1.	The Company

Le@P Technology, Inc. and Subsidiaries (the “Company”), formerly known as Seal Holdings Corporation, is a holding company that was formerly pursuing a strategy of acquiring and commercializing synergistic technologies to develop advanced products. However, the prevailing environment in the U.S. economy and credit markets have not allowed the Company to obtain the financing required to consummate an acquisition, and in 2009, the Company's Board of Directors (the “Board”) determined to cease for the foreseeable future investigating or seeking to consummate further investment and acquisition opportunities.

Notwithstanding this, the Company may from time to time consider investment or acquisition opportunities which otherwise come to the attention of the Board or its acting officers. The ability of the Company to pursue or ultimately consummate any such opportunities would be dependent upon, among other things, its ability to obtain the necessary funding or financing for such activities, which the Company is unlikely to be able to obtain in the current capital markets and investment and financing climate.

The Company currently has no revenue-producing activities or business operations. The only significant asset of the Company is its indirect ownership of certain land in Broward County, Florida (the “Real Property”) through Parkson Property LLC (“Parkson”), a wholly-owned subsidiary of the Company. The land is zoned light industrial and consists of approximately one and one-third acres. The Company's lease of its Real Property expired in March 2010. The Company has decided not to re-lease the Real Property at the present time and will continue to analyze and explore alternatives regarding the Real Property (including its possible sale). The Company's decision not to re-lease the Real Property is based in significant part upon its determination that, under current market conditions, certain improvements would be required to be made to the Real Property before it could be leased. However, the Company does not presently have the necessary liquid cash resources (or access to sources of funding or financing) to make such improvements and has no expectation of being able to secure cash or other funding or financing to make such improvements in the foreseeable future. Consequently, the Company is realizing no revenue or income in respect of its Real Property and has no prospects of realizing revenue or income from its Real Property in the foreseeable future but continues to incur costs relating to its ownership, maintenance, and insurance of its Real Property (including, without limitation, annual property taxes). The outstanding principal and interest owed by Parkson in connection with its purchase of the Real Property substantially exceeds the value of the Real Property. (For a discussion of Parkson's indebtedness relating to its purchase of the Real Property, see Note no. 3 “Notes Payable to Related Parties” to these Notes to Condensed Consolidated Financial Statements, below.)

Operating Losses and Cash Flow Deficiencies

Because the Company currently has no revenue-producing activities or business operations but continues to incur operating expenses, the Company has been experiencing and continues to experience operating losses and deficiencies in operating cash flows.

Unless the Company secures the necessary cash, funding or financing for and consummates a transaction to acquire or invest in operations or other revenue-producing activities or business operations to become self-sufficient (which it is unlikely to be able to do), the Company will remain dependent upon other sources of capital or will be forced to cease operations and liquidate. In the past, such capital has come from the M. Lee Pearce Living Trust, of which M. Lee Pearce, M.D. (the Company's majority stockholder) is the 100% beneficial owner, and the proceeds from the Company's sale (in 2005) of its investment in Healthology, Inc. (When used in this report, the term “Majority Stockholder Trust” refers to the M. Lee Pearce Living Trust and the term “Majority Stockholder” refers to M. Lee Pearce, M.D.)

The Company has nearly exhausted its liquid cash resources, and presently depends entirely upon loans from the Majority Stockholder Trust to cover operating expenses for the remainder of this calendar year. Based on historical operating expenses (including legal and accounting expenses) and based on estimated projections of the anticipated operating expenses going forward, the Company's cash, in the aggregate amount of $37,112 as of June 30, 2011, likely will not be sufficient to cover the current levels of operating expenses beyond the end of the quarterly period ending September 30, 2011. There can be no assurance that the Company will be successful in raising additional cash or avoiding liquidation.

The Company has requested that the Majority Stockholder Trust or the Majority Stockholder provide additional cash, funding or financing for the Company's current and anticipated operations beyond the quarterly period ending September 30, 2011 and at a minimum through the end of the current fiscal year ending December 31, 2011. However, neither the Majority Stockholder Trust nor the Majority Stockholder is under any commitment or obligation to provide any additional cash, funding or financing to the Company. If the Majority Stockholder Trust or the Majority Stockholder, in its or his discretion, determines to provide any cash, funding or financing, there is no assurance that the Majority Stockholder Trust or the Majority Stockholder will continue to do so in the future, and there is no assurance regarding the terms and conditions relating to any such cash, funding or financing. The Company's efforts to obtain cash, funding or financing may require significant costs and expenditures, and if the Company succeeds in obtaining cash, funding or financing, the terms and conditions relating thereto could result, among other things, in substantial dilution of existing equity positions and increased interest expense.