IPOdesktop Analyst Review of AmeriChip’s (ACII) 10Q for the August, 2007 quarter

October 18, 2007

. We have reviewed the 10Q filed by AmeriChip (ACII) for the quarter ended August 31, 2007, and provide direct quotes below.

. This analysis supplements the September 26, 2007 AmeriChip analyst report

http://www.gaskinsco.com/linkto-acii.shtml

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Operating Profit and Positive EBITDA for AmeriChip

FINANCIAL RESULTS

FOR THE AUGUST 31, 2007 QUARTER

Revenue
. 34% sequential quarterly increase
. $864,000, up from $628,000 for the May 31, 2007 quarter

78% Gross Profit
. 174% sequential quarterly increase
. $677,000, up from $247,000 for the May 31, 2007 quarter
. 78% for the August quarter

13% EBITDA
(earnings before interest, taxes, depreciation & amortization).

Operating profit: $7,600

Loss: $106,000

LASER ASSISTED CHIP CONTROL

Large markets

. Management has identified what is believed to be large markets that remain underserved but would be logical, potentially strong candidates given an appropriate product and service offering at the right price
. Just for automotive products, management has identified particular market segments that would be likely to benefit from our LACC technology:
. Axle shafts, axle tubes, torque converters, spindles, pinions, input/output shafts, side gears and connecting rods.

General Motors

. On April 25, 2006 the Company received its official supplier status from General Motors. On June 28, 2006 the Company received its first two purchase orders for a large volume transmission component.
. The Company is working toward pre-production parts approval.
. The validation process for the torque converter and lid has been completed.
. The Company has also been asked to quote on several other parts for General Motors.
. These quotes are in various stages of progress.
. The Company has billed for and received payment for parts and special chucks.

Ford Motor Company

. On August 29, 2006, the Company announced that it had received a purchase order from The Ford Motor Company for application of the Company’s Laser Assisted Chip Control technology for the manufacturing of transmission drum assembly components.
. The special laser head that was required to process these parts was received and installed at the Company’s headquarters.
. The Company is currently in discussions with The Ford Motor Company with respect to manufacturing multiple parts.

GROWTH BY ACQUISITION

. We are exploring whether it may be feasible to acquire the assets of an existing manufacturing firm engaged in manufacturing automobile parts
. Which we could subsequently enhance and benefit through the use of the patented process.

SENIOR MANAGEMENT CHANGES

. The Company has recently initiated a change in senior management that it believes will be instrumental in opening and exploiting new, worldwide markets in addition to the current core automotive business.

. The Company will continue to present to a diverse group of blue chip private and governmental prospects, . Including but not limited to those in such manufacturing industries as oil pipe drilling, aerospace, off-road construction, farm implement, defense and military -- worldwide.

PLAN OF OPERATION

. As a result of the acquisition of KSI Machine and Engineering, we are now in a position implement our technology with existing vendor codes.
. We anticipate that the operations of KSI Machine and Engineering will bring to the consolidated
statement of operations of AmeriChip annual revenues of approximately $3,000,000 based on revenues generated in 2006 and the first three quarters of 2007, as well as additional revenues currently being generated within the KSI subsidiary by AmeriChip management personnel.

Raw Material provided by customer

(ACII does not have to invest in raw material, work-in-process and finished goods inventory)
. It is significant to note all raw material is provided by the customer.
. KSI machine provides a machining service for these castings and forgings.

NEW AUDITING FIRM

Effective June 18, 2007, we engaged Jewett, Schwartz, Wolfe & Associates as our new independent registered public accounting firm (with a specialty in SEC audit services).