TIE INTO---FEATURED/FUTURE EVENT STOCKS

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part two-under 1 bil.- did ya see weighted share count? BHWF---THE BLACKHAWK FUND
STATEMENTS OF OPERATIONS

EXCERPTS;

Three Months Ended June 30, Six Months Ended June 30,
2010 2009 2010 2009

Revenues $ - $ - $ - $ -

Cost of sales - - - -

Gross income - -

OPERATING EXPENSES

General and administrative 35,302 21,962 57,519 43,615

OTHER INCOME / (EXPENSES)
Gain on sale of assets - - - 1,015,178
Loss on guarantee - (618,750 ) (618,750 )
Other expense - (684 ) -
Interest expense (119,401 ) (12,956 ) (226,806 ) (14,940 )

NET INCOME (LOSS) $ (154,703 ) $ (653,668 ) $ (285,009 ) $ 337,873

Basic and diluted net income (loss) per common share $ - $ - $ - $ -

Weighted average number of shares outstanding 902,805,121 562,293,791 926,420,863 562,293,791

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THE BLACKHAWK FUND
NOTES TO FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Nature of Business


The Blackhawk Fund (“Blackhawk” or the “Company”) was organized on November 5, 1998 in Nevada as USA Telecom. In 1998, the entity amended its articles of incorporation to change its name to USA Telcom, in 2000 it amended its articles of incorporation to change its name to USA Telcom Internationale, in 2004 it amended its articles of incorporation to change its name to ZannWell Inc., and in January 2005, it amended its articles of incorporation to change its name to Blackhawk Fund. For the year ended December 31, 2009 the Company was in the business of residential and commercial real estate acquisition and development.


Cash and cash equivalents


The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly- liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents.


Advertising expenses


Advertising and marketing expenses are charged to operations as incurred there were no expenses for the six-months ended June 30, 2010 and 2009.


Revenue recognition


The Company generates revenue from the sale of real estate, brokerage commissions, and rental income from rental properties. Revenues from real estate sales and commissions are recognized on execution of the sales contract. The Company records gross commissions on the sales of properties closed. The Company pays the broker of record five percent of all transactions and 100 percent of personal sales. The Company compensates its independent agents on a sliding scale between 70 and 80 percent based on productivity. The Company also recognizes sales when it sells properties that have been held for sale when their renovation is complete. Revenue is recognized at “closing”.


The Company has not recognized any revenue from its new business plan for the six-months ended June 30, 2010 and 2009.


Income Taxes


The Company utilizes the asset and liability method of accounting for income taxes. Temporary differences represent differences in the recognition of assets and liabilities for tax and financial reporting purposes, primarily accumulated depreciation and amortization.


As of June 30, 2010, the deferred tax asset is related solely to the Company’s net operating loss carry forward and is fully reserved.


Income / Loss per share


Basic income / loss per share are computed by dividing the net income / loss by the weighted-average number of shares of common stock and common stock equivalents (primarily outstanding options and warrants). Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method. The calculation of fully diluted loss per share assumes the dilutive effect of the exercise of outstanding options and warrants at either the beginning of the respective period presented or the date of issuance, whichever is later. As of June 30, 2010, the Company’s outstanding warrants are considered anti-dilutive.


Use of Estimates


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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates.