SPECTRUM HEALTH NETWORK, INC. INDEX TO FINANCIAL STATEMENTS Financial Statements: Report of Independent Registered Public Accounting Firm Balance Sheet as of

SPECTRUM HEALTH NETWORK, INC.

INDEX TO FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

Spectrum Health Network,

We have audited the accompanying balance sheet of Spectrum Health Network, Inc. (the Company ) as of December 31, 2009,

and the related statements of operations, changes in stockholders equity and cash flows for the period October 21, 2009 through December 31, 2009. Our responsibility is to express an opinion on these financial statements based on our

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company s internal control over financial

reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of

the Company s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes

assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Spectrum Health Network,

Inc. as of December 31, 2009, and the results of its statements of operations, changes in stockholders equity, and cash flows for the period October 21, 2009 (Inception) through December 31, 2009 in conformity with U.S.

generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that the Company will continue as

a going concern. As discussed in Note 1 to the financial statements, the Company is in process of executing its business plan and expansion. The Company has not generated significant revenue to this point. The lack of profitable operations and the

need to continue to raise funds raise significant doubt about the Company s ability to continue as a going concern. Management s plans in this regard are described in Note 1. The financial statements do not include any adjustments that

might result from the outcome of this uncertainty.

SPECTRUM HEALTH NETWORK, INC.

The accompanying notes are an integral part of these financial statements

SPECTRUM HEALTH NETWORK, INC.

STATEMENT OF OPERATIONS

FOR THE PERIOD OCTOBER 21, 2009 (INCEPTION)

THROUGH DECEMBER 31, 2009

The accompanying notes are an integral part of these financial statements

SPECTRUM HEALTH NETWORK, INC.

STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY

FOR THE PERIOD OCTOBER 21, 2009 (INCEPTION) THROUGH DECEMBER 31, 2009

The accompanying notes are an integral part of these financial statements.

SPECTRUM HEALTH NETWORK, INC.

STATEMENT OF CASH FLOWS

FOR THE PERIOD OCTOBER 21, 2009 (INCEPTION)

THROUGH DECEMBER 31, 2009

The accompanying notes are an integral part of these financial statements

SPECTRUM HEALTH NETWORK, INC.

NOTES TO FINANCIAL STATEMENTS

On October 21, 2009, Spectrum Health Network, Inc. (the Company or Spectrum ), was incorporated in the State

of Delaware. The Company is a wholly owned operating subsidiary of Gordon Communications, Inc. On November 1, 2009, Gordon Communications, Inc. acquired network assets from Medsource Media, LLC. who had developed a digital out-of-home medical

information content network known and operating as Spectrum Health Network.

Spectrum Health Network is a digital signage

waiting room network built for the multispecialty group practice and Independent Physician Association. Spectrum was developed to be an extension of the medical practice, enabling the group practice to relay custom produced, health-specific

educational based content to patients during the very important dwell time while waiting for their physicians. Spectrum provides its clients with a powerful tool for practice enhancement, patient communication and viable method to

deliver educational initiatives.

At the time Gordon Communications, Inc. acquired the assets from Medsource Media, LLC, there

were 61 live sites installed over 7 group practices. Currently Spectrum maintains 126 live sites installed across seventy-two independent buildings servicing eight different IPAs in the California and NY markets with one location operating as a test

in Atlanta, GA. Of these building locations, 58 are located in Northern California, 10 in Southern California, and 2 in NY. Gordon Communications, Inc. acquired these assets for Spectrum and placed the assets and the assumed liabilities in Spectrum.

Accounting Standard Codification

Effective October 21, 2009, the Company adopted the Financial Accounting Standards Board ( FASB ) Accounting Standards

Codification ( ASC ) 105-10, Generally Accepted Accounting Principles Overall ( ASC 105-10 ). ASC 105-10 establishes the FASB Accounting Standards Codification (the Codification ) as the source of authoritative

accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are

also sources of authoritative U.S. GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. The Codification superseded all existing non-SEC accounting and reporting standards. All other

non-grandfathered, non-SEC accounting literature not included in the Codification is non-authoritative. The FASB will not issue new standards in the form of Statements, FASB Positions or Emerging Issue Task Force Abstracts. Instead, it will issue

Accounting Standards Updates ( ASUs ).

The FASB will not consider ASUs as authoritative in their own right. ASUs

will serve only to update the Codification, provide background information about the guidance and provide the bases for conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for

SPECTRUM HEALTH NETWORK, INC.

NOTES TO FINANCIAL STATEMENTS

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and

discharge its liabilities in the normal course of business. The Company has generated minimal revenues since inception and has generated losses totaling $40,948 in their initial period, and needs to raise additional funds to carry out their business

plan. The continuation of the Company as a going concern is dependent upon the continued financial support from its major vendor, and the ability of the Company to obtain necessary financing to continue operations.

The Company has had very little operating history to date, however is not currently in the development stage. These financial statements

do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial

doubt regarding the ability of the Company to continue as a going concern.

Besides generating revenues from proposed

operations, the Company may need to raise additional capital to expand operations to the point at which the Company can achieve profitability. The terms of financing that may be raised may not be on terms acceptable by the Company. If adequate funds

cannot be raised outside of the Company, the Company s current shareholders may need to contribute funds to sustain operations.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and

expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments and other short-term investments with maturity of three months

or less, when purchased, to be cash equivalents.

The Company maintains cash and cash equivalent balances at one financial

institution that is insured by the Federal Deposit Insurance Corporation.

SPECTRUM HEALTH NETWORK, INC.

NOTES TO FINANCIAL STATEMENTS

The Company prepays for equipment and installation of sites, and as the sites are installed and commissioned the cost of the sites is

moved from the prepaid asset into fixed assets at a useful life of 3 years, and stated at cost, less accumulated depreciation. Depreciation commences on the first day of the month following the installation of the sites and is calculated using the

straight-line method over the estimated useful lives of the related assets. Costs of maintenance and repairs will be charged to expense as incurred. The Company had 61 sites live in December 2009; and depreciation of $6,345 was recorded for the

period October 21, 2009 (Inception) through December 31, 2009.

Recoverability of Long-Lived Assets

Although the Company does not have any long-lived assets at this point, for any long-lived assets acquired in the future the

Company will review their recoverability on a periodic basis whenever events and changes in circumstances have occurred which may indicate a possible impairment. The assessment for potential impairment will be based primarily on the Company s

ability to recover the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying

value of the assets exceeds the fair value of the assets. Fixed assets to be disposed of by sale will be carried at the lower of the then current carrying value or fair value less estimated costs to sell.

Fair Value of Financial Instruments

The carrying amount reported in the balance sheet for cash and cash equivalents, accounts payable, and accrued expenses approximate fair

value because of the immediate or short-term maturity of these financial instruments. The Company does not utilize derivative instruments.

The segment library is reflected as intangible assets on the accompanying Balance Sheet. These costs represent the production costs

relating to producing the segments that are presented in the professional offices. The Company amortizes the segments commencing on the first day of the month following the segments placed into service. These segments were acquired from Medsource

Media, LLC, and a life of 12 months has been assigned to them. Amortization of $1,125 has been recorded for the period October 21, 2009 (Inception) through December 31, 2009.

SPECTRUM HEALTH NETWORK, INC.

NOTES TO FINANCIAL STATEMENTS

The Company accounts for income taxes utilizing the liability method of accounting. Under the liability method, deferred taxes are