Pink Sheets

S-8 prospectus on 2005 stock option plan
Up to 3,060,000 shares. Other information matches the 10-K as expected. Why didn't the 8/29/2005 8-K mention the stock option plan approval?

8/29/2005
various directors elected to the board. New auditors approved.
JiJun Wu
Jiansheng Wei
Shien Zhu
Xing Jian Ma
Genchang Li
Shicheng Fu

8/18/2005
Q2 results

7/13/2005
Company dismisses auditors, recommended by the board of directors. The new auditors are Ham, Langston & Brezenia LLP. Oops, they mispelled the name of their auditors. It's actually Ham, Langston & Brezinia LLP. Both auditors are in Houston, TX.

HL&B is a member of the American Institute of Certified Public Accountants ("AICPA") and the Texas Society of Certified Public Accountants and its Houston Chapter. The firm is also a member of the AICPA's SEC Practice Section, which subjects the firm to very stringent Quality Control Reviews that are monitored by the AICPA.

6/15/2005
Oops, "error in translation".

Because of a translation problem, the press release stated that "the signed contracts represent $15,974,688 in revenue year to date." The release should have stated that the contract will produce a revenue stream over the term of the contract of $15,974,688. The bulk of the revenue from the contracts will be earned during the third and fourth calendar quarters of 2005.

emphasis added

6/9/2005
ET signed contracts for $16 million in revenue year-to-date. Income should significantly exceed all income of 2004. Wow!

As the market for sheep embryo transfers continues to get saturated in
the Peoples' Republic of China, the company is spending more time and resources in its cattle embryo transfer business. The shortage of fine breed dairy cattle in China restricts the growth of the dairy industry. In the next 7 to 10 years, the shortage of dairy cattle in China is estimated to be 10 million per year.

5/13/2005
results for 2004 announced

4/27/2005
Company rescinds the E-Sea acquisition.

UPDATE Jan 29, 2006: E-Sea acquisition eventually did happen.
I thought I covered this already, but I couldn't find it, so I added it here.

On Sept 30, 2005, ETLT acquired E-Sea

the Company acquired all of the issued and outstanding shares of E-"Sea Biomedical Engineering Co. International, Ltd. ("E-Sea") for 18,500,00 RMB (US$ 2,283,950) in cash and 18,500,00 RMB in restricted securities of Company (priced at US$ .40 per share, the closing price of the stock as of the date the transaction was negotiated) or 5,709,875 shares.

So the net cost was 5.7 million shares plus $2.3 million. Using ETLT stock as currency isn't the best idea, in my opinion. The stuff is worth a great deal more than 40 cents a share. I'd say the deal really cost $12 million if you fully value the shares (possibly even more than that).

E-Sea reported net earnings after taxes of US$1.8 million for the 6 months ended June 30, 2005. That would annualize to $3.6 million which, at a P/E of 15, would be worth $54 million. But with the additional business model, this $3.6 million might be higher. But I'm not sure since some of the new business could be cannibalizing the old business model (which is fine, but needs to be accounted for).