The U.S. household moving and storage industry generates combined annual revenues of approximately $31 billion. The interstate and local U.S. household moving and storage industry alone represents revenues of approximately $13 billion annually.

The US household moving and storage industry consists of approximately 10,000 companies with about $13 billion in combined annual revenue. The 20 largest companies only control 35 percent of the market.

The containerized moving business is an emerging business segment with attractive growth and market opportunities. In recent years, the moving industry has offered the containerized “do-it-yourself” moves locally while attempting to develop the interstate portion. The firms involved in local container moving have been mostly small “mom and pop” operations.

Often, the containers for these moves have been low-quality plywood crates. The few companies that do offer updated containers have limited flexibility in their loading and shipping methods. Some companies have developed serviceable storage boxes but have not used the boxes successfully on a national basis.

The Company utilizes a specially designed container trademarked as the SmartVault. These containers are technologically advanced and are made of ultra-strong high density polyethylene (HDPE) with an expected 8-year useful life, have 262 cubic feet of loadable storage capacity each with a payload of 2500 pounds, have inside dimensions of 7 feet long, 5 feet 10 inches wide and 6 feet 7 inches high, have superior functionality and feature GPS (global positioning system), weatherproofing and additional security features, and can be loaded onto all standard truck trailers and sea containers utilized in the logistics industry.

Overnite Transportation Company, a UPS company , meets all of the Company’s pick-up and delivery needs in local markets and provides a majority of its terminal to terminal transportation and warehousing.

The Company has the ability to track its containers by proven, reliable barcode-based logistics tracking system maintained currently by Overnite. The Company supplements this online tracking with its own GPS tracking technology. The Company purchased and continue to refine its own GPS tracking technology and web-based tracking software to manage ita asset fleet.

The Company currently offers its services in the 40 largest U.S. metropolitan centers from the terminals of its primary transportation provider, Overnite. The Company’s expansion plan calls for adding 25 additional metropolitan centers in the summer of 2006 and additional markets as demand justifies.

Moving within the main countries within the EU market suffers from the same inefficiencies as moving across the US destinations, i.e. long distances, high fuel costs, shipping an empty truck back to its origin country, etc. By establishing service and operational partners in each of the key EU countries, the Company will be able to handle moves between countries and offer the same cost savings by not having to return empty assets to origin.

For international moves, the Company intends to use the same business model as it uses for domestic moves. The Company has currently established a business relationship with a freight forwarding company specializing in expatriate moves to Europe. The Company will contract with a US-based customer for a move to one of the cities it plans to service.

The Company is currently set up to provide full service moves to United Kingdom, Ireland, Germany, Netherlands, Belgium and France. To date, the Company has not completed any international moves.

Interest expense for the seven months ended July 31, 2006 was $736,422, compared to $232,620 interest expense for the seven months ended July 31, 2005.

For the seven months ending July 31, 2006 net loss was $6.6 million, compared to a net loss of $1.4 million for the seven months ending July 31, 2005, an increase in net loss of $5.3 million, or 378%.