~~Name~~UNITED Period Age Position(s) ---- ------ --- ----------- Frank Kristan 10/20/2006 to 3/31/2010 51 Chairman of the Board of Directors President and Chief Executive Officer Secretary and Treasurer Isaac H. Sutton 3/31/2010 to Present 57 Chairman of the Board of Directors President and Secretary Michael Haug 7/1/2010 to Present 45 Chief Executive Officer Adam R. Kolodny 04/01/11 to Present 48 Chief Financial OfficerSTATES

~~Non-Equity~~SECURITIES ~~Incentive~~AND ~~Nonqualified~~EXCHANGE Name and Plan Deferred All Other Principal Stock Option Compen- Compen- Compen- Position Year Salary($) Bonus($) Awards($) Awards($) sation($) sation($) sation($)(1) Totals($)(1) -------- ---- --------- -------- --------- --------- --------- --------- ------------ ------------ Frank 2009 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $360,000 $360,000 Kristan, 2008 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $360,000 $360,000 President 2007 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $360,000 $360,000 and CEO Isaac H. 2010 $15,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 30,000 $ 45,000 Sutton, Chariman, President Michael 2010 $42,000 $ 0 $85,000 $ 0 $ 0 $ 0 $ 0 $127,000 Haug, CEOCOMMISSION

~~Title of Name and Address of Amount and Nature of Percent Class Beneficial Owner Beneficial Ownership of Class ----- ---------------- -------------------- -------- Common Stock Isaac H. Sutton (1) 50~~Washington,~~723,310~~ ~~18.21%~~DC Sutton Global Associates, Inc. 475 Park Ave South 30th FL New York, New York 10016 Common Stock Michael Haug 2,000,000 .72% 6801 Eastern Avenue, Suite 203 Baltimore, MD 21224 Common Stock Adam R Kolodny -0- -0- 6801 Eastern Avenue, Suite 203 Baltimore, MD 21224 Common Stock All Executive Officers and 52,723,310 19.93% Directors as a Group (1 person) Preferred A Isaac H. Sutton (1) 5,000,000 100% Sutton Global Associates, Inc. 475 Park Ave South 30th FL New York, New York 1001620549

~~December~~FORM 31, December 31, 2010 2009 ------------ ------------ ASSETS Current assets: Cash $ 2,422 $ -- Accounts receivable 619 -- Inventory 42,853 -- Other current assets 32,200 -- ------------ ------------ Total current assets 78,094 -- Computer Equipment 10~~,803~~ -- ------------ ------------ Total assets $ 88,897 $ -- ============ ============ LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued expenses $ 112,318 $ -- Due to related party 504,600 -- Stockholder loan payable 1,129,698 685,750 Accrued interest - stockholder 175,596 429,082 Loan payable 50,000 -- Convertible loan payable 200,000 -- ------------ ------------ Total liabilities 2,172,212 1,114,832 ------------ ------------ Stockholders' deficit Common stock, $0.0001 par value, 2,000,000,000 shares and 100,000,000 shares authorized, 167,531,786 and 79,474,175 shares issued and outstanding, respectively 16,752 7,947 Additional paid-in capital 37,120,142 35,256,348 Accumulated deficit during development stage (39,203,264) (36,379,127) ------------ ------------ Total stockholders' deficit - SavWatt USA (2,066,370) (1,114,832) Noncontrolling interests (16,945) -- ------------ ------------ Total stockholders' deficit (2,083,315) (1,114,832) ------------ ------------ Total liabilities and stockholders' deficit $ 88,897 $ -- ============ ============K

~~From Inception~~ (~~October 20, 2006~~Mark One) Year Ended Year Ended through December 31, December 31, December 31, 2010 2009 2010 ------------ ------------ ------------ REVENUES $ 4,059 $ -- $ 4,059 ------------ ------------ ------------ EXPENSES General and administrative 276,867 -- 291,654 Professional fees 484,606 410,000 1,685,873 Bad debt expense-related party 218,636 -- 218,636 Stock based compensation 1,311,325 350,001 36,011,369 ------------ ------------ ------------ Total Expenses 2,291,434 760,001 38,207,532 ------------ ------------ ------------ LOSS FROM OPERATIONS (2,287,375) (760,001) (38,203,473) ------------ ------------ ------------ OTHER INCOME (EXPENSE) Other income 5,000 -- 5,010 Interest expense (33,220) -- (33,220) Interest expense-related party (473,931) (184,436) (903,013) Debt Conversion Expense (51,556) -- (51,556) ------------ ------------ ------------ Total Other Income (Expense) (553,707) (184,436) (982,779) ------------ ------------ ------------ NET LOSS (2,841,082) (944,437) (39,186,252) NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS 16,945 -- 16,945 ------------ ------------ ------------ NET LOSS ATTRIBUTABLE TO SAVWATT USA, INC. $ (2,824,137) $ (944,437) $(39,203,264) ============ ============ ============ NET LOSS PER SHARE, BASIC AND DILUTED $ (0.027) $ (0.012) ============ ============ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED 105,307,057 79,049,517 ============ ============

~~From~~x ~~Inception For the years ended~~ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(~~October 20, 2006~~d) ----------------------------------- through December 31, December 31, December 31, 2010 2009 2010 ------------ -------------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (2,824,137) $ (944,437) $(39,186,252) Adjustments to reconcile net loss to net cash used in operating activities: Net loss attributable to non controlling interest (16,945) -- (16,945) Stock issued for services 1,311,325 50,000 1,371,326 Stock issued for interest 21,249 -- 21,249 Stock based compensation -- 350,001 34,700,044 Bad debt expense - related party 218,636 218,636 Debt modification expense 51,556 -- 51,556 Increase (decrease) in cash flows as a result of changes in asset and liability account balances: Accounts receivable (621) -- (621) Inventory (42,852) -- (42,852) Other current assets (32,200) -- (32,200) Accounts payable and accrued expenses 112,318 -- 97,052 Related party payable 285,965 -- 504,600 Stockholder loan payable 90,000 360,000 1,260,000 Accrued interest - stockholder 473,931 184,436 903,013 ------------ -------------- ------------ Total adjustments 2,472,362 944,437 38,814,400 ------------ -------------- ------------ Net cash used in operating activities (351,775) -- (371,852) ------------ -------------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of computer equipmnet (10,803) -- (10,803) ------------ -------------- ------------ Net cash provided by financing activities (10,803) -- (10,803) ------------ -------------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock 315,000 -- 335,000 Proceeds from issuance of loan payable 50,000 -- 50,000 ------------ -------------- ------------ Net cash provided by financing activities 365,000 -- 385,000 ------------ -------------- ------------ NET DECREASE IN CASH 2,422 -- 2,422 CASH, BEGINNING OF THE SECURITIES EXCHANGE ~~PERIOD -- -- -- ------------ -------------- ------------ CASH, END~~ ACT OF PERIOD $ 2,422 $ -- $ 2,422 ============ ============== ============ SUPPLEMENTAL CASH FLOW INFORMATION: Interest paid $ -- $ -- $ -- ============ ============== ============ Income taxes paid $ -- $ -- $ -- ============ ============== ============ Stock issued for repayment of shareholder loan $ -- $ -- $ 484,250 ============ ============== ============ Subscription receivable $ -- $ -- $ 20,000 ============ ============== ============ Stockholder loan assigned $ 373,469 $ -- $ 373,469 ============ ============== ============ Common stock issued as a result of debt conversion $ 173,469 $ -- $ 173,469 ============ ============== ============ Stockholder loan and accrued interest exchanged for a short term convertible note $ 1,503,167 $ -- $ 1,503,167 ============ ============== ============ 1934

Deficit Accumulated Common Stock Additional During Total --------------------- Paid-in Development Stockholders' Shares $ Capital Stage Deficit ------ ---- ------- ----- ------- Balance, October 20, 2006 (Inception) -- $ -- $ -- $ -- $ -- Stock issued upon merger in accordance with Bankruptcy Court order ($.0005 per share) 40,000,000 4,000 16,000 -- 20,000 Net loss for For the fiscal year ended December 31, 2006 -- -- -- (106,914) (106,914) ---------- ---------- ----------- ------------ ------------ Balance, December 31, 2006 40,000,000 4,000 16,000 (106,914) (86,914) Stock issued in connection with acquisition 24,196 2 (2) -- -- Stock issued for services ($5.52 per share) 2,055,710 205 11,349,795 -- 11,350,000 Stock issued to retire debt - Shareholder loans ($1.01 per share) 14,325,000 1,433 14,466,818 -- 14,468,251 Net loss for the year ended December 31, 2007 -- -- -- (26,054,806) (26,054,806) ---------- ---------- ----------- ------------ ------------ Balance, December 31, 2007 56,404,906 5,640 25,832,611 (26,161,720) (323,469) Stock issued to retire debt - Shareholder loans ($.52 per share and $.40 per share) 18,069,269 1,807 9,024,236 -- 9,026,043 Net loss for the year ended December 31, 2008 -- -- -- (9,272,970) (9,272,970) ---------- ---------- ----------- ------------ ------------ Balance, December 31, 2008 74,474,175 7,447 34,856,847 (35,434,690) (570,396) Stock issued for services ($.80 per share) 5,000,000 500 399,501 -- 400,001 Net loss for the period ended December 31, 2009 -- -- -- (944,437) (944,437) ---------- ---------- ----------- ------------ ------------ Balance, December 31, 2009 79,474,175 7,947 35,256,348 (36,379,127) (1,114,832) Common stock issued for cash 37,333,333 3,733 311,267 -- 315,000 Fair value of common stock issued for services (average $.0395 per share) 31,850,000 3,185 1,308,140 -- 1,311,325 Fair value of common stock issued for interest (.0425 per share) 500,000 50 21,199 -- 21,249 Common stock issued pursuant to noteholder debt conversion 18,374,278 1,837 171,632 -- 173,469 Modification expense related to conversion of debt -- -- 51,556 -- 51,556 Net loss for the year ended December 31, 2010 -- -- -- (2,824,137) (2,824,137) ------------ ---------- ----------- ------------ ------------ Balance, December 31, 2010 167,531,786 $ 16,752 $37,120,142 $(39,203,264) $ (2,066,370) ============ ========== =========== ============ ============ 2011

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 000-52402

SAVWATT USA, INC

(Exact name of registrant as specified in its charter)

Delaware		27-2478133
(State or other jurisdiction of Incorporation or organization)		(I.R.S. Employer Identification No.)

1100 Wicomico Street, Suite 700, Baltimore, Maryland 21224

(Address of principal executive offices)

(646) 545-6870

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class

Common Stock, $.0001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x

Indicate by check mark whether the registrant: (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that he registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant electronically and posted on its corporate Web site, if any, every Interactive Data File required to submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S- K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o
Non- accelerated filer	o	Smaller reporting company	x

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

The aggregate marker value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant's second fiscal quarter (June 30, 2011) was approximately $2,344,588.

On April 10, 2012, 9,795,217,291 shares of the Registrant's common stock were outstanding.

TABLE OF CONTENTS

ITEMS		PAGE

PART I

Item 1.	Business		4
Item 1A.	Risk Factors		7
Item 2.	Properties		15
Item 3.	Legal Proceedings		15
Item 4.	Mine Safely Disclosure		15

PART II

Item 5.	Market For Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities		16
Item 6.	Selected Financial Data		19
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations		19
Item 7A.	Quantitative and Qualitative Disclosure About Market Risk		20
Item 8.	Financial Statements		20
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		20
Item 9A.	Controls and Procedures		21
Item 9B.	Other Information		21

PART III

Item 10.	Directors, Executive Officers and Corporate Governance		22
Item 11.	Executive Compensation		24
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		25
Item 13.	Certain Relationships and Related Transactions, and Director Independence		26
Item 14.	Principal Accounting Fees and Services		26

PART IV

Item 15.	Exhibits, Financial Statement Schedules		27

CAUTIONARY STATEMENT

This Form 10-K contains "forward-looking statements". Some of the statements contained in this Form 10-K for SavWatt USA, Inc., formerly known as Ludvik Capital, Inc. ("Company"), discuss future expectations, contain projections of results of operation or financial condition or state other "forward-looking" information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions.

Management expresses its expectations, beliefs and projections in good faith and believes the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, Management cannot assure current stockholders or prospective stockholders that these expectations, eliefs and projections will prove to be correct. Such forward-looking statements reflect the current views of Management with respect to the Company and anticipated future events.

Management cautions current stockholders and prospective stockholders that such forward-looking statements, including, without limitation, those relating to the Company's future business prospects, demand for its products, revenues, capital needs, expenses, development and operation costs, wherever they occur in this Form 10-K, as well as in the documents incorporated by reference herein, are not guarantees of future performance or results, but are simply estimates reflecting the best judgment of Management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by such forward-looking statements.

Important factors that may cause actual results to differ from projections include, for example:

* the success or failure of management's efforts to implement their business strategy;

* the ability of the Company to raise sufficient capital to meet operating requirements;

* the uncertainty of consumer demand for our products, services and technologies;

* the ability of the Company to protect its intellectual property rights;

* the ability of the Company to compete with major established companies;

* the effect of changing economic conditions;

* the ability of the Company to attract and retain quality employees;

* the current global recession and financial uncertainty; and

* other risks which may be described in future filings with the SEC.

Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results and outcomes may differ materially from what is expressed or forecasted in any such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

FOREWORD

The Company was incorporated on October 20, 2006, under the name of Ludvik Capital, Inc. We changed our name to SavWatt USA, Inc. on April 5, 2010. On January 12, 2007, we filed a Form 10 registration statement under section 12(g) of the Securities Exchange Act of 1934, as amended ("Exchange Act"). As a consequence of filing our Form 10, we became subject to the periodic reporting requirements of the Exchange Act and were required to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements pursuant to Regulation 14A and Schedule 14C Information Statements pursuant to the Exchange Act.

PART I

ITEM 1. BUSINESS.

HISTORY

SavWatt USA, Inc. ("Company") was incorporated in the State of Delaware under the name of "Ludvik Capital, Inc." on October 20, 2006. Our name was changed to SavWatt USA, Inc. on April 5, 2010. The Company was originally formed for the purpose of becoming a successor and survivor corporation by merger with Patriot Advisors, Inc. and Templar Corporation pursuant to a plan of reorganization and merger approved by the United States Bankruptcy Court, District of Maine, Case No. 04-20328. The Company's prior business plan was to make investments in public and private companies by providing long-term debt and equity investment capital to fund the growth, acquisitions and recapitalizations of small and middle-market companies in a variety of industries, primarily located in the Untied States. The prior management of Ludvik Captial was not successful in carrying out its business plan

Overview of Our Industry and Markets We Serve

Emitting more light per watt than incandescent bulbs and capable to lasting up to 100,000 hours, LED lights are revolutionizing the lighting industry. LED lights contain no harmful ultraviolet rays, do not flicker, or contain toxic substances. Additionally, by using LED lighting, energy consumption can decrease up to 80%. SavWatt USA, Inc (also referred to as "the Company") distributes LED technology through a network of independent distributors. Operating nationwide, the Company has created partnerships with manufacturers to secure the best selection of LED street lights, tubes, spot, and floodlights. SavWatt supplies commercial businesses and retailers, as well as municipalities and state governments, with warranty-guaranteed lighting technology. The Company works closely with each of client find the best solution to its lighting needs.

In the past year, the market for LED technology in the United States has grown from $7 billion to $10.7 billion. This tremendous growth is reflective of inherent benefits of LED technology: a longer product lifetime and greatly improved energy efficiency. To spur adoption of energy efficient products, federal law mandates that all light bulbs are 30% more efficient by 2012. Federal tax deductions of up to $.60 per square foot are additionally available if a lighting system reduces power usage by 25 to 40% of the standard lighting power values specified by AHSRAE standard 90.1-2001. By the end of 2012, the LED market in the United States is expected to be valued at $20.4 billion.

The lighting industry is intensely competitive and many of our competitors are large, well funded companies that have substantially larger staffs, manufacturing and distribution facilities and financial resources than we have at the present time. In the LED market, we compete with companies that manufacture or sell nitride-based LED chips as well as those that sell LED components. Competitors are offering new blue, green and white LEDs with aggressive prices and improved performance. These competitors may reduce average sales prices faster than we are able to reduce costs, and competitive pricing pressures may accelerate the rate of decline of our average sales prices.

The Company will compete with major lighting manufacturers, including General Electric, Philips, and Sylvania. Although these companies have established reputations in the marketplace, each lacks the mobility and creativity to meet the new market demand for LED lighting in a competitive manner. SavWatt additionally faces competition from smaller U.S.-based lighting companies, but a majority of these lack the branding or marketing expertise that the Company possesses.

PRODUCTION:

SavWatt will be sourcing LED products and parts from factories in the Far East and US Partners. These factories assemble LED bulbs, fixtures and apparatuses based on SavWatt's specifications and bill of material requirements. UL or ETL certification for these products and factories are supervised by SavWatt technicians. SavWatt opened an office in Shenzhen, China to supervise production schedules, shipment arrangements, samples and quality control inspections. All factories contracted by SavWatt will go through a quality control and performance test before becoming a master supplier for SavWatt products. An agreement which each supplier will protect the SavWatt brand, intellectual property and proprietary information to extent that is enforceable in China.

During 2012, the Company will increase its focus on the solar markets. In addition to the Company’s EcoPole it will be selling solar panel solutions through its SavWatt Depot and Savwatt EPC.

SavWatt EPC specializes in offering all types of photovoltaic solutions adapted to the client’s individual needs. In simpler terms: we transform solar radiation into electricity, and deliver an end product investment to our client with a guaranteed future and profitability. The integral undertaking of these projects involves the engineering service, the actual installation of modules and the complete installation, maintenance and, where appropriate, a financing study. Our work not only integrates products and services, we also provide added value for our clients so that they entrust us with their investment with total security: cutting-edge technology, advanced technical qualifications, experience and internationalization.

In addition, the Company will begin assembling certain LED tubes in its new Baltimore Facility in the 3rd quarter of 2012.

Our fiscal year end is December 31.

HOW TO CONTACT US

The Company's principal executive offices are located at 1100 Wicomico Street, Suite 700, Baltimore, Maryland 21224. Our telephone number is (646) 545-6870.

EFFECT OF EXISTING OR PROBABLE GOVERNMENTAL REGULATIONS

We purchase our products from overseas sources. As a result, our international sales and purchases are subject to numerous U.S. and foreign laws and regulations, including, without limitation, tariffs, trade barriers, regulations relating to import-export control, technology transfer restrictions, the International Traffic in Arms Regulation promulgated under the Arms Export Control Act, the Foreign Corrupt Practices Act and the anti-boycott provisions of the U.S. Export Administration Act. If we fail to comply with these laws and regulations, we could be liable for administrative, civil or criminal liabilities, and in the extreme case, we could be suspended or debarred from government contracts or our export privileges could be suspended, which could have a material adverse effect on our business.

International sales and purchases are also subject to a variety of other risks, including risks arising from currency fluctuations, collection issues and taxes. Our international sales are subject to variability as our selling prices become less competitive in countries with currencies that are declining in value against the U.S. Dollar and more competitive in countries with currencies that are increasing in value against the U.S. Dollar. In addition, our international purchases can become more expensive if the U.S. Dollar weakens against the foreign currencies in which we are billed. We have not entered into any foreign currency derivative financial instruments; however, we may choose to do so in the future in an effort to manage or hedge our foreign exchange rate risk.

The Company's common stock is registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended ("Exchange Act"). As a result of such registration, the Company is subject to Regulation 14A of the Exchange Act, which regulates proxy solicitations. Section 14(a) requires all companies with securities registered pursuant to Section 12(g) thereof to comply with the rules and regulations of the Commission regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to stockholders of the Company at a special or annual meeting thereof or pursuant to a written consent will require the Company to provide its stockholders with the information outlined in Schedules 14A or 14C of Regulation 14; preliminary copies of this information must be submitted to the Commission at least 10 days prior to the date that definitive copies of this information are forwarded to stockholders.

The Company is also required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the Commission on a regular basis, and will be required to disclose certain events in a timely manner, (e.g. changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a Current Report on Form 8-K.

WE ARE SUBJECT TO THE REQUIREMENTS OF SECTION 404 OF THE SARBANES-OXLEY CT. IF WE ARE UNABLE TO TIMELY COMPLY WITH SECTION 404 OR IF THE COSTS RELATED TO COMPLIANCE ARE SIGNIFICANT, OUR PROFITABILITY, STOCK PRICE AND RESULTS OF OPERATIONS AND FINANCIAL CONDITION COULD BE MATERIALLY ADVERSELY AFFECTED.

The Company is required to comply with the provisions of Section 404 of the Sarbanes-Oxley Act of 2002, which requires that we document and test our internal controls and certify that we are responsible for maintaining an adequate system of internal control procedures for the 2011 fiscal year. This section also requires that our independent registered public accounting firm opine on those internal controls and management's assessment of those controls. We are currently evaluating our existing controls against the standards adopted by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). During the course of our ongoing evaluation and integration of the internal controls of our business, we may identify areas requiring improvement, and we may have to design enhanced processes and controls to address issues identified through this review (see Item 9A, below for a discussion our internal controls and procedures).

We believe that the out-of-pocket costs, the diversion of management's attention from running the day-to-day operations and operational changes caused by the need to comply with the requirement of Section 404 of the Sarbanes-Oxley Act could be significant. If the time and costs associated with such compliance exceed our current expectations, our results of operations and the future Exchange Act filings of our Company could be materially adversely affected.

Aside from required compliance with federal and state securities laws, regulations and rules, and federal, state and local tax laws, regulations and rules, the Company is not aware of any other governmental regulations now in existence or that may arise in the future that would have a material effect on the business of the Company.

INTELLECTUAL PROPERTY RIGHTS

The Company presently has filed for four trademarks. The Company intends to seek copyright and trademark protection of its trade names and products. The Company's success and ability to compete are dependent to a degree on the Company's name and product recognition. Accordingly, the Company will primarily rely on copyright, trade secret and trademark law to protect its product and brand names of our products or the name(s) under which the Company conducts its business. Effective trademark protection may not be available for the Company's trademarks.

The Company's competitors or others may adopt product or service names similar to the Company's, thereby impeding the Company's ability to build brand identity and possibly leading to customer confusion. The Company's inability to adequately protect its product, brand, trade names and trademarks would have a material adverse effect on the Company's business, financial condition and operating results. Despite any precautions the Company takes, a third party may be able to copy or otherwise obtain and use the Company's technology or other proprietary information without authorization or to develop similar technology independently.

Policing unauthorized use of the Company's products is made especially difficult by the global nature of the Internet and the difficulty in controlling the ultimate destination or security of products or other data. The laws of other countries may afford the Company little or no effective protection for the Company's intellectual property.

EMPLOYEES

We currently have 20 full-time employees. We believe that our relations with our employees are good. Our employees are not represented by a union or covered by a collective bargaining agreement.

REPORTS TO SECURITY HOLDERS

The public may view and obtain copies of the Company's reports, as filed with the Securities and Exchange Commission, at the SEC's Public Reference Room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. Information on the Public Reference Room is available by calling the SEC at 1-800-SEC-0330. Additionally, copies of the Company's reports are available and can be accessed and downloaded via the internet on the SEC's internet site at http://www.sec.gov.

ITEM 1A. RISK FACTORS.

Investing in the Company, involves a number of significant risks relating to our business and investment objective. As a result, there can be no assurance that we will achieve our investment objective.

BUSINESS RISKS

Business risks are risks that are associated with general business conditions, the economy, and the operations of the Company. Business risks are not risks associated with our specific investments or an offering of our securities.

OUR RESULTS OF OPERATIONS, FINANCIAL CONDITION AND BUSINESS COULD BE HARMED IF WE WERE UNABLE TO BALANCE CUSTOMER DEMAND AND CAPACITY.

As customer demand for our products changes, the Company must be able to ramp up or adjust our production capacity to meet demand. We are continually taking steps to address our manufacturing capacity needs for our products. If we are not able to increase our capacity or if we increase our capacity too quickly, our business and results of operations could be adversely impacted. If we experience delays or unforeseen costs associated with adjusting our capacity levels, we may not be able to achieve our financial targets.

OUR BUSINESS MAY BE ADVERSELY AFFECTED BY THE GLOBAL ECONOMIC DOWNTURN, THE CONTINUING UNCERTAINTIES IN THE FINANCIAL MARKETS AND OUR, OR OUR USTOMERS' OR SUPPLIERS' ABILITY TO ACCESS THE CAPITAL MARKETS.

The global economy is currently in a pronounced economic downturn. Global financial markets are continuing to experience disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, and uncertainty about economic stability. Given these uncertainties, there is no assurance that there will not be further deterioration in the global economy, the global financial markets and consumer confidence. We are unable to predict the likely duration and severity of the current global economic downturn or disruptions in the financial markets. If economic conditions deteriorate further, our business and results of operations could be materially and adversely affected.

IF WE FAIL TO EVALUATE, IMPLEMENT AND INTEGRATE STRATEGIC OPPORTUNITIES SUCCESSFULLY, OUR BUSINESS MAY SUFFER.

From time to time, we evaluate strategic opportunities available to us for product, technology or business acquisitions. If we choose to make acquisitions, we face certain risks, such as failure of the acquired business to meet our performance expectations, diversion of management attention, retention of existing customers of our current and acquired businesses, and difficulty in integrating the acquired business's operations, personnel and financial and operating systems into our current business.

We may not be able to adequately address these risks or any other problems that arise from any future acquisitions. Any failure to successfully evaluate strategic opportunities and address risks or other problems that arise related to any acquisition could adversely affect our business, results of operations or financial condition.

WE FACE SIGNIFICANT CHALLENGES MANAGING OUR GROWTH.

We will transform our business to support a global components and LED lighting product customer base. In order to manage our growth and change in our strategy effectively, we must continue to:

* maintain or contract for adequate manufacturing facilities and equipment to meet customer demand;

* maintain a sufficient supply of raw materials to support our growth;

* expand research and development, sales and marketing, technical support, distribution capabilities and administrative functions;

* expand the skills and capabilities of our current management team;

* add experienced senior level managers; and

* attract and retain qualified employees.

While we intend to focus on managing our costs and expenses during the extremely challenging economic environment, over the long term, we expect to invest substantially to support our growth and may have additional unexpected costs. We may not be able to expand quickly enough to exploit potential market opportunities.

In connection with our efforts to cost-effectively manage our growth, we will initially produce our products overseas and will rely on subcontractors for production capacity, logistics support and certain administrative functions, such as payroll processing. If these service providers do not perform effectively, we may not be able to achieve the expected cost savings and may incur additional costs to correct errors or fulfill customer demand. Depending on the function involved, such errors may also lead to business disruption, processing inefficiencies or the loss of or damage to intellectual property through security breach, or impact employee morale. Our operations may also be negatively impacted if any of these service providers do not have the financial capability to withstand the continuing financial downturn.

LITIGATION COULD ADVERSELY AFFECT OUR OPERATING RESULTS AND FINANCIAL CONDITION.

We may be involved in patent or trademark infringement litigation. Defending against potential litigation will likely require significant attention and resources and, regardless of the outcome, result in significant legal expenses, which could adversely affect our results unless covered by insurance or recovered from third parties. If our defenses are ultimately unsuccessful, or if we are unable to achieve a favorable resolution, we could be liable for damage awards that could materially adversely affect our results of operations and financial condition.

OUR BUSINESS MAY BE IMPAIRED BY CLAIMS THAT WE, OR OUR CUSTOMERS, INFRINGE INTELLECTUAL PROPERTY RIGHTS OF OTHERS.

Vigorous protection and pursuit of intellectual propertyrights characterize our industry. These traits have resulted in significant and often protracted and expensive litigation. Litigation to determine the validity of patents or claims by third parties of infringement of patents or other intellectual property rights could result in significant legal expense and divert the efforts of our technical personnel and management, even if the litigation results in a determination favorable to us. In the event of an adverse result in such litigation, we could be required to:

* pay substantial damages;

* indemnify our customers;

* stop the manufacture, use and sale of products found to be infringing;

* incur asset impairment charges;

* discontinue the use of processes found to be infringing;

* expend significant resources to develop non-infringing products and processes; and/or

* obtain a license to use third party technology.

There can be no assurance that third parties will not attempt to assert infringement claims against us, or our customers, with respect to our products. In addition, our customers may face infringement claims directed to the customer's products that incorporate our products, and an adverse result could impair the customer's demand for our products. We may also promise certain of our customers that we will indemnify them in the event they are sued by our competitors for infringement claims directed to the products we supply. Under these indemnification obligations, we could be responsible for future payments to resolve infringement claims against them. From time to time we receive correspondence asserting that our products or processes are or may be infringing patents or other intellectual property rights of others. If we believe the assertions may have merit or in other appropriate circumstances, we will take appropriate steps to seek to obtain a license or to avoid the infringement. However, we cannot predict whether a license will be available; that we would find the terms of any license offered acceptable; or that we would be able to develop an alternative solution. Failure to obtain a necessary license or develop an alternative solution could cause us to incur substantial liabilities and costs and to suspend the manufacture of affected products.

In addition to patent protection, we also rely on trade secrets and other non-patented proprietary information relating to our product development and manufacturing activities. We try to protect this information through appropriate efforts to maintain its secrecy, including requiring employees and third parties to sign confidentiality agreements. We cannot be sure that these efforts will be successful or that the confidentiality agreements will not be breached. We also cannot be sure that we would have adequate remedies for any breach of such agreements or other misappropriation of our trade secrets, or that our trade secrets and proprietary know-how will not otherwise become known or be independently discovered by others.

IF WE ARE UNABLE TO EFFECTIVELY DEVELOP, MANAGE AND EXPAND OUR DISTRIBUTION CHANNELS FOR OUR PRODUCTS, OUR OPERATING RESULTS MAY SUFFER.

We have expanded into new business channels that are different from those that we have historically operated in as we grow our business and sell LED lighting products. If we are unable to effectively penetrate these new distribution channels to ensure our products are reaching the appropriate customer base, our financial results may be adversely impacted. In addition, if we successfully penetrate these new distribution channels, we cannot guarantee that customers will accept our products or that we will be able to manufacture and deliver them in the time line established by our customers.

IF OUR PRODUCTS FAIL TO PERFORM OR FAIL TO MEET CUSTOMER REQUIREMENTS OR EXPECTATIONS, WE COULD INCUR SIGNIFICANT ADDITIONAL COSTS, INCLUDING COSTS ASSOCIATED WITH THE RECALL OF THOSE ITEMS.

The manufacture of our products involves highly complex processes. Our customers specify quality, performance and reliability standards that we must meet. If our products do not meet these standards, we may be required to replace or rework the products. In some cases, our products may contain undetected defects or flaws that only become evident after shipment. Even if our products meet standard specifications, our customers may attempt to use our products in applications they were not designed for or in products that were not designed or manufactured properly, resulting in product failures and creating customer satisfaction issues.

If we experience product quality, performance or reliability problems and defects or failures, we may need to recall our products. These recalls could result in significant losses due to: o costs associated with the removal, collection and destruction of the product recalled;

* payments made to replace recalled product;

* a rise in warranty expense and costs associated with customer support;

* the write down or destruction of existing inventory subject to the recall;

* lost sales due to the unavailability of product for a period of time;

* delays, cancellations or rescheduling of orders for our products; or

* increased product returns.

We also may be the target of product liability lawsuits and could suffer losses from a significant product liability judgment against us if the use of our products at issue is determined to have caused injury. A significant product recall or product liability case could also result in adverse publicity, damage to our reputation, and a loss of customer confidence in our products.

THE MARKETS IN WHICH WE OPERATE ARE HIGHLY COMPETITIVE AND HAVE EVOLVING TECHNICAL REQUIREMENTS.

The markets for our products are highly competitive. In the LED market, we compete with companies that manufacture or sell nitride-based LED chips as well as those that sell LED components. Competitors are offering new blue, green and white LEDs with aggressive prices and improved performance. These competitors may reduce average sales prices faster than we are able to reduce costs, and competitive pricing pressures may accelerate the rate of decline of our average sales prices.

AS A RESULT OF OUR CONTINUED EXPANSION IN LED COMPONENTS AND LED LIGHTING PRODUCTS, OUR CUSTOMERS MAY REDUCE ORDERS.

Through acquisitions and organic growth, we intend to continue to expand in new markets for LED lighting products. In these new markets, some of our customers may perceive us as a competitor. In response, our customers may reduce their orders for our products. This reduction in orders could occur faster than our sales growth in these new markets, which could adversely affect our business, results of operations or financial condition.

OUR OPERATING RESULTS ARE SUBSTANTIALLY DEPENDENT ON THE DEVELOPMENT AND ACCEPTANCE OF NEW PRODUCTS.

Our future success may depend on our ability to develop new and lower cost solutions for existing and new markets and for customers to accept those solutions. We must introduce new products in a timely and cost-effective manner, and we must secure production orders for those products from our customers. The development of new products is a highly complex process, and we historically have experienced delays in completing the development and introduction of new products. The successful development and introduction of these products depends on a number of factors, including the following:

* achievement of technology breakthroughs required to make commercially viable devices;

* the accuracy of our predictions for market requirements and evolving standards;

* acceptance of our new product designs;

* acceptance of new technology in certain markets;

* the availability of qualified research and development personnel;

* our timely completion of product designs and development;

* our ability to expand sales and influence key customers to adopt our products;

* our ability to develop repeatable processes to manufacture new products in sufficient quantities and at low enough costs for commercial sales;

WE ARE SUBJECT TO RISKS RELATED TO INTERNATIONAL PURCHASES AND SALES.

CHANGES IN OUR EFFECTIVE TAX RATE MAY HAVE AN ADVERSE EFFECT ON OUR RESULTS OF OPERATIONS.

Our future effective tax rates may be adversely affected by a number of factors including:

*	changes in government administrations, such as the Presidency and Congress of the U.S. as well as in the states and countries in which we operate, including the highly predicted expiration of the so-called "Bush Tax Cuts;"
*	changes in tax laws or interpretation of such tax laws and changes in generally accepted accounting principles;
*	the jurisdiction in which profits are determined to be earned and taxed;
*	the resolution of issues arising from tax audits with various authorities;
*	changes in the valuation of our deferred tax assets and liabilities;
*	adjustments to estimated taxes upon finalization of various tax returns;
*	increases in expenses not deductible for tax purposes, including write-offs of acquired in-process research and development and impairment of goodwill in connection with acquisitions;
*	changes in available tax credits;
*	the recognition and measurement of uncertain tax positions;
*	the lack of sufficient excess tax benefits (credits) in our additional paid in capital ("APIC") pool in situations where our realized tax deductions for certain stock-based compensation awards (such as non-qualified stock options and restricted stock) are less than those originally anticipated; and
*	the repatriation of non-U.S. earnings for which we have not previously provided for U.S. taxes, or any changes in legislation that may result in these earnings being taxed within the U.S., regardless of our decision regarding repatriation of funds.

For example, current proposals have been made by various U.S. governmental bodies to change the U.S. tax laws that include, among other things, limiting U.S. tax deductions for expenses related to un-repatriated foreign-source income and modifying the U.S. foreign tax credit rules. Although the scope of the proposed changes is unclear, it is possible that these or other changes in U.S. tax laws could increase our U.S. income tax liability and adversely affect our profitability. At this time, we cannot determine the timing that the proposed changes, if enacted, are to become effective.

Any significant increase in our future effective tax rates could adversely impact net income for future periods. In addition, the determination of our income tax provision requires complex estimations, significant judgments and significant knowledge and experience concerning the applicable tax laws. To the extent our income tax liability materially differs from our income tax provisions and accruals due to factors, including the above, which were not anticipated at the time we estimated our tax provision, our net income or cash flows could be adversely affected.

IN ORDER TO COMPETE, WE MUST ATTRACT, MOTIVATE AND RETAIN KEY EMPLOYEES, AND OUR FAILURE TO DO SO COULD HARM OUR RESULTS OF OPERATIONS.

In order to compete, we must attract, motivate and retain executives and other key employees, including those in managerial, technical, sales, marketing and support positions. Hiring and retaining qualified executives, scientists, engineers, technical staff and sales personnel are critical to our business, and competition for experienced employees in our industry can be intense. To help attract, motivate and retain key employees, we may use stock-based compensation awards such as non-qualified stock options and restricted stock. If the value of such stock awards does not appreciate, as measured by the performance of the price of our common stock, or if our share-based compensation otherwise ceases to be viewed as a valuable benefit, our ability to attract, retain and motivate employees could be weakened, which could harm our business and results of operations.

OUR OPERATIONS IN FOREIGN COUNTRIES, INCLUDING CHINA AND OTHER ASIAN COUNTRIES, EXPOSE US TO CERTAIN RISKS INHERENT IN DOING BUSINESS INTERNATIONALLY, WHICH MAY ADVERSELY AFFECT OUR BUSINESS, RESULTS OF OPERATIONS OR FINANCIAL CONDITION.

As a result of our operations, manufacturing facilities and subcontract arrangements in foreign countries that expose us to certain risks. For example, fluctuations in exchange rates may affect our revenues, expenses and results of operations as well as the value of our assets and liabilities as reflected in our financial statements. We are also subject to other types of risks, including the following:

* protection of intellectual property and trade secrets;

* tariffs and other barriers;

* timing and availability of export licenses;

* rising labor costs;

* disruptions in the infrastructure of the foreign countries where we operate;

* difficulties in accounts receivable collections;

* difficulties in staffing and managing international operations;

* the burden of complying with foreign and international laws and treaties; and

* the burden of complying with and changes in international taxation policies.

In addition, abrupt political change, terrorist activity and armed conflict pose a risk of general economic disruption in affected countries, which could result in an adverse effect on our business and results of operations.

CATASTROPHIC EVENTS MAY DISRUPT OUR BUSINESS.

A disruption or failure of our systems or operations in the event of a natural disaster or man-made catastrophic event could cause delays in completing sales, continuing production or performing other critical functions of our business, especially in the case of a single site for our operations and assembly. A catastrophic event that results in the destruction or disruption to our supply chain or any of our critical business or information technology systems could severely affect our ability to conduct normal business operations and, as a result, our operating results could be adversely affected.

OUR RESULTS OF OPERATIONS COULD VARY AS A RESULT OF THE METHODS, ESTIMATES AND JUDGMENTS THAT WE USE IN APPLYING OUR ACCOUNTING POLICIES, INCLUDING CHANGES IN THE ACCOUNTING REGULATIONS TO BE APPLIED.

The methods, estimates and judgments that we use in applying our accounting policies have a significant impact on our results of operations. Such methods, estimates and judgments are, by their nature, subject to substantial risks, uncertainties and assumptions, and factors may arise over time that lead us to change our methods, estimates and judgments. Changes in those methods, estimates and judgments could significantly affect our results of operations.

Likewise, our results of operations may be impacted due to changes in the accounting rules to be applied, such as the increased use of fair value measurement rules and the potential requirement that U.S. registrants prepare financial statements in accordance with International Financial Reporting Standards.

RISK FACTORS RELATED TO OUR COMMON STOCK THERE IS NO LIQUID MARKET FOR OUR COMMON STOCK.

Our shares are traded Over the Counter and the trading volume has historically been very low. An active trading market for our shares may not develop or be sustained. We cannot predict at this time how actively our shares will trade in the public market or whether the price of our shares in the public market will reflect our actual financial performance.

OUR COMMON STOCK PRICE HAS FLUCTUATED CONSIDERABLY AND STOCKHOLDERS MAY NOT BE ABLE RESELL THEIR SHARES AT OR ABOVE THE PRICE AT WHICH SHARES WERE PURCHASED.

The market price of our common stock may fluctuate significantly. From July 2 007, the day we began trading publicly as LDVK, until our share prices per share have fluctuated in dramatic fashion. Our share price has fluctuated in response to various factors. Speculation in the press or investment community about our strategic position, financial condition, results of operations, or significant transactions can also cause changes in our stock price. In particular, speculation around our market opportunities for energy efficient lighting may have dramatic effects on our stock price, especially as various government agencies announce their planned investments in energy efficient technology, including lighting.

OUR COMMON STOCK MAY BE CONSIDERED A "PENNY STOCK" AND MAY BE DIFFICULT TO SELL.

The SEC has adopted regulations which generally define "penny stock" to be an equity security that has a market price of less than $5.00 per share or an exercise price of less than $5.00 per share, subject to specific exemptions. The market price of our common stock has been for much of its trading history since July 2007, and may continue to be less than $5.00 per share, and, therefore, may be designated as a "penny stock" according to SEC rules. This designation requires any broker or dealer selling these securities to disclose certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the purchaser is reasonably suitable to purchase the securities. These rules may restrict the ability of brokers or dealers to sell our common stock and may affect the ability of investors to sell their shares.

COMPLIANCE AND CHANGING REGULATIONS AND PUBLIC DISCLOSURE MAY RESULT IN ADDITIONAL EXPENSE.

Changing laws, regulations and standards relating to corporate governance and public disclosure may create uncertainty regarding compliance matters. New or changed laws, regulations and standards are subject to varying interpretations in many cases. As a result, their application in practice may evolve over time. We are committed to maintaining high standards of corporate governance and public disclosure. Complying with evolving interpretations of new or changed legal requirements may cause us to incur higher costs as we revise current practices, policies and procedures, and may divert management time and attention from the achievement of revenue generating activities to compliance activities. If our efforts to comply with new or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to uncertainties related to practice, our reputation might be harmed which would could have a significant impact on our stock price and our business. In addition, the ongoing maintenance of these procedures to be in compliance with these laws, regulations and standards could result in significant increase in costs.

OUR PRINCIPAL STOCKHOLDER HAS SIGNIFICANT VOTING POWER AND MAY TAKE ACTIONS THAT MAY NOT BE IN THE BEST INTERESTS OF ALL OTHER STOCKHOLDERS.

The Company's principal shareholder is Sutton Global Associates, Inc. ("Sutton Global"), which own common and preferred stock which collectively give Sutton Global approximately 49.7% of the voting power of our shareholders. Sutton Global is beneficially owned and controlled by Isaac H. Sutton our Chairman and President. Mr. Sutton has voting and dispositive control of the shares held by Sutton Global. He may be able to exert significant control over our management and affairs requiring stockholder approval, including approval of significant corporate transactions. This concentration of ownership may expedite approvals of Company decisions, or have the effect of delaying or preventing a change in control, adversely affect the market price of our common stock, or be in the best interests of all our stockholders.

YOU COULD BE DILUTED FROM THE ISSUANCE OF ADDITIONAL COMMON STOCK.

As of April 10, 2012 there were 9,795,217,291 shares of common stock issued and outstanding and 25,000,000 shares of preferred stock outstanding. We are authorized to issue up to 9,800,000,000 shares of common stock and 200,000,000 shares of preferred stock. To the extent of such authorization, our Board of Directors will have the ability, without seeking stockholder approval, to issue additional shares of common stock or preferred stock in the future for such consideration as the Board of Directors may consider sufficient. The issuance of additional common stock or preferred stock in the future may reduce your proportionate ownership and voting power.

ITEM 2. PROPERTIES.

The Company does not own any real estate.

On February 11, 2011, the Company entered into a lease for approximately 24,561 square feet at 1100 Wicomico Street, Suite 700, Baltimore, Maryland, under a written lease for a term of ten years. This new facility will be the Company's new principal executive offices, as well as a manufacturing and assembly facility. We will not have to pay rent on this facility until February 1, 2012. Thereaftter, we will pay rent as follows:

February 1, 2012 - January 31, 2013	$ 9,926.74 per month
February 1, 2013 - January 31, 2016	$11,564.14 per month
February 1, 2016 - January 31, 2019	$12,526.11 per month
February 1, 2019 - January 31, 2021	$13,549.49 per month

In June 2011, the Company entered into a lease for approximately 1,000 square feet at 152 Maidison Avenue, New York, NY, under a written lease for a term of 2 years. Under the terms of the lease the annual base rent is approximately $74,000. This new facility will be the used as executive and sales offices.

In December 2011, the Company entered into a lease for approximately 2,886 square feet at 7927 Jones Branch Drive, Suite 3300, McClean, VA, under a written lease for a term of 2 years. Under the terms of the lese the annual base rent is approximately $58,000. This new facility will be the used by the company for sales.

ITEM 3. LEGAL PROCEEDINGS.

The Company is currently involved in three lawsuits. The first lawsuit involves a former employee of the Company and is being resolved by the Company's insurance carrier and the other two involve breach of contract. The Company intends to defend itself vigoursly in these matters. At this time, the company is unable to ascertain the outcomes of these suits and has not made any provisons other than the amounts due and under dispute.

ITEM 4. MINE SAFETY DISCLOSURES.

Note applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

As of the date of this Annual Report,the Company's Common Stock is quoted on the Pink Sheets under the symbol "SAVW.OB." The market for the Company's Common Stock is limited, volatile and sporadic and the price of the Company's Common Stock could be subject to wide fluctuations in response to quarterly variations in operating results, news announcements, trading volume, sales of Common Stock by officers, directors and principal shareholders of the Company, general market trends, changes in the supply and demand for the Company's shares, and other factors.

The following table sets forth the high and low sales prices for each quarter relating to the Company's Common Stock for the last two fiscal years. These quotations reflect inter-dealer prices without retail mark-up, markdown, or commissions, and may not reflect actual transactions.

	High		Low

Fiscal 2010
First Quarter (2)	$	.012	$	.0035
Second Quarter (1)	$	.04	$	.0035
Third Quarter (1)	$	.089	$	.0036
Fourth Quarter (1)	$	.095	$	.0125

Fiscal 2011
First Quarter (2)	$	0.01	$	.0033
Second Quarter (1)	$	.0069	$	.0011
Third Quarter (1)	$	0.01	$	.0011
Fourth Quarter (1)	$	0.00	$	.0005

___________

(1)	This represents the closing bid information for the stock on the Pink Sheets. The bid and ask quotations represent prices between dealers and do not include retail markup, markdown or commission. They do not represent actual transactions and have not been adjusted for stock dividends or splits.

(2)	This represents the closing price for the stock on the Pink Sheets.

Our common stock is considered a "penny stock." The application of the "penny stock" rules to our common stock could limit the trading and liquidity of the common stock, adversely affect the market price of our common stock and increase your transaction costs to sell those shares. The Commission has adopted regulations which generally define a "penny stock" to be any equity security that has a market price (as defined) of less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.

Shareholders should be aware that, according to SEC Release No. 34-29093 dated April 17, 1991, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. The occurrence of these patterns or practices could increase the volatility of our share price.

Our management is aware of the abuses that have occurred historically in the penny stock market.

HOLDERS

As of April 10, 2012 there were approximately 179 shareholders of record of the Company's Common Stock.

DIVIDENDS

The Company has not declared any cash dividends with respect to its common stock or preferred stock during the last two fiscal years and does not intend to declare dividends in the foreseeable future. There are no material restrictions limiting or that are likely to limit the Company's ability to pay dividends on its outstanding securities.

RECENT ISSUANCE OF UNREGISTERED SECURITIES

The Following table lists the shares issued for the year ended December 31, 2010 and 2011

The issuance of common stock from inception, October 20, 2006 through the year ended December 31, 2010 is summarized in the table below:

	Number of shares of common stock		Fair Value at Issuance		Per Share Value at Issuance
Stock issued upon merger in accordance with Court Order		40,000,000	$	20,000	$	0.0005
Stock issued in connection with acquisition		24,196		-		-
Stock issued for services		38,905,710		13,061,326		.0395 - 5.52
Stock issued to retire debt - Shareholder loans		32,394,269		23,494,294		.040 - 1.01
Common stock issued for cash		37,333,333		315,000		.003 - .01
Fair value of common stock issued for interest		500,000		21,249		0.0425
Common stock issued pursuant to note holder debt conversion		18,374,278		173,469		.009 - .01
		167,531,786		37,085,338

The issuance of common stock from January 1, 2011 through December 31, 2011 is summarized in the table below:

	Number of shares of common stock		Fair Value at Issuance		Per Share Value at Issuance
Stock issued for related party debt settlement		2,500,000	$	35,000	$	0.014
Stock issued for services		203,238,683		306,871		0.0005 -0.014
Fair value of common stock issued for interest		1,000,000		14,000		0.014
Common stock issued pursuant to note holder debt conversion – principal		2,718,112,504		2,462,792		0.0001 - 0.01
Common stock issued pursuant to note holder debt conversion - interest		18,695,505		13,647		.00001-0.01
		2,943,546,692		39,658,097

The Company did not utilize or engage a principal underwriter in connection with any of the above securities transactions.

Management believes that all of above shares of common stock were issued pursuant to the exemption from registration under Section 4(2) of the Securities Act of 1933, as amended.

In May and December 2011, the Company filed two S-8 registrations for its Equity Plans, registering 18,000,000 and 250,000,000 shares of its Common Stock.

The purpose of the Plans is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares, Stock Units, Options (which may constitute ISOs or NSOs) or stock appreciation rights.

The following table sets forth the issuances under these plans.

Date of Issuance	Shares		Consideration		Reason for Issuance
May 13, 2011		2,500,000	$	7,500.00	Consulting
May 25, 2011		5,000,000	$	15,000.00	Consulting
December 12, 2011		25,000,000.00	$	17,500.00	Consulting
December 12, 2011		50,000,000.00	$	35,000.00	Consulting
December 27, 2011		50,000,000.00	$	25,000.00	Consulitng

ITEM 6. SELECTED FINANCIAL DATA.

Not applicable.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

CAUTIONARY FORWARD - LOOKING STATEMENT

The following discussion should be read in conjunction with our financial statements and related notes.

Certain matters discussed herein may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties include, but are not limited to, the following:

* the volatile and competitive nature of our industry,

* the uncertainties surrounding the rapidly evolving markets in which we compete,

* the uncertainties surrounding technological change of the industry,

* our dependence on its intellectual property rights,

* the success of marketing efforts by third parties,

* the changing demands of customers and

* the arrangements with present and future customers and third parties.

Should one or more of these risks or uncertainties materialize or should any of the underlying assumptions prove incorrect, actual results of current and future operations may vary materially from those anticipated. See also the disclosures under "Cautionary Statement" following the Table of Contents in this Annual Report.

RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2 011 AND 2010

The Company has not generated any significant revenues since its inception on October 20,2006. The Company's operations for years ended December 31, 2011 and 2010 consist of general and administrative expenses incurred in the amount of $2,306,097 and $1,588,192 and other expenses amounting to $5,308,85 6 and $533,707 respectively. The significant increase in other expenses relates to the amortization of debt discount totaling $3,199,988 as compared to $0 in 2010 as well as the debt conversion expense in 2011 totaling $1,707,573 as compared to $51,556 in 2010.

LIQUIDITY AND CAPITAL RESOURCES

We had minimal cash on hand as of December 31, 2011 and a working capital deficiency of $ 2,750,888. We will continue to need additional cash during the following twelve months and these needs will coincide with the cash demands resulting from implementing our business plan and remaining current with our Securities and Exchange Commission filings. There is no assurance that we will be able to obtain additional capital as required, or obtain the capital on acceptable terms and conditions.

GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has not generatedany significant revenue, has experienced recurring net operating losses and had a net loss of $8,301,052 for the year ended December 31, 2011. These factors raise substantial doubt about the Company's ability to continue as a going concern.

These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty. We will need to raise funds or implement our business plan to continue operations.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.

Not Applicable.

ITEM 8. FINANCIAL STATEMENTS.

Our financial statements and supplementary data may be found beginning at Page F-1.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS.

None

ITEM 9A. CONTROLS AND PROCEDURES.

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We conducted an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended ("Exchange Act"), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 31, 2011.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

1.	pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
2.	provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors; and
3.	provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2011, and concluded that our internal control over financial reporting was effective. In making this assessment, management used the framework set forth in the report entitled Internal Control--Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components of a company's internal control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication, and (v) monitoring. This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permits us to provide only management's report in this annual report.

CHANGES IN INTERNAL CONTROLS

There has been no change in our internal control over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION.

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The Company's directors and executive officers are as follow:

Name	Period	Age	Position(s)

Isaac H. Sutton	3/31/2010 to Present	58	Chairman of the Board of Directors President, Chief Executive Officer, CFO, Secretary and Treasurer

Mr. Sutton is Chief Executive Officer of SavWatt USA, Inc and sole director. He has served since April 2010. Mr. Sutton has been a successful entrepreneur ever since his involvement with the Sutton family business during his college years. Since the late 70's, Sutton has been a founding member and served in executive roles of many ventures including: Aprica Juvenile Products, Inc. (1980 - 1982), Fusen Usagi, Inc. (1982 -1989), IHS Inc. (1990 - 1997), and CEO of Starinvest Group (1997 - 2006). A world traveler for over 30 years, Mr. Sutton has lived in and conducted business in a variety of countries including Taiwan, Korea, the Philippines, Poland and Uzbekistan. Mr. Sutton has extensive experience in a variety of industries including import and export, telecommunications, information technology and capital markets.

Mr. Sutton holds Bachelor's Degree in Business Administration from Pace University. Mr. Sutton was born and raised in New York City and is 58 years old.

DIRECTORSHIPS

Mr. Sutton ia a director of GoIP Global, Inc.

EMPLOYMENT CONTRACTS

On July 1, 2010, the Company entered into an employment contract with Michael Haug, the former Chief Executive Officer, for a one year term with a base salary of $84,000 per year. In addition, the Company agreed to issue 2,000,000 shares of common stock to Mr. Haug as a signing bonus and such shares vest at the end of the term of the agreement. Mr. Haug will also be entitled to participate in the Company's health care and bonus plans when implemented but not later than December 31, 2010. This contract was not renewed and in August 2011, Mr Haug was appointed to the position of Exeective Vice President and in March 2012 tendered his resignation.

In February 2012, the Company entered into an employment agreement with the Company's CEO, Isaac H. Sutton, commencing on January 1, 2012 and expiring on December 31, 2012. The employment agreement provides for an annual salary of $240,000 together with annual increases of at least 10% per annum. In addition, Mr. Sutton shall receive as additional compensation .75% of the Company's gross revenues in excess of $20,000,000. The employment agreement provides that Mr. Sutton is eligible to receive incentive bonus compensation, at the discretion of the board of directors. The employment agreement provides for termination based on death, disability or other termination and for severance payments upon termination. The severance payments range from the compensation payable pursuant to the agreement or up to two times the annual compensation over sixty months in the event that Mr. Sutton is terminated in the event of a change in control as described in the agreement.

FAMILY RELATIONSHIPS

There are no family relationships between or among our officers and directors.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

During the past ten years, no present director, executive officer or person nominated to become a director or an executive officer of the Company:

(1)	was a general partner or executive officer of any business againstwhich any bankruptcy petition was filed, either at the time of the bankruptcy or two years prior to that time;

(2)	was convicted in a criminal proceeding or named subject to a pendingcriminal proceeding (excluding traffic violations and other minor offenses);

(3)	was subject to any order, judgment or decree, not subsequentlyreversed, suspended or vacated, of any court of competent jurisdiction, permanently or emporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or

(4)	was found by a court of competent jurisdiction (in a civil action),the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a Federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

AUDIT COMMITTEE FINANCIAL EXPERT AND IDENTIFICATION OF AUDIT COMMITTEE

The Company has no separately designated standing audit committee or other committee performing similar functions. The Board of Directors acts as the audit committee. None of the directors qualifies as an Audit Committee Financial Expert.

MATERIAL CHANGES TO THE METHOD BY WHICH THE SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE BOARD OF DIRECTORS

None.

SECTION 16(a) BENEFICIAL OWNERSHIP COMPLIANCE

Section 16(a) of the Securities Exchange Act of 1934 requires the Company's executive officers, directors and persons who own more than ten percent of the Company's Common Stock, to file initial reports of beneficial ownership on Form 3, changes in beneficial ownership on Form 4 and an annual statement of beneficial ownership on Form 5, with the SEC. Such executive officers, directors and greater than ten percent shareholders are required by SEC rules to furnish the Company with copies of all such forms that they have filed. No one on the Company's management team was delinquent on such filings in 2011.

CODE OF BUSINESS CONDUCT AND ETHICS

The Company has adopted a Code of Business Conduct and Ethics applicable to its officers, including its principal executive officer, principal financial officer, principal accounting officer or controller and any other persons performing similar functions. The Code will be provided free of charge by the Company to interested parties upon request. Requests should be made in writing and directed to the Company at the following address: 1100 Wicomico Street, Suite 700, Baltimore, Maryland 21224

ITEM 11. EXECUTIVE COMPENSATION.

The following table sets forth the aggregate compensation paid by the Company to officers or directors of the Company during the periods indicated:

SUMMARY COMPENSATION TABLE

Name and Principal Position	Year	Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Nonqualified Deferred Compensation ($)		All Other Compensation ($)

Isaac H. Sutton,	2011	$	95,334		-		-		-		-		-		-
Chairman, CEO, CFO	2010	$	41,423		-		-		-		-		-		-

Michael Haug,	2011	$	86,923		-		-		-		-		-		-
Former CEO (1)	2010	$	16,154		-		-		-		-		-		-

Former COO, CFO	2011	$	123,311		-		-		-		-		-		-
Adam Kolodny (1)	2010	$	41,423		-		-		-		-		-		-

________

(1) Mr. Kolodny and Mr. Haug are no longer officers of the company

STOCK OPTIONS AND WARRANTS

There were no stock options or warrants outstanding on December 31, 2011

OPTION/SAR GRANTS TABLE

There were no stock options/SARS granted under the Company's stock option plans to executive officers and directors during fiscal 2011.

AGGREGATE OPTION/SAR EXERCISES AND FISCAL YEAR-END OPTION/SAR VALUE TABLE

There were no exercises of stock options/SAR by executive officers during fiscal 2011.

LONG-TERM INCENTIVE PLAN AWARDS

There were no long-term incentive plan awards made during fiscal 2011.

COMPENSATION OF DIRECTORS

The Company has no formal or standard compensation arrangement with the members of its Board of Directors or with committee members.

REPRICING OPTIONS

During the fiscal year ended December 31, 2011, the Company did not reprice any stock options.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth certain information concerning the ownership of the Company's Common Stock and Series A Preferred Stock as of April 11, 2012 with respect to: (i) each person known to the Company to be the beneficial owner of more than five percent of the Company's Common Stock; (ii) all directors and executive officers; and (iii) directors and executive officers of the Company as a group. To the knowledge of the Company, each shareholder listed below possesses sole voting and investment power with respect to the shares indicated.

Title of Class	Name and Address of Beneficial Owner	Amount and Nature ofBeneficial Ownership		Percentof Class

Common Stock	Isaac H. Sutton Sutton Global Associates, Inc. 152 Madison Ave, 23rd floor New York, New York 10016		2,350,723,310		24	%

Preferred A	Isaac H. Sutton Sutton Global Associates, Inc. 152 Madison Ave, 23rd floor New York, New York 10016		25,000,000		100	%

Common Stock	All Executive Officers and Directors as a Group (1 person)		2,350,773,310		24	%

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE.

Ludvik Nominees, Pty, Ltd. was the exclusive adviser to Company for the period October 10, 2006 through March 31, 2010. Ludvik Nominees Pty Ltd is 100% owned by Frank Kristan, our former President and Chief Executive Officer. During the period from inception to March 31, 2010 Ludvik Nominees was an advisor to the Company, fees were charged quarterly. A total of $2,017,417 including interest was billed. $484,250 was converted to 32,394,269 shares and $0 remains owing.

Mr Isaac H. Sutton, the Company's President and Sole Director, was also a shareholder in the now defunct SavWatt Industries, LLC and a debtor of the Company. Mr Isaac H. Sutton the Company's President and Sole Director is a beneficial owner in Sutton Global Associates, Inc and GoIP Global, Inc both companies which have provided at certain times, short term loans to the Company.

We do not have any independent directors or director committee members.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

INDEPENDENT PUBLIC ACCOUNTANTS

On June 2, 2010, the Company engaged Sherb & Co. LLP, 805 Third Avenue, New York, New York as its certifying auditors to audit the Company's financial statements for the fiscal years ended December 31, 2010, 2009, 2008, 2007 and 2006. Prior to such engagement, the Company had not engaged a certifying audit firm.

(1) Audit Fees. For the fiscal years ended December 31, 2010 and 2011, the Company's auditors charged us $12,000 and $20,000_respectively, for services rendered for the audit of our annual financial statements.

(2) Audit-Related Fees. For the fiscal year ended December 31, 2011 and 2010, our auditors charged us $9,000 and $6,000, respectively, for audit-related services (review).

(3) Tax Fees. Our auditors did not provide tax compliance, tax advice, or tax planning advice for the fiscal year ended December 31, 2011.

(4) All Other Fees. None.

(5) Audit Committee's Pre-Approval Policies and Procedures. The Company had no audit committee during the fiscal year ended December 31, 2011; hence, there were no pre-approval policies or procedures in effect during such fiscal year.

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

See the Exhibits Index below for a list of exhibits attached hereto or incorporated by reference pursuant to Item 601 of Regulation S-K.

EXHIBIT INDEX

Exhibit		Description

3.1*****		Amended and Restated Certificate of Incorporation

3.2*****		Amended and Restated Bylaws

10.1**		Commercial Office Lease

10.2***		Employment Agreement for Isaac Sutton, Chief Executive Officer and Chief Financial Officer

14*		Code of Business Conduct Ethics

21**		Subsidiaries of the Company

31.1***		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350

31.2***		Certification of Chiefl Financial Officer Pursuant to 18 U.S.C. Section 1350

32.1***		906 Certification of Chief Executive Officer and Chief Financial Officer

101.INS****		XBRL Instance Document

101.SCH****		XBRL Taxonomy Extension Schema Document

101.CAL****		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF****		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB****		XBRL Taxonomy Extension Label Linkbase Document

101.PRE****		XBRL Taxonomy Extension Presentation Linkbase Document

_________

* Exhibits incorporated herein by reference to Company's Form 10-K for the fiscal Year Ended December 31, 2006, filed with the Commissionon August 17, 2010.

** Incorporated by reference to 10-K filed April 15, 2011.

*** Filed herewith

**** Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

***** Incorporated by reference to 14C filed on April 13, 2011.

SIGNATURES

In accordance with Section 13 or 15(d) of the Securities 1934, the Registrant has duly caused this Annual Report Exchange Act of to be signed on its behalf by the undersigned, thereunto duly authorized.

	SaVWatt USA, Inc.

Dated: April 16, 2012		/s/ Isaac H. Sutton
	By:	Isaac H. Sutton
	Its:	Chief Executive Officer and Chief Financial Officer

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of SavWatt USA, Inc.

We have audited the accompanying balance sheet of SavWatt USA, Inc. as of December 31, 2011 and December 31, 2010, and the related statements of operations, stockholders' deficit, and cash flows for the years ended December 31, 2011 and 2010. These financial statements are the responsibility of the Company's management.Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal controls over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SavWatt USA, Inc. at December 31, 2011 and 2010,and the results of operations and cash flows for the years ended December 31, 2011 and 2010, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has incurred significant losses from operations. These issues raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/.Sherb & Co.,LLP

Sherb & Co., LLP

Certified Public Accountants

New York ,NY

April 16,2012

F-1

SavWatt USA, Inc.

BALANCE SHEETS

	December 31,			December 31,
	2011			2010

ASSETS
Current assets:
Cash	$	979		$	2,422
Accounts receivable		14,194			619
Inventory		53,502			42,853
Other current assets		80,830			32,200
Total current assets		149,504			78,094

Computer Equipment, net		161,207			10,803
Leasehold Improvements, net		432,391			-
Intangible		1,100,000			-

Total assets	$	1,843,102		$	88,897

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable and accrued expenses	$	1,066,793		$	112,318
Due to related party, net		59,039			504,600
Stockholder loan payable		-			1,129,698
Accrued interest - stockholder		-			175,596
Derivative liability		300,312			-
Related party convertible loan payable, net		363,798			50,000
Convertible notes payable, net		1,110,450			200,000
Total current liabilities		2,900,392			2,172,212

Accounts payable, long term		800,000			-
Total liabilities		3,700,392			2,172,212


Stockholders' deficit:
Common stock, $0.0001 par value, 4,800,000,000 shares and 100,000,000 shares authorized, 3,109,078,478 and 167,531,786 shares issued and outstanding, respectively		310,907			16,752
Preferred stock, $.0001 par value, 200,000,000 authorized 10,000,000 issued and outstanding		1,000			-
Additional paid-in capital		45,335,120			37,120,142
Accumulated deficit		(47,504,317	)		(39,203,264	)
		(1,857,290	)		(2,066,370	)

Non controlling interest		-			(16,945	)

Total stockholders' deficit		(1,857,290	)		(2,083,315	)

Total liabilities and stockholders' deficit	$	1,843,102		$	88,897

See accompanying notes to audited financial statements.

F-2

SavWatt USA, Inc.

STATEMENTS OF OPERATIONS

	Year Ended			Year Ended
	December 31,			December 31,
	2011			2010


REVENUES	$	60,916		$	4,059
COST OF REVENUE		26,806			-
GROSS PROFIT		34,111			4,059

EXPENSES

General and administrative		2,306,097			1,588,192
Selling expenses		168,476
Professional fees		534,790			484,606
Bad debt expense-related party		-			218,636
Total Expenses		3,009,362			2,291,434

LOSS FROM OPERATIONS		(2,975,251	)		(2,287,375	)

OTHER INCOME (EXPENSE)
Other income		-			5,000
Interest expense		(101,501	)		(33,220	)
Interest expense - stockholder		(219,944	)		(473,931	)
Derivative expense		(86,400	)		-
Gain on settlement of debt		6,550			-
Amortization of debt discount		(3,199,988	)		-
Debt Conversion Expense		(1,707,573	)		(51,556	)
Total Other Income (Expense)		(5,308,856	)		(553,707	)

NET LOSS		(8,284,107	)		(2,841,082	)

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(16,945	)		16,945

NET LOSS ATTRIBUTABLE TO SAVWATT USA, INC.	$	(8,301,052	)	$	(2,824,137	)

NET LOSS PER SHARE, BASIC AND DILUTED	$	(0.01	)	$	(0.03	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED		1,229,594,863			105,307,057

See accompanying notes to financial statements.

F-3

SavWatt USA, Inc.

STATEMENT OF STOCKHOLDERS' DEFICIT

											Deficit
											Accumulated
									Additional		During			Total
	Common Stock				Preferred A				Paid-in		Development			Stockholders'
	Shares		$		Shares		$		Capital		Stage			Deficit

Balance, December 31, 2009		79,474,175	$	7,947			$		$	35,256,348	$	(36,379,127	)	$	(1,114,832	)

Common stock issued for cash		37,333,333		3,733		-		-		311,267		-			315,000

Fair value of common stock issued for services		31,850,000		3,185		-		-		1,308,140		-			1,311,325

Fair value of common stock issued for interest		500,000		50		-		-		21,199		-			21,249

Common stock issued pursuant to noteholder debt conversion		18,374,278		1,837		-		-		171,632		-			173,469

Modification expense related to conversion of debt		-		-		-		-		51,556		-			51,556

Net loss for the year ended December 31, 2010		-		-		-		-		-		(2,824,137	)		(2,824,137	)

Balance, December 31, 2010		167,531,786		16,752		-		-		37,120,142		(39,203,264	)		(2,066,370	)

Fair value of common stock issued for services		201,238,683		20,124		-		-		286,547		-			306,671

Fair value of common stock issued for interest		1,000,000		100		-		-		13,900		-			14,000

Fair value of common stock issued for related party debt		2,500,000		250		-		-		34,750		-			35,000

Beneficial conversion feature related to convertible debt		-		-		-		-		3,470,250		-			3,470,250

Common stock issued pursuant to noteholder debt conversion - principal		2,718,112,504		271,811		-		-		2,190,981		-			2,462,792

Common stock issued pursuant to noteholder debt conversion - accrued interest		18,695,505		1,870		-		-		11,777		-			13,647

Modification expense related to conversion of debt		-		-		-		-		1,707,573		-			1,707,573

Conversion of debt into Preferred A shares ( par .0001)		-		-		10,000,000		1,000		499,000		-			500,000

Net loss for the year ended December 31, 2011		-		-		-		-		-		(8,301,052	)		(8,301,052	)

Balance, December 31, 2011		3,109,078,478	$	310,907		10,000,000	$	1,000	$	45,334,920	$	(47,504,317	)	$	(1,857,490	)

See accompanying notes to financial statements.

F-4

SavWatt USA, Inc.

STATEMENTS OF CASH FLOWS

	For the years ended
	December 31,			December 31,
	2011			2010

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(8,301,052	)	$	(2,824,137	)
Adjustments to reconcile net loss to net cash used in operating activities:
Net loss attributable to non controlling interest		16,945			(16,945	)
Stock issued for services		306,871			1,311,325
Stock issued for interest		14,000			21,249
Bad debt expense - related party		-			218,636.00
Debt modification expense		1,707,573			51,556.00
Gain on settlement of related party debt		(6,550	)		-
Depreciation		30,703			-
Amortization expense		3,199,988			-
Loss on fair value of derivative		86,399			-
Increase (decrease) in cash flows as a result of changes in asset and liability account balances:
Accounts receivable		(13,575	)		(621.00	)
Inventory		(10,649	)		(42,852	)
Other current assets		(48,630	)		(32,200	)
Accounts payable and accrued expenses		2,020,093			112,318
Related party payable		979,438			285,965
Stockholder loan payable		-			90,000
Accrued interest-stockholder		-			473,931
Total adjustments		8,282,606			2,472,362

Net cash used in operating activities		(18,446	)		(351,775	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of computer equipmnet		-			(10,803	)
Purchases of machinery		(153,775	)		-
Purchase of leasehold improvements		(459,722	)		-
Purchase of intangible		(1,100,000	)		-
Net cash used in investing activities		(1,713,497	)		(10,803	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		-			315,000
Proceeds from issuance of loan payable		1,755,500			50,000
Payments of convertible notes payable		(25,000	)		-
		-			-
Net cash provided by financing activities		1,730,500			365,000

NET INCREASE (DECREASE) IN CASH		(1,443	)		2,422

CASH, BEGINNING OF YEAR		2,422			-

CASH, END OF YEAR	$	979		$	2,422

SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$	-		$	-
Income taxes paid	$	-		$	-
Preferred stock issued for repayment of shareholder loan	$	500,000		$	-
Accounts payable converted to convertible debt instruments	$	80,445		$	-
Beneficial conversion feature related to convertible debt	$	3,470,250		$	-
Loan assignments to convertible note holders	$	1,994,565		$	373,469
Related party debt settled for common stock	$	25,000		$	-
Related party debt converted to a convertible loan	$	600,000		$	-
Loan payable assigned to shareholder	$	50,000		$	-
Common stock issued for accrued interest	$	13,647		$	-
Accrued interest assigned to convertible noteholders	$	171,526		$	-
Common stock issued as a result of debt conversion	$	2,462,792		$	173,469
Initial valuation of derivative liability	$	213,913		$	-
Stockholder loan and accrued interest exchanged for a short term convertible note	$	-		$	1,503,167

See accompanying notes to financial statements.

F-5

SavWatt USA, Inc.

Notes to Financial Statements

NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

SavWatt USA, Inc. (“SavWatt”) formerly known as Ludvik Capital, Inc. (“Ludvik Capital”) (hereinafter "the Company") was incorporated on October 20, 2006 under the laws of the State of Delaware for the purpose of becoming a successor corporation by way of merger with Patriot Advisors, Inc. (“Patriot”) and Templar Corporation (“Templar”), pursuant to a plan of reorganization and merger approved by the United States Bankruptcy Court, District of Maine in Case No. 04-20328 whereby Ludvik Capital is the continuing entity. Hereinafter, SavWatt, Ludvik Capital, Patriot and Templar are referred to as the “Company” unless specific reference is made to one of these entities.

The Company's business plan consisted of investing in public and private companies, providing long term equity and debt investment capital to fund growth and acquisitions and recapitalizations of small and middle market companies in a variety of industries primarily located in the United States.

Since inception, the Company has had minimal operations and no revenues earned. On April 5, 2010, the Company amended its articles of incorporation and changed its name to SavWatt USA, Inc.

The Company plans to capitalize on the largely unaddressed commercial and consumer market for energy-efficient LED lighting by investing in product and corporate marketing. With public relations and advertising throughout the media, a recognized, popular consumer LED brand will be cultivated, spearheading and establishing a leading market share in the growing energy-efficient bulb sector during the next three to five years. SavWatt has the exclusive marketing rights in the United States to sell LED street lighting for a number of Asian companies.

The Company's year end is December 31st.

The Company's corporate headquarters were originally located in Virginia but are currently located in Baltimore MD.

GOING CONCERN AND BASIS OF PRESENTATION

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the financial statements, the Company incurred net losses of $8,301,052 for the year ended December 31, 2011. In addition, the Company has incurred a net loss from inception (October 20, 2006) through December 31, 2011 and accumulated deficit amounting to $47,504,316 its inception, the Company has generated minimal revenues and has minimal cash resources.

These circumstances raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management's efforts have been directed towards the development and implementation of a plan to generate sufficient revenues to cover all of its present and future costs and expenses.

F-6

Management is taking steps to address this situation. The Company has determined that it cannot continue with its business operations as outlined in its original business plan because of a lack of financial resources; therefore, management has redirected their focus towards identifying and pursuing options regarding the development of a new business plan and direction. The Company intends to explore various business opportunities that have the potential to generate positive revenue, profits and cash flow in order to financially accommodate the costs of being a publicly held company. The Company is in the process of raising capital by implementing its business plan in LED lighting and expects to generate sufficient revenue by the 3rd quarter of 2012 with a positive cash flow. Until then, the Company the Company will not have the required capital resources or credit lines available that are sufficient to fund operations.

The Company has minimal operating costs and expenses at the present time due to its limited business activities. The Company, however, will be required to raise additional capital over the next twelve months to meet its current administrative expenses, and it may do so in connection with or in anticipation of possible acquisition transactions. This financing may take the form of additional sales of its equity securities and/or loans from its directors. There is no assurance that additional financing will be available, if required, or on terms favorable to the Company.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies is presented to assist in understanding the accompanying financial statements. The financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

ACCOUNTING METHOD

The Company's financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

F-7

DEVELOPMENT STAGE ACTIVITIES

For all periods prior to December 31, 2011, the Company considered itself a development stage enterprise. During the year ended December 31, 2011, the Company has generated approximately $61,000 in revenue and made significant progress toward achieving its intended business plan of producing, marketing and selling Light Emitting Diode ("LED") lighting. As a result of the generation of revenue as well as a result of the Company development we no longer consider ourselves a development stage enterprise.

CASH AND CASH EQUIVALENTS

For purposes of the statement of cash flows, the Company considers all short-term debt with original maturities of three months or less to be cash equivalents.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial instruments may include cash, accounts receivable, inventory, other assets, loans payable and related accrued interest, and accounts payable. All such instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at December 31, 2011 and December 31, 2010.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable are stated at the amount the Company expects to collect. The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company's estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change.

As of December 31, 2011 accounts receivable are presented net of an allowance for doubtful accounts of $9,032.

As of December 31, 2010 the Company wrote off a related party receivable amounting to $218,636 and recorded a bad debt expense, based on management's evaluation of the balance and certainty that the balance would not be collectible in the future.

F-8

PROPERTY AND EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.

Depreciation is provided for over the estimated useful lives of the related asset using the straight-line method. As of December 31, 2011 property and equipment consists of primarily computer equipment.

Included in leasehold improvements are costs related to the construction of the manufacturing facility in Baltimore Maryland. The leasehold improvements are being amortized using the straight-line method.

The estimated useful lives for significant equipment categories are from 3 to 5 years and for leasehold improvements the useful life is 10 years.

INVENTORY

The Company's inventory consists of entirely of finished goods, and is valued at lower of cost or market price. Cost is determined on a first-in, first-out ("FIFO") basis. To ensure inventory is carried at the lower of cost or market, the Company periodically evaluates the carrying value and also periodically performs an evaluation of inventory for excess and obsolete items. Such evaluations are based on management's judgment and use of estimates. Such estimates incorporate inventory quantities on-hand, aging of the inventory, sales forecasts for particular product groupings, planned dispositions of product lines and overall industry trends.

REVENUE RECOGNITION

Revenue is recognized when all of the following criteria are met: (1) persuasive evidence that an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the seller's price to the buyer is fixed and determinable; and, (4) collectability is reasonably assured. The Company has earned minimal revenue since inception.

USE OF ESTIMATES

The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts.

PROVISION FOR TAXES

Income taxes are provided based upon the liability method of accounting. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end. A valuation allowance is recorded against the deferred tax asset if management does not believe the Company has met the "more likely than not" standard to allow recognition of such an asset.

F-9

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

The Company utilizes the guidance per FASB Codification “ASC 260 "Earnings Per Share". Basic earnings per share is calculated on the weighted effect of all common shares issued and outstanding, and is calculated by dividing net income available to common stockholders by the weighted average shares outstanding during the period. Diluted earnings per share, which is calculated by dividing net income available to common stockholders by the weighted average number of common shares used in the basic earnings per share calculation, plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities outstanding, is not presented separately as it is anti-dilutive. Such securities, shown below, presented on a common share equivalent basis and outstanding as of December 31, 2011 has been excluded from the per share computations as their effect would be anti-dilutive:

			2011
Convertible Preferred Stock			100,000,000
Convertible Bridge Notes and Notes Payable			4,300,754,667

The average number of common shares outstanding for the period from Inception ( October 20, 2006) through December 31, 2011 has been retroactively adjusted for the 2:1 forward stock split effective August 17, 2007.

STOCK BASED COMPENSATION

The Company accounts for stock based compensation transactions with employees under the provisions of ASC Topic No. 718, "Compensation, Stock Compensation" ("Topic No. 718"). Topic No. 718 requires the recognition of the fair value of equity-based compensation in net income. The fair value of the Company's equity instruments are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award. In addition, the calculation of equity-based compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of equity-based awards granted to employees is amortized over the vesting period of the award and the Company elected to use the straight-line method for awards granted after the adoption of Topic No. 718.

The Company accounts for equity based transactions with non-employees under the provisions of ASC Topic No. 505-50, "Equity-Based Payments to Non-Employees" ("Topic No. 505-50"). Topic No. 505-50 establishes that equity-based payment transactions with non-employees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. When the equity instrument is utilized for measurement the fair value of the equity instrument is estimated using the Black- Scholes option valuation model. In general, the Company recognizes an asset or expense in the same manner as if it was to receive cash for the goods or services instead of paying with or using the equity instrument.

FORWARD STOCK SPLIT

All references to the Company's outstanding shares, and options, have been adjusted to give effect to the 2 for 1 forward stock split effective August 17, 2007.

Derivative Liabilities

The Company assessed the classification of its derivative financial instruments as of December 31, 2011, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.

F-10

ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

The Company believes that certain conversion features embedded in its convertible notes payable and rights to the Company’s common stock are not clearly and closely related to the economic characteristics of the Company’s stock price. The Company does not have a sufficient amount of authorized shares to satisfy its obligations under the convertible notes payable and rights to the shares of common stock. Accordingly, the Company has recognized derivative liabilities in connection with such instruments. The Company uses judgment in determining the fair value of derivative liabilities at the date of issuance at every balance sheet thereafter. The Company uses judgment in determining which valuation is most appropriate for the instrument (e.g., Black Scholes), the expected volatility, the implied risk free interest rate, as well as the expected dividend rate. Upon issuance the fair value was calculated using the Black-Scholes option pricing model with the following factors, assumptions, and methodologies:

	2011

Fair value of Company’s common stock	$	0.0005
Volatility		171%-250	%
Exercise price	$	0.0003-0.0005
Estimated life		1 year
Risk free interest rate (based on 1-year treasury rate)		.15	%

The fair value of our financial instruments at December 31, 2011 and 2010 are as follows:

	Fair Value Measurements at Reporting Date Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2010:
Derivative Liabilty	$	—	$	—	$	-

December 31, 2011:
Derivative Liabilty	$	—	$	—	$	300,312

F-11

Fair Value of Financial Instruments

Effective January 1, 2008, the Company adopted FASB ASC 820-Fair Value Measurements and Disclosures, or ASC 820, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC 820 did not have an impact on the Company’s financial position or operating results, but did expand certain disclosures.

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities
Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.

The Company did not have any Level 2 or Level 3 assets or liabilities as of December 31, 2011, with the exception of its convertible notes payable and derivative liability. The carrying amounts of these liabilities at December 31, 2011, approximate their respective fair value based on the Company’s incremental borrowing rate.

Cash is considered to be highly liquid and easily tradable as of December 31, 2011, and therefore classified as Level 1 within our fair value hierarchy.

In addition, FASB ASC 825-10-25 Fair Value Option, or ASC 825-10-25, was effective for January 1, 2008. ASC 825-10-25 expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments.

RECLASSIFICATIONS

Certain reclassifications have been made to the prior periods’ financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or the sum of stockholders’ deficit.

F-12

INTANGIBLE ASSETS

License Agreements

License agreements acquired by the Company are reported at acquisition value less accumulated amortization and impairments.

Amortization

Amortization is reported in the income statement straight-line over the estimated useful life of the intangible assets, unless the useful life is indefinite. Amortizable intangible assets are amortized from the date that they are available for use. The estimated useful life of the license agreement is five years which is the term of the underlying license agreement. The license is not yet in use as such the Company has not yet begun amortizing the asset.

Assessment of an intangible asset’s residual value and useful life is performed annually.

As stated in FASB 142 paragraph 11, the accounting for a recognized intangible asset is based on its useful life to the reporting entity. The Company has yet to use the license and as such has not begun amortizing the asset. When the Company does begin the amortization it will be over a 5 year period at $220,000 per year.

Customer Concentration

Two of the Company's customers accounted for approximately 17% and 19% respectively of its revenues during the year ending December 31, 2011.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs,” which is not expected to have a material impact on the financial statements upon adoption.

In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income.” Under the amendments in this ASU, an entity has two options for presenting its total comprehensive income: to present total comprehensive income and its components along with the components of net income in a single continuous statement, or in two separate but consecutive statements. The amendments in this ASU are required to be applied retrospectively and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. The adoption of ASU No. 2011-05 will not have any material impact on the Company’s financial position and results of operations.

In September 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-08, Intangibles — Goodwill and Other (Topic 350). This Accounting Standards Update amends FASB ASC Topic 350. This amendment specifies the change in method for determining the potential impairment of goodwill. It includes examples of circumstances and events that the entity should consider in evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption does not have any material impact on the Company’s financial position and results of operations.

Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.

F-13

NOTE 3 - STOCKHOLDER LOANS

On December 14th 2006, the Company entered into an Advisory Agreement (“Advisory Agreement”) with Ludvik Nominees Pty Ltd (“Ludvik Nominees”) (a Company 100% owned by Frank Kristan) for services to be rendered which were payable based on 3% assets under management and 20% of net profits of Ludvik Capital. The term of the agreement was for approximately 11 years, concluding on December 31, 2017.

Frank Kristan served as President and Chief Executive Officer of the Company from inception, October 20, 2006 through March 31, 2010 and is also the President of Ludvik Nominees. On March 31, 2010, Frank Kristan resigned as President and Director of the Company.

On March 31, 2010 the original 2006 agreement was terminated and a settlement agreement was created to resolve any outstanding obligations with respect to the 2006 agreement. In accordance with the settlement agreement both parties agreed that since advisory fees under the December 14th 2006 Agreement were based on assets under management that had no value, the Advisor had the option to get paid a fee of $30,000 per month starting October 2006 including interest. Furthermore, the remaining principal balance plus accrued interest as of September 30, 2010 was rolled over into a Secured Convertible Note amounting to $1,503,167.

From the period from the Company’s inception, October 20, 2006 through the termination of the Advisory Agreement on September 30, 2010, the Company issued its advisors 32,394,269 shares of common stock as payment for services amounting to $484,250.

This note was payable on September 30, 2010 and bears an interest rate of 12% per annum payable at the end of the term. Upon default, the unpaid principal balance of this note and any accrued and unpaid interest bear interest at the rate of 18%. The outstanding balance and accrued interest, all or in part, is convertible at the option of the holder into the Company's common stock at a conversion price of 50% of the stock price, with a minimum of $.01 per share. As of December 31, 2010 this note was in default. In April 2011, the Company received a waiver of the default and extended the due date of the note to December 31, 2011, at an interest rate of 18%. The note, plus accrued interest, was assignable

In the 3rd and 4th quarter of 2010 this stockholder assigned $373,469 of the convertible loan payable to investors (as discussed in Note 5)

In 2011, entities related to the Company’s current President and sole director assigned $300,000 in payables to Ludvik Nominees.

In 2011, this stockholder assigned $1,759,893 of the convertible loan payable to investors and converted $66,927 into 29,692,700 shares of common stock.

F-14

NOTE 4 – PROPERTY AND EQUIPMENT

	December 31,			December 31,
	2011			2010

Computer Equipment	$	12,985		$	10,803
Leasehold Improvements		459,722			-
Machinery		151,593
Accumulated depreciation		(30,703	)		-
Total	$	593,598		$	13,839

In 2011 the Company purchased machinery for $151,593 which is not yet in use. Therefore the Company has yet to depreciate the machine.

Depreciation expense amounted to $30,703 and $0 for the years ended December 31, 2011 and 2010 respectively.

NOTE 5 - RELATED PARTY TRANSACTIONS

On September 30, 2010, Isaac H. Sutton was elected to the Board of Directors and currently serves as the Company's new President and sole director.

As of December 31, 2010, the Company recorded $30,000 expense related to consulting fees earned by the Company's President for 6 months.

During the Period of April 1, 2010 - December 31, 2010, the Company received short term funding from Sutton Global Associates, Inc., which is a related party since this company is controlled by Isaac H. Sutton the Company's President and Sole Director. As of December 31, 2010, the Company owes $479,600 to Sutton Global Associates, Inc.

During 2010, the Company advanced certain monies to GoIP Global, a related party controlled by Isaac H. Sutton the Company's President and Sole Director, to fund its operations. In addition, the Company entered into a one year agreement with GoIP where as GoIP provided messaging services to the Company. As of December 31, 2010, the Company's payable related to these services amounted to $25,000. In 2011, the Company issued 2,500, 000 shares of common stock pursuant to the conversion of this payable.

In December 2010, the Company wrote off $218,636 due from another affiliated company SavWatt Industries, LLC, a company later controlled by Isaac H. Sutton. The original owners are now employees of the Company. The Company determined that this amount would not be collectible and therefore recorded this amount as bad debt expense.

During the year ending December 31, 2011, the Company received approximately $1,372,507 in short term funding from Sutton Global Associates, Inc.

In 2011, Sutton Global Associates converted $600,000 of its short term funding in to into two Notes. The Notes bear interest at a rate of 6 % per annum and are convertible into common stock of the Company at the discretion of the holder. The notes are due in April and June of 2012. The Company recorded a $600,000 discount on these convertible notes, related to their beneficial conversion features, and amortized $463,798 for the year ended December 31, 2011. The net note payable, inclusive of unamortized discount was $136,202 as of December 31, 2011. The note has accrued interest of $21,107 included in accrued expenses, at December 31, 2011.

F-15

In April 2011, Sutton Global Associates assigned $300,000 of amounts owed to them to stockholders associated with Ludvik Nominees a stockholder of the Company.

In January 2011 Sutton Global Associates converted $250,000 of amounts owed to them into 5,000,000 shares of Preferred A shares.

In July 2011, Sutton Global Associates converted $250,000 of amounts owed to them into 5,000,000 shares of Preferred A shares.

As of December 31, 2011, the Company owes to Sutton Global Associates a total of $59,039 in unsecured advances included in due to related party, which was has not been converted into a convertible note, assigned to stockholders, or have not been converted into equity

NOTE 6 – DEBT

Short term Convertible Debt

In August 2010 through December 2010 a stockholder assigned $373,469 of his loan payable to investors transferring all the rights and interests of the original note (as disclosed in Note 3). As of December 31, 2010 the assignee debt holders have converted $173,469 of their outstanding debt into 18,374,278 shares of the Company's common stock resulting in the loan payable balance of $200,000.

In 2011, entities related to the Company’s current President and sole director assigned $300,000 in payables to a shareholder in the form of convertible debt.

In 2011, this stockholder assigned $1,759,893 of the convertible loan payable to investors and converted $66,927 into 29,692,700 shares of common stock.

In 2011 the Company converted $251,971 in accrued expenses and accounts payable into debt. During this period this liability was assigned to other debt holders

With respect to some of these assigned convertible notes, some of the terms conversion were modified thereby resulting in the Company recording a beneficial conversion with respect to the modifications.

During the year ended December 31, 2011, the Company entered into several short-term convertible notes with a total face amount of $1,755,500. These notes bear interest rates ranging from 5% to 18% payable in full in twelve months or less and which were convertible into shares of Company's common stock at discounts to market on their dates of conversion ranging from 30% to 70% from the market price. These notes have a minimum conversion floors ranging from $0.01 to $0.0001 per share.

With respect to the convertibility feature of the assigned convertible notes and the convertible notes entered into during the year ended December 31, 2011 the Company recorded a total beneficial conversion of $2,784,162 (which includes $213,913 resulting from transactions that required derivative accounting). Total amortization amounted to $2,436,190, recorded as other expense during the year ended December 31, 2011.

During the year ended December 31, 2011 the Company has converted a total of $2,395,865 of debt and $13,647 in accrued interest into 2,688,419,804 shares of common stock. In addition to debt the Company has recorded $1,707,573 of modification expense with respect to the conversion.

F-16

As of December 31, 2011 the balance of the Company’s short term convertible notes amounted to $1,110,449. The interest on these debentures is accrued and due at the end of the notes term. As of December 31, 2011 the accrued interest amounted to approximately $95,886 and is included in accounts payable and accrued expenses.

Other Debt

In October 2010, the Company entered into a secured promissory note for $50,000. The note was payable within 90 days and bears an interest rate of 5%. In connection with this note the Company issued 500,000 shares of its common stock as additional consideration valued at $21,249, and accounted for as interest expense during the year ended December 31, 2010. This note was fully satisfied as of December 31, 2011.

NOTE 7 - EQUITY TRANSACTIONS

In Apri12010, the Company amended its Articles of Incorporation changing the name of the Company to SavWatt USA, Inc. and increasing their authorized capital shares from 100,000,000 shares to 2,200,000,000 shares designating 2,000,000,000 as common stock and 200,000,000 shares as preferred stock. In September 2011 the Company increased the total capital to 5,000,000,000 shares authorized designating 4,800,000,000 as common stock and 200,000,000 shares as preferred stock. In 2011 the Company designated 25,000,000 shares of the preferred shares to be Series A Cumulative Preferred Stock ("Preferred Series A"). The Preferred Series A is convertible a one share of preferred into ten shares of common stock. The Preferred Series A shares are entitled to two hundred votes for each share of Preferred Series A shares as preferred stock. In 2011 the Company designated 25,000,000 shares of the preferred shares to be Series A Cumulative Preferred Stock ("Preferred Series A"). The Preferred Series A is convertible a one share of preferred into ten shares of common stock. The Preferred Series A shares are entitled to two hundred votes for each share of Preferred Series A.

In 2011 the Company designated 25,000,000 shares of the preferred shares to be Series A Cumulative Preferred Stock (“Preferred Series A”). The Preferred Series A is convertible a one share of preferred into ten shares of common stock. The Preferred Series A shares are entitled to two hundred votes for each share of Preferred Series A.

In January 2011, Sutton Global converted $250,000 of debt into 5,000,000 shares of Preferred Series A stock.

In July 2011, Sutton Global converted $250,000 of debt into 5,000,000 shares of Preferred Series A stock.

F-17

The issuance of common stock from January 1, 2010 through December 31, 2010 is summarized in the table below:

	Number of shares of common stock		Fair Value at Issuance		Per Share Value at Issuance
Stock issued for services		31,850,000	$	1,311,325	$	0.04
Common stock issued for cash		37,333,333		315,000		0.008
Fair value of common stock issued for interest		500,000		21,249		0.04
Common stock issued pursuant to note holder debt conversion		18,374,278		173,469		0.009
		88,057,611		1,872,599

The issuance of common stock from January 1, 2011 through December 31, 2011 is summarized in the table below:

	Number of shares of common stock		Fair Value at Issuance		Per Share Value at Issuance
			$	-	$	-
Stock issued for related party debt settlement		2,500,000		35,000		0.014
Stock issued for services		203,238,683		306,871		0.0005 -0.014
Fair value of common stock issued for interest		1,000,000		14,000		0.014
Common stock issued pursuant to note holder debt conversion – principal		2,718,112,504		2,462,792		0.0001 - 0.01
Common stock issued pursuant to note holder debt conversion - interest		18,695,505		13,647		.00001-0.01
		2,943,546,692		39,658,097

F-18

NOTE 8 - COMMITMENTS AND CONTINGENCIES

On July 1, 2010, the Company entered into an employment agreement with Michael Haug, as the Company's CEO, which responsibilities include running the daily operations of SavWatt USA, Inc. The term of the agreement is for one year at a salary of $84,000, and may be renewed upon mutual agreement by the Company and the employee.

The employment agreement with Michael Haug was not renewed and in October 2011, Mr. Haug was appointed Executive Vice President of Sale. Mr. Haug tendered his resignation in March 2012.

February 1, 2012 - January 31, 2013	$ 9,926.74 per month
February 1, 2013 - January 31, 2016	$ 11,564.14 per month
February 1, 2016 - January 31, 2019	$ 12,526.11 per month
February 1, 2019 - January 31, 2021	$ 13,549.49 per month

In June 2011, the Company entered in to a lease for approximately 1000 square Feet at 152 Madison Avenue, New York, NY, under a written lease for a term of 2 years. Under the terms of the lease the annual base rent is approximately $ 74,000. This New facility will be used as executive and sales office.

In December 2011, The Company enteral n to a new lease for approximately 2,886 square feet at 7927 Jonas Brench Drive, Suite 3300, McClean, VA, under a written lease for a term of 2 years. Under the terms of the lease the annual base rent is approximately $ 58,000. This new facility will be used by the Company for sales.

The Company has entered into an exclusive worldwide license for LED lights with P2i Limited (“P2i”), a company incorporated in England, utilizing P2i's liquid repellent nano-coating technology.

Under the terms of The Technology Exclusivity Agreement (“P2i Agreement”) with P2i, the Company is granted an exclusive worldwide license to P2i patents for liquid repellent nano-coating technology (“repellent technology”) with respect to its application for LED lighting. The term of the P2i Agreement is for five years commencing July 14, 2011. The payment due under the agreement is $1,100,00, within an initial payment and additional payments on each of the four subsequent anniversary dates of the agreement. The P2i Agreement will be amortized over the life of the agreement.

In addition to the P2i Agreement, the Company also entered into an Equipment Purchase and Technology License Agreement (“P2i Equipment Agreement”) with P2i. This agreement runs a concurrent term with that of the p2i Agreement. Under the P2i Equipment Agreement, the Company is obligated to purchase an initial machine, during the first year, from P2i, that applies their repellent technology. The Company is also required to pay P2i a royalty for product made using their technology under the P2i Equipment Agreement.

The Company plans to initially perform this process in its Baltimore facility with future facilities to be established worldwide. In addition, the Company has the right to sub-license this technology to its worldwide partners.

F-19

NOTE 9 - INCOME TAXES

At December 31, 2011 and December 31, 2010 the Company had a deferred tax asset of approximately $2,113,000 and $978,000, respectively, calculated at a combined federal and state expected rate of 38%. As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the net deferred tax asset, a valuation allowance equal to the net deferred tax asset has been recorded.

The significant components of the deferred tax assets at December 31, 2011 and December 31, 2010 are as follows:

	December 31, 2011			December 31, 2010

Deferred tax asset-net operating losses	$	2,102,000		$	973,000
Accrued compensation		11,000			5,000
Deferred tax asset valuation allowance		(2,113,000	)		(978,000	)

Net deferred tax asset	$	--		$	--

The reconciliation between the statutory federal income tax rate of 35% to the actual rate is as follows:

	December 31, 2011			December 31, 2010

Expected Federal tax (benefit)	$	(2,822,000	)	$	(960,000	)
Expected State tax (benefit), net of federal		(332,000	)		(113,000	)
Permanent differences		2,019,000			527,000
Change in valuation allowance		1,135,000			546,000

Effective tax rate	$	--		$	--

At December 31, 2011 and December 31, 2010, the Company had a net operating loss carry forward of $5,531,000 and $2,560,000, respectively, which expire in the year 2031 and 2030, respectively.

F-20

NOTE 10 – SUBSEQUENT EVENTS

During 2012, the Company recorded the following transactions:

-	Issued 4,085,638,811 shares of common stock pursuant to the conversion of $443,472 in short term loans

-	Issued 2,300,000, 000 shares of common stock pursuant to the conversion of $ 115,000 in short term loans from a related party.

-	Issued 15, 000,000 shares of preferred stock pursuant to the conversion of $ 390,000 in short term loans from a related party.

-	Received proceeds amounting to $160,000 related to the issuance of short term loans.

In February 2012, the Company entered into an employment agreement with the Company's CEO, Isaac H. Sutton, commencing on January 1, 2012 and expiring on December 31, 2012. The employment agreement provides for an annual salary of $240,000 together with annual increases of at least 10% per annum. In addition, Mr. Sutton shall receive as additional compensation 75% of the company’s gross revenues in excess of $20,000,000. The employment agreement provides that Mr. Sutton is eligible to receive incentive bonus compensation, at the discretion of the board of directors. The employment agreement provides for termination based on death, disability or other termination and for severance payments upon termination. The severance payments range from the compensation payable pursuant to the agreement or up to two times the annual compensation over sixty months in the event that Mr. Sutton is terminated in the event of a change in control as described in the agreement.

F-21

Filing Compare · SavWatt USA, Inc.