EXHIBIT 99.1

RESTATEMENT OF FINANCIAL STATEMENTS

In August 2009, the Company was informed that the Public Company Accounting Oversight Board (“PCAOB”) revoked the registration of Moore & Associates Chartered who was serving as the Company’s independent auditor. The revocation was a result of Moore’s violation of PCAOB rules and auditing standards. This revocation of Moore’s registration required the Company to have re- audited the financial statements issued for the year ended December 31, 2008.

The re-audit produced material differences from the previously filed versions. Originally the Company miscalculated the 2008 beneficial conversion feature which resulted in an understatement of liabilities amounting to $540,000 and a nominal change in the related interest expense. Further, the Company miscalculated the fair value expense of stock options that were granted during 2008, resulting in an understatement of the fair value expense amounting to $129,912. Included in this filing are the restated 2008 financial statements. For comparative purposes, the table below presents the re-audited balance sheet and income statement compared to the original filing.

	Restated			As Filed
	December 31,			December 31
	2008			2008

ASSETS

CURRENT ASSETS
Cash	$	37,822		$	37,822
Accounts Receivable		4,852			4,852
Inventory		443,978			443,978
Prepaid Expenses		91,671			91,671

Total Current Assets		578,323			578,323

EQUIPMENT, NET		77,638			77,638

OTHER ASSETS
Deposits		2,460			2,460

Total Other Assets		2,460			2,460

Total Assets	$	658,421		$	658,421

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
Accounts Payable	$	312,189		$	312,189
Accrued Expenses		77,098			82,041
Notes Payable - Related Parties		413,000			413,000
Current Portion of Notes Payable		9,350			4,407
Accrued Interest Payable		134,414			134,414
Warranty Accrual		43,486			43,486
Customer Deposits		-			-
Total Current Liabilities		989,537			989,537

LONG-TERM DEBT
Notes Payable		8,814			8,814
Convertible Debt		559,800			8,055

Total Liabilities		1,558,151			1,006,406

STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock: 100,000,000 shares
authorized at $0.001par value;
Issued and outstanding 13,927,915 and
7,481,813 shares, respectively		13,928			13,928
Common Stock Subscribed		(24,000	)		(24,000	)
Additional Paid in Capital		14,317,969			14,728,057
Accumulated Deficit		(15,207,627	)		(15,065,970	)

Total Stockholders' Equity (Deficit)		(899,730	)		(347,985	)

TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY (DEFICIT)	$	658,421		$	658,421

RESTATEMENT OF FINANCIAL STATEMENTS - continued

	Years Ended December 31,
	2008 Restated			2008 as Filed
REVENUES
Product Sales	$	73,324		$	72,949
Other Income		254			254

Total Revenues		73,578			73,203

Cost of Goods Sold		54,545			54,170

Gross Profit		19,033			19,033

EXPENSES
Legal and Professional		1,604,420			1,507,766
General and Administrative		461,267			428,010
Research and Development		231,624			231,624
Advertising and Marketing		48,065			48,065
Depreciation		19,092			19,092

Total Expenses		2,364,468			2,234,557

Net (Loss) from Operations		(2,345,435	)		(2,215,524	)

OTHER INCOME AND (EXPENSE)
Gain on Extinguishment of Debt		1,823,954			1,823,955
Interest Expense		(149,676	)		(137,931	)

Total Other Income (Expense)		1,674,278			1,686,024

Net (Loss) before Income Taxes		(671,157	)		(529,500	)

Income Tax Expense		-			-

NET (LOSS)	$	(671,157	)	$	(529,500	)

Basic and diluted (loss) per share	$	(0.06	)	$	(0.05	)

Weighted Average Number of Common
Shares Outstanding		10,704,864			10,704,864

SKYE INTERNATIONAL, INC 8-K/A