Fonix Corporation (fka FNXC)

[quipu]

http://biz.yahoo.com/e/100819/cctr.ob10-q.html

Form 10-Q for CHINA CRESCENT ENTERPRISES, INC.

19-Aug-2010

Quarterly Report

Plan of Operations:

In March 2010, we executed a non-binding letter of intent (the "Fonix LOI") under which CLPTEC, our wholly-owned subsidiary based in Shanghai, China, would acquire 100% of Shanghai Gaozhi Software Systems, Ltd. ("Gaozhi"), a telecommunications software developer, from Fonix Corporation ("Fonix") in exchange for the issuance of a newly authorized series of preferred stock, the terms and conditions of which are subject to negotiation. The transaction is subject to the parties successfully entering into a definitive agreement. It is anticipated that this transaction will close in the third quarter of 2010.



Simultaneous with the execution of the Fonix LOI, we entered into a one-year management agreement with Fonix under which CLPTEC will assist in the management of Gaozhi until the execution of a definitive agreement between the parties for the acquisition of Gaozhi by CLPTEC