8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

May 19, 2008

KIT digital, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-25659	11-3447894
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

228 East 45th Street 8th Floor New York, NY 10017

(Address of principal executive offices) (Zip Code)

(212) 661-4111

(Registrant’s telephone number, including area code)

ROO Group, Inc.

(Former name or former address, if changed since last report)

Copies to:

Richard A. Friedman, Esq.

Sichenzia Ross Friedman Ference LLP

61 Broadway, 32^nd Floor

New York, New York 10006

Phone:  (212) 930-9700

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

EXPLANATORY NOTE

On May 23, 2008, KIT digital, Inc., a Delaware corporation (“KIT” or the “Company”), filed a Current Report on Form 8-K (the “May 8-K”) to report the company entered into a definitive Share Purchase Agreement (“Kamera SPA”) on May 19, 2008 with Kamera Content AB (“Kamera”), a company incorporated and organized under the laws of Sweden. Upon entry into the Kamera SPA, the Company assumed day-to-day management and control of Kamera.

This amendment is being filed to amend and supplement Item 9.01 of the May 8-K to include the financial statements and pro forma financial information required by parts (a) and (b) of Item 9.01 of Form 8-K.

Item 2.01 Completion of Acquisition or Disposition of Assets

Pursuant to the terms of Kamera SPA, the consummation of the acquisition was predicated upon several administrative items, including the physical delivery of Kamera stock certificates to the Company and a working capital calculation as of May 18, 2008 (the “Completion Items”). The Completion Items were satisfactory complied with by June 25, 2008, and as such the acquisition was completed on said date.

Item 9.01 Financial Statements and Exhibits.

a. Financial statements of business acquired.

The following financial statements of Kamera Content AB are filed as Exhibits 99.1, 99.2 and 99.3 to this amendment and are incorporated in their entirety herein by reference:

Exhibit 99.1

Independent auditors’ report;

Consolidated balance sheet as of December 31, 2006;

Consolidated statement of income for the year ended December 31, 2006;

Notes to the consolidated financial statements.

Exhibit 99.2

Independent auditors’ report;

Balance sheet as of December 31, 2007 and 2006;

Statement of income for the years ended December 31, 2007 and 2006;

Statement of cash flows for the years ended December 31, 2007 and 2006;

Notes to the financial statements.

Exhibit 99.3

Unaudited balance sheet as of March 31, 2008;

Unaudited statement of income for the three months ended March 31, 2008;

Unaudited statement of cash flows for the three months ended March 31, 2008;

Notes to the unaudited financial statements for the three months ended March 31, 2008.

The attached financial statements of Kamera Content AB have been prepared in accordance with generally accepted accounting principles in Sweden (Swedish GAAP). Those accounting principles differ from generally accepted accounting principles in the United States (US GAAP). Kamera Content AB is the parent company of a group consisting of two subsidiaries, Swegypt Company for Telecommunication (S.A.E) (‘Swegypt”) and Kamera (S) PTE LTD (“Kamera Singapore”). Swegypt is 55% owned by Kamera and Kamera Singapore is 95% owned by Kamera. Exhibit 99.1 includes the financial statements for the consolidation of the Kamera group. Exhibits 99.2 and 99.3 include the financial statements only for the parent company Kamera. The management of KIT have not included the financial statements for 2007 and the quarter ended March 31, 2008 in the exhibits for the subsidiaries Swegypt and Kamera Singapore as they are immaterial.

b. Pro forma financial information.

The following pro forma financial information is furnished as Exhibit 99.4:

Exhibit 99.4

Unaudited pro forma condensed combined balance sheet as of March 31, 2008;

Unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2008;

Unaudited pro forma condensed combined statement of operations for the year ended December 31, 2007;

Notes to unaudited pro forma condensed combined financial statements.

2

d. Exhibits.

Exhibit No.	Description
23.1	Consent of Grant Thornton Sweden AB for 2006.
23.2	Consent of Grant Thornton Sweden AB for 2007.
99.1	Audited consolidated balance sheet of Kamera Content AB as of December 31, 2006 and the related statements of income for the year ended December 31, 2006, together with the report thereon of Grant Thornton Sweden AB.
99.2	Audited balance sheet of Kamera Content AB as of December 31, 2007 and 2006 and the related statements of income and cash flows for the years ended December 31, 2007 and 2006, together with the report thereon of Grant Thornton Sweden AB.
99.3	Unaudited balance sheet of Kamera Content AB as of March 31, 2008, and the related statements of income and cash flows for the three months ended March 31, 2008.
99.4	Unaudited pro forma condensed combined balance sheet of as of March 31, 2008 and the related pro forma condensed combined statements of operations for the three months ended March 31, 2008 and the year ended December 31, 2007.

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

KIT DIGITAL, INC.
By:	/s/ Robin Smyth
	Robin Smyth
	Chief Financial Officer

Date: July 7, 2008

4

EX-23.2

Exhibit 23.2

CONSENT OF INDEPENDENT ACCOUNTING FIRM

Kamera Content AB

Stockholm, Sweden

I hereby consent to the use of my independent auditor’s report dated June 17, 2008, relating to my audit of the financial statements of Kamera Content AB for the year ended December 31, 2007, which is in the Form 8-K/A of KIT digital, Inc. filed July 7, 2008.

Stockholm, Sweden

June 26, 2008

/s/ Maria Jalkenäs

Maria Jalkenäs

Authorized Public Accountant

Grant Thornton Sweden AB

EX-99.1

Exhibit 99.1

Kamera Content AB

Corporate Identity Number 556666-2135

This document is a translation of the original Swedish document.

Annual report for the financial year 2006

The Board of Directors and the managing director herewith submit the Annual Report and consolidated accounts.

Contents	Page
-   Independent auditor’s report	2
-   Administration Report	3
-   Consolidated balance sheet	5
-   Consolidated income statement	7
-   Parent company balance sheet	8
-   Parent company income statement	10
-   Combined parent company and group Notes to the Accounts	11

Unless otherwise stated, all amounts are in thousands of SEK.

1

AUDIT REPORT

To the general meeting of the shareholders of

Kamera Content AB

Company registration number 556666-2135

I have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Kamera Content AB for the financial year 2006-01-01—2006-12-31. These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts are the responsibility of the board of directors and the managing director. My responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on my audit.

I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts, as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for my opinion concerning discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. I also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that my audit provides a reasonable basis for my opinion set out below.

The annual accounts and the consolidated accounts have been prepared in accordance with the Annual Accounts Act and, thereby, give a true and fair view of the company’s and the group’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts.

I recommend to the general meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Stockholm 23^rd of May 2007

Maria Jalkenäs

Authorized public accountant

Grant Thornton Sweden AB

2

Administration report

Information regarding the operations

This Annual report covers the financial year 2006/01/01-2006/12/31.

Kamera Content collaborates with copyright owners e.g. Associated Press Television News (APTN) and offers publicists, practicing on the digital media market, administration and distribution of video contents such as news, sports and entertainment for publishing on the Internet or in mobile networks.

Result and financial position

The company’s turnover for the financial year 2006/01/01-2006/12/31 amounts to kSEK 16 237

The operating profit/loss is negative, kSEK -6 815

Significant events during the financial year

In January 2006 a new share issue, collecting 9,9 MSEK was carried out. Through this issue the owner constellation has changed. The new share issue was made to enable a more offensive strategy. At the same time as the issue both A- and B-shares were split 1:10.

During the financial year the operations have grown and developed favorably. The turnover rose to 16 237 kSEK from 9 215 kSEK in 2005. The number of customers has risen and the company now has 58 customers in 27 different countries.

In February 2006 the company Kamera (S) PTE.LTD was founded. The new company is a subsidiary, which is owned by 95% by Kamera Content AB. The company will translate and produce contents for markets in Asia.

In March 2006 the company Swegypt Company for Telecommunication (S.A.E) was founded. The new company is a subsidiary, which is owned by 55% by Kamera Content AB. The company will translate and produce contents for the Pan-Arabic market.

Significant events after the end of the financial year

In January 2007 the distribution agreement between Kamera and Associated Press (AP) was prolonged to 2010/12/31.

In January 181 000 B-shares of Kamera’s own possession were sold to a new owner, with the condition to turn the shares into A-shares. The sale brought in 4 525 kSEK before transaction costs.

Group structure

Kamera Content AB is the parent company of a group consisting of two subsidiaries, Swegypt Company for Telecommunication (S.A.E) (Corporate Identity Number: 200-039-784) and Kamera (S) PTE.LTD (Corporate Identity Number: 200604451W). Swegypt Company for Telecommunication (S.A.E) is owned by 55 % and Kamera (S) PTE.LTD is owned by 95% by Kamera Content AB.

3

Result and financial position

The result from the group’s and parent company’s operations and the financial position at the end of the financial year are presented in the following income statement and balance sheet including notes to the accounts.

The amounts in the annual report are stated in kSEK.

Proposed appropriation of profits

Means at the disposition of the annual general meeting:
Balanced profits from preceding years	-11 739
Premium at the new share issue 2006/03/15	8 997 340
Net loss for the year	-6 944 060
	2 041 541
Proposed appropriation of accumulated profit
To be carried forward	2 041 541
	2 041 541

4

Consolidated Balance Sheet (kSEK)	Note		2006-12-31
Assets
Fixed assets
Intangible assets
Capitalized software development expenses		6		663
Goodwill		7		1 624
				2 287
Tangible fixed assets
Equipment and computers		8		1 067
Total fixed assets				3 354
Current assets
Current receivables
Accounts receivable - trade				2 962
Other current receivables				112
Prepaid expenses and accrued income		9		1 218
				4 292
Cash and bank balances				1 285
Total current assets				5 577
Total assets				8 929
Equity and liabilities
Equity		10
Share capital				227
Restricted reserves				336
Translation difference				-186
Non-restricted reserves				8 986
Net income for the year				-7 589
				1 774
Minority’s share				201
Provisions
Negative goodwill		5		359
Total provisions				359
Long-term liabilities
Liabilities to credit institutions		11		2 000

5

Consolidated Balance Sheet (kSEK) Note 2006-12-31

Total long-term liabilities		2 000
Current liabilities
Other current liabilities		619
Accounts payable – trade		1 938
Accrued expenses and deferred income	12	2 038
Total current liabilities		4 595
Total equity and liabilities		8 929
Pledged assets	13	2 000
Contingent liabilities		None

6

Consolidated Income Statement (kSEK)	Note		2006
Gross profit		2, 3		2 226
Operating expenses
Personnel costs		4		-9 670
Depreciation				-855
Dissolving of negative goodwill		5		443
Operating income				-7 856
Income from financial items
				14
Interest expenses				-142
Total income from financial items				-128
Income after financial items				-7 984
Minority’s share of profit/loss				396
Net loss for the year				-7 589

7

Parent Company’s Balance Sheet	Note		2006-12-31		2005-12-31
Assets
Fixed assets
Intangible fixed assets
Capitalized software development expenses		6		662 783		-
x§Goodwill		7		1 623 869		1 062 075
				2 286 652		1 062 075
Tangible fixed assets
Equipment and computers		8		517 730		245 986
Financial fixed assets
Participations in Group companies		15		929 746		-
Total fixed assets				3 734 128		1 308 061
Current assets
Current receivables
Accounts receivable - trade				2 855 944		2 983 067
Other current receivables				36 717		99 462
Prepaid expenses and accrued income		9		1 264 317		139 030
				4 156 978		3 221 559
Cash and bank balances				1 085 005		1 836 711
Total current assets				5 241 983		5 058 270
Total assets				8 976 111		6 366 331
Equity and liabilities
Equity		16
Restricted equity
Share capital				226 700		181 700
Statutory reserve				336 444		336 444
				563 144		518 144
Non-restricted equity
Loss brought forward				-11 980		3 599 956
Share premium reserve				8 997 940		-
Net loss for the year				-6 944 060		-3 611 935
				2 041 900		-11 979
Total equity				2 605 044		506 165
Long-term liabilities		11
Liabilities to credit institutions				2 000 000		-
Total long-term liabilities				2 000 000		0
Current liabilities
Advance payments from customers				-		1 280 000
Accounts payable – trade				1 985 399		1 559 663
Liabilities to Group companies				92 924		-

8

Parent Company’s Balance Sheet Note 2006-12-31 2005-12-31

Other current liabilities		523 199	423 000
Accrued expenses and deferred income	12	1 769 545	2 597 503
Total current liabilities		4 371 067	5 860 166
Total equity and liabilities		8 976 111	6 366 331
Pledged assets	13	2 000 000	None
Contingent liabilities		None	None

9

Parent company’s Income Statement	Note		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Gross profit		2, 3, 14		2 668 532		744 330
Operating expenses
Personnel costs		4		-8 761 851		-4 256 098
Depreciation of tangible and intangible assets				-722 229		-78 561
Operating income				-6 815 548		-3 590 329
Income from financial items
Other interest income				13 368		20 005
Interest expenses and exchange rate differences				-141 880		-41 611
Total income from financial items				-128 512		-21 606
Income after financial items				-6 944 060		-3 611 935
Net loss for the year				-6 944 060		-3 611 935

10

Combined parent company and group Notes to the Accounts

Note 1 Accounting and valuation principles

The accounts have been prepared in accordance with the Annual Accounts Act. Adopted accounting principles comply with the standards set out by the Swedish Accounting Standards Board.

The accounting principles remain unchanged compared with the previous year.

Consolidated accounts

Subsidiaries where the parent company directly or indirectly possess more than 50% of the votes, or in any other way posses a significant influence, are included in the consolidated accounts.

The group’s financial statement is prepared according to the purchase method, which means that the subsidiaries’ equity at the date of acquisition, adopted as the difference between assets and liabilities fair value, is eliminated as a whole. Only post-acquisition equity from the subsidiary is thus included in the group’s own equity.

Companies acquired during the year are included in the group’s accounts related to post-acquisition amounts.

Inter-Company profits are eliminated as a whole.

Shares in subsidiaries are accounted in the parent company’s financial statement with possible write-downs deducted. Only received dividends based on post-acquisition earnings are accounted as dividend from subsidiaries.

The consolidated accounts have been prepared using the acquisition method in accordance with Recommendation RR1:00 of the Swedish Financial Accounting Standards Council and includes all subsidiaries.

Revenue recognition

The Company’s revenue recognition for current account work is based on completed work, in line with BFN’s main heading in BFNAR 2003:3. Ongoing, not invoiced service assignments are recognized in the balance sheet at the rate of calculated invoice value of accrued work.

The company is, in line with BFN’s main heading in BFNAR 2003:3, recognizing revenues from completed service assignments based on fixed pricing at the rate of completed work, “percentage of completion”. At the calculation of accrued profit the degree of completion has been calculated as accrued expenses at the closing day, in relation to the calculated sum of expenses to complete the assignment.

Financial fixed assets

Financial assets which are intended to be held over a long period of time are reported at acquisition cost. If a financial fixed asset has, on balance sheet date, a value lower than its book value, the value of the asset is written down to lower value if it can be assumed that such reduction in value is permanent.

Accounts receivable

Accounts receivable are reported as current assets at the amounts expected to be received after deductions for individually-assessed bad debts.

Receivables

Receivables with a maturity of more than 12 months after the closing date are stated as fixed assets, other receivables as current assets. Receivables are stated at the amount that, after an individual assessment, is calculated to be paid.

11

Foreign currencies

Receivables and liabilities in foreign currencies are valued at the closing day to the rate of exchange. Profit and loss of receivables and liabilities relating to operations are offset under other operating income or other operating expenses. Transactions in foreign currency are translated at the transaction day rate of exchange.

Tangible fixed assets

Tangible fixed assets are reported at acquisition cost reduced by the amount of depreciation. Expenses for improving the performance of the assets beyond their original level increase the asset's reported value. Expenses for repairs and maintenance are reported as costs.

The straight-line method of depreciation is utilized for all types of tangible fixed assets. The following periods of depreciation are applied:

Equipment	3 years
Computers	3 years

Write-downs

If there are indications of a decrease in value of an asset or a group of assets, an assessment of its carrying amount is made. When the carrying amount exceeds the calculated recoverable amount, the carrying amount is immediately written down to the recoverable amount.

Intangible assets

Goodwill

Expenses for acquired operations are balanced and depreciated linearly over its assessed useful life, normally up to five years.

Negative Goodwill

Negative group goodwill consists of the amount of the acquisition value that exceeds the fair value of the company’s share of acquired net assets. Negative goodwill is accounted for as other provisions. To the extent that negative goodwill is combined with expectations of future losses and expenses that have been identified in the acquisition and that can be measured in a reliable manner, but do not represent identifiable liabilities, the negative goodwill is accounted in the income statement when the future losses and expenses are realized. Dissolving of negative goodwill is disclosed in the income statement as a reduction of Operating expenses.

Expenses for the development of software

All expenses for the development or maintenance of software are normally expensed immediately. Expenses that are directly connected to identifiable and unique software controlled by the company, including probable financial benefits exceeding expenses within one year, are however capitalized as intangible assets. Capitalized expenditure for the development of software is depreciated linearly over its useful life, in the case of Kamera Content estimated to three years.

Write-downs of intangible assets If there are indications of a decrease in value of an asset or a group of assets, an assessment of its carrying amount is made, including goodwill. When the carrying amount exceeds the calculated recoverable amount, the carrying amount is immediately written down to the recoverable amount.

12

Note 2 Remuneration to auditors

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Audit
Lindebergs Grant Thornton		40		40 000		51 000
Other services
Lindebergs Grant Thornton		34		33 909		6 000
Total		74		73 909		57 000

Note 3 Abridged Income Statement

The Income statement is, in accordance with ÅRL 3 chapter 11 §, disclosed in an abridged state due to reasons of competition. The parent company’s net sales was 16 237 kSEK (9 215 kSEK). The group’s net sales was 16 286 kSEK.

Note 4 Personnel

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Average number of employees
Women (Sweden)		6		6		3
Men (Sweden)		15		15		7
Men (Egypt)		6		-		-
Women (Egypt)		1		-		-
Women (Singapore)		1		-		-
Total		29		21		10
Salaries, remunerations, social costs and pension expenses
Salaries and remunerations for Board of Directors and managing director		483		483 318		335 000
Total salaries and remunerations to other employees		5 801		5 801 000		2 785 000
Salaries and remunerations Swegypt Company for Telecommunication (S.A.E)		333		-		-
Salaries and remunerations Kamera (S)PTE.LTD		574		-		-
		7 191		6 284 318		3 120 000
Pension expenses for Board of Directors and managing director		40		39 511		-
Statutory and contractual social security contributions		1 946		1 946 000		1 010 000
Pension expenses, other employees		142		141 772		-
Total		9 319		8 411 601		4 130 000

13

Members of the Board and senior management

	2006					2005
Group	Number on balance sheet date		of whom men			Number on balance sheet date	of whom men
Members of the Board		12		100	%
Managing Director and other senior managers		6		67	%

	2006					2005
Parent Company	Number on balance  sheet date		of whom men			Number on balance sheet date		of whom men
Members of the Board		5		100	%		4		100	%
Managing Director and other senior managers		4		75	%		4		75	%

Absence due to illness

	Parent Company
	2006			2005
Total absence due to illness *		0,7	%		3	%
- Long term absence due to illness *		0	%		0	%

* Long term absence refers to a period of 60 consecutive days or more.

Other categories consist of fewer than 10 employees why information about these categories is not disclosed.

Note 5 Negative goodwill

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Negative goodwill originating from the acquisition of Swegypt plt		802		-		-
Dissolving of negative goodwill		-443		-		-
Closing residual value according to plan		359		0		0

Note 6 Capitalized software development expenses

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Opening acquisition cost		-		-		-
Capitalization for the year		852		852 152		-
Closing accumulated acquisition cost		852		852 152		-

14

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Opening depreciations		-		-		-
Depreciation for the year		-189		-189 369		-
Closing accumulated depreciation		-189		-189 368		-
Closing residual value according to plan		663		662 783		-

Note 7 Goodwill

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Opening acquisition cost		1 093		1 093 085		-
- Acquisition		923		922 751		1 093 085
Closing accumulated acquisition cost		2 016		2 015 836		1 093 085
-Opening depreciation		-31		-31 000		-
-Depreciation		-361		-361 000		-31 010
Closing accumulated depreciation		-392		-392 000		-31 000
Closing residual value according to plan		1 624		1 623 836		1 062 075

Note 8 Equipment and computers

	Group		Parent Company
	2006-01-01 -2006-12-31		2006-01-01 -2006-12-31		2004-09-13 -2005-12-31
Opening acquisition cost		294		294 000		-
Changes during the year
-Purchases		1 126		444 000		293 537
Closing accumulated acquisition cost		1 420		738 000		293 537
Opening depreciation		-48		-47 551		-
-Depreciation		-306		-171 608		-47 551
Closing accumulated depreciation		-354		-219 159		-47 551
Closing residual value according to plan		1 067		518 841		245 986

15

Note 9 Prepaid expenses and accrued income

	Group		Parent Company
	2006-12-31		2006-12-31		2005-12-31
Accrued income		749		749 360		71 000
Other prepaid expenses		469		514 956		68 000
		1 218		1 264 316		139 000

Note 10 Change in Group equity

Group	Share- capital		Statutory reserve		Translation difference		Non- restricted reserves and Net profit/loss for the year		Total equity
Equity 2006/01/01		182		336		-		-12		506
New share issue		45		-		-		8 998		9 043
Translation difference		-		-		-186		-		-186
Net income for the year		-		-		-		-7 589		-7 589
Equity 2006-12-31		227		336		-186		1 397		1 774

Note 11 Borrowing

	Group	Parent Company
	2006-12-31	2006-12-31	2005-12-31
Long-term liabilities
Liabilities to credit institutions	2 000	2 000 000	-
Total interest-bearing liabilities	2 000	2 000 000	0

The loan as a whole is raised from Almi företagspartner and has duration of 48 months.

Note 12 Accrued expenses and deferred income

	Group		Parent Company
	2006-12-31		2006-12-31		2005-12-31
Accrued royalty expenses		725		725 000		503 000
Accrued additional purchase price		-		-		963 000
Accrued consulting expenses		-		-		181 000
Accrued vacation pay, social expenses included		456		455 633		225 000
Accrued social security contributions		181		181 015		114 000
Deferred income		104		104 000		525 000
Other items		572		304 000		86 000
Total		2 038		1 769 648		2 597 000

16

Note 13 Pledged assets

	Group		Parent Company
	2006-12-31		2006-12-31		2005-12-31
For own provisions and liabilities
Floating charges		2 000		2 000 000		-
designated to liabilities to credit institutions
Total pledged assets		2 000		2 000 000		0

Note 14 Transactions with related parties

Purchases and sales between Group companies

The percentages of purchases and sales regarding Group companies are listed below

Purchase Swegypt Company for Telecommunication

(S.A.E)): 31

Sales: 0

The same pricing principles apply to purchases and sales conducted between Group companies as with transactions with external parties.

Note 15 Participations in subsidiaries

Group	Number of shares		Registered office	Proportion of equity			Book value
Kamera (S) PTE.LTD		190 000	Singapore		95	%		930
Swegypt Company for Telecommunication (S.A.E)		687 500	Kairo		55	%		0

Note 16 Change in equity

	Share- capital	Share premium reserve	Revaluation reserve	Statutory reserve	Share premium reserve	Non- restricted equity	Total equity
Amount brought forward 2006	182	-	-	336	-	-12	506
New share issue	45	-	-	-	8 998	-	9 043
Net income for the year	-	-	-	-	-	-6 944	-6 944
Equity 2006/12/31	227	-	-	336	8 998	-6 956	2 605

The share capital consists of 2 086 000 A-shares at a par value of 0,1 SEK and 181 000 B-shares at a par value of 0,1 SEK.

The company holds 181 000 own B-shares.

17

Note 16 Summary of significant differences between Swedish GAAP and U.S. GAAP

The annual financial statements included herein of Kamera Content AB were prepared in accordance with accounting principles generally accepted in Sweden (Swedish GAAP) which differ in certain significant respects from U.S. GAAP, as described below.

1. Intangible assets

In accordance with Swedish GAAP, the Company amortizes intangible assets based on their statutory useful lives, which is 3 years for goodwill and 3-5 years for capitalized development expenditures.

Under US GAAP intangible assets are amortized over their expected useful lives, which can sometimes be different from the statutory useful lives.

Negative goodwill is required to be disclosed as a provision under Swedish GAAP and reversals be netted e.g. against future losses in the acquired entity.

Under US GAAP this would be disclosed as a reduction of the fair value of assets acquired and hence affecting depreciation.

2. Revenue recognition

In accordance with Swedish GAAP, the Company recognizes revenue when earned. In certain situations, revenue can be recognized upon receipt of payment, while in other situations, revenue is recognized ratably over the contract period. The requirements for recognizing revenue upfront or ratably can vary from the revenue recognition requirements under US GAAP.

Under US GAAP, revenue is recognized in accordance with Staff Accounting Bulletin No. 104, Revenue Recognition and Statement Of Position No. 97-2, Software Revenue Recognition which requires revenue only be recognized when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller´s price to the buyer is fixed or determinable, and collectibility is probable. For certain arrangements that involve multiple deliverables revenue for each deliverable can be recognized individually if certain separation criteria are met. If elements cannot be separated, revenue must be bundled and recognized ratably over time.

3. Exchange differences

In accordance with Swedish GAAP, the Company recognizes exchange differences in the same way as in US GAAP with exception for translation differences which are not recognized as other comprehensive income but booked against equity.

Under US GAAP, assets and liabilities are translated into the entities reporting currency at the prevailing rate of exchange at the balance sheet date and revenue, costs and expenses are translated at the average exchange rate during the period. Translation gains and losses are reflected as other comprehensive income on the balance sheet. Assets and liabilities held by foreign subsidiaries that are in currencies other than the foreign subsidiaries´functional currency are remeasured at the prevailing rate of exchange at the balance sheet date. Gains and losses from remeasurement are included in the determination of net income.

4. Capitalization of development expenditures

Swedish GAAP allows for expenditures during the development phase to be capitalized as intangible assets if it is probable, with a high degree of certainty, that they will result in future economic benefits for the Company.

18

Under US GAAP all costs incurred to establish technological feasibility are charged to expense when incurred in accordance with Statement of Financial Accounting Standards No. 2, Accounting for Research and Development Costs. Software development costs incurred subsequent to establishing technological feasibility but prior to general release shall be capitalized.

19

EX-99.2

Exhibit 99.2

Kamera Content AB

Corporate Identity Number 556666-2135

This document is a translation of the original Swedish document.

Annual report for the financial year 2007

The Board of Directors and the Managing Director herewith submit the Annual Report and consolidated accounts.

Contents		Page
-	Independent auditor’s report	2
-	Administration Report	3
-	Balance Sheet	5
-	Income Statement	7
-	Cash Flow Statement	8
-	Notes to the Accounts	9

Unless otherwise stated, all amounts are in thousands of SEK.

AUDIT REPORT

To the general meeting of the shareholders of

Kamera Content AB

Company registration number 556666-2135

I have audited the annual accounts, the accounting records and the administration of the board of directors and the managing director of Kamera Content AB for the financial year 2007-01-01—2007-12-31. These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts are the responsibility of the board of directors and the managing director. My responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on my audit.

I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts, as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for my opinion concerning discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. I also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that my audit provides a reasonable basis for my opinion set out below.

The annual accounts have been prepared in accordance with the Annual Accounts Act and, thereby, give a true and fair view of the company’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts.

I recommend to the general meeting of shareholders that the income statements and balance sheets be adopted, that the profit of the be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Stockholm 17^th of June 2008

Maria Jalkenäs

Authorized public accountant

Grant Thornton Sweden AB

2

Administration report

Information regarding the operations

This Annual report covers the financial year 2007/01/01-2007/12/31.

Kamera Content collaborates with copyright owners e.g. Associated Press Television News (APTN) and Disney ABC and offers publicists, practicing on the digital media market, administration and distribution of video contents such as news, sports and entertainment for publishing on the Internet or in mobile networks.

Result and financial position

The company’s turnover for the financial year 2007/01/01-2007/12/31 amounts to kSEK 16 837

The operating profit/loss is negative, kSEK -10 478

Significant events during the financial year

During the fall Kamera signed an agreement to distribute news clips for the global Internet and mobile market with the world’s largest news channel Disney ABC. Sales will begin in January 2008.

Profound discussions were undertaken regarding a merger with a company in Canada during the fall of 2007. Among other things, due to the uncertainties on the financial market, the discussions were halted in the beginning of November. This has affected the result for the financial year negatively, as great focus has been laid on the process by the management.

The balance sheet for liquidation purposes has been established as of 2007/09/30, 2007/10/31, 2007/11/30 and 2007/12/31. At the first three dates the share capital was intact, but at 2007/12/31 more than half of the share capital was consumed. An opening supervisory general meeting was conducted at 2008/03/31 and the general meeting decided to continue the operations.

Significant events after the end of the financial year

Kamera has initiated a new collaboration with SNTV, the world’s leading producer of sport news. The collaboration includes producing and distributing video clips for the global Internet and mobile market. Production and sales will begin in March 2008.

On May 19, the owners of Kamera made an agreement to dispose of all shares in Kamera Content AB. As of Monday 19^th of May 2008 KIT Digital Llc will take over the operations and financial responsibility of Kamera Content AB, including the re-establishment of the share capital that is consumed by more than 50 percent.

Group structure

Kamera Content AB is the parent company of a group consisting of two subsidiaries, Swegypt Company for Telecommunication (S.A.E) (Corporate Identity Number: 200-039-784) and Kamera (S) PTE.LTD (Corporate Identity Number: 200604451W). Swegypt Company for Telecommunication (S.A.E) is owned by 55 % and Kamera (S) PTE.LTD is owned by 95% by Kamera Content AB.

Result and financial position

The result from the operations and the financial position at the end of the financial year are presented in the following income statement and balance sheet including notes to the accounts.

3

The amounts in the annual report are stated in kSEK.

Proposed appropriation of profits

Means at the disposition of the annual general meeting:
Balanced profits from preceding years	2 041 900
Net loss for the year	-6 763 524
	-4 721 624
Proposed appropriation of accumulated deficit
To be carried forward	-4 721 624
	-4 721 624

4

Balance sheet	Note		2007-12-31		2006-12-31
Assets
Fixed assets
Intangible fixed assets
Capitalized software development expenses		6		1 461		663
Goodwill		7		952		1 624
				2 413		2 287
Tangible fixed assets
Equipment and computers		8		458		518
Financial fixed assets
Participations in Group companies		9		930		930
Total fixed assets				3 801		3 735
Current assets
Current receivables
Accounts receivable - trade				1 811		2 856
Receivables from Group companies		4		685		-
Other current receivables				422		36
Prepaid expenses and accrued income		10		2 567		1 264
				5 485		4 156
Cash and bank balances				655		1 085
Total current assets				6 140		5 241
Total assets				9 941		8 976
Equity and liabilities
Equity		11
Restricted equity
Share capital				227		227
Statutory reserve				336		336
				563		563
Non-restricted equity
Loss brought forward				-6 956		-12
Share premium reserve				8 998		8 998
Net loss for the year				-6 764		-6 944
				-4 722		2 042
Total equity				-4 159		2 605
Long-term liabilities		12
Liabilities to credit institutions				3 500		2 000
Total long-term liabilities				3 500		2 000
Current liabilities
Advance payments from customers				9		-
Accounts payable - trade				3 691		1 985

5

Balance sheet	Note		2007-12-31		2006-12-31
Liabilities to Group companies		4		113		93
Other current liabilities				4 060		546
Accrued expenses and deferred income		13		2 727		1 747
Total current liabilities				10 600		4 371
Total equity and liabilities				9 941		8 976
Pledged assets		14		3 500		2 000
Contingent liabilities				None		None

6

Income statement	Note		2007		2006
Gross profit		2, 3, 4		-1 667		2 669
Operating expenses
Personnel costs		5		-7 476		-8 762
Depreciation and write-downs (as well as reversals) of tangible and intangible assets				-1 335		-722
Operating income				-10 478		-6 815
Income from financial items
Other interest income				4 045		13
Interest expenses and exchange rate differences				-331		-142
Total income from financial items				3 714		-129
Income after financial items				-6 764		-6 944
Net loss for the year				-6 764		-6 944

7

Kamera Content AB

Reg no 556666-2135

CASH FLOW STATEMENT

	1/1/2007		1/1/2006
	12/31/2007		12/31/2006
Current operations
Net operating profit/loss		-10,478		-6,815
Adjustment for items not included in cash flow
Depreciation		1,335		722
		-9,143		-6,093
Interest received and other		4,045		13
Interest paid and other		-331		-142
Cash flow from current operations before changes in working capital		-5,429		-6,222
Changes in working capital
Increase of receivables		-1,329		-935
Increase/reduction of other current liabilities		6,229		-1,489
Cash flow from current operations		-529		-8,646
Investment activities
Acquisition of subsidiaries		0		-930
Acquisition of tangible fixed assets		-231		-444
Acquisition of intangible assets		-1,170		-1,775
Cash flow from investment activities		-1,401		-3,149
Financing activities
New share issues		0		9,043
Loans raised		1,500		2,000
Cash flow from financing activities		1,500		11,043
Reduction of liquid funds		-430		-752
Liquid funds at beginning of year		1,085		1,837
Liquid funds at end of year		655		1,085

8

Notes

Note 1 Accounting and valuation principles

The accounts have been prepared in accordance with the Annual Accounts Act. Adopted accounting principles comply with the standards for small companies set out by the Swedish Accounting Standards Board.

The accounting principles remain unchanged compared to the previous year.

Consolidated accounts

In accordance with the Annual Accounts Act chapter 7, § 3 no consolidated accounts have been prepared.

Revenue recognition

The Company’s revenue recognition for current account work is based on completed work, in line with BFN’s main heading in BFNAR 2003:3. Ongoing, not invoiced service assignments are recognized in the balance sheet at the rate of calculated invoice value of accrued work.

The company is, in line with BFN’s main heading in BFNAR 2003:3, recognizing revenues from completed service assignments based on fixed pricing at the rate of completed work, “percentage of completion”. At the calculation of accrued profit the degree of completion has been calculated as accrued expenses at the closing day, in relation to the calculated sum of expenses to complete the assignment.

Financial fixed assets

Financial assets which are intended to be held over a long period of time are reported at acquisition cost. If a financial fixed asset has, on balance sheet date, a value lower than its book value, the value of the asset is written down to lower value if it can be assumed that such reduction in value is permanent.

Accounts receivable

Accounts receivable are reported as current assets at the amounts expected to be received after deductions for individually-assessed bad debts.

Receivables

Receivables with a maturity of more than 12 months after the closing date are stated as fixed assets, other receivables as current assets.

Foreign currencies

Profit and loss of receivables and liabilities relating to operations are offset under other operating income or other operating expenses. Transactions in foreign currency are translated at the transaction day rate of exchange.

Tangible fixed assets

Tangible fixed assets are reported at acquisition cost reduced by the amount of depreciation. Expenses for improving the performance of the assets beyond their original level increase the asset's reported value. Expenses for repairs and maintenance are reported as costs.

Depreciation is allocated on a straight-line over the useful life of the asset. Subsequent costs are included in the assets carrying amount if appropriate.

The straight-line method of depreciation is utilized for all types of tangible fixed assets. The following periods of depreciation are applied:

Equipment	3 year
Computers	3 year

9

Write-downs

If there are indications of a decrease in value of an asset or a group of assets, an assessment of its carrying amount is made. When the carrying amount exceeds the calculated recoverable amount, the carrying amount is immediately written down to the recoverable amount.

Intangible assets

Goodwill

Expenses for acquired operations are balanced and depreciated linearly over its assessed useful life, normally up to five years.

Expenses for the development of software

All expenses for the development or maintenance of software are normally expensed immediately. Expenses that are directly connected to identifiable and unique software controlled by the company, including probable financial benefits exceeding expenses within one year, are however capitalized as intangible assets. Capitalized expenditure for the development of software is depreciated linearly over its useful life, in the case of Kamera Content estimated to three years.

Write-downs of intangible assets If there are indications of a decrease in value of an asset or a group of assets, an assessment of its carrying amount is made, including goodwill. When the carrying amount exceeds the calculated recoverable amount, the carrying amount is immediately written down to the recoverable amount.

Note 2 Remuneration to auditors

	2007		2006
Audit
Grant Thornton AB		65		40
Other services
Grant Thornton AB		4		34
Total		69		74

Note 3 Abridged Income Statement

The Income statement is, in accordance with ÅRL 3 chapter 11 §, disclosed in an abridged state due to reasons of competition. The parent company’s net sales was 16 837 kSEK (17 237 kSEK).

Note 4 Transactions with related parties

Purchases and sales between Group companies

The percentages of purchases and sales regarding Group companies are listed below

Purchases (Swegypt Company for Telecommunication

(S.A.E)): 9%

Sales: 0%

The same pricing principles apply to purchases and sales conducted between Group companies as with transactions with external parties.

10

Note 5 Personnel

	2007		2006
Average number of employees
Women (Sweden)		7		6
Men (Sweden)		9		15
Total		16		21
Salaries, remunerations, social costs and pension expenses
Salaries and remunerations for Board of Directors and managing director		587		483
Total salaries and remunerations to other employees		5 442		5 801
		6 029		6 284
Pension expenses for Board of Directors and managing director		13		40
Statutory and contractual social security contributions		2 009		1 946
Pension expenses, other employees		142		142
Total		8 193		8 412

Members of the Board and senior management

Parent Company

	2007					2006
	Number on  balance  sheet date		of whom men			Number on  balance  sheet date		of whom men
Members of the Board		4		100	%		5		100	%
Managing Director and other senior managers		5		80	%		4		75	%

Absence due to illness

Total absence due to illness *	2007		2006
	x	%	3	%
-Long-term absence due to illness	0	%	0	%

*Long term absence refers to a period of 60 consecutive days or more.

Other categories consist of fewer than 10 employees why information about these categories is not disclosed.

11

Note 6 Capitalized software development expenses

	2007		2006
Opening acquisition cost		852		-
Capitalization for the year		1 170		-
Closing accumulated acquisition cost		2 022		852
Opening depreciations		-189		-
Depreciation for the year		-372		-
Closing accumulated depreciation		-561		-189
Closing residual value according to plan		1 461		663

Note 7 Goodwill

	2007		2006
Opening acquisition cost		2 016		1 093
- Acquisition		-		923
Closing accumulated acquisition cost		2 016		2 016
-Opening depreciation		-392		-31
-Depreciation		-672		-361
Closing accumulated depreciation		-1 064		-392
Closing residual value according to plan		952		1 624

Note 8 Equipment and computers

	2007		2006
Opening acquisition cost		738		294
Changes during the year
-Purchases		231		444
Closing accumulated acquisition cost		969		738
Opening depreciation		-220		-48
-Depreciation		-291		-172
Closing accumulated depreciation		-511		-220
Closing residual value according to plan		458		518

12

Note 9 Participations in subsidiaries

Group	Number of shares		Registered office		Proportion of equity			Book value
Kamera (S) PTE.LTD.		190 000		Singapore		95	%		930
Swegypt Company for		687 500		Kairo		55	%		0

Telecommunication (S.A.E)

The result for Swegypt Copmany for Telecommunications (S.A.E) is, according to the last adopted income statement, -978 kSEK (for the prolonged financial year 2006/02/16-2007/12/31). Equity amounts to 22 kSEK at 2007/12/31.

The result for Kamera (S) PTE.LTD is, according to the last adopted income statement, -375 kSEK (fo the financial year 2007/01/01-2007/12/31). Equity amounts to -137 kSEK at 2007/12/31.

The amounts are translated to SEK using the year-end rate of exchange.

Note 10 Prepaid expenses and accrued income

	2007-12-31		2006-12-31
Prepaid rent		266		-
Accrued income		1 211		749
Other prepaid expenses		1 090		515
		2 567		1 264

Note 11 Change in equity

	Share  capital		Share  premium  reserve		Revaluation  reserve		Statutory  reserve		Share  premium reserve		Non-restricted equity		Total  equity
Amount brought forward 2007		227		-		-		336		8 998		-6 956	2 605
Net income for the year		-		-		-		-		-		-6 764	-6 764
Equity 2007/12/31		227		-		-		336		8 998		-13 720	-4 159

The share capital consists of 2 086 000 A-shares at a par value of 0,1 SEK and 181 000 B-shares at a par value of 0,1 SEK.

Note 12 Long term liabilities

	2007-12-31		2006-12-31
Long-term liabilities
Liabilities to credit institutions		3 500		2 000
Total interest-bearing liabilities		3 500		2 000

The loan as a whole is raised from Almi företagspartner and has duration of 48 months.

13

Note 13 Accrued expenses and deferred income

	2007-12-31		2006-12-31
Accrued royalty expenses		1 253		725
Accrued vacation pay, social expenses included		422		456
Accrued social security contributions		269		181
Deferred income		-		104
Other items		783		304
Total		2 727		1 770

Note 14 Pledged assets

	2007-12-31		2006-12-31
For own provisions and liabilities
Floating charges		3 500		2 000
designated to liabilities to credit institutions
Total pledged assets		3 500		2 000

Note 15 Summary of significant differences between Swedish GAAP and U.S. GAAP

The annual financial statements included herein of Kamera Content AB were prepared in accordance with accounting principles generally accepted in Sweden (Swedish GAAP) which differ in certain significant respects from U.S. GAAP, as described below.

1. Intangible assets

In accordance with Swedish GAAP, the Company amortizes intangible assets based on their statutory useful lives, which is 3 years for goodwill and 3-5 years for capitalized development expenditures.

Under US GAAP intangible assets are amortized over their expected useful lives, which can sometimes be different from the statutory useful lives.

Negative goodwill is required to be disclosed as a provision under Swedish GAAP and reversals be netted e.g. against future losses in the acquired entity.

Under US GAAP this would be disclosed as a reduction of the fair value of assets acquired and hence affecting depreciation.

2. Revenue recognition

In accordance with Swedish GAAP, the Company recognizes revenue when earned. In certain situations, revenue can be recognized upon receipt of payment, while in other situations, revenue is recognized ratably over the contract period. The requirements for recognizing revenue upfront or ratably can vary from the revenue recognition requirements under US GAAP.

14

Under US GAAP, revenue is recognized in accordance with Staff Accounting Bulletin No. 104, Revenue Recognition and Statement Of Position No. 97-2, Software Revenue Recognition which requires revenue only be recognized when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller´s price to the buyer is fixed or determinable, and collectibility is probable. For certain arrangements that involve multiple deliverables revenue for each deliverable can be recognized individually if certain separation criteria are met. If elements cannot be separated, revenue must be bundled and recognized ratably over time.

3. Exchange differences

In accordance with Swedish GAAP, the Company recognizes exchange differences in the same way as in US GAAP with exception for translation differences which are not recognized as other comprehensive income but booked against equity.

Under US GAAP, assets and liabilities are translated into the entities reporting currency at the prevailing rate of exchange at the balance sheet date and revenue, costs and expenses are translated at the average exchange rate during the period. Translation gains and losses are reflected as other comprehensive income on the balance sheet. Assets and liabilities held by foreign subsidiaries that are in currencies other than the foreign subsidiaries´functional currency are remeasured at the prevailing rate of exchange at the balance sheet date. Gains and losses from remeasurement are included in the determination of net income.

4. Capitalization of development expenditures

Swedish GAAP allows for expenditures during the development phase to be capitalized as intangible assets if it is probable, with a high degree of certainty, that they will result in future economic benefits for the Company.

Under US GAAP all costs incurred to establish technological feasibility are charged to expense when incurred in accordance with Statement of Financial Accounting Standards No. 2, Accounting for Research and Development Costs. Software development costs incurred subsequent to establishing technological feasibility but prior to general release shall be capitalized.

15

EX-99.3

Exhibit 99.3

KAMERA CONTENT AB

FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED

MARCH 31, 2008

TABLE OF CONTENTS

	Page
Balance sheet of as of March 31, 2008	2
Income statement for the three months ended March 31, 2008	4
Cash flow statement for the three months ended March 31, 2008	5
Notes to financial statements	6

Balance sheet	Note		2008-03-31
Assets
Fixed assets
Intangible fixed assets
Capitalized software development expenses		6		1 347
Goodwill		7		784
				2 131
Tangible fixed assets
Equipment and computers		8		468
Financial fixed assets
Participations in Group companies		9		930
Total fixed assets				3 529
Current assets
Current receivables
Accounts receivable - trade				2 636
Receivables from Group companies		4		406
Other current receivables				183
Prepaid expenses and accrued income		10		3 196
				6 421
Cash and bank balances				1 896
Total current assets				8 317
Total assets				11 846

2

Equity and liabilities		2008-03-31
Equity	11
Restricted equity
Share capital			227
Statutory reserve			336
			563
Non-restricted equity
Loss brought forward			-13 720
Share premium reserve			8 998
Net loss for the year			-1 648
			-6 370
Total equity			-5 807
Long-term liabilities	12
Liabilities to credit institutions			3 500
Total long-term liabilities			3 500
Current liabilities
Advance payments from customers
Accounts payable - trade			5 556
Liabilities to Group companies	4
Other current liabilities			5 923
Accrued expenses and deferred income	13		2 674
Total current liabilities			14 153
Total equity and liabilities			11 846
Pledged assets	14		3 500
Contingent liabilities			None

3

Income statement	Note		2008-01-01- 2008-03-31
Gross profit		2, 3, 4		1 099
Operating expenses
Personnel costs		5		-2 204
Depreciation and write-downs (as well as reversals) of tangible and intangible assets				-365
Operating income				-1 470
Income from financial items
Other interest income
Interest expenses and exchange rate differences				-178
Total income from financial items				-178
Income after financial items				-1 648
Net loss for the year				-1 648

4

Kamera Content AB

Reg no 556666-2135

CASH FLOW STATEMENT

	1/1/2008
	3/31/2008
Current operations
Net operating profit/loss		-1,470
Adjustment for items not included in cash flow
Depreciation		365
		-1,105
Interest paid		-178
Cash flow from current operations before changes in working capital		-1,283
Changes in working capital
Increase/reduction of receivables		-936
Increase/reduction of other current liabilities		3,553
Cash flow from current operations		1,334
Investment activities
Acquisition of tangible fixed assets		-94
Cash flow from investment activities		-94
Financing activities
		0
Cash flow from financing activities		0
Increase/reduction of liquid funds		1,240
Liquid funds at beginning of year		655
Liquid funds at end of year		1,895

5

Notes

Note 1 Accounting and valuation principles

The accounts have been prepared in accordance with the Annual Accounts Act. Adopted accounting principles comply with the standards for small companies set out by the Swedish Accounting Standards Board.

The accounting principles remain unchanged compared to the previous year.

Consolidated accounts

In accordance with the Annual Accounts Act chapter 7, § 3 no consolidated accounts have been prepared.

Revenue recognition

The Company’s revenue recognition for current account work is based on completed work, in line with BFN’s main heading in BFNAR 2003:3. Ongoing, not invoiced service assignments are recognized in the balance sheet at the rate of calculated invoice value of accrued work.

The company is, in line with BFN’s main heading in BFNAR 2003:3, recognizing revenues from completed service assignments based on fixed pricing at the rate of completed work, “percentage of completion”. At the calculation of accrued profit the degree of completion has been calculated as accrued expenses at the closing day, in relation to the calculated sum of expenses to complete the assignment.

Financial fixed assets

Financial assets which are intended to be held over a long period of time are reported at acquisition cost. If a financial fixed asset has, on balance sheet date, a value lower than its book value, the value of the asset is written down to lower value if it can be assumed that such reduction in value is permanent.

Accounts receivable

Accounts receivable are reported as current assets at the amounts expected to be received after deductions for individually-assessed bad debts.

Receivables

Receivables with a maturity of more than 12 months after the closing date are stated as fixed assets, other receivables as current assets.

Foreign currencies

Profit and loss of receivables and liabilities relating to operations are offset under other operating income or other operating expenses. Transactions in foreign currency are translated at the transaction day rate of exchange.

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Tangible fixed assets

Tangible fixed assets are reported at acquisition cost reduced by the amount of depreciation. Expenses for improving the performance of the assets beyond their original level increase the asset's reported value. Expenses for repairs and maintenance are reported as costs.

Depreciation is allocated on a straight-line over the useful life of the asset. Subsequent costs are included in the assets carrying amount if appropriate.

The straight-line method of depreciation is utilized for all types of tangible fixed assets. The following periods of depreciation are applied:

Equipment	3 year
Computers	3 year

Write-downs

If there are indications of a decrease in value of an asset or a group of assets, an assessment of its carrying amount is made. When the carrying amount exceeds the calculated recoverable amount, the carrying amount is immediately written down to the recoverable amount.

Intangible assets

Goodwill

Expenses for acquired operations are balanced and depreciated linearly over its assessed useful life, normally up to five years.

Expenses for the development of software

All expenses for the development or maintenance of software are normally expensed immediately. Expenses that are directly connected to identifiable and unique software controlled by the company, including probable financial benefits exceeding expenses within one year, are however capitalized as intangible assets. Capitalized expenditure for the development of software is depreciated linearly over its useful life, in the case of Kamera Content estimated to three years.

Write-downs of intangible assets If there are indications of a decrease in value of an asset or a group of assets, an assessment of its carrying amount is made, including goodwill. When the carrying amount exceeds the calculated recoverable amount, the carrying amount is immediately written down to the recoverable amount.

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Note 2 Remuneration to auditors

	2008-01-01- 2008-01-31
Audit
Grant Thornton AB		0
Other services
Grant Thornton AB		0
Total		0

Note 3 Abridged Income Statement

The Income statement is, in accordance with ÅRL 3 chapter 11 §, disclosed in an abridged state due to reasons of competition. The parent company’s net sales was 6 017 kSEK .

Note 4 Transactions with related parties

Purchases and sales between Group companies

The percentages of purchases and sales regarding Group companies are listed below

Purchases (Swegypt Company for Telecommunication

(S.A.E)): 9%

Sales: 0%

The same pricing principles apply to purchases and sales conducted between Group companies as with transactions with external parties.

Note 5 Personnel

	2008-01-01- 2008-03-01
Average number of employees
Women (Sweden)		5
Men (Sweden)		9
Total		14
Salaries, remunerations, social costs and pension expenses
Salaries and remunerations for Board of Directors and managing director		141
Total salaries and remunerations to other employees		1 425
		1 566
Pension expenses for Board of Directors and managing director		3
Statutory and contractual social security contributions		505
Pension expenses, other employees		32
Total		2 106

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Members of the Board and senior management

Parent Company

	2008
	Number on balance sheet date		of whom men
Members of the Board		5		100	%
Managing Director and other senior managers		5		80	%

Absence due to illness

Total absence due to illness *	2008-01-01—2008-01-31
		3	%
-Long-term absence due to illness		0	%

*Long term absence refers to a period of 60 consecutive days or more.

Other categories consist of fewer than 10 employees why information about these categories is not disclosed.

Note 6 Capitalized software development expenses

	2008
Opening acquisition cost		2 022
Capitalization for the year		0
Closing accumulated acquisition cost		2 022
Opening depreciations		-561
Depreciation for the year		-114
Closing accumulated depreciation		-675
Closing residual value according to plan		1 347

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Note 7 Goodwill

	2008
Opening acquisition cost		2 016
- Acquisition		-
Closing accumulated acquisition cost		2 016
-Opening depreciation		-1 064
-Depreciation		-168
Closing accumulated depreciation		-1 232
Closing residual value according to plan		784

Note 8 Equipment and computers

	2008
Opening acquisition cost		969
Changes during the year
-Purchases		94
Closing accumulated acquisition cost		1 063
Opening depreciation		-511
-Depreciation		-84
Closing accumulated depreciation		-595
Closing residual value according to plan		468

Note 9 Participations in subsidiaries

Group	Number of shares		Registered office		Proportion of equity			Book value
Kamera (S) PTE.LTD.		190 000		Singapore		95	%		930
Swegypt Company for		687 500		Kairo		55	%		0
Telecommunication (S.A.E)

Note 10 Prepaid expenses and accrued income

	2008-12-31
Prepaid rent		266
Accrued income		2 113
Other prepaid expenses		817
		3 196

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Note 11 Change in equity

	Share capital		Statutory reserve		Share premium reserve		Non- restricted equity		Total equity
Amount brought forward 2008		227		336		8 998		-13 720		-4 159
Net income for the year		-		-		-		-1 648		-1 648
Equity 2008/03/31		227		336		8 998		-15 368		-5 807

Note 12 Long term liabilities

	2008-03-31
Long-term liabilities
Liabilities to credit institutions		3 500
Total interest-bearing liabilities		3 500

The loan as a whole is raised from Almi företagspartner and has duration of 48 months.

Note 13 Accrued expenses and deferred income

	2008-03-31
Accrued royalty expenses		961
Accrued vacation pay, social expenses included		456
Accrued social security contributions		159
Other items		1 098
Total		2 674

Note 14 Pledged assets

	2008-03-31
For own provisions and liabilities
Floating charges		3 500
designated to liabilities to credit institutions
Total pledged assets		3 500

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Note 15 Summary of significant differences between Swedish GAAP and U.S. GAAP

The annual financial statements included herein of Kamera Content AB were prepared in accordance with accounting principles generally accepted in Sweden (Swedish GAAP) which differ in certain significant respects from U.S. GAAP, as described below.

1. Intangible assets

In accordance with Swedish GAAP, the Company amortizes intangible assets based on their statutory useful lives, which is 3 years for goodwill and 3-5 years for capitalized development expenditures.

Under US GAAP intangible assets are amortized over their expected useful lives, which can sometimes be different from the statutory useful lives.

Negative goodwill is required to be disclosed as a provision under Swedish GAAP and reversals be netted e.g. against future losses in the acquired entity.

Under US GAAP this would be disclosed as a reduction of the fair value of assets acquired and hence affecting depreciation.

2. Revenue recognition

In accordance with Swedish GAAP, the Company recognizes revenue when earned. In certain situations, revenue can be recognized upon receipt of payment, while in other situations, revenue is recognized ratably over the contract period. The requirements for recognizing revenue upfront or ratably can vary from the revenue recognition requirements under US GAAP.

Under US GAAP, revenue is recognized in accordance with Staff Accounting Bulletin No. 104, Revenue Recognition and Statement Of Position No. 97-2, Software Revenue Recognition which requires revenue only be recognized when the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller´s price to the buyer is fixed or determinable, and collectibility is probable. For certain arrangements that involve multiple deliverables revenue for each deliverable can be recognized individually if certain separation criteria are met. If elements cannot be separated, revenue must be bundled and recognized ratably over time.

3. Exchange differences

In accordance with Swedish GAAP, the Company recognizes exchange differences in the same way as in US GAAP with exception for translation differences which are not recognized as other comprehensive income but booked against equity.

Under US GAAP, assets and liabilities are translated into the entities reporting currency at the prevailing rate of exchange at the balance sheet date and revenue, costs and expenses are translated at the average exchange rate during the period. Translation gains and losses are reflected as other comprehensive income on the balance sheet. Assets and liabilities held by foreign subsidiaries that are in currencies other than the foreign subsidiaries´functional currency are remeasured at the prevailing rate of exchange at the balance sheet date. Gains and losses from remeasurement are included in the determination of net income.

4. Capitalization of development expenditures

Swedish GAAP allows for expenditures during the development phase to be capitalized as intangible assets if it is probable, with a high degree of certainty, that they will result in future economic benefits for the Company.

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Under US GAAP all costs incurred to establish technological feasibility are charged to expense when incurred in accordance with Statement of Financial Accounting Standards No. 2, Accounting for Research and Development Costs. Software development costs incurred subsequent to establishing technological feasibility but prior to general release shall be capitalized.

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EX-99.4

Exhibit 99.4

KIT DIGITAL, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

On May 23, 2008, KIT digital, Inc., a Delaware corporation (“KIT” or the “Company”), filed a Current Report on Form 8-K (the “May 8-K”) to report the company entered into a Share Purchase Agreement (“Kamera SPA”) on May 19, 2008 with Kamera Content AB (“Kamera”), a company incorporated and organized under the laws of Sweden.

On May 19, 2008, KIT digital, Inc. (“KIT” or the “Company”) entered into a Share Purchase Agreement (“Kamera SPA”) with Kamera Content AB (“Kamera”). Pursuant to the Kamera SPA, KIT will acquire all of the outstanding equity interests of Kamera for approximately $7.5 million which consists of $4.5 million payable at Closing, $1.5 million payable six months from Closing and $1.5 million thirteen months from Closing. In addition,  there is $3 million subject to Kamera achieving certain performance criteria and is payable twenty-one months from Closing, if such criteria is met. Kamera’s historical financial statements were prepared under accounting principles generally accepted in Sweden (Swedish GAAP). In order to prepare the unaudited pro forma condensed combined financial information, Kamera’s financial statements were adjusted to reflect the application of accounting principles generally accepted in the United States (U.S. GAAP). A discussion of the material differences between Swedish GAAP and U.S. GAAP is included in the notes to the financial statements in Exhibit 99.1, 99.2 and 99.3.

The unaudited pro forma condensed combined balance sheet was prepared by combining the condensed balance sheet of KIT and the condensed balance sheets of Kamera, which include the parent company Kamera Content AB and the subsidiaries Swegypt Company for Telecommunication (S.A.E) (‘Swegypt”) and Kamera (S) PTE LTD (“Kamera Singapore”) as of March 31, 2008. The unaudited pro forma condensed combined balance sheet reflects the gross consideration paid by KIT for the acquisition of Kamera of $7.5 million of which $1.5 million is due six months from completion and is in current liabilities and $1.5 million is due thirteen months from completion and is in non-current liabilities assuming the transaction had been completed on March 31, 2008.

The unaudited pro forma condensed combined statement of operations was prepared by combining the condensed statement of operations of KIT and the condensed statement of operations of Kamera, which include the parent company Kamera Content AB and the subsidiaries Swegypt and Kamera Singapore for the three months ended March 31, 2008 and the year ended December 31, 2007.

The pro forma condensed combined financial statements should be read in conjunction with the separate financial statements and related notes thereto of KIT, as filed with the Securities and Exchange Commission (SEC) in its Annual Report on Form10-KSB filed April 1, 2008 and in its Quarterly Report on Form 10-Q filed May 15, 2008 and in conjunction with the separate financial statements and related notes thereto of Kamera included as Exhibit 99.1, 99.2 and Exhibit 99.3 to this Form 8-K/A.

These pro forma condensed combined financial statements are not necessarily indicative of the combined results of operations that would have occurred had the acquisition actually taken place at the beginning of the period indicated above or the future results of operations. In the opinion of KIT’s management, all significant adjustments necessary to reflect the effects of the acquisition that can be factually supported within SEC regulations covering the preparation of pro forma financial statements have been made. The pro forma adjustments as presented are based on estimates and certain information that is currently available to KIT’s management. Such pro forma adjustments could change as additional information becomes available, as estimates are refined or as additional events occur.

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