NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Psychic Friends Network,  Inc. (PFNI.BB) ("the Company") was incorporated in the

State of Nevada on May 9, 2007 under the name "Web Wizard, Inc.". On January 30,

2012 the  Company's  board  passed a motion  to  change  the  corporate  name to

"Psychic Friends Network, Inc." pursuant to an asset purchase agreement executed

on January 27, 2012. As part of this agreement  ("the Asset  Purchase"),  all of

the assets of PFN Holdings were purchased.  These assets are an integral part of

the  Company's  business  development  and  ultimately  the  realization  of the

Company's anticipated cash flows.

The  Company  is  in  the  business  of  website  development.  Our  website  is

www.psychicfriendsnetwork.com. We were originally incorporated and operated with

an aim to providing web services and products that enable small and medium-sized

businesses to establish, maintain, promote and optimize their Internet presence.

We commenced business  operations by selling a Web design solutions package to a

restaurant located in Canada.

BASIS OF PRESENTATION

The  Company  is  considered  to be a  development  stage  company  and  has not

generated  significant  revenues  from  operations.   There  is  no  bankruptcy,

receivership, or similar proceedings against our company.

The accompanying  unaudited interim  financial  statements have been prepared in

accordance with accounting principles generally accepted in the United States of

America  and the rules and  regulations  of the  United  States  Securities  and

Exchange Commission for interim financial information.

The  financial  information  as of March 31, 2012 are  derived  from the audited

financial  statements  presented in the Company's Annual Report on Form 10-K for

the years ended  September 30, 2011 and 2010.  The unaudited  interim  financial

statements  should be read in  conjunction  with the Company's  Annual Report on

Form 10-K,  which contains the audited  financial  statements and notes thereto,

together with the  Management's  Discussion  and  Analysis,  for the years ended

September 30, 2011 and 2010.

Certain  information  or footnote  disclosures  normally  included in  financial

statements prepared in accordance with accounting  principles generally accepted

in the United States of America have been condensed or omitted,  pursuant to the

rules and  regulations  of the  Securities  and Exchange  Commission for interim

financial  reporting.  Accordingly,  they do not include all the information and

footnotes  necessary for a  comprehensive  presentation  of financial  position,

results of operations,  or cash flows. It is management's opinion, however, that

all material adjustments  (consisting of normal recurring adjustments) have been

made  which are  necessary  for a fair  financial  statement  presentation.  The

interim results for the three and six month periods ended March 31, 2012 are not

necessarily indicative of results for the full fiscal year.

GOING CONCERN

The accompanying  financial  statements have been prepared  assuming the Company

will continue as a going concern.  Its ability to continue as a going concern is

dependent  upon the ability of the Company to obtain the necessary  financing to

meet its  obligations  and pay its  liabilities  arising  from  normal  business

operations  when they come due.  Furthermore,  as of March 31, 2012, the Company

has accumulated losses from inception (May 9, 2007) of $114,726.  Likewise,  net

cash used in operations  from  inception (May 9, 2007) through March 31, 2012 is

$110,166. The outcome of these matters cannot be predicted with any certainty at

this time and raise  substantial doubt that the Company will be able to continue

as a going concern. These financial statements do not include any adjustments to

the amounts and  classification  of assets and liabilities that may be necessary

should the Company be unable to continue as a going concern. Management believes

that the Company will need to obtain additional  funding by borrowing funds from

its directors and officers, or a private placement of common stock.