BTCS Inc. - FORM 10-K/A - January 28, 2014

Attached files

file	filename
EXCEL - IDEA: XBRL DOCUMENT - BTCS Inc.	Financial_Report.xls
EX-31.1 - CERTIFICATION - BTCS Inc.	f10k2011a1ex31i_touchit.htm
EX-32.1 - CERTIFICATION - BTCS Inc.	f10k2011a1ex32i_touchit.htm
EX-31.2 - CERTIFICATION - BTCS Inc.	f10k2011a1ex31ii_touchit.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

AMENDMENT NO. 1 TO

FORM 10-K

(Mark One)

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

For the Fiscal Year Ended December 31, 2011

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

Commission file number: 333-151252

TouchIT Technologies, Inc.

(Exact Name of Registrant as Specified in its Charter)

Nevada		26-2477977
(State of Incorporation)		(I.R.S. Employer Identification Number)

100 West Big Beaver Road, Suite 200, Troy, MI 48084

(Address of Principal Executive Offices, Including Zip Code)

Registrant’s telephone number: +44 207 858 1045/+1 248 680 6700

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


None		Not Applicable
(Title of each class)		(Name of each exchange on which registered)

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

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

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

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

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 the definitions of “accelerated filer”, “large 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

(Do not check if a smaller reporting company)

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 ¨ No x

The aggregate market value of the voting common equity held by non-affiliates as of September 30, 2011, the last business day of the registrant’s most recently completed third fiscal quarter, was approximately $708 582.25

The number of shares outstanding of common stock as of December 31, 2011 was 55,839,419.

DOCUMENTS INCORPORATED BY REFERENCE

N/A.

	TABLE OF CONTENTS

	Part I

Item 1.	Business.	1
Item 1A.	Risk Factors.	5
Item 2.	Properties.	9
Item 3.	Legal Proceedings.	9
Item 4.	Removed and Reserved.	9

	Part II

Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.	9
Item 6.	Selected Financial Data.	11
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	11
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	17
Item 8.	Financial Statements and Supplementary Data.	17
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	18
Item 9A.	Controls and Procedures.	18
Item 9B.	Other Information.	19

	Part III

Item 10.	Directors, Executive Officers and Corporate Governance.	19
Item 11.	Executive Compensation.	20
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.	22
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	23
Item 14.	Principal Accounting Fees and Services.	23

	Part IV

Item 15.	Exhibits, Financial Statement Schedules.	23

	Signatures	24

PART I

This amendment no. 1 to Annual Report on Form 10-K for fiscal year ended December 31, 2011 is pursuant to that certain Current Report on Form 8-K Item 4.02 filed with the Securities and Exchange Commission on January __, 2014 pertaining to non-reliance on previously issued financial statements. On approximately January 18, 2014, the Board of Directors was advised by the Company's independent public accountant, Edward Richardson Jr. CPA that its financial statements reviewed and/or audited by Richard for the quarters referenced below as filed (collectively, the Financial Statements") with the Securities and Exchange Commission could not be relied upon based upon the inadvertent non-disclosure of two 8% convertible notes due May 17, 2015 in the principal amounts of $400,000 and $100,000, respectively, on the balance sheets as of the dates indicated (collectively, the "Convertible Notes"), and accrued interest payable under the Convertible Notes.

The Convertible Notes were previously issued in connection with certain subscription agreements entered into by the Company and the related share exchange agreement dated May 7, 2010 among the Company, TouchIt Technologies Koll Sti ("TouchIt Tech KS), the stock holders of TouchIt Tech KS, TouchIt Education Koll Sti ("TouchIt Ed"), and the stockholders of TouchIt Ed (the "Share Exchange Agreement"), pursuant to which the Company entered into various agreements with purchasers of the Convertible Notes.

Period Ended	Form	Date Filed with SEC

September 30, 2011	10-Q	November 14, 2011
December 31, 2011	10-K	April 5, 2012
March 31, 2012	10-Q	May 10, 2012
June 30, 2012	10-Q	August 2, 2012
September 30, 2012	10-Q	November 9, 2012
December 31, 2012	10-K	March 28, 2013
March 31, 2013	10-Q	May 15, 2013
June 30, 2013	10-Q	August 14, 2013
September 30, 2013	10-K	November 14, 2013

See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation. "

Item 1.

Business

Business Development

TouchIT Technologies, Inc. was incorporated in the State of Nevada as “Hotel Management Systems, Inc.” (“HMSI”) in 2008. After HMSI's fiscal year end of April 30, 2010, we entered into a Share Exchange Agreement, dated May 7, 2010 (“Share Exchange”) with TouchIT Technologies Koll Sti (“TouchIT Tech KS”), the stockholders of TouchIT Tech KS, TouchIT Education Koll Sti (“TouchIT Ed”), and the stockholders of TouchIT Ed whereby HMSI effectively ceased doing business as HMSI. Both TouchIT Tech KS and TouchIT Ed are corporations formed under the laws of Turkey and are based in Istanbul, Turkey. The closing of the transaction (the “Closing”) took place on May 7, 2010 (the “Closing Date”).

In connection with the closing of the Share Exchange Agreement, on May 7, 2010, we entered into various subscription agreements (each “Subscription Agreement,” and collectively the “Subscription Agreements”) with certain investors for the sale of up to $1,500,000 of principal amount convertible promissory notes issued by our Company (“Note” or “Notes”) and share purchase warrants (the “Warrants”) to each subscriber to purchase shares of our Common Stock.

In connection with a breach of two promissory notes associated with the Share Exchange, we cancelled the Warrants related to those promissory notes.

In connection with the Share Exchange, we changed our fiscal year end from April 30 to December 31 and amended our Articles of Incorporation to change our name to TouchIT Technologies, Inc. This report shall cover the period of January 1 to December 31, 2010 and the description of the business and financial information provided herein will be the business and financials of TouchIT Technologies, Inc. and not HMSI, as the business was prior to the Share Exchange.

Unless the context indicates otherwise, as used herein the terms, the “Company”, “Registrant”, “we”, “our” and “us” refer to TouchIT Technologies, Inc.

Overview

We design, produce and market touch-based visual communication products. Our mission – the design and manufacture of high quality technology products under the TouchIT Technologies™ brand name. We manufacture a large range of touch screen and touch board products to suit all types of application from small liquid crystal display (“LCD”) touch-screens to large interactive whiteboard displays and audience response systems. To date, our revenues have come primarily from the sale of our Interactive Whiteboard products which we began shipping in 2009 to the worldwide market place. Most of our sales have been of the 78" TouchIT Board and original equipment manufacturer (“OEM”) equivalents that are suitable for use with almost any computer and data projector.

We plan to capitalize on the corporate vertical for boardroom and meeting room applications and also in the education market as there are an estimation of over a billion classrooms in the world that may develop a need for our products. In response to increased demand for interactive LCD displays, we have invested resources to expand our product line to include touch-based LCDs in 42", 55” and 65". We have also invested in the development of TouchIT Transcribe, our corporate annotation software. We undertake OEM and original design manufacturer (“ODM”) work for partners all over the world with 3rd party contract manufacturing facilities in Taiwan & China.

How We Generate Revenue

We generate revenue from the sales of goods under the TouchIT Technologies brand name manufactured through 3rd party OEM contract manufacturers in China and Taiwan.

We also generate revenue from OEM manufacture facilities. This is where we take our existing products and rebrand them for a third party with differing degrees of customization.

Lastly, we generate revenue by charging for product design work where our team designs a new product for a customer that incorporates our technology. There is then repeat sales from this model as the customer engages the company to build its products.

Products or Services and their Markets

We offer a range of products that are designed for the education and the corporate government vertical markets. In addition, we offer our own proprietary annotation software designed for the corporate market.

TouchIT Interactive Whiteboard

TouchIT Board™ works in conjunction with a data projector and a computer to create a touch-based interactive whiteboard where the user obtains full control of a computer from the board. The TouchIT Board™ functions similar to a mouse allowing both left and right click functionality at the board. The TouchIT Board is supplied with Wizteach annotation software. The Wizteach annotation software is a 3rd party software that we purchase from Quizdom Uk Ltd based in Northern Ireland.

TouchIT LCD

The TouchIT LCD™ combines a HD display with IR touch technology to create an integrated, large format touch screen finished with a 4mm tempered glass for screen protection. The TouchIT LCD has a very small parallax enabling a much improved user experience when compared to traditional overlay products.

TouchIT Vote

TouchIT Vote™ is an radio Frequency (RF) audience response system that allows the user to obtain feedback or interaction from a class or audience to a series of questions posed with either Microsoft PowerPoint or the proprietary editor supplied. These responses can then be formulated into a series of reports where the data can be further analyzed.

TouchIT Tablet

TouchIT Tablet™ is a Radio Frequency (RF) wireless tablet that enables the user to control his/her computer from a distance with the tablet acting like a mouse.

TouchIT Transcribe Software

TouchIT Transcribe™ is the proprietary corporate annotation software supplied by us at no charge to users of the TouchIT Board™ and TouchIT LCD™. TouchIT Transcribe™ is unique in that currently on the market, there are very few pieces of software that cater directly for the corporate market.

Distribution Methods of the Products or Services

We currently maintain various distribution channels for our products in countries throughout the world. We would normally select a master distributor for a particular country where its specialty would be either the Information Technology (“IT”) Education or Audio Visual (“AV”) verticals. These master distributors usually sell on a trade-only basis to reselling companies that, in turn, supply the end user.

Status of New Product or Service

We are currently evaluating new touch technologies such as charge-couple device (“CCD”) image sensors that could be a more cost effective alternative in the future to IR. Our business strategy is to grow all three main areas of the business in tandem with the overall pursuit and development of new touch-based interactive products.

First, we hope to increase the growth of sales of our Company’s branded products through distribution partners on a worldwide basis. This involves the recruitment, training and support of the distribution partner and its resellers.

Second, we aim to grow the OEM side of the business. This involves the recruitment, product customization and rebranding, technical support and training of new OEM partners on a worldwide basis.

Third, we aim to work with a wider selection of ODM partners that recruit our services for the design and manufacture of new products under the client’s own brand name.

Business Organization

We manage our business on a central basis with all customers being supplied through either directly from the third part manufacturing facilities in China and Taiwan, or from our warehouse located in Troy, MI USA.

Markets & Trends In Our Business

Global Interactive Display sales in Q4 2011 increased by 14% Year-on-Year according to the new Interactive Displays Quarterly Insight report from Futuresource Consulting. Last year, the global market ended far in excess of 850,000 units shipped, - the year had a 1% volume reduction compared with 2010. Considering the economic pressures, this is a resilient result and there have been a number of strong regional success stories.

In the USA there have been challenges to budgets and reductions in funding, resulting in a 19% YoY Q4 sales unit decrease. The US market is forecast to steadily decline, but it will continue to remain the world’s largest interactive displays market.

Almost 4.5 million Interactive Displays have now been installed globally, with the technology taking a secure hold within the education sector, there is still a huge opportunity to be exploited, though companies operating within this marketplace must work cleverer to understand the opportunities and react ahead of the curve.

On February 16, 2011, our Company borrowed USD 250,000 from TCA Global Credit Master Fund pursuant to a revolving credit facility evidenced by a credit agreement with an effective date as of November 30, 2010. The Credit Agreement evidences a revolving credit facility in the maximum principal amount of USD 250,000, which subject to Lender approval, may be increased up to USD 1,000,000. The outstanding principal amount is due on February 16, 2012.

Competition

We echo the sentiments of Futuresource and feel that our competitors, the Chinese brands that are selling outside of China and India, are a reducing threat in the developed EMEA and U.S. markets. They are making little headway because while their products are on the low-cost end of the spectrum, they are not engaged in important deals and transactions, and are only getting peripheral businesses in the industry. Furthermore, the Chinese brands are also pushing their way into developing markets such as South America and Africa; however, these developing markets offer very little opportunities for the visual communication companies.

While the examples provided above do not appear to place our Company in a competitive business situation, there are also exceptions to the Chinese brands. For instance, Julong Educational Technology Co., Ltd, which is an OEM, has a large U.S. operation and has successfully worked its way into the U.S. market.

Our greatest competitor is probably Interactive Projectors. We are aware that they have already obtained some contracts in preference to IWBs (Finland, Estonia, Russia). In some countries, Interactive Flat panels are also emerging.

Despite the competition we face, our Company is in a strong position to capitalize on emergence of Interactive Flat Panels with the new LCD range.

Supply of Components

Although most components essential to our Company’s business are generally available from multiple sources, certain key components including but not limited to aluminum, plastics, LCDs, certain optical infrared technology (“IR”), and integrated circuits (“ICs”) are currently obtained by our Company from single or limited sources, which subjects us to significant supply and pricing risks.

Many of these and other key components that are available from multiple sources are subject at times to industry-wide shortages and significant commodity pricing fluctuations. In addition, we have entered into certain agreements for the supply of key components, including, but not limited to aluminum, plastics, LCDs, certain optical IR technology, and ICs at favorable pricing. However, there is no guarantee that we will be able to extend or renew these agreements on similar favorable terms, or at all, upon expiration or otherwise obtain favorable pricing in the future. Therefore, we remain subject to significant risks of supply shortages and/or price increases that can materially adversely affect its financial condition and operating results.

The TouchIT Tablet and TouchIT Vote plus printed circuit boards (“PCBs”) are assembled or are manufactured by outsourcing partners, primarily in various parts of Asia. The loss of supply from any of these suppliers or vendors, whether temporary or permanent, could materially adversely affect our business and financial condition.

Dependence on one or a few major customers

We recognize that we have a reliance on a few major customers. Most notably, Sahara Presentation Products PLC in the UK. We do however, expect to increase our customer base in line with our sales plan, strategy and forecast.

Patents and Trademark Licenses

We allow the use of the TouchIT Technologies brand name for trading purposes in Ireland and the UK. In Ireland, Mr. John Hughes operates TouchIT Technologies Ireland Limited. Our Company has no financial interest in this company. In the UK, Dynascreens UK Limited trades as TouchIT Technologies UK. We also have no financial interest in this company. Both the aforementioned companies use the TouchIT Technologies brand name and act as a master distributor in their respective countries.

Environmental Laws

As a third party manufacturer of visual communication products, we have not incurred or have been subject to environmental laws and expenses.

Employees

During the year, we had up to 19 employees but the average was 6 over the 12 month period.

Available Information

The Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), are filed with the U.S. Securities and Exchange Commission (the “SEC”). Such reports and other information filed by the Company with the SEC are available free of charge on the Company’s website at www.touchittechnologies.com/investor when such reports are available on the SEC website.

The public may read and copy any materials filed by the Company with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Room 1580, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov. The contents of these websites are not incorporated into this filing. Further, the Company’s references to the URLs for these websites are intended to be inactive textual references only.

Item 1A.

Risk Factors.

Risks Relating to Our Business

WE HAVE A LIMITED OPERATING HISTORY THAT YOU CAN USE TO EVALUATE US, AND THE LIKELIHOOD OF OUR SUCCESS MUST BE CONSIDERED IN LIGHT OF THE PROBLEMS, EXPENSES, DIFFICULTIES, COMPLICATIONS AND DELAYS FREQUENTLY ENCOUNTERED BY A SMALL DEVELOPING COMPANY.

We were incorporated in Nevada in April 2008, under HMSI. Following the transactions described herein, we are now a manufacturer of touch based communication products for the education and corporate marketplaces. As such, we have a limited operating history, and historical operating results may not provide a meaningful basis for evaluating the business, financial performance and prospects. We have limited assets or financial resources and/or limited operating history. Therefore, the likelihood of our success must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered by a small developing company starting a new business enterprise and the highly competitive environment in which we will operate.

WE NEED TO MANAGE GROWTH IN OPERATIONS TO MAXIMIZE OUR POTENTIAL GROWTH AND ACHIEVE OUR EXPECTED REVENUES AND OUR FAILURE TO MANAGE GROWTH WILL CAUSE A DISRUPTION OF OUR OPERATIONS RESULTING IN THE FAILURE TO GENERATE REVENUE.

In order to maximize potential growth in our current and potential markets, we believe that we must expand our marketing operations. This expansion will place a significant strain on our management and our operational, accounting, and information systems. We expect that we will need to continue to improve our financial controls, operating procedures, and management information systems. We will also need to effectively train, motivate, and manage our employees. Our failure to manage our growth will disrupt our operations and ultimately prevent us from generating the revenues we expect.

In order to achieve the above mentioned targets, our general strategy is to maintain and search for hard-working employees who have innovative initiatives; on the other hand, we will also keep a close eye on expanding opportunities.

IF WE NEED ADDITIONAL CAPITAL TO FUND OUR GROWING OPERATIONS, WE MAY NOT BE ABLE TO OBTAIN SUFFICIENT CAPITAL AND MAY BE FORCED TO LIMIT THE SCOPE OF OUR OPERATIONS.

If adequate additional financing is not available on favorable terms or we are unable to secure additional financing, we may not be able to undertake expansion, continue our marketing efforts and we would have to modify our business plans accordingly. There is no assurance that additional financing will be available to us or financing on favorable terms.

In connection with our growth strategies, we may experience increased capital needs and accordingly, we may not have sufficient capital to fund our future operations without additional capital investments. Our capital needs will depend on numerous factors, including (i) our profitability; (ii) the release of competitive products by our competition; (iii) the level of our investment in research and development; and (iv) the amount of our capital expenditures, including acquisitions. We cannot assure you that we will be able to obtain capital in the future to meet our needs.

Even if we do find a source of additional capital, we may not be able to negotiate terms and conditions for receiving the additional capital that are acceptable to us. Any future capital investments could dilute or otherwise materially and adversely affect the holdings or rights of our existing shareholders. In addition, new equity or convertible debt securities issued by us to obtain financing could have rights, preferences and privileges senior to our common stock. We cannot give you any assurance that any additional financing will be available to us, or if available, will be on terms favorable to us.

NEED FOR ADDITIONAL EMPLOYEES.

The Company’s future success also depends upon its continuing ability to attract and retain highly qualified personnel. Expansion of our business and the management and operation of the Company will require additional managers and employees with industry experience, and the success of our Company will be highly dependent on our ability to attract and retain skilled management personnel and other employees. Competition for such personnel is intense. There can be no assurance that we will be able to attract or retain highly qualified personnel.

Competition for skilled personnel in our industry is significant. This competition may make it more difficult and expensive to attract, hire and retain qualified managers and employees. Our inability to attract skilled management personnel and other employees as needed could have a material adverse effect on our business, operating results and financial condition. Our arrangement with our current employees is at will, meaning its employees may voluntarily terminate their employment at any time. We anticipate that the use of stock options, restricted stock grants, stock appreciation rights, and phantom stock awards will be valuable in attracting and retaining qualified personnel. However, the effects of such plan cannot be certain.

OUR FUTURE SUCCESS IS DEPENDENT, IN PART, ON THE PERFORMANCE AND CONTINUED SERVICE OF OUR MANAGEMENT TEAM.

We are presently dependent to a great extent upon the experience, abilities and continued services of Andrew Brabin and Ronald Murphy, our management team. The loss of services of Mr. Brabin or Mr. Murphy, could have a material adverse effect on our business, financial condition or results of operation.

WE ARE IN AN INTENSELY COMPETITIVE INDUSTRY AND THERE CAN BE NO ASSURANCE THAT WE WILL BE ABLE TO COMPETE WITH OUR COMPETITORS WHO MAY HAVE GREATER RESOURCES.

We could face strong competition from our competitors in the touch technology industry who could duplicate our model. These competitors may have substantially greater financial resources and marketing, development and other capabilities than we have. In addition, there are very few barriers to enter into the market for our products. There can be no assurance; therefore, that any of our competitors, many of whom have far greater resources will not independently develop products that are substantially equivalent or superior to our products. Therefore, an investment in our Company is very risky and speculative due to the competitive environment in which we intend to operate.

OUR ABILITY TO CONTINUE TO DEVELOP AND EXPAND OUR PRODUCT OFFERINGS TO ADDRESS EMERGING CONSUMER DEMANDS AND TECHNOLOGICAL TRENDS WILL IMPACT OUR FUTURE GROWTH. IF WE ARE NOT SUCCESSFUL IN MEETING THESE BUSINESS CHALLENGES, OUR RESULTS OF OPERATIONS AND CASH FLOWS WILL BE MATERIALLY AND ADVERSELY AFFECTED.

Our ability to implement solutions for our customers incorporating new developments and improvements in technology which translate into productivity improvements for our customers and to develop product offerings that meet the current and prospective customers’ needs are critical to our success. The markets we serve are highly competitive. Our competitors may develop solutions or products which make our offerings obsolete. Our ability to develop and implement up to date solutions utilizing new technologies which meet evolving customer needs in touch technology solutions will impact our future revenue growth and earnings.

OUR FUTURE SUCCESS IS DEPENDENT UPON OUR ABILITY TO PROTECT OUR INTELLECTUAL PROPERTY.

We may not be able to protect unauthorized use of our intellectual property and take appropriate steps to enforce our rights. Although management does not believe that our products infringe on the intellectual rights of others, there is no assurance that we may not be the target of infringement or other claims. Such claims even if not true, could result in significant legal and other costs associated and may be a distraction to management. We plan to rely on a combination of copyright, trade secret, trademark laws and non-disclosure and other contractual provisions to protect our proprietary rights. We use and intend to use the trademark “TouchIT Technologies” name and logo. We intend to file federal trademark applications for “TouchIT Technologies” and to secure the Internet trade domain “Touchittechnologies.com” and related logo. There can be no assurance that the registrations applied for will be accepted. Because the policing of intellectual and intangible rights may be difficult and the ideas and other aspects underlying our business model may not in all cases be protectable under intellectual property laws, there can be assurance that we can prevent competitors from marketing the same or similar products and services.

NON RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW.

On approximately January 18, 2014, our Board of Directors was advised by our independent public accountant, Edward Richardson Jr. CPA , that our financial statements reviewed and/or audited by Richardson for the certain quarters referenced herein as filed (collectively, the Financial Statements") with the Securities and Exchange Commission could not be relied upon based upon the inadvertent non-disclosure of two 8% convertible notes due May 17, 2015 in the principal amounts of $400,000 and $100,000, respectively, on the balance sheets as of the dates indicated (collectively, the "Convertible Notes"), and accrued interest payable under the Convertible Notes. The errors were corrected by us on our Financial Statements, including this Annual Report for fiscal year ended December 31, 2011 at the advice of our independent public accountant.

The errors on the financial statement for fiscal year ended December 31, 2011 related to the non-disclosure of the Convertible Notes. As a result, our Board of Directors concluded on January 18, 2014 that our previously issued financial statements for fiscal year ended December 31, 2011 should no longer be relied upon.

We have filed amendments to all financial statements and reports for those certain quarters.

Risks Associated with Our Shares of Common Stock

BROAD DISCRETION OF MANAGEMENT TO USE OF PROCEEDS FROM FINANCING.

Our management will have broad discretion with respect to the expenditure of the net proceeds from the financing that closed in connection with the Share Exchange Agreement. Accordingly, Subscribers will be entrusting their funds to our management, upon whose judgment they must depend, with limited information concerning the specific working capital requirements and general corporate purposes to which the funds will be ultimately applied

THE SECURITIES BEING ISSUED IN CONNECTION WITH AND FOLLOWING THE SHARE EXCHANGE AGREEMENT ARE RESTRICTED SECURITIES AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF REGISTRATION OR THE AVAILABILITY OF A RESALE EXEMPTION.

The shares of Common Stock, Notes and Warrants being issued in connection with the Share Exchange Agreement and financing described herein are being issued in reliance on an exemption from the registration requirements of the Securities Act under Section 4(2) of the Securities Act and Regulation D promulgated under the Securities Act. Consequently, these securities will be subject to restrictions on transfer under the Securities Act and may not be transferred in the absence of registration or the availability of a resale exemption. In particular, in the absence of registration, such securities cannot be resold to the public until certain requirements under Rule 144 promulgated under the Securities Act have been satisfied, including certain holding period requirements. Furthermore, we are under no obligation to file a resale registration statement with respect to those securities except in connection with an unrelated secondary offering. As a result, a purchaser who receives any such securities issued in connection with the Share Exchange Agreement or the financing may be unable to sell such securities at the time, or at the price or upon such other terms and conditions, as the purchaser desires, and the terms of such sale may be less favorable to the purchaser than might be obtainable in the absence of such limitations and restrictions.

RESTRICTED SECURITIES; LIMITED TRANSFERABILITY.

Purchase of the Securities should be considered a long-term, illiquid investment. The Securities have not been registered under the Act, are being offered by reason of a specific exemption from registration and are “restricted securities” under Rule 144 promulgated under the Act, and cannot be sold without registration under the Act or any exemption from registration. In addition, the Securities will not be registered under any state securities laws that would permit their transfer. Because of these restrictions and the absence of a trading market for the Securities, a Subscriber will likely be unable to liquidate an investment even though other personal financial circumstances would dictate such liquidation.

OUR COMMON STOCK IS QUOTED ON THE OTC BULLETIN BOARD WHICH MAY HAVE AN UNFAVORABLE IMPACT ON OUR STOCK PRICE AND LIQUIDITY.

Our common stock is quoted on the OTC Bulletin Board (the “OTCBB”). The OTC Bulletin Board is a significantly more limited market than the New York Stock Exchange or Nasdaq system. The quotation of our shares on the OTC Bulletin Board may result in a less liquid market available for existing and potential stockholders to trade shares of our common stock, could depress the trading price of our common stock and could have a long-term adverse impact on our ability to raise capital in the future.

IF WE FAIL TO ESTABLISH AND MAINTAIN AN EFFECTIVE SYSTEM OF INTERNAL CONTROL, WE MAY NOT BE ABLE TO REPORT OUR FINANCIAL RESULTS ACCURATELY OR TO PREVENT FRAUD. ANY INABILITY TO REPORT AND FILE OUR FINANCIAL RESULTS ACCURATELY AND TIMELY COULD HARM OUR REPUTATION AND ADVERSELY IMPACT THE TRADING PRICE OF OUR COMMON STOCK.

Effective internal control over financial reporting is necessary for us to provide reliable financial reports and prevent fraud. If we cannot provide reliable financial reports or prevent fraud, we may not be able to manage our business as effectively as we would if an effective control environment existed, and our business and reputation with investors may be harmed. As a result, our small size and any current internal control deficiencies may adversely affect our financial condition, results of operation and access to capital. We have not performed an in-depth analysis to determine if in the past un-discovered failures of internal controls exist, and may in the future discover areas of our internal control that need improvement.

OUR SHARES OF COMMON STOCK ARE VERY THINLY TRADED, AND THE PRICE MAY NOT REFLECT OUR VALUE AND THERE CAN BE NO ASSURANCE THAT THERE WILL BE AN ACTIVE MARKET FOR OUR SHARES OF COMMON STOCK EITHER NOW OR IN THE FUTURE.

Our shares of common stock are very thinly traded, and the price if traded may not reflect our value. There can be no assurance that there will be an active market for our shares of common stock either now or in the future. The market liquidity will be dependent on the perception of our operating business and any steps that our management might take to bring us to the awareness of investors. There can be no assurance given that there will be any awareness generated. Consequently, investors may not be able to liquidate their investment or liquidate it at a price that reflects the value of the business. If a more active market should develop, the price may be highly volatile. Because there may be a low price for our shares of common stock, many brokerage firms may not be willing to effect transactions in the securities. Even if an investor finds a broker willing to effect a transaction in the shares of our common stock, the combination of brokerage commissions, transfer fees, taxes, if any, and any other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of such shares of common stock as collateral for any loans.

THERE IS CURRENTLY NO LIQUID TRADING MARKET FOR OUR COMMON STOCK AND WE CANNOT ENSURE THAT ONE WILL EVER DEVELOP OR BE SUSTAINED.

To date there has been no liquid trading market for our common stock. We cannot predict how liquid the market for our common stock might become. We anticipate having our common stock continue to be quoted for trading on the OTC Bulletin Board, however, we cannot be sure that such quotations will continue. We currently do not satisfy the initial listing standards, and cannot ensure that we will be able to satisfy such listing standards or that our common stock will be accepted for listing on any such exchange. Should we fail to satisfy the initial listing standards of such exchanges, or our common stock is otherwise rejected for listing and remain listed on the OTC Bulletin Board or suspended from the OTC Bulletin Board, the trading price of our common stock could suffer and the trading market for our common stock may be less liquid and our common stock price may be subject to increased volatility.

Furthermore, for companies whose securities are traded in the OTC Bulletin Board, it is more difficult (1) to obtain accurate quotations, (2) to obtain coverage for significant news events because major wire services generally do not publish press releases about such companies, and (3) to obtain needed capital.

In addition, the price at which our common stock may be sold is very unpredictable because there are very few trades in our common stock. Because our common stock is so thinly traded, a large block of shares traded can lead to a dramatic fluctuation in the share price.

OUR STOCK PRICE MAY BE VOLATILE.

The market price of our common stock is likely to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including the following:

-	limited “public float” following the Share Exchange, in the hands of a small number of persons whose sales or lack of sales could result in positive or negative pricing pressure on the market price for our common stock;

-	sales of our common stock; and

-	our ability to execute our business plan.

Our shares of common stock are very thinly traded, and the price may not reflect our value and there can be no assurance that there will be an active market for our shares of common stock either now or in the future. Our shares of common stock are very thinly traded, only a small percentage of our common stock is available to be traded and is held by a small number of holders and the price, if traded, may not reflect our actual or perceived value. There can be no assurance that there will be an active market for our shares of common stock either now or in the future. The market liquidity will be dependent on the perception of our operating business, among other things. We will take certain steps including utilizing investor awareness campaigns, press releases, road shows and conferences to increase awareness of our business and any steps that we might take to bring us to the awareness of investors may require we compensate consultants with cash and/or stock. There can be no assurance that there will be any awareness generated or the results of any efforts will result in any impact on our trading volume. Consequently, investors may not be able to liquidate their investment or liquidate it at a price that reflects the value of the business and trading may be at an inflated price relative to the performance of our company due to, among other things, availability of sellers of our shares. If a market should develop, the price may be highly volatile. Because there may be a low price for our shares of common stock, many brokerage firms or clearing firms may not be willing to effect transactions in the securities or accept our shares for deposit in an account. Even if an investor finds a broker willing to effect a transaction in the shares of our common stock, the combination of brokerage commissions, transfer fees, taxes, if any, and any other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of low priced shares of common stock as collateral for any loans.

WE CURRENTLY HAVE A LIMITED PUBLIC FLOAT HELD BY A LIMITED NUMBER OF PERSONS.

Of our 55,839,419 issued and outstanding shares of common stock, only 23 619 419 shares are presently eligible for resale without further registration by the holders thereof or pursuant to an exemption from registration. In addition, these 23 619 419 shares are presently held by a limited number of shareholders. As a result of the relatively small size of our public float and its initial concentration in the hands of only a few people, the liquidity of the market for our common stock may be both severely limited and subject to high levels of volatility.

Item 1B.

Unresolved Staff Comments.

Not Applicable.

Item 2.

Property.

We do not own any real property. We rent approximately 50 square meters (m2) of office space in suite 200 of the Liberty Center at 100 West Big Beaver Road, Troy, MI.

Item 3.

Legal Proceedings.

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition, or operating results.

Item 4.

(Removed and Reserved).

PART II

Item 5.

Market for Registrant’s Common Equity, and Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

Our common stock is currently quoted on the OTC Bulletin Board (“OTCBB”), which is sponsored by FINRA. Our shares are quoted on the OTCBB under the symbol “TUCN.” The following table sets forth the calendar quarter indicated, the quarterly range of high and low bid quotations for our common stock for each of the periods indicated as reported by the OTCBB. Trading in our common stock in the over-the-counter market has become limited and sporadic and the quotations set forth below are not necessarily indicative of actual conditions. Further, the quotations mainly reflect the prices at which transactions were proposed, and do not necessarily represent actual transactions.

Fiscal Year Ending December 31, 2011
Quarter Ended	High $	Low $
March 31, 2011	$0.118	$0.06
June 30, 2011	$0.085	$0.043
September 30, 2011	$0.040	$0.010
December 31, 2011	$0.030	$0.005

Penny Stock

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

These disclosure requirements may have the effect of reducing the trading activity for our common stock. Therefore, stockholders may have difficulty selling our securities.

Record Holders of Our Common Stock

As of December 30, 2011, there were over 500 stockholders of record of our common stock.

Dividends

There are no restrictions in our Articles of Incorporation or Bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where after giving effect to the distribution of the dividend:

1. We would not be able to pay our debts as they become due in the usual course of business, or;

2. Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.

We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.

Item 6.

Selected Financial Data.

We are a “smaller reporting company” (as defined by Rule 12b-2 of the Exchange Act) and are not required to provide the information required under this item.

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.

Plan of Operation – Executive Overview

We manufacture touch-based visual communication products for the education and corporate worldwide marketplaces specializing in Interactive Whiteboards and Interactive LCDs. Our products stand out from the competition in terms of their design, functionality and price offering. Our customers seek our products as they provide them a different point of entry to the market in terms of price, quality of design and margin. Currently, demand for our products is exceeding our ability to supply.

From market data, we understand that the market for our products will continue to grow for the next five years and possibly beyond.

Interactive Whiteboard World Wide Market Overview

Data compiled by Futuresource Consulting UK Ltd, Q3 2011 Report, author - Colin Messenger

Critical Accounting Policies and Estimates

The accompanying financial statements include the financial statements of TouchIT Tech KS and TouchIT Ed. Although not significant, it should be noted that inter-company transactions and balances do exist and have not been consolidated. TouchIT Tech KS and TouchIT Ed together are referred to as the Company.

This management's discussion and analysis of our financial condition and results of operations are based on the financial statements of both TouchIT Tech and TouchIT Ed, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported net sales and expenses during the reporting periods. On an ongoing basis, we will evaluate these estimates and assumptions. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis:

Basis of presentation financial statements:

We maintain our books of account and prepare its statutory financial statements in accordance with accounting principles in the United Stats of America. The accompanying financial statements are based on the statutory records, with adjustments and reclassifications, for the purpose of fair presentation in accordance with United States generally accepted accounting principles (“US GAAP”).

There are inter-company transactions that have not been consolidated on these financial statements.

Revenue recognition:

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for customer returns, rebates, and other similar allowances.

Inventories:

Inventories are stated at the lower of cost or net realizable value. Costs, including an appropriate portion of fixed and variable overhead expenses, are assigned to inventories held by the method most appropriate to the particular class of inventory being valued on the weighted average basis. Net realizable value represents the estimated selling price less all estimated costs of completion and costs necessary to deliver service.

Property, plant and equipment:

Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses, if any. Depreciation is charged so as to write off the cost of assets, other than land and construction in progress, over their estimated useful lives, using straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at each year-end, with the effect of any changes in estimate accounted for on a prospective basis.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

The ranges of estimated useful lives are as follows:

-	Machinery and equipment 2-6 years

-	Motor vehicles 4 years

-	Furniture, fixtures and office equipment 4-5 years

Shipping and handling:

Shipping and handling costs related to costs of the raw material purchased is included in cost of revenues.

Research and development costs:

Research and development costs are expensed as incurred. The costs of material and equipment that are acquired or constructed for research and development activities, and have alternative future uses, either in research and development, marketing, or sales, are classified as property and equipment or depreciated over their estimated useful lives.

Company reporting year-end:

Our company uses a calendar year as its fiscal year ending December 31.

Results of Operations for the years ended December 31, 2011 and December 31 2010.

	31/12/2011			31/12/2010

NET SALES		1,595,943			3,577,881
COST OF SALES		1,341,374			(2,502,037	)
Gross profit		254,569			1,075,844
MARKETING AND SELLING EXPENSE		(578,887	)		(504,329	)
GENERAL AND ADMINISTRATIVE EXPENSES		(356,528	)		(479,064	)
Profit from operations		(680,847	)		92,451
OTHER INCOME AND EXPENSES, net		294,154			24,094
FINANCIAL INCOME AND EXPENSES, net		--			(8,294	)
Profit Loss before taxation and currency translation gain/(loss)		(386,692	)		60,063
TAXATION CHARGE		--
Taxation current		--
Deferred		--
CURRENCY TRANSLATION GAIN/(LOSS)		--			60,063
Net income/(loss) for the year		(386,692	)		105,115
OTHER COMPREHENSIVE INCOME		--
Total comprehensive income		(386,692	)		165,178

Net Sales

Net sales for the fiscal year ended December 31, 2011 were $1,595,943, a decrease of approximately $1.98 million compared to the net sales for the year ended December 31, 2010. The decrease in our revenues from 2010 to 2011 was due primarily to a market slow down in the first half of the year, coupled with the transition period where the Company moved its manufacturing facilities from Istanbul, Turkey to Taiwan. There was a down time of approximately 10 weeks where no production was able to be undertaken. This had a knock-on effect for reoccurring sales.

Cost of Sales

The cost of sales for the fiscal year ended December 31, 2011 was $1,341,374 compared to a cost of $2,502,037, for the cost of sales for the fiscal year ended December 31, 2010. The decrease in the cost of sales from 2010 to 2011 was due to the decrease in revenue and subsequent production in the same period. The percentage of Cost of sales against NET sales has increased by 14%. This is due to the continued cost of monthly overhead coupled with the drop in sales revenue.

	31/12/2011			31/12/2010

NET SALES		1,595,943			3,577,881
COST OF SALES		(1,341,374	)		(2,502,037	)
As a percentage of sales		84	%		70	%

Marketing and Selling Expenses

Marketing and selling expenses for the fiscal year ended December 31, 2011 were a cost of $578,887 compared to a cost of $504,329 for the fiscal year ended December 31 2010. Marketing and selling expenses were up 15% from 2010 to 2011, which was primarily due to an increased customer base demanding MDF (market development funds) and also the “pay to play” culture in the USA. This is where a distributor or a reseller will charge the vendor a setup fee to get the products onto their system or charge for a internal training day for staff. These trends are currently becoming more common.

General and Administrative Expenses

General and administrative expenses for the fiscal year ended December 31, 2011 were a cost of $356,528 compared to a cost of $479,064 for the fiscal year ended December 31, 2010. General and administrative expenses decreased by 25% or $122,536 from 2010 to 2011. This decrease can be attributed to the closure of the Turkish facilities and the subsequent reduction in overhead costs after its closure in September 2011.

	31/12/2011			31/12/2010

MARKETING AND SELLING EXPENSE		(578,887	)		(504,329	)
As a percentage of revenue		36	%		14	%
GENERAL AND ADMINISTRATIVE EXPENSES		(356,528	)		(479,064	)
As a percentage of revenue		22	%		13	%

Operational Profit

The operational loss for the fiscal year ended December 31, 2011 was $680,847 compared to a profit of $92,451 for the fiscal year ended December 31, 2010. Operational profit has decreased by $588,396 from 2010 to 2011 and this can be attributed to a downturn in the markets that lead to a subsequent drop in sales revenue whilst the monthly overhead cost remained the same.

Other Income and Expenses, net

Other Income and Expenses, net have increased by $270,060 from $24,094 for the fiscal year ended December 31, 2010 to $294,154 for the fiscal year ended December 31, 2011. This increase can be attributed to the closure of the Turkish Subsidiaries and a subsequent equity gain through the cancellation of debt that the subsidiaries owed to suppliers and related parties.

Total Comprehensive Income

Our total comprehensive income has decreased by $221,514 from $165,178 profit in 2010 to a $386,692 loss in 2011. This decrease can be attributed to a downturn in the markets that lead to a subsequent drop in sales revenue.

CURRENT ASSETS	31/12/2011			31/12/2010

Cash and cash equivalents		70,289			50,556
Trade receivables, net		240,867			705,225
Due from related parties		-			863,395
Due from Shareholders		-			50,585
Inventories		55,689			365,643
Other current assets					1,106

Total current assets		366,845			2,036,510

NON CURRENT ASSETS

Property, plant and equipment, net		1,027			64,495
Intangible assets, net		-			25,145
Other non current assets		-			3,555
Total non current assets		1,027			93,195

TOTAL ASSETS		367,872			2,129,705

CURRENT LIABILITIES
Borrowings		-			2,351
Trade payables		181,984			124,745
Due to shareholders		-			47,257
Due to related parties		265,318			1,145,992
Other current liabilities		27,390			73,233

Total current liabilities		474,692			1,393,578

NON CURRENT LIABILITIES
Borrowings		250,000			-
Employee termination benefits		-			-
Reserve for retirement pay		-			1,842
Convertible Notes		540,000			750,000

Total non current liabilities		790,000			751,842

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY
Share capital		127,570			127,570
Retained earnings		(637,698	)		-308,463
Net income / (loss) for the period		(386,692	)		173,899
Total shareholders’ equity		(896,820	)		-7,004

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY		367,872			3,138,416

Cash and Equivalents

Cash and equivalents have increased by $19,733 from $50,556 for the fiscal year ended December 31, 2010 compared to $70,289 for the fiscal year ended December 31, 2011. We believe a lack of working capital has hindered our growth this year and we are currently evaluating new finance facilities that should be in place in early 2012 to improve our cash situation.

Trade Receivables

Trade receivables for the fiscal year ended December 31, 2011 were $240,867, compared to $705,225 for the fiscal year ended December 31, 2010. Trade receivables have decreased by 464,358 from 2010 to 2011. This is the by-product of decreased revenues.

Related Party Transactions

Related party transactions NET for the fiscal year ended December 31, 2011 were $(265,318) compared to $282,597 for the fiscal year ended December 31, 2010. Related party transactions have decreased. This decreased is due to removal of inter-company transactions as both TouchIT Ed and TouchIT Tech KS have been dissolved. Furthermore, the Company no longer uses Emko Emaye as a supplier of raw materials.

	31/12/2011		31/12/2010

Due from related parties		0		863,395
Due to related parties		265,318		1,145,992
NET Amount		(265,318)		282,597

Inventories

Inventories for the fiscal year ended December 31, 2011 were $55,689, compared to $365,643 for fiscal year ended December 31, 2010. Inventories have decreased from 2010 to 2011 by $309,954 reflecting our move to third party manufacture in a just in time manor rather than holding large quantities of inventory.

	31/12/2011		31/12/2010

Total current assets		367,872		2,129,705

Trade Payables

Trade payables for the fiscal year ended December 31, 2011 were $181,984, compared to $124,745 for the fiscal year ended December 31, 2010. Trade Payables have increased by 45% or $57,239. This is due to the Company’s decision to move to third party manufacture and the extension of credit terms by the vendors.

Due to Related Parties

Due to related parties have decreased from 2010 to 2011 by $880,674 from $1,145,992 for the fiscal year ended December 31, 2010 to $265,318 for the fiscal year ended December 31, 2011. This was primarily due to the closure of the Turkish Subsidiaries and the subsequent cancellation of the debt that they owed to Recep Tanisman and Emko Emaye. Current related party transactions are with Kamron Inc which is Ronnie Murphy’s USA Tax entity and ASB Trading, which is Andrew Brabin’s UK Tax entity – both are used for payroll.

	31/12/2011		31/12/2010

Due from related parties		0		863,395
Due to related parties		265,318		1,145,992
NET Amount		(265,318)		282,597

Convertible Notes

Two 8% convertible notes due May 17, 2015 in the principal amounts of $400,000 and $100,000, respectively, on the balance sheets as of the dates indicated (collectively, the "Convertible Notes"), and accrued interest payable under the Convertible Notes. The Convertible Notes were issued in connection with certain subscription agreements entered into by the Company and the related share exchange agreement dated May 7, 2010 among the Company, TouchIt Tech KS, the stock holders of TouchIt Tech KS, TouchIt Ed, and the stockholders of TouchIt Ed (the "Share Exchange Agreement"), pursuant to which we entered into various agreements with purchasers of the Convertible Notes.

As of December 31, 2011, we owed approximately $500,000 in aggregate principal amount and $,40,000 in accrued interest.

Our NET Income has decreased by $511,870 from $165,178 profit in 2010 to a $386,692 loss in 2011. This decrease can be attributed to a downturn in the markets that lead to a subsequent drop in sales revenue.

	31/12/2011		31/12/2010

Net income / (loss) for the period		(346,692)		165,178

Liquidity and Capital Resources

	31/12/2011			31/12/2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		(386,692	)		165,178
Adjustments to reconcile net income to net cash provided PPA		(401,447,28	)		--
By operating activities:					--
Depreciation and amortisation		--			17,516
Provision for employee benefit		--			801

Changes in operating assets and liabilities
Trade receivables, net		1,378,337			(430,428	)
Due from shareholders		--			(773,544	)
Due from related parties		--
Inventories		309,953			(17,620	)
Other current assets		1,106			98,467
Other non current assets		--			331
Trade payables		322,557			54,126
Due to shareholders		--			54,413
Due to related parties		--			392,276
Other current liabilities		(1,241,442	)		(47,386	)
Convertible Notes		--			750,000

Net cash generated from (used for) operating activities		(17,628	)		67,197

CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in short-term borrowings		--			(8,931	)
Increase/(decrease) in long-term borrowings		(38,158	)		--
Dividends paid		--			--

Net cash (used for) provided from financing activities		(38,158	)		(8,931	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets		(797	)		(62,304	)
Share capital increase		--			--

Net cash used for investing activities		(797	)		(62,304	)

NET INCREASE / (DECREASE) IN CASH AND BANKS		19,733			(4,289	)

CASH AND BANKS AT BEGINNING OF THE YEAR		50,556			54,845

CASH AND BANKS AT END OF THE PERIOD		70,289			50,556

Net Income

For fiscal year ended December 31, 2011, when compared to the same period in 2010, NET income for the period our NET Income has decreased by $511,870 from $165,178 profit in 2010 to a $386,692 loss in 2011. This decrease can be attributed to a downturn in the markets that lead to a subsequent drop in sales revenue. The sales revenue continues to come predominately from TouchIT Interactive Whiteboards, or OEM models under a different name that are sold into distribution companies that in turn, supply to education.

Net Cash Generated from Operating Activities

For fiscal year ended December 31, 2011, when compared to the same period in 2010, NET cash used for operating activities was ($17,628) compared to $67,197 generated from operating activities for the same period in 2010. This is an increase of $363,237. This increase was due to the closure of the Turkish Subsidiaries and the subsequent cancellation of the debt that they owed to Recep Tanisman and Emko Emaye.

Cash Flow Used Investing Activities

For fiscal year ended December 31, 2011, when compared to the same period in 2010, there was a NET cash flow decrease of $61,507 from $(62,304) to ($797). This decrease was due to the equity gain following the closure of the Turkish Subsidiaries.

Cash Position

There was a net increase in cash and cash equivalents of $19 733 for the beginning and the end of the period from $50,556 at the beginning of the period, to $70,289 for fiscal year ended December 31, 2011.

Off Balance Sheet Arrangements

As of December 31, 2011, there were no off balance sheet arrangements.

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk.

A smaller reporting company is not required to provide the information required by this Item.

Item 8.

Financial Statements and Supplementary Data.

See the financial statements annexed to this annual report.

Item 9.

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.

No events occurred requiring disclosure under Item 304(b) of Regulation S-K during the fiscal year ending December 31, 2011.

Item 9A.

Controls and Procedures.

Management’s annual report on internal control over financial reporting.

Our Chief Executive Officer/Chief Financial Officer is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, our principal executive and principal financial officers and effected by our Board of Directors, management and other personnel, 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 and includes those policies and procedures that:

·	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;
·	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and our directors; and
·	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, our internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. 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.

Our Chief Executive Officer/Chief Financial Officer assessed the effectiveness of our internal control over financial reporting as of December 31, 2011. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control — Integrated Framework.

Based on our assessment, our Chief Executive Officer/Chief Financial Officer believe that, as of December 31, 2011, our internal control over financial reporting is not effective based on those criteria, due to the following:

Deficiencies in Segregation of Duties. Lack of proper segregation of functions, duties and responsibilities with respect to our cash and control over the disbursements related thereto due to our very limited staff, including our accounting personnel.

Deficiencies in the staffing of our financial accounting department. The number of qualified accounting personnel with experience in public company SEC reporting and GAAP is limited. This weakness does not enable us to maintain adequate controls over our financial accounting and reporting processes regarding the accounting for non-routine and non-systematic transactions. There is a risk that a material misstatement of the financial statements could be caused, or at least not be detected in a timely manner, by this shortage of qualified resources.

In light of this conclusion and as part of the preparation of this report, we have applied compensating procedures and processes as necessary to ensure the reliability of our financial reporting. Accordingly, management believes, based on its knowledge, that (1) this report does not contain any untrue statement of a material fact or omit to state a material face necessary to make the statements made not misleading with respect to the period covered by this report, and (2) the financial statements, and other financial information included in this report, fairly present in all material respects our financial condition, results of operations and cash flows for the years and periods then ended.

This 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 the rules of the SEC that permit us to provide only management’s report in this report.

Changes in internal control over financial reporting.

There were no significant changes in our internal control over financial reporting during the fourth quarter of the year ended December 31, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B.

Other Information.

None.

Item 10.

Directors, Executive Officers and Corporate Governance

The following information sets forth the names of our current directors and executive officers, their ages as of December 31, 2011 and their present positions.

Name	Age	Position(s) and Office(s) Held
Andrew Stuart Brabin	31	CEO, Chief Financial Officer, and Director, Secretary and Treasurer

Ronald George Murphy	48	Officer and Director

Set forth below is a brief description of the background and business experience of each of our current executive officers and directors.

Ronald Murphy has 15 years of International Sales experience and is the former Head of World-Wide Sales for Zoom Technologies, Virtual Ink and Luidia (the two latter companies being Interactive Whiteboard Manufacturers). Ronald took all three of these companies from the low millions of revenues to the tens of millions in sales revenues in less than 4 years at each company. He also has 9 years experience in the IWB marketplace.

Mr. Murphy is President of World Wide Sales at our Company where he formulates sales strategy, actively seeks new partners, and manages the sales team. Mr. Murphy also has an active role in new product development providing the requirements from feedback he receives from the markets.

Andrew Brabin has 9 years of International Sales experience and is the former Head of European Sales for Luidia, manufacturer of the eBeam IWBs. Aside from a strong technical and product design background, Mr. Brabin is also a multi-linguist. Andrew assumed the role of CEO in October 2011 and was instrumental in the reverse merge transaction detailed in the Form 8K filed with the SEC on the 12th of May 2010.

Mr. Brabin is the CEO, CFO and President of World Wide Operations of our Company. He formulates financial, product, marketing and purchasing strategy whilst managing the activities at the 3rd party production facilities in Taiwan and China. Mr. Brabin also manages the public side of the business liaising with corporate council, the auditors and the investment community.

Directors

Our Bylaws authorize no less than one (1) director. We currently have two Directors.

Term of Office

Our Directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our Bylaws. Our officers are appointed by our Board of Directors and hold office until removed by the board.

Family Relationships

There are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors or executive officers

Involvement in Certain Legal Proceedings

To the best of our knowledge, during the past five years, none of the following occurred with respect to a present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities 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

We do not have a separately-designated standing audit committee. The entire Board of Directors performs the functions of an audit committee, but no written charter governs the actions of the Board when performing the functions of what would generally be performed by an audit committee. The Board approves the selection of our independent accountants and meets and

Code of Ethics

As of December 31, 2011, we have adopted a Code of Ethics for Financial Executives, which would include our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Our Code of Ethics have been posted and may be found on our Company’s website at www.touchittechnologies.com.

Item 11.

Executive Compensation

Compensation Discussion and Analysis

We presently have employment agreements with all of our named executive officers and have established a system of executive compensation. Due to financial constraints typical of those faced by a company in this stage of its growth, we have not paid the officers in full for the year 2011. These costs reside in the related party transactions (as monies owed) of our financial statements. Our Company officers draw on these monies owed when we our in a position to pay them.

As our business and operations expand and mature, we expect to be able to pay our Company officers their monthly compensation in full.

Summary Compensation Table

The table below summarizes all compensation awarded to, earned by, or paid to each named executive officer for our last two completed fiscal years for all services rendered to us.

SUMMARY COMPENSATION TABLE
Name and principal position	Year		Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Non-qualified Deferred Compensation Earnings ($)		All Other Compensation ($)		Total ($)

Ronald George Murphy, Officer and Director		2008 2009 2010		0 0 144,000		0 0 0		0 0 0		0 0 0		0 0 0		0 0 0		0 0 0		0 0 144,000
		2011		144,000		0		0		0		0		0		0		144,000

Andrew Stuart Brabin, CEO, CFO and Director		2008 2009 2010		0 0 144,000		0 0 0		0 0 0		0 0 0		0 0 0		0 0 0		0 0 0		0 0 144,000
		2011		144,000		0		0		0		0		0		0		144,000

Narrative Disclosure to the Summary Compensation Table

In 2008 and 2009, the officers and directors did not draw salaries and only out of pocket business expenses were paid. Due to financial constraints typical of those faced by a company in this stage of its growth, we have not paid the officers in full for the year 2011. These costs reside in the related party transactions (as monies owed) of our financial statements. Our Company officers draw on these monies owed when we our in a position to pay them.

Employment Agreements with Executive Officers

Mr. Brabin, and Mr. Murphy have entered into employment agreements with our Company effective May 10, 2010. The agreements provide for a three year term with an automatic renewal for an additional year unless either party provides a written notice of non-renewal.

Andrew Brabin

The agreement provides for an annual base salary of $144,000.00. In addition, Mr. Brabin is entitled to receive an annual bonus determined by the Board of Directors along with vacation days and reimbursement for all reasonable business expenses. In the event that Mr. Brabin’s employment is terminated without cause (as defined in the agreement), change of control (as defined in the agreement), disability, or by the employee for good reason, then Mr. Brabin is entitled to an amount equal to his base salary as of his last day of employment for a period of 36 months from the date of termination. In the event that Mr. Brabin’s employment is terminated for cause or other than for good reason, he is entitled to any base salary earned but not paid through the date of termination, plus any accrued vacation time, and any other monies owed to him by the Company.

Ronald Murphy

The agreement provides for an annual base salary of $144,000.00. In addition, Mr. Murphy is entitled to receive an annual bonus determined by the Board of Directors along with vacation days and reimbursement for all reasonable business expenses. In the event that Mr. Murphy’s employment is terminated without cause (as defined in the agreement), change of control (as defined in the agreement), disability, or by the employee for good reason, Mr. Murphy is entitled to an amount equal to his base salary as of his last day of employment for a period of 36 months from the date of termination. In the event that Mr. Murphy’s employment is terminated for cause or other than for good reason, he is entitled to any base salary earned but not paid through the date of termination, plus any accrued vacation time, and any other monies owed to him by the Company.

Grants of Plan Based Award

None.

Outstanding Equity Awards At Fiscal Year-end Table

None.

Compensation of Directors Table

The table below summarizes all compensation paid to our directors for our last completed fiscal year.

DIRECTOR COMPENSATION
Name	Fees Earned or Paid in Cash ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Non-Qualified Deferred Compensation Earnings ($)		All Other Compensation ($)		Total ($)
Andrew Brabin		144,000		0		0		0		0		0	$	144,000
Ronald Murphy		144,000		0		0		0		0		0	$	144,000

Narrative Disclosure to the Director Compensation Table

Due to financial constraints typical of those faced by a company in this stage of its growth, the company has not paid the officers in full for 2011. These costs reside in the related party transactions (as monies owed) of our financial statements. The company officers draw on these monies owed when the company is in a position to pay them.

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Securities Authorized for Issuance Under Equity Compensation Plans

None.

Security Ownership of Certain Beneficial Owners

The following table sets forth, as of December 31, 2011, the beneficial ownership of our common stock by each executive officer and director, by each person known by us to beneficially own more than 5% of the our common stock and by the executive officers and directors as a group. Except as otherwise indicated, all shares are owned directly and the percentage shown is based on 55,839,419 shares of common stock issued and outstanding on December 31, 2010.

Title of class	Name of beneficial owner	Amount of beneficial ownership	Percent of class*

Common	Andrew Brabin, UK	16,110,000	28.85%
Common	Ronald Murphy, USA	16,110,000	28.85%
Common	Total all executive officers and directors	32,220,000	57.70%

Common	5% Shareholders	None	None

As used in this table, "beneficial ownership" means the sole or shared power to vote, or to direct the voting of, a security, or the sole or shared investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of, a security). In addition, for purposes of this table, a person is deemed, as of any date, to have "beneficial ownership" of any security that such person has the right to acquire within 60 days after such date.

The persons named above have full voting and investment power with respect to the shares indicated. Under the rules of the Securities and Exchange Commission, a person (or group of persons) is deemed to be a "beneficial owner" of a security if he or she, directly or indirectly, has or shares the power to vote or to direct the voting of such security, or the power to dispose of or to direct the disposition of such security. Accordingly, more than one person may be deemed to be a beneficial owner of the same security. A person is also deemed to be a beneficial owner of any security, which that person has the right to acquire within 60 days, such as options or warrants to purchase our common stock.

Item 13.

Certain Relationships and Related Transactions, and Director Independence.

None of the following parties has, since our date of incorporation, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us:

Any of our directors or officers;

Any person proposed as a nominee for election as a director;

Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock;

Any of our promoters; and

Any relative or spouse of any of the foregoing persons who has the same house address as such person.

Item 14.

Principal Accounting Fees and Services

Below is the table of Audit Fees (amounts in US$) billed by our auditor in connection with the audit of the Company’s annual financial statements for the years ended:

Financial Statements for the Year Ended December 31	Audit Services		Audit Related Fees	Tax Fees		Other Fees

2011	$	12,000	$	$	0	$	0
2010	$	16,600	$	$	0	$	0
2009	$	0	$	$	0	$	0

We did not incur audit costs until 2010 with the preparation for the reverse merger transaction detailed in the Form 8K filed with the SEC on May 12th 2010.

PART IV

Item 15.

Exhibits, Financial Statements Schedules

(a) Documents Filed. The following documents are filed as part of this Annual Report Form 10-K or incorporated by reference as indicated:

1. Financial Statements. The financial statements of TouchIT Technologies, Inc.

Report of Independent Registered Public Accounting Firm for TouchIT Technologies, Inc	F-2

TouchIT Technologies, Inc Statement of Financial Position as of December 31, 2011 and 2010	F-3

TouchIT Technologies, Inc Statement of Income as of December 31, 2011 and 2010	F-4

TouchIT Technologies, Inc Statement of Cash Flow as of December 31, 2011 and 2010	F-5

TouchIT Technologies, Inc Statement of Changes in Equity as of December 31, 2011 and 2010	F-6

Notes to TouchIT Technologies, Inc Financial Statements	F-7

2. Exhibits and Exhibit Index. See the Exhibit Index included as the last part of this Annual Report on Form 10-K, which is incorporated herein by reference.

EXHIBIT INDEX

The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:

Exhibit Number	Description

3.1	Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 2.1 of Form 8-K filed on May 12, 2010)

3.2	Bylaws of TouchIT Technologies, Inc. (incorporated by reference to Exhibit 3.2 of Form S-1 filed May 29, 2008)

10.1	Share Exchange Agreement (incorporated by reference to Exhibit 2.1 of Form 8-K filed on May 12, 2010)

10.2	The Credit Agreement (incorporated by reference to Exhibit 10.1 of Form 8-K filed February 23, 2011)

31.1*	Certification of Principal Executive Officer

31.2*	Certification of Principal Financial Officer

32.1*	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.

* Filed herewith

F-1

Edward Richardson Jr., CPA

15565 Northland Drive Suite 508 West

Southfield, MI. 48075

248-559-4514

Independent Auditor's Report

April 2, 2012

Board of Directors

TouchIT Technologies, Inc.

100 West Beaver Road, Suite 200

Troy, MI. 48084

I have audited the accompanying balance sheet of TouchIT Technologies, Inc. as of December 31, 2011 and the related statements of income, retained earnings, changes in stockholder’s equity, and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 financial statement presentation. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all material aspects, the statement of financial position of TouchIT Technologies as of December 31, 2011, and the statement of activities, changes in stockholder’s equity, and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

/S/ Edward Richardson Jr., CPA

F-2

TOUCHIT TECHNOLOGIES, INC
BALANCE SHEETS
FOR THE PERIODS ENDED 31 DECEMBER 2011, 2010, 2009 AND 2008
(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)

CURRENT ASSETS	12/31/2011			12/31/2010

Cash and cash equivalents		70,289			50,556
Trade receivables, net		240,867			705,225
Due from related parties		-			863,395
Due from Shareholders		-			50,585
Inventories		55,689			365,643
Other current assets					1,106

Total current assets		366,845			2,036,510

NON CURRENT ASSETS

Property, plant and equipment,net		1,027			64,495
Intangible assets, net		-			25,145
Other non current assets		-			3,555

Total non current assets		1,027			93,195

TOTAL ASSETS		367,872			2,129,705

CURRENT LIABILITIES
Borrowings		-			2,351
Trade payables		181,984			124,745
Due to shareholders		-			47,257
Due to related parties		265,318			1,145,992
Other current liabilities		27,390			73,233

Total current liabilities		474,692			1,393,578

NON CURRENT LIABILITIES
Borrowings		250,000			-
Employee termination benefits		-			-
Reserve for retirement pay		-			1,842
Convertible Notes		540,000			750,000

Total non current liabilities		790,000			751,842

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY
Share capital		127,570			127,570
Retained earnings		(637,698	)		(308,463	)
Net income / (loss) for the period		(346,692	)		173,899

Total shareholders’ equity		(356,820	)		(7,004	)

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY		367,872			3,138,416

F-3

TOUCHIT TECHNOLOGIES, INC
COMBINED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED 31 DECEMBER 20010, 2009 AND 2008
(Amounts expressed in US Dollars (USD) in full unless otherwise indicated )



	12/31/2011			12/31/2010

NET SALES		1,595,943			3,577,881
COST OF SALES		(1,341,374	)		(2,502,037	)
Gross profit		254,569			1,075,844
MARKETING AND SELLING EXPENSE		(578,887	)		(504,329	)
GENERAL AND ADMINISTRATIVE EXPENSES		(356,528	)		(479,064	)
Profit from operations		(680,847	)		92,451
OTHER INCOME AND EXPENSES,net		294,154			24,094
FINANCIAL INCOME AND EXPENSES, net		--			(8,294	)
Profit Loss before taxation and currency translation gain/(loss)		(386,692	)		60,063
TAXATION CHARGE		--
Taxation current		--
Deferred		--
CURRENCY TRANSLATION GAIN/(LOSS)		--			60,063
Net income/(loss) for the year		(386,692	)		105,115
OTHER COMPREHENSIVE INCOME		--
Total comprehensive income		(386,692	)		165,178

F-4

TOUCHIT TECHNOLOGIES, INC
STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED 31 DECEMBER 2011, 2010, 2009 AND 2008
(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)


	12/31/2011			12/31/2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		(386,692	)		165,178
Adjustments to reconcile net income to net cash provided PPA		(401,447	)		--
By operating activities:					--
Depreciation and amortisation		--			17,516
Provision for employee benefit		--			801

Changes in operating assets and liabilities
Trade receivables, net		1,378,337			(430,428	)
Due from shareholders		--			(773,544	)
Due from related parties		--
Inventories		309,953			(17,620	)
Other current assets		1,106			98,467
Other non current assets		--			331
Trade payables		322,557			54,126
Due to shareholders		--			54,413
Due to related parties		--			392,276
Other current liabilities		(1,241,442	)		(47,386	)
Convertible Notes		--			750,000

Net cash generated from (used for) operating activities		(17,628	)		67,197

CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in short-term borrowings		--			(8,931	)
Increase/(decrease) in long-term borrowings		(38,158	)		--
Dividends paid		--			--

Net cash (used for) provided from financing activities		(38,158	)		(8,931	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets		797			(62,304	)
Share capital increase		--			--

Net cash used for investing activities		(797	)		(62,304	)

NET INCREASE / (DECREASE) IN CASH AND BANKS		19,733			(4,289	)

CASH AND BANKS AT BEGINNING OF THE YEAR		50,556			54,845

CASH AND BANKS AT END OF THE PERIOD		70,289			50,556

F-5

TOUCHIT TECHNOLOGIES, INC.
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE PERIOD ENDED DECEMBER 31, 2011

																				Total
																	Retained			Stockholder's
	Common Stock				Preferred Stock				Paid-in Capital				Treasury Stock				Earnings			Equity
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Amount			Amount

Balance at January 1, 2011		55,839,419	$	127,570	$	-	$	-		-	$	-		-	$	-	$	(143,285	)	$	(15,715	)

Net Income		-		-		-		-		-		-		-		-		(386,692	)		(386,692	)

Capital Transactions		-		-		-		-		-		-		-		-		-			-

Prior Period Adjustments		-		-		-		-		-		-		-		-		(494,412	)		(494,412	)

Balance at December 31, 2011		55,839,419	$	127,570	$	-	$	-		-	$	-		-	$	-	$	(1,024,389	)	$	(896,819	)

F-6

TOUCHIT TECHNOLOGIES, INC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED DECEMBER 31, 2011

1.	OPERATIONS OF THE COMPANY:

General

TouchIT Technologies, Inc. (the “Company”) was incorporated in the State of Nevada as “Hotel Management Systems, Inc.”. On May 7, 2010, the Company entered into a share exchange agreement, with TouchIT Technologies Koll Sti (“TouchIT Tech KS”), TouchIT Education Koll Sti (“TouchIT Ed”)(“TouchIT Ed” and together with TouchIT Tech KS, “TouchIT”), and the stockholders of TouchIT Tech KS and Touch Ed. Both TouchIT Tech KS and TouchIT Ed are corporations formed under the laws of Turkey and are based in Istanbul, Turkey. The closing of the transaction (the “Closing”) took place on May 7, 2010 (the “Closing Date”), all as disclosed in a Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on May 24, 2010. See “Recent Developments”. Subsequently, the Registrant amended its Articles of Incorporation to change its name to TouchIT Technologies, Inc., as disclosed in a Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on May 24, 2010.

Organization

Pursuant to the terms of the Share Exchange Agreement, Hotel Management issued a total of 48,330,000 shares of their common stock, par value USD 0.001 per share (the “Common Stock”) to the shareholders of Touch IT Technology and Touch It Education in exchange for the transfer of 100% of the shares of Touch IT Tech and Touch IT Education to Hotel Management. This exchange transaction resulted in Touch IT Technologies and Touch IT Education becoming Hotel Management. The wholly-owned subsidiaries and the stockholders of TouchIT Turkey own approximately 78.93% of the Hotel Management’s issued and outstanding stock, prior to any financing.

Simultaneously with the closing of the Share Exchange Agreement, on May 7, 2010, Management entered into a Subscription Agreement (the “Subscription Agreement”) with investors for the sale of shares up to the value of USD 1,500,000 (the Purchase Price”). As a result USD 750,000 of the Purchase Price was recognized in TouchIT education’s balance sheet as a future obligation to one of the investors.

Average number of employees of the Company as of December 31, 2011 and December 31, 2010 is five.

Description of Business

TouchIT Technologies, Inc is a designer, producer and marketer of touch-based visual communication products. The Company manufactures a large range of touch screen and touch board products containing TouchIT's proprietary technology to suit all types of applications, from small LCD touch-screens to large interactive whiteboard displays and audience response systems, with applications to several industry segments including education, business, and government. For more information, please visit the Company's Website: www.touchittechnologies.com.

2.	IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In January 2010, the FASB issued an amendment to ASC, “Fair Value Measurements and Disclosure,” to require entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard is effective for interim and annual periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair measures which are effective for fiscal years beginning after December 15, 2010, its adoption will not have a material impact on the Company’s financial statements.

3.	BASIS OF PRESENTATION

The Company maintains its books of account and prepares financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America. The Company’s fiscal year ends on December 31.

4.	SIGNIFICANT ACCOUNTING POLICIES:

Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments, which are readily convertible into, cash, with original maturities of three months or less.

F-7

Basis of Accounting

The Company uses the accrual basis of accounting.

Accounts Receivable – Recognition of Bad Debt

The Corporation considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Revenue recognition

The company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred or services are rendered, the sales price is terminable, and collectability is reasonably assure. Revenue typically is recognized at the time of shipment. Sales are recorded net of discounts, rebates, and returns.

Inventories

Inventories are stated at the lower of cost or market. Costs, including an appropriate portion of fixed and variable overhead expenses are assigned to inventories by the method most appropriate to the particular class of inventory being valued on the weighted average basis.

Related Parties

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making the financial and operating decisions. For the purpose of these financial statements shareholders are referred to as related parities. Related parties are also included individuals that are principle owners, management and members of the Company’s Board of Directors and their families.

Capitalization

All costs incurred over $500 are capitalized. Costs which lengthen the life of a fixed asset are capitalized and depreciated over the extended life of the asset.

Depreciation

Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Assets reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. If the fair value is less that the carrying amount of the asset, a loss is recognized for the difference.

Taxation

The Company has elected to be treated as a regular “C” corporation; therefore, the corporation , not the stockholders, will pay income taxes.

Leases

Leases are classified as capital leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Comprehensive Income

In June 1997, the Financial Accounting Standard Board issued SFAS No. 130, “Reporting Comprehensive Income.” SFAS No. 130 is effective for years beginning after June 15, 1997. This statement provides reporting standards of comprehensive income and its components and requires that all components of comprehensive income be reported in the financial statements in the period in which they are recognized. The Company has adopted the provisions of SFAS No. 130 in its financial statements and adoption of this statement did not have any effect.

Financial Instruments

Fair value is defined as the price that would be received to sell an assets or paid to transfer a liability in an orderly transaction between participants at the measurement date (i.e., an exit price). The guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority

To unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 – Quoted, active market prices for identical assets or liabilities. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgage-backed securities, which are traded by dealers of brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. The Company did not have any Level 1 assets or liabilities.

Level 2 – Observable inputs other than Level 1, such as quoted market prices for similar assets or liabilities, quoted for identical or similar assets in inactive markets, and model derived valuations in which all significant inputs are observable in active markets. The Company did not have any Level 2 assets or liabilities.

Level 3 – Valuation techniques in which one or more significant inputs are observable in the market. The Company did not have any Level 3 assets or liabilities.

F-8

5.	CASH AND CASH EQUIVALENTS

As of December 31, 2011 and December 30, 2010, cash and cash equivalents comprised were comprised of the following:

		31.12.2011		31.12.2010


Cash on Hand	$	0	$	0
Banks	$	70,289	$	50,566

Total	$	70,289	$	50,566

6.	TRADE RECEIVABLES

As of December 31, 2011 and December 30, 2010, trade receivables comprised were comprised of the following:

		31.12.2011			31.12.2010


Trade Receivables	$	240,867		$	705,255
Provision for doubtful accounts	$	(0	)	$	(0	)

Total	$	240,867		$	705,255

7.	RELATED PARTY TRANSACTIONS:

In the course of conducting its business, the Company conducted various business transactions with related parities on commercial terms.

Related parties and shareholders balances and transactions have been presented as follows:

Due from related parties		31.12.2011		31.12.2010

Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	276,087
Touch IT Technologies Koll. Sti.. Ronald George Murphy ve Ortaklari	$	0	$	587,308

Total	$	0	$	863,395

Due from shareholders		31.12.2011		31.12.2010


Andrew Stuart Brabin	$	0	$	7,181
Recep Tanisman	$	0	$	43,404

Total	$	0	$	50,585

F-9

Due to related parties		31.12.2011		31.12.2010


Kamron, Inc.	$	159,064	$	86,555
ASB Trading	$	106,254	$	54,420
TouchIT Technologies Dis Tic Koll Sirketi	$	0	$	587,308
Emko Emaye ve Yazi Tahtalari	$	0	$	417,709

Total	$	265,318	$	1,145,992

Due to shareholders		31.12.2011		31.12.2010


Ali Riza Tanisman.	$	0	$	32,312
Recep Tanisman	$	0	$	379
Andrew Stuart Brabin	$	0	$	14,566

Total	$	0	$	47,257

Major purchases from related parties		31.12.2011		31.12.2010


Touch It Technologies Koll Sti Ronald George Murphy ve Ortakari	$	0	$	148,756
TouchIT Education Technologies Dis Tic Koll Sti	$	0	$	141,260
Emko Emaye ve Yazi Tahtalari	$	0	$	333,480

Total	$	0	$	623,496

Major sales to related parties		31.12.2011		31.12.2010


TouchIT Education Technologies Dis Tic Koll Sti	$	0	$	148,756
Emko Emaye ve Yazi Tahtalari	$	0	$	0
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	372,956
Touch IT Technologies Koll. Sti Ronald Geroge Murphy ve Ortakari	$	0	$	127,340

Total	$	0	$	649,052

Service provided by		31.12.2011		31.12.2010

Kamron, Inc.	$	159,064	$	170,465
Andrew Stuart Brabin	$	0	$	103,527
ASB Trading	$	106,254	$	0

Total	$	265,318	$	273,992

F-10

8.	INVENTORIES

		31.12.2011		31.12.2010


Trade goods	$	55,689	$	365,643
Advances given for purchases	$	0		0

Total	$	55,689	$	365,643

9.	OTHER CURRENT ASSETS

As of December 31, 2011 and December 30, 2010, other receivables comprised of the following:

		31.12.2011		31.12.2010


Prepaid Expense	$	0	$	0
Advances given to personnel	$	0	$	1,106

Total	$	0	$	1,106

10.	NON-CURRENT ASSETS

As of December 31, 2011 and December 31, 2011 non current assets comprised of the following:

		31.12.2011		31.12.2010

Property, Plan and Equipment, net	$	1,027	$	64,495
Intangible Assets, Rights net	$	0	$	25,145
Other	$	0	$	3,555
Accumulated Depreciation	$	0	$	0
Total	$	1,027	$	93,195

Rights represent the operating licenses obtained from the Under Secretariat of the Prime Ministry for Foreign Trade. The validation date of the license has been extended from 10 to 15 years in 2010.

11.	TRADE PAYABLES

As of December 31, 2011 and December 31, 2010, trade payables were comprised of the following:

		31.12.2011		31.12.2010

Suppliers	$	181,984	$	124,745
Totals	$	181,984	$	124,745

F-11

12.	OTHER CURRENT LIABILITIES

As of December 31, 2011 and December 31, 2010, other current liabilities of the following:

		31.12.2011		31.12.2010

Other Current Liabilities	$	27,390	$	73,233





Total	$	27,390	$	73,233

13.	CAPITAL STOCK

The issued share capital of the Company is respectively for the period ended at December 31, 2011 and 2010 is comprised of the following:

		31.12.2011		31.12.2010
	Insider		Insider
	Holdings		Holdings
Andrew Stuart Brabin		16,110,000		16,110,000
Ronald George Murphy		16,110,000		16,110,000
Recep Tanisman		0		16,110,000
Total		32,220,000		48,330,000

14.

SALES

The composition of sales by principal for the periods ended December 31, 2011 and 2010 can be summarized as follows:

		31.12.2011		31.12.2010

CleverBoard	$	633,225.00	$	887,639.00
TouchIT Board 50"	$	10,909.00	$	34,589.00
TouchIT Board 78"	$	333,292.00	$	628,105.00
TouchIT Board 80"	$	58,031.00	$	179,794.00
TouchIT Board 90"	$	57,716.00	$	121,048.00
Triumph Board 78"			$	136,867.00
Triumph Board 50"			$	1,244.00
Triumph Board 80"			$	53,182.00
Electronic Parts	$	416,336.00	$	1,023,279.00
Voting Systems	$	4,738.00	$	153,335.00
Wireless Tablets	$	5,500.00	$	47,745.00
LCD Components	$	615.00	$	0.00

Others	$	36,710.00	$	328,968.00
Delivery Income	$	38,871.00
Returns (-)			$	(17,914.00	)

Total	$	1,595,943.00	$	3,577,881.00

F-12

15.	COST OF SALES

The composition of cost of sales by principal for the periods ended December 31, 2011 and 2010 can be summarized as follows:

		31.12.2011			31.12.2010

Beginning inventory of trade goods
Purchases	$	1,397,063		$	2,502,037
Ending inventory of trade goods (-)		(55,689	)

Total	$	1,341,374		$	2,502,037

16.	MARKETING AND SELLING EXPENSES

The composition of marketing and selling expenses by principal for the periods ended December 31, 2011 and 2010 are summarized as follows:

		31.12.2011		31.12.2010


Marketing and Selling Expenses	$	578,887	$	504,239


Total	$	578,887	$	504,239

17.	GENERAL AND ADMINISTRACTIVE EXPENSES

The composition of general and administrative expenses by the principal operations for the periods ended December 31, 2011 and 2010 are as follows:

		31.12.2011		31.12.2010


General and Administrative Expenses	$	356,528	$	479,064


Total	$	356,528	$	479,,064

18.	OTHER INCOME AND (EXPENSES), net

The composition of other income and expenses for the years December 31, 2011 and 2010 can be summarized as follows:

		31.12.2011		31.12.2010


Other Income and Expenses	$	294,154	$	24,094


Total	$	294,154	$	24,094

F-13

19.	FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stockholders through the optimization of the debt and equity balance. The capital structure of the Company consists of debt, which includes the borrowings, cash and cash equivalents and equity, comprising issued capital reserves and retained earnings.

Financial risk factors

The Company’s activities expose it to a variety of financial risks, credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets seeks to minimize potential adverse effects on the Company’s financial performance.

Credit risk management

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the company. The Company has adopted a policy of only dealing with creditworthy counterparties. The Company’s exposure and the credit ratings of it counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Liquidity risk management

Liquidity risk arises from the fact that the Company may not receive funds from its counterparties at the expected time. This risk is managed by maintaining a balance between continuity of funding and flexibility through the use of overdrafts and trade receivables.

20.	SUBSEQUENT EVENTS

As filed on the 28th of October 2011, with the SEC in a Form 8K, On October 21, 2011, TouchIT Technologies, Inc (the “Company”), through its board of directors (the “Board of Directors”), accepted the resignation of Recep Tanisman as Chief Executive Officer and from all other positions he held with the Company. In conjunction with the resignation, the Board of Directors agreed to repurchase and return to treasury the 16,110,000 shares of common stock held by Mr. Tanisman in exchange for the assets and subsequent closure of the Company’s two (2) Turkish subsidiaries, TouchIT Technologies Koll Sti and TouchIT Education Koll Sti. In addition, the transaction cleaned up the balance sheet of the Company as Mr. Tanisman agreed to assume the liability of all of the existing Turkish debtors, and the Company assumed the liability for all non-Turkish debtors and creditors. In connection with the transaction, Mr. Tanisman also agreed to indemnify the Company against any future claims from him.

On February 16, 2011, The Company has borrowed USD 250,000 form TCA Global Credit Master Fund pursuant to a revolving credit facility evidenced by a Credit Agreement with an effective date as of November 30, 2010. The Credit Agreement evidences a revolving credit facility in the maximum principal amount of USD 250,000, which subject Lender approval may be increased up to USD 1,000,000. The outstanding principal amount was due on February 16, 2012. The facility was officially closed and the principal repaid in full on the 1st March 2012.

F-14

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TouchIT Technologies, Inc. f.k.a Hotel Management Systems, Inc .

	By:	/s/ Andrew Brabin
		Andrew Brabin, Chief Financial Officer

		January 27, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature	Title	Date

/s/ Andrew Brabin	CEO, Chief Financial Officer, Corporate Secretary, Treasurer, and	January 27, 2014
Andrew Brabin	Director (Principal Financial and Accounting Officer)

Attached files

Stock widget

Investing forum

BTCS Inc. Reports