Salaries for Mr. Foley and Mr. DeKett are payable in cash, while Mr. Campbell’s salary is payable in cash and stock of $55,500 and $82,500, respectively. His stock compensation is expensed and issued at the end of each month; $3,250 in stock for each of the months December 2009 through May 2010, and $3,500 in stock for each of the months June 2010 through November 2011. The number of shares issued is based on the average trading price over the previous thirty days. Accrued cash salaries for the officers totaled $1,160,500 and $812,500 at December 31, 2009 and June 30, 2009, respectively, and will be paid as cash flows allow. Salary expense totaled $348,000 and $281,250 for the six months ended December 31, 2009 and 2008, respectively.

~~NOTE~~The ~~6: Income~~Company ~~Taxes~~also reimburses its officers for expenses they incur in the Company’s behalf, including rent for the use of property for business purposes. Rent expense totaled $66,060 and $99,000 for the six months ended December 31, 2009 and 2008, respectively.

~~The~~Salaries, ~~Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income~~rent, ~~regardless~~and ofother ~~when reported~~reimbursable ~~for~~expenses ~~tax~~owed ~~purposes. Deferred taxes are provided in the financial statements under SFAS No. 109~~ to ~~give~~officers ~~effect~~totaled to$1,325,112 ~~the resulting temporary differences which may arise from differences in the bases of various assets~~ and liabilities based on the income taxes expected to be payable in future years. Development stage deferred tax assets arising as a result of net operating loss carry forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Operating loss carry forwards generated during the period from July 15$981,906 ~~2004 (date~~at ofDecember ~~inception) through March~~ 31, 2009 ofand ~~$379,974~~June ~~will begin to expire in 2024. Accordingly~~30, ~~deferred tax assets of approximately $133~~2009,~~000~~ ~~were offset by a valuation allowance~~respectively, ~~which increased by approximately $17,350~~ and ~~$31,600~~will be ~~during~~repaid ~~the~~as ~~nine~~cash ~~months~~flows ~~ended March 31, 2009 and 2008, respectively~~allow.

CONSULTING SERVICES

On December 1, 2009, the Company executed a consulting agreement with a company affiliated with the Company’s CFO. See Note E (3).

D.	NOTES PAYABLE

The Company has originated the following notes payable with unaffiliated entities and individuals:

	Principal Balance						Accrued Interest
	12/31/2009			6/30/2009			12/31/2009		6/30/2009
Note 1, 10% interest, due April 30, 2011	$	250,000		$	250,000		$	27,253	$	16,668
Note 2, 20% interest, due on demand		25,000			25,000			3,335		835
Note 3, 20% interest, due on demand		5,000			5,000			583		83
Note 4, 0% interest, due on demand		2,500			-			-		-
Totals		282,500			280,000		$	31,171		17,586
Less current portion (Notes 2, 3, and 4)		(32,500	)		(30,000	)
Noncurrent portion (Note 1)	$	250,000		$	250,000

The notes require monthly interest payments only, with principal and any accrued interest payable upon maturity or demand, as indicated above.

~~NANOTECH~~NanoTech ~~ENTERTAINMENT~~Entertainment, ~~INC~~Inc.

(fka ALDAR GROUP, INC.)

(A Development Stage Company)

~~NOTES TO~~ Notes ~~UNAUDITED~~to ~~FINANCIAL~~Unaudited ~~STATEMENTS~~Financial ~~(continued)~~Statements

~~For the~~Six ~~nine~~Months ~~months~~Ended ~~ended~~December ~~March~~ 31, 2009 and 2008,

and the Period of ~~July~~November 1513, ~~2004~~ 2007 (Inception) to ~~March~~December 31, 2009

~~NOTE 7: Going~~E. ~~Concern Considerations~~STOCKHOLDERS’ DEFICIT

The ~~accompanying~~Company ~~financial~~has ~~statements~~authorized ~~have~~75,000,000 ~~been~~shares ~~prepared~~of incommon ~~conformity~~stock with ~~U.S. generally~~a ~~accepted~~par ~~accounting~~value ~~principles~~of $.001, ~~which~~and ~~contemplate~~no ~~continuation~~preferred ofstock. Upon ~~the Company~~inception ason aNovember ~~going concern. However~~13, 2007, the Company ~~has~~had ~~incurred~~6,480,000 ~~losses since~~shares ~~its~~issued ~~inception~~ and ~~has~~outstanding, ~~not~~which ~~yet~~represents ~~been successful in establishing profitable~~the ~~operations. These~~number ~~factors~~of ~~raise~~shares ~~substantial~~issued ~~doubt~~by ~~about~~AGI ~~the~~in ~~ability of~~ the ~~Company~~recapitalization retroactively reflected to ~~continue~~have asoccurred aat ~~going concern~~inception. ~~Unanticipated~~The ~~costs and~~recapitalization ~~expenses~~also orincluded ~~the inability to generate revenues could require additional~~an ~~financing,~~effective ~~which~~share ~~would~~issuance beof ~~sought through bank borrowings~~4, ~~equity or debt financing~~533,000, orwhich ~~asset~~represents ~~sales. To~~ the ~~extent~~number ~~financing~~of isAGI ~~not available,~~shares ~~the~~issued ~~Company~~and ~~may~~outstanding ~~not~~at beJune ~~able~~30, to2008 or(the ~~may~~most berecent ~~delayed~~fiscal inyear ~~developing~~prior ~~its services and~~to ~~meeting~~the ~~its obligations~~recapitalization). ~~The~~Additional ~~Company~~share ~~will~~issuances ~~continue~~occurring ~~to evaluate its~~through ~~projected~~December ~~expenditures~~31, ~~relative~~2009 to ~~its~~arrive ~~available~~at ~~cash~~the ~~and~~total toshares ~~evaluate~~issued ~~additional means of financing in order to satisfy its working capital~~ and ~~other~~outstanding ~~cash~~of ~~requirements. The~~15,665,000 ~~accompanying~~are ~~financial~~as ~~statements do not reflect any adjustments that might result from the outcome of these uncertainties.~~follows:

~~NOTE~~During ~~8: Revenue~~the period of January through June 2009, the following shares were issued for ~~Recognition~~cash in accordance with private offerings (of which 1,670,000 shares were issued and $87,000 cash received subsequent to the reverse recapitalization):

The Company’s sources of income prior to the April 30, 2009 merger with NanoTech Entertainment, Inc. (Note 9) were derived from winnings earned by race horses in which the Company owns, or has owned, either full or partial interest, and sale of foals from its breeding program. Income from race winnings is recorded on the race dates with an accompanying receivable to be reduced when checks are subsequently cut and distributed to all interest owners. Income from the sale of foals is recorded on the sale date. During the nine months ended March 31, 2009 and 2008, the Company earned race winnings of $2,440 and $7,999 respectively, and sales from its breeding program of $0 and $6,200, respectively.

	Number		Stock		Cash
Date	of Shares		Price		Received
1/16/2009		100,000	$	0.10	$	10,000
2/19/2009		96,000		0.05		4,800
5/15/2009		100,000		0.05		5,000
5/29/2009		20,000		0.10		2,000
6/14/2009		1,500,000		0.05		75,000
6/23/2009		50,000		0.10		5,000
Totals		1,866,000			$	101,800

~~Moving~~During ~~forward,~~ the ~~Company’s~~period ~~sources~~ of ~~income~~July ~~are~~through ~~derived~~December ~~from~~2009, the ~~sale~~following ofshares ~~its~~were ~~game technology~~issued ~~and products. The Company offers these products~~ for ~~sale to the~~ ~~general~~services ~~public via its online web store~~rendered, ~~and~~as ~~through~~prepayment afor ~~worldwide~~future ~~distribution network. All~~services ~~sales~~to ~~are~~be ~~prepaid~~rendered, ~~either by credit card~~ or ~~wire~~for cash ~~transfer. Revenue~~in isaccordance ~~recognized~~with ~~upon~~private ~~shipment~~offerings ~~of the product~~ to ~~the customer. All~~unrelated ~~products are sold on a fixed price basis.~~individuals:

NOTE 9: Subsequent Events

	Number		Stock		Cash		Services		Services
Date	of Shares		Price		Received		Rendered		Prepaid
7/1/2009		200,000	$	0.10	$	20,000	$	-	$	-
8/1/09		125,000		0.10		-		5,208		7,292	(1)
9/11/2009		560,000		0.10		56,000		-		-
9/16/09		24,000		0.10		-		2,400		-	(2)
10/23/2009		100,000		0.05		5,000		-		-
12/1/09		50,000		0.05		-		-		2,500	(3)
12/19/09		104,000		0.10		-		10,400		-	(4)
12/31/09		65,000		0.05		-		3,250		-	(5)
Totals		1,228,000			$	81,000	$	21,258	$	9,792

During April and May 2009, the Company issued $23,300 in convertible debentures, which were immediately converted into 233,000 shares of common stock at $0.10 per share.

On April 30, 2009, the Company entered into a Purchase and Sale Agreement (the “Agreement”) with NanoTech Entertainment, Inc. (“NanoTech”), a privately-owned company which holds intellectual property in the development and sales of technology and games for the coin-op/arcade, casino gaming, and consumer entertainment markets. The Company has acquired 100% ownership of Nanotech’s issued and outstanding stock through the exchange of 6,480,000 common shares. In connection with the acquisition, the Company issued a 10% finder’s fee of 648,000 shares of common stock to a consulting firm assisting with the transaction. On May 8, 2009, the Company changed its name to NanoTech Entertainment, Inc. to better reflect its business direction.

On April 30, 2009, the Company issued 500,000 shares of common stock at $.001 per share to an affiliate to satisfy $500 in debts owed.

~~ITEM~~NanoTech ~~2. MANAGEMENT’S~~Entertainment, ~~DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~Inc.

~~The~~(A ~~following~~Development ~~plan~~Stage of operation should be read in conjunction with our financial statements and the notes thereto included elsewhere in this quarterly report. Statements contained herein which are not historical facts are forward-looking statements, as that term is defined by the Private Securities Litigation Reform Act of 1995, including statements relating to our plans, objectives, expectations and intentions. Although we believe that the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. We caution investors that any forward-looking statements made by us are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation: established competitors who have substantially greater financial resources and operating histories, regulatory delays or denials, ability to compete as a start-up company in a highly competitive market, and access to sources of capital.Company)

~~Results of~~ Notes ~~Operations~~to Unaudited Financial Statements

~~We have~~Six ~~generated~~Months ~~revenues~~Ended ~~from~~December ~~operations of $19~~31,~~629~~ ~~since~~2009 ~~inception~~ and ~~have incurred $398~~2008,~~687 in operating expenses through March 31, 2009.~~

~~Plan~~and the Period of ~~Operation~~ November 13, 2007 (Inception) to December 31, 2009

~~We have developed a plan of operation reflecting our objectives and anticipated growth for the next 12 months and beyond~~E. InSTOCKHOLDERS’ ~~our~~DEFICIT ~~plan, we identify our cash requirements, our anticipated production of video games, and our required staffing and additional funding requirements to fulfill our business objectives.~~(CONT’D)

~~Cash Requirements~~(1) On August 1, 2009, the Company entered into an agreement with an unrelated entity that was to render financial consulting services for a 12-month period. As compensation, the Company issued 125,000 shares of common stock upon the agreement’s execution. The shares were valued at $.10 per share for total compensation of $12,500 to be amortized ratably over the term of the agreement. During the six months ended December 31, 2009, the Company amortized $5,208 to consulting expense, resulting in a $7,292 prepaid balance that has been reported in the stockholders’ equity section of the balance sheet. The entity is also entitled to $25,000 in finders’ fees for each $1,000,000 of funding raised in the Company’s behalf. No funds have been raised as of the date of this report.

~~We estimate~~(2) ~~that~~On weAugust ~~require a minimum of approximately $150~~5,~~000~~ ~~and a maximum of approximately $250~~2009,~~000~~ ~~to operate for~~ the ~~next~~Company 12entered ~~months~~into ~~from~~an ~~the~~agreement ~~date~~with ofan ~~this quarterly~~unrelated ~~report.~~individual ~~The~~who ~~minimum~~was ofto ~~$150,000~~render isconsulting ~~required~~services for ~~operating~~a ~~expenses, and~~6-week ~~production~~period. ~~costs~~The ofconsultant ~~video~~was ~~games~~to ~~and~~receive ~~the~~cash ~~care,~~compensation ~~and boarding~~ of ~~our thoroughbreds. This estimate of required funds includes the~~ $56,000 ~~for commissions~~over tothe ~~our~~term ~~bloodstock~~of ~~agent,~~the ~~$10~~contract,~~000~~ ~~in estimated operating expenses including office rent, boarding, sales preparation~~ and ~~$95~~24,000 inshares ~~additional overhead for production~~ of ~~video~~common ~~games. Additionally,~~stock asupon ofthe ~~March~~contract’s ~~31, 2009,~~completion. weThe ~~held~~shares ~~full~~were ~~title~~valued toat ~~two~~$.10 ~~thoroughbreds~~per ~~and~~share, ~~ownership~~for ~~interests~~total instock ~~one stallion~~compensation ~~syndicate.~~of ~~On October~~ $2,400 ~~2008~~to ~~the~~be ~~Company~~expensed ~~sold~~ratably ~~its~~over ~~ownership interest in one of~~ the ~~stallion~~contract’s ~~syndicates~~term. We ~~expect~~The toCompany ~~generate~~recorded ~~revenue~~6 ~~from the sales of these remaining horses and their foals. Specifically~~weeks, ~~we successfully~~or ~~bred our two mares and delivered two foals on April 14 and April 15~~$8, ~~2006~~400, ~~and one foal in April 2007. In July~~ of ~~2006,~~consulting ~~upon~~expense during the ~~advice~~ ofsix ~~our~~months ~~Vet,~~ended ~~Mr.~~December ~~Bob Campbell~~31, ~~we put down our colt by Lois Laner~~2009, ~~out~~ of ~~Cahill~~ ~~Road,~~which ~~due to an incurable infection. The foal born April 14~~$6,000 ~~2006~~ was ~~sold~~ atpaid ~~auction~~ in ~~December 2007 at the WBTA sale for $6,200~~cash. ToThe ~~date~~24,000 weshares ~~have not~~of ~~generated~~common astock ~~net~~were ~~profit~~issued ~~and~~upon ~~have sold one broodmare and its foal to an unrelated party. We generated no revenue in~~ the ~~third~~contract’s ~~quarter~~completion ofon ~~our~~September ~~fiscal~~16, ~~year from our racing program~~2009.

(3)

On December 1, 2009, the Company executed an agreement with a company affiliated with its CFO (“the Affiliate”) that is to perform services including the compilation and coordination of corporate documentation, as well as filing services to facilitate the Company’s public listing on the OTCBB. The Affiliate was compensated with a non-refundable $7,500 cash retainer payment and 50,000 shares of common stock upon the agreement’s execution, and an additional $7,500 cash payment is due upon the completion of a Form S-1 to be filed with the SEC. The stock was valued at $.05 per share for total prepaid compensation of $2,500. As of December 31, 2009, no services had been rendered under this contract.

(4)

On June 19, 2009, the Company entered into an agreement with an unrelated individual who was to render consulting services for a 26-week period. The consultant received cash compensation of $36,400 over the term of the contract, and 104,000 shares of common stock upon the contract’s completion on or about December 19, 2009. The shares were valued at $.10 per share, for total stock compensation of $10,400.

(5)

On December 31, 2009, the Company issued to Ted Campbell 65,000 shares of common stock at $.05 per share for compensation expense of $3,250 pursuant to an employment agreement (Note C, Accrued Liabilities).

~~To the~~NanoTech ~~extent we are unable to meet our operating expenses~~Entertainment, ~~we may borrow funds from our president Mr~~Inc. DeKett, or others, or we may attempt to raise capital from private individuals or institutional investment equity funds. Any funds generated from sales of horses or from equity investments, if any, in our company that exceeds our operating expenses and debt repayments will be used to produce additional video games.

~~We have~~(A ~~developed~~Development aStage plan of operation reflecting our objectives and anticipated growth for the next 12 months and beyond. In our plan, we identify our cash requirements, and our required staffing and additional funding requirements to fulfill our business objectives.Company)

~~Management~~ Notes ~~attended and competitively bid on several Yearlings at the September 2008 WBTA Summer Yearling Sale, but was unable~~ to ~~purchase~~Unaudited ~~any~~Financial new thoroughbreds. The Company did not send a representative to Keeneland, Kentucky for their Yearling Sale held over a two-week period in September 2008. The Company purchased a one-third interest in a filly named Russian to train and race at Emerald Downs in 2007. Russian placed fourth or better in four of her six races and won $18,326. Russian was returned to Emerald Downs in January 2008 to train for the April-October Emerald Downs racing season. Russian had limited success and was sold in late September of 2008 as a broodmare. The Company purchased a filly named Cascade Park at the September 2006 WBTA Summer Yearling Sale at Emerald Downs. That filly was in training to race in 2007 and placed in both her races run in September 2007. The Company sold Cascade Park for $4,000 to a Canadian racing interest in March 2008. The Company had a one-year-old filly we had bred and planned to sell at the coming 2008 auctions but due to a pasture accident, the filly was euthanized in February 2008 on advice from the attending veterinarian. The filly was insured for $8,000 and we received a $5,000 reimbursement under that policy.Statements

~~We have~~Six ~~terminated~~Months ~~our~~Ended ~~breeding~~December ~~program due to its limited success over the last 2 years~~31, ~~but~~2009 will retain our Stud rights in Private Gold. We had purchased breeding rights to Matty-G for Lois Laner, which we consider our best mare, but were unsuccessful in bringing the pregnancy to a full term. Matty-G was purchased by a Washington syndicate from Kentucky to stand in Washington. We had planned on re-breeding Baby Alice to Cahill Road, but were able to breed Baby Alice to Matty-G ,a highly sought stallion with a proven record of delivering high value foals. Baby Alice, who was bred to Matty-G, had a Filly foal in May of 2008. Both Mares were bred back to Matty-G., but only the Baby Alice breeding was successful. We sold Lois Laner, and ~~her foal, privately prior to the Washington Thoroughbred Breeders Association (WBTA) auction on December 3,~~ 2008~~. In December 2008~~, we received a $922 bonus from the State of Washington for races run in Washington race tracks from the winnings of thoroughbreds they have bred. We have previously received $368 in revenues from the State of Washington for breeding a successful race horse from a special Breeders Program.

~~On April 30, 2009 the Company entered into a Purchase~~ and ~~Sale agreement wherein the Company exchanged 6,480,000 of~~ ~~its common shares for 100% of~~ the ~~issued~~Period ~~shares~~ of ~~NanoTech~~November ~~Entertainment~~13, ~~Inc.~~ 2007 (~~“Nanotech”~~Inception)~~. In~~ ~~connection with the acquisition, the Company issued a 10% finder’s fee of 648,000 shares of common stock~~ to aDecember ~~consulting firm assisting with the transaction. On May 8~~31, 2009~~, the Company changed its name to NanoTech Entertainment, Inc. to better reflect its business direction.~~

E.	STOCKHOLDERS’ DEFICIT (CONT’D)

On January 30, 2009, the Company issued 10,000 shares at $.10 per share to a vendor to settle a $1,000 debt.

During March through May 2009, several convertible debenture holders converted their debentures resulting in the issuance of 400,000 shares of common stock at $.10 for total value of $40,000 (Note F).

On April 30, 2009 and in connection with the reverse recapitalization between NTI and AGI, the Company issued 648,000 shares to an unaffiliated entity as a finders’ fee. The shares were valued at $.25 per share, resulting in total expense of $162,000. As a term of the recapitalization, the Company also issued 500,000 shares at $.001 to an affiliated entity in settlement of $500 in debt. This issuance resulted in recognition of $124,500 in additional interest expense.

F.	CONVERTIBLE DEBENTURES

During March through May 2009, the Company issued convertible debentures bearing interest at 6% with a term of two years. The debenture principle and accrued interest may be converted into shares of the Company’s common stock in the first year at a conversion price of $0.10 or in the second year at a price which is 80% of the three lowest closing bid prices during the ten days prior to conversion.

During the year ended June 30, 2009, the Company issued debentures totaling $70,200 (convertible into potentially 702,000 shares of common stock based on a $.10 conversion rate), which amount includes cash received of $48,800 (of which $21,300 was received after the reverse recapitalization) and $21,400 in notes payable converted to convertible debentures on March 12, 2009. The fair market value of the stock on the convertible debenture issuance dates ranged from $.10 to $.25, resulting in a beneficial conversion feature of $45,800, of which $31,378 was amortized during the year ended June 30, 2009.

The following debentures were converted during the year ended June 30, 2009:

Conversion	Number		Conversion
Date	of Shares		Price		Total
3/13/2009		107,000	$	0.10	$	10,700
3/27/2009		50,000		0.10		5,000
3/31/2009		10,000		0.10		1,000
4/3/2009		20,000		0.10		2,000
5/4/2009		80,000		0.10		8,000
5/7/2009		50,000		0.10		5,000
5/29/2009		83,000		0.10		8,300
Total		400,000			$	40,000

~~Nanotech is a privately held corporation that holds intellectual property in the development and sales of technology and games for the coin-op / arcade~~NanoTech Entertainment, ~~casino gaming, and consumer entertainment markets~~Inc.

~~Revenues~~(A Development Stage Company)

~~The~~ Notes ~~Company~~to ~~has~~Unaudited ~~recorded~~Financial ~~$19,629 in revenues from operations since inception through March 31, 2009, which was generated from race winnings and the sale of one bred foal.~~Statements

~~The~~Six ~~Company~~Months ~~had~~Ended purchased two broodmares who were with foals and two individual syndicate shares in established stallions for breeding or re-sale purposes. Two foals were born in April 2006, one of which died in June 2006 due to an incurable virus, and was uninsured. Another foal was born in April 2007 and had to be euthanized in 2008 because of a pasture accident. This foal was insured and the death resulted in collection of $5,000 in insurance proceeds. The deaths may cause a substantial loss in future sales. The foal born in 2006 was sold at auction in December ~~2007~~ ~~for $6,200. Two more foals were born in May 2008 and one was sold with its mother during the six months ended December~~ 31, ~~2008. The~~ ~~other~~2009 ~~broodmare~~ and ~~its foal are being held for sale anticipated in Spring of 2009.~~2008,

~~The Company currently has full ownership in one thoroughbred filly weanling~~ and ~~one~~ ~~mare (Baby Alice). The two-year-old filly it bought at~~ the ~~Sept~~Period ~~2006~~of ~~WBTA Auction~~November ~~(Cascade Park)~~13, ~~was~~2007 ~~sold to a Canadian racing interest in March 2008. The Company owns syndicate shares in one stallion~~ (~~Private Gold~~Inception). ~~The~~to ~~Company has~~December ~~received revenue from the one-third interest in the race winnings from Russian ($8~~31,~~644),~~ ~~and from the State of Washington for breeding a successful race horse from a special Breeders Program ($368). We also have received revenue from the race winnings of Cascade Park ($2,345) in 2007.~~2009

~~Operating~~F. ~~and~~CONVERTIBLE ~~General & Administrative Expenses~~DEBENTURES

~~Operating~~At ~~expenses~~December ~~consisting~~31, of2009 ~~boarding~~and June 30, ~~training~~2009, ~~depreciation~~the ~~and~~Company’s ~~amortization,~~unconverted debentures ~~breeding~~totaled $19,904 ~~consulting~~($30,200 ~~professional~~principal ~~fees,~~netted ~~and~~with ~~other~~$10,296 ~~general~~unamortized ~~administrative~~debt ~~expenses~~discount) ~~totaled~~and $4615,~~301~~778 ~~for~~($30,200 ~~the~~principal ~~nine~~netted ~~months~~with ~~ended~~$14,422 ~~March~~unamortized 31debt discount), ~~2009~~respectively, ~~compared~~while ~~to $104,049~~the ~~for~~potential number of shares into which the debentures ~~nine~~could ~~months~~be ~~ended~~converted ~~March~~was 31302,000 ~~2008~~based on a $. ~~Since~~10 ~~inception~~conversion ~~through~~rate. Accrued ~~March~~interest on the bonds totaled $1,364 and $458 at December 31, 2009, weand ~~have~~June ~~incurred~~30, ~~operating~~2009, ~~expenses~~respectively. No ~~totaling~~debentures were ~~$398~~converted during the six months ending December 31,~~687~~ 2009.

~~Income Taxes~~G. INCOME TAXES

The Company ~~does~~recognizes ~~not~~the ~~anticipate~~tax ~~having~~effects toof ~~pay~~transactions in the year in which such transactions enter into the determination of net income, regardless of when reported for tax purposes. Deferred taxes are provided in the ~~upcoming~~financial statements ~~years~~under ~~due~~ ASC Topic No. 740 to ~~our~~give ~~absence~~effect to the resulting temporary differences which may arise from differences in the bases of ~~net~~fixed ~~profits~~assets, depreciation methods, allowances, and start-up costs based on the income taxes expected to be payable in future years.

~~Capital~~Deferred ~~and~~compensation ~~Liquidity~~in the amount of $1,160,500 has been expensed per the financial statements but is not deducted for tax purposes in the current year. This results in a deferred tax asset of $406,175 which would reduce tax payments in the future as the compensation is subsequently recognized for tax purposes. This deferred tax asset however is offset in its entirety by a valuation allowance of the same amount due to doubts concerning the Company’s ability to utilize the deferred tax asset in future years.

AsOperating loss carryforwards of $1,521,135 (including permanent differences of $370,311 ~~March~~attributed to AGI’s accumulated losses on the reverse recapitalization date) generated since inception through December 31, 2009, wewill ~~had~~begin ~~total~~to ~~current~~expire in 2027. Accordingly, deferred tax assets of approximately $34532,~~118~~398 were completely offset by a valuation allowance, ~~and~~which ~~total~~increased ~~current~~by approximately ~~liabilities~~$187,537 ofand $~~118~~156,~~958~~396 during the six months ended December 31, ~~resulting~~2009 inand a2008, respectively. This ~~working~~deferred ~~capital~~tax ~~deficit~~asset was also offset due to a lack of evidence that suggests that the Company would likely be able to utilize the ~~$84,840~~asset to offset tax payments in future years.

H.	GOING CONCERN CONSIDERATIONS

The Company’s financial statements have been prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of and during the period from November 13, 2007 (inception) to December 31, 2009, the Company has incurred net losses totaling $2,311,324, and has a working capital deficit of $1,585,890.

~~During~~NanoTech ~~the nine months ended March 31~~Entertainment, ~~2009 and 2008, the Company received $14,800 and $27,000, respectively, in cash from the sale of its common stock, and $258,300 since inception through March 31, 2009~~Inc. In March 2009, the Company issued convertible debentures totaling $46,900, for which $25,500 in cash was received (the difference is due to the conversion of $21,400 in notes payable and interest to convertible debentures). In April and May 2009, the Company issued an additional $23,300 in convertible debentures for cash. These debentures were immediately converted to 233,000 shares of common stock at $.10 per share.

~~These~~(A ~~proceeds~~Development ~~are~~Stage ~~being used for operating and general and administrative expenses to sustain the~~ Company ~~through its development stage until it establishes profitable operations or receives cash from the issuance of additional common stock or debentures.~~)

~~We had~~ Notes ~~cash on hand of $6,781 as of March 31, 2009. We do not have sufficient cash~~ to ~~meet~~ ~~our~~Unaudited ~~short-term~~Financial ~~expansion needs over the next 12 months, which are to produce a number of video games.~~Statements

WeSix ~~believe~~Months weEnded ~~can~~December ~~meet our payment schedules for current boarding~~31, ~~care~~2009 and ~~syndicate~~ ~~share costs with our existing cash. The Company will require additional cash~~2008, either from stock sales, debenture issuances, operating activities, or cash advances from stockholders and officers, to meet our immediate expansions and financial needs and our long-term goals. Our long-term goals will be to expand on the production and marketing of video games. The Company may not be able to obtain additional financing, either in the form of racing profits, debt or equity, or guarantee that, if such financing is obtained, it will be available to us on reasonable terms. If we are able to obtain additional financing or structure strategic relationships in order to fund current or future projects, existing stockholders will likely experience further dilution of their percentage ownership of the Company.

~~ITEM~~and ~~3. QUANTITATIVE~~the ~~AND~~Period ~~QUALITATIVE~~of ~~DISCLOSURES~~November ~~ABOUT~~13, ~~MARKET RISK~~2007 (Inception) to December 31, 2009

~~Not applicable~~H. toGOING ~~smaller~~CONCERN ~~reporting~~CONSIDERATIONS ~~companies.~~(CONT’D)

~~ITEM~~These conditions 4raise substantial doubt about the Company’s ability to continue as a going concern. ~~CONTROLS~~ The accompanying financial statements do not include any ~~AND~~adjustments ~~PROCEDURES~~that might result from the outcome of this uncertainty. The Company's ability to meet its ongoing financial requirements is dependent on management being able to obtain additional equity and/or debt financing, the realization of which is not assured.

~~Evaluation~~I. ~~of Disclosure Controls and Procedures~~ROYALTIES

~~Disclosure~~The ~~Controls~~Company has entered into several licensing agreements whereby the Company licenses certain gaming software from various developers. The Company is responsible for paying royalties to the developers based on product sales. In the event that no product is sold, the Company is also required to pay a minimum royalty in order to maintain exclusivity (i.e., the developer cannot license the same software to the Company's competitors). Certain developers also require prepayment of royalties that are either offset by future sales, or expire at the end of a calendar year - at which point they are expensed. The Company had prepaid $100,000 and ~~Procedures~~ $55,000 in royalties at December 31, 2009 and June 30, 2009, respectively. No sales of the licensed products had occurred during the period of inception on November 13, 2007 through December 31, 2009, so only exclusivity minimums of $80,521 and $31,771 have been accrued at December 31, 2009 and June 30, 2009, respectively. The Company recognized royalty expense of $8,750 and $9,375 during the six months ended December 31, 2009 and 2008, respectively.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the period covered by this reportJ. ~~Based~~SUBSEQUENT on this evaluation, Robert DeKett (our principal executive officer) and Kenneth Liebscher (our principal financial officer) concluded as of the evaluation date that our disclosure controls and procedures were not effective such that the material information required to be included in our Securities and Exchange Commission reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, and was made known to us by others within those entities, particularly during the period when this report was being prepared.EVENTS

~~Changes~~On March 16, 2010, the Company received a $10,000 loan from a stockholder pursuant to a promissory note carrying a 10% interest rate. The loan and $167 in accrued ~~Internal~~interest ~~Control~~were payable on May 16, 2010, but had not yet been repaid as of ~~Over~~the ~~Financial~~date ~~Reporting~~of this report.

AsOn of March ~~31, 2009, management assessed the effectiveness of our internal control~~ ~~over financial reporting. Based on that evaluation~~30, ~~they concluded that~~2010, ~~during~~ the ~~period~~Company ~~covered~~issued ~~by this report, such internal controls and procedures were not effective~~ to ~~detect~~an ~~the~~independent ~~inappropriate~~investor ~~application~~50,000 ofshares ~~US GAAP principles. The determination~~ of ~~ineffective internal control is based~~common ~~upon~~stock ~~the~~at ~~lack~~$.10 ofper ~~separation~~share offor ~~duties~~total ~~and~~proceeds ~~insufficient general knowledge~~ of ~~US GAAP~~$5,000. ~~In evaluating the effectiveness of our internal control over~~

On April 1, 2010, the Company issued $5,000 in convertible debentures bearing interest at 6% with a maturity date of March 30, 2010. The debenture principle and accrued interest may be converted into shares of the Company’s common stock in the first year at a conversion price of $0.10 or in the second year at a price which is 80% of the three lowest closing bid prices during the ten days prior to conversion.

The Company has evaluated events from December 31, 2009, through the date whereupon the financial statements were issued and has determined that there are no additional items to disclose.

~~financial~~ITEM ~~reporting, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework~~2. ~~There~~ MANAGEMENT’S ~~were~~DISCUSSION noAND ~~significant~~ANALYSIS ~~changes~~OF inFINANCIAL ~~our~~CONDITION ~~internal controls~~AND ~~or in other factors that could significantly affect these controls~~RESULTS ~~subsequent~~OF ~~to the evaluation date.~~OPERATIONS

~~PART~~This IIsection –must ~~OTHER~~be ~~INFORMATION~~read in conjunction with the unaudited financial statements included in this report.

~~ITEM 6~~A. ~~EXHIBITS~~ Management’s Discussion

~~Exhibit~~The Company was originally organized as a Nevada Corporation on July 15, 2004 under the name Aldar Group, Inc. (“AGI”) for the purpose of acquiring, selling and breeding thoroughbred horses. NanoTech Entertainment, Inc. (“NEI”) was originally organized as a Nevada corporation on November 13, 2007. On April 30, 2009, NEI entered into an Acquisition Agreement (the “Agreement”) with AGI, wherein AGI acquired 100% of NEI’s issued and outstanding common stock through the exchange of 6,480,000 common shares. As a result of the Agreement, the Company changed its name to NanoTech Entertainment, Inc. (“NTI”) (“the Company” or “We” or “NanoTech”) to better reflect the direction of the newly formed entity.

~~Number Description~~For accounting purposes, the share exchange transaction was treated as a capital transaction where AGI, as the legal acquirer and shell corporation, issued stock for the net monetary assets of NEI, as the accounting acquirer, accompanied by a recapitalization. The accounting is similar in form to a reverse acquisition, except that goodwill or other intangibles are not recorded.

31The Company ~~Rule~~now ~~13a-14(~~operates as a~~)/15d-14a(a)~~ ~~Certifications~~virtual manufacturer, developing technology and games, and then licensing such products to third parties for manufacturing and ultimate distribution. The Company’s business model supports relatively low overhead costs and efficiencies in operations in the new global manufacturing economy.

~~32 Section 1350 Certifications~~Company Overview

~~SIGNATURES~~NanoTech Entertainment, Inc. is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. Headquartered in Las Vegas, Nevada, we operate as a virtual manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. This business model supports extremely low overhead and efficient operations in the new global manufacturing economy.

~~Pursuant~~With toan ever-expanding ~~the~~lineup ~~requirements~~ of technology and products, NanoTech is redefining the ~~Securities~~role ~~Exchange~~of ~~Act~~developers ofand ~~1934,~~manufacturers in the ~~registrant~~gaming ~~has~~market. ~~duly~~NanoTech's ~~caused~~team ~~this~~is compromised ~~report~~of toindustry veterans of the gaming industry that have collectively bebeen ~~signed~~responsible onfor ~~its~~dozens ~~behalf~~of byaward ~~the~~winning ~~undersigned,~~products ~~thereunto~~and ~~duly~~multi-million copy ~~authorized~~selling video games and technology.

~~June~~During the 4period from July 15, 2004 (AGI’s inception) to December 31, 2009 ~~NanoTech~~, the ~~Entertainment~~Company generated revenues of $72,987, ~~Inc~~while incurring $13,295 in cost of sales, $2,117,306 in general and administrative expenses, $239,098 in interest expense, and $14,612 in losses from AGI’s discontinued operations. This resulted in a cumulative net loss of $2,311,324 through December 31, 2009.

~~By:~~During the six months ended December 31, 2009, the Company generated revenues of $17,136 while incurring $2,965 in cost of sales, $523,286 in general and administrative expenses, and $26,704 in interest expense. This is compared to earning $17,559 in revenues for the six months ended December 31, 2008, while incurring $748 in cost of sales, $445,598 in general and administrative expenses, and $18,058 in interest expense. This resulted in a net loss for the six months ended December 31, 2009 and 2008 of $535,819 and $446,845, respectively. The net loss for both comparative periods is attributable primarily to the continuing costs of operations and product development.

/s/ Robert DeKett____

Robert DeKett, President

(Chief Executive Officer)

June 4, 2009 NanoTech Entertainment, Inc.

By:

/s/ Kenneh B. Liebscher

Kenneth B. Liebscher

(Chief Financial Officer)

For the three months ended December 31, 2009, the Company generated revenues of $10,345 while incurring cost of sales of $1,992, general and administrative expenses of $247,655, and interest expense of $13,352. During the three months ended December 31, 2008, the Company earned revenues of $12,029, while incurring $688 in cost of sales, $223,213 in general and administrative expenses, and $8,042 in interest expense. This resulted in a net loss of $252,654 and $219,914 for three months ended December 31, 2009 and 2008, respectively. The net loss for both quarter ends is attributable primarily to the continuing costs of operations and product development.

Liquidity and Capital Resources

As of December 31, 2009, the Company had a working capital deficit of $1,585,890, which is current assets minus current liabilities. This negative working capital is attributable to monies owed for the acquisition of the Company’s current products, monies owed to officers for accrued salaries and other reimbursable expenses, royalties payable, convertible debentures, and the accrued interest and current portion of notes payable to related and unrelated parties. The Company’s current assets as of December 31, 2009 consisted of $19,037 in cash, $11,050 in inventory, $7,500 in prepaid expenses, and $100,000 in prepaid royalties.

NTI has limited capital resources from which to operate. Without the realization of either significant cash flow from ongoing revenue or additional capital investment, the Company may not be able to continue without short-term loans from its current officers and directors. However, the Company’s independent auditors have expressed substantial doubt about the Company's ability to continue as a going concern.

B. Plan of Operation

Market and Industry

We have experience and products for all aspects of the various gaming industries. By traversing the market from consumer to coin-op to casino, the Company may be able to take advantage of all three growth and profitable industries and balance out the seasonal patterns of each.

Even in the unsteady economic climate, the gaming market continues to flourish and expand. In 2008, the arcade industry saw $7.2 billion in revenue and the consumer market saw $58 billion with a growth of 19% in 2008. The following are excerpts from other sources:

“As people cut back on travel and going out, they are turning more to home entertainment, providing a boost to the video game industry.” Reuters, April 2, 2009

“The video game business continues to enjoy robust growth, making it the fastest growing of the many consumer goods categories.” Market Watch, Feb 18, 2009

The NanoTech team has won numerous awards in recent years including innovative product of the year in 2005 and 2006 in the arcade industry, and innovative product of the year in 2007 in the casino market.

Products

Below is a list of the Company’s current product line with detailed descriptions. For more information on the Company’s products and services you can view our web site at www.NanoTechEnt.com.

MultiPin™ - There is currently only one Pinball manufacturer left in the world, Stern Pinball. While they supply over 10,000 machines per year to the market, there is a huge demand for new and innovative pinball. MultiPin™ represents the next generation in pinball. By replacing the mechanical parts of a pinball machine with state of the art electronics, MultiPin™ solves two major problems seen by operators of Pinball machines. First, it eliminates any mechanical failures, which are common amongst pinball machines. Secondly, it provides a multi-game platform that can be constantly updated with new games without having to swap out the machine. Our proprietary physics engine and motion sensors allow MultiPin™ to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from.

Xtreme Rally Racing™ - An Xtreme Off-Road Racing Experience with no boundaries. Xtreme Rally Racing is an innovative new driving machine that features three modes of game play:

Xtreme Off-Road - Race head-to-head against other players and the computer to checkpoints while driving anywhere on the map with no preset course.

Timed Rally Stages - Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses.

Xtreme Stadium Racing - Custom Stadiums designed for Xtreme racing including a figure 8 multi-lap course with huge jumps.

NanoNET Online System - Local and Worldwide head-to-head competition in real time against machines located around the world. Remote Operator Control of your machines including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net. Link up to 4 Cabinets for local multiplayer action.

Pinball Wizard ™ - Consumer Pinball enthusiasts have been growing with the advent of Visual Pinball and now Future Pinball. The official Visual Pinball forum boasts over 155,000 members, and the free version Future Pinball has been downloaded over 1 million times in the past six months, and over 500,000 copies in April 2009. We have created the only input device designed to give these players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin™ product we have built a controller that lets people play pinball using traditional controls and the ability to “shake” and “nudge” the table.

Mot-Ion™ Adapter - The Mot-Ion adapter is a USB adapter that allows do-it-yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. This kit includes everything needed to connect a pinball cabinet to a PC (I/O Board, Digital Plunger, Wiring Harness).

Opti-Gun™ Adapter - The OptiGun Adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. This universal adapter provides a complete solution to implement an arcade game including Gun Inputs, Force Feedback Outputs, digital inputs, and built in audio amplifier. The adapter can also be used with PC-based emulators such as M.A.M.E. to connect arcade light guns on your home system.

Retr-IO™ Adapter - The Retr-IO Adapter provides a standard JAMMA interface for USB based systems. This universal adapter provides a complete solution to implement an arcade game using Joysticks, Trackballs, Spinners, buttons and features, digital outputs, and built-in audio and video amplifiers.

The board works with any PC-based system including M.A.M.E and other emulation products. It provides an all-in-one solution to hooking up traditional arcade controls to your PC, or any USB system. All digital inputs and outputs are interfaced via standard keyboard commands, and appear as mapped keys to your games. The default key mappings match those of many popular PC emulation products. Two Trackballs and two Spinners are supported, and are mapped to the system as mice. The board supports four player standard configurations or two-player four-way joystick and six button configurations.

Competition

The Company will compete against established companies with significantly greater financial, marketing, research and development, personnel, and other resources than the Company. Such competition could have a material adverse effect on the Company's profitability.

Government Regulation

There are no government regulations regulating the development and sale of gaming products for coin operated machines.

ITEM 4T. CONTROLS AND PROCEDURES

The effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) was evaluated under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, as of the end of the period covered by this quarterly report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are not effective in providing reasonable assurance that the information required to be disclosed in this quarterly report is recorded, processed, summarized and reported within the time period required for the filing of this quarterly report.

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934, as amended) identified in connection with the evaluation of our internal control performed during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system no matter how well conceived and operated can provide only reasonable, not absolute assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of control systems must be considered relative to their cost. As a result of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues of fraud, if any, have been detected.

Based on their most recent review, which was completed within ninety days of the filing of this report, NTI’s Officers have concluded that the Company’s newly-adopted disclosure controls and procedures will be effective to ensure that information required to be disclosed by NTI in the reports it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to NTI’s management, including its Officers, as appropriate to allow timely decisions regarding required disclosure and are effective to ensure that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. There were no significant changes in NTI’s internal controls or in other factors that could significantly affect those controls subsequent to the date of their evaluation.

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On October 23, 2009, the Company issued to an unaffiliated individual100,000 shares of common stock at $.05 per share for $5,000 in cash.

On December 1, 2009, the Company executed an agreement with a consultant that will perform services to include the compilation and coordination of corporate documentation, as well as filing services to facilitate the Company’s public listing on the OTCBB. The consultant was compensated with a non-refundable $7,500 cash retainer payment and 50,000 shares of common stock due upon the agreement’s execution, and will receive a $7,500 cash payment due upon the completion of a Form S-1 to be filed with the SEC. The stock was valued at $.05 per share for total prepaid compensation of $2,500. As of the report date, no services had been rendered under this contract.

On December 31, 2009, 65,000 shares of common stock were issued to Ted Campbell for services as CFO and Chief Compliance Officer of the Company for the month of December 2009. This monthly compensation represents $5,000 per month comprised of $1,750 in cash and sufficient shares of stock valued at the monthly average trading price to equal $3,250. These terms will remain in effect for the first six months of the agreement beginning December 1, 2009. Afterwards, the cash compensation will increase to $2,500 and stock value will increase to $3,500 for the remaining 18 months.

ITEMS 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

Exhibit No.:		Description:

3.1(i)		Articles of Incorporation and amendments thereto (1) and (2)

3.1(ii)		Bylaws (1)

14		Code of Ethics (1)

31.1		Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act 0f 2002

(1)

Filed with the Securities and Exchange Commission on February 12, 2008 as an exhibit numbered as indicated above, to the Registrant’s registration statement on Form S-1 (file no. 333-149184 which exhibit is incorporated herein by reference.

(2)

Amendment to the Article of Incorporation filed with the Securities and Exchange Commission on Form 8-K on May 7, 2009 which exhibit is incorporated herein by reference.

(b) Reports on Form 8-K

During the period ended December 31, 2009, NANOTECH ENTERTAINMENT, INC. filed the following Current Reports on Form 8-K:

Date of Report	Date Filed	Items Reported

None

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.

NanoTech Entertainment, Inc.

(Registrant)

Signature	Title	Date

/s/ Robert Dekett	President & CEO, Director	May 24, 2010
Robert Dekett

/s/ Robert Dekett	Secretary, Treasurer, Director	May 24, 2010
Robert Dekett

/s/ Ted D. Campbell II	Principal Financial Officer	May 24,, 2010
Ted D. Campbell II

/s/ Robert Dekett	Principal Accounting Officer	May 24, 2010
Robert Dekett

Filing Compare · NanoTech Entertainment, Inc.