SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-KSBOMB APPROVAL
OMB Number:
3235-0420
Expires:
March 31, 2007
Estimated average burden
Hours per response1646  (Mark One)  SANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the fiscal year ended December 31, 2006  £TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to________________  Commission file number 000-23806  I/NET, INC. (Name of small business issuer in its charter)  DELAWARE87-0046720(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)  1608 West 2225 South, Woods Cross, Utah84087(Address of principal executive offices)(Zip Code)  Issuers telephone number (801) 295-3400 Securities registered under Section 12(b) of the Exchange Act: None  Securities registered under Section 12(g) of the Exchange Act: Common Stock, $.001 par Value   Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.  £  Note Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.  1    Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S     No £  Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.              S  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                  Yes S     No £  State issuers revenues for its most recent fiscal year: $-15,475-  State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.)  On December 31, 2006 the aggregate market value of the voting stock of I/NET, Inc. held by non-affiliates of the registrant was $131,439.  There are approximately 18,777,149 shares of voting stock of the Issuer held by non-affiliates.  These shares have been valued at $0.007 per share.  Note: If determining whether a person is an affiliate will involve an unreasonable effort and expense, the issuer may calculate the aggregate market value of the common equity held by non-affiliates on the basis of reasonable assumptions, if the assumptions are stated.  (ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)  Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.                        Yes £     No £  (APPLICABLE ONLY TO CORPORATE REGISTRANTS)  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date.   50,000,000 shares of common stock, $.001 par value issued and outstanding as of March 10, 2007.  DOCUMENTS INCORPORATED BY REFERENCE  If the following documents are incorporated by reference, briefly describe them and identify the part of the Form 10-KSB (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) any annual report to security holders; (2) any proxy or information statement; and (3) any prospectus filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933 (Securities Act). The listed documents should be clearly described for identification purposes (e.g., annual report to security holders for fiscal year ended December 24, 1990).  Transitional Small Business Disclosure Format (Check one): Yes £ ; No S  2    PART I  Item 1. Description of Business.  Our History  I/NET, Inc. (the "Company" or "I/NET") was organized under the laws of the state of Delaware in 1986 under the name of a predecessor corporation. The Company registered its initial public offering with the Securities and Exchange Commission in 1987. The Company provides professional services in the areas of software development and Internet-related consulting for businesses. I/NET also developed and marketed computer software for mid-range computers, including International Business Machine's (IBM) AS/400 model.  I/NETs business consisted of supporting software licenses to various customers employing the IBM AS/400  iSeries computers. The business has been declining over the years, and there are no plans to replace this business.  During 2006, the Company accepted an offer from Tryant, LLC for the acquisition of the Company. The Companys management decided to wind up all business operations related to the former products sold by I/NET. As a courtesy to its former customers who were still using I/NETs software products, the Company has contracted with a former employee to provide ongoing software support. As this subcontractor has been compensated for providing support services, he agreed to assume full responsibility for the support obligations. With this transfer of obligation the Company has no other obligations to provide future services.  Our Business  I/NET, Inc. intends to seek, investigate, and if warranted, acquire an interest in a business opportunity.  We are not restricting our search to any particular industry or geographical area.  We may therefore engage in essentially any business in any industry.  Our management has unrestricted discretion in seeking and participating in a business opportunity, subject to the availability of such opportunities, economic conditions and other factors.  The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of its business judgment.  There is no assurance that we will be able to identify and acquire any business opportunity which will ultimately prove to be beneficial to our company and shareholders.  Because we have no specific business plan or expertise, our activities are subject to several significant risks.  In particular, any business acquisition or participation we pursue will likely be based on the decision of management without the consent, vote, or approval of our shareholders.  Sources of Opportunities  We anticipate that business opportunities may arise from various sources, including officers and directors, professional advisers, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.  We will seek potential business opportunities from all known sources, but will rely principally on the personal contacts of our officers and directors as well as indirect associations between them and other business and professional people.  Although we do not anticipate engaging professional firms specializing in business acquisitions or reorganizations, we may retain such firms if management deems it in our best interests.  In some instances, we may publish notices or advertisements seeking a potential business opportunity in financial or trade publications.  3     Criteria  We will not restrict our search to any particular business, industry or geographical location.  We may acquire a business opportunity in any stage of development.  This includes opportunities involving start up or new companies.  In seeking a business venture, management will base their decisions on the business objective of seeking long-term capital appreciation in the real value of our company.  We will not be controlled by an attempt to take advantage of an anticipated or perceived appeal of a specific industry, management group, or product.  In analyzing prospective business opportunities, management will consider the following factors:  · available technical, financial and managerial resources; · working capital and other financial requirements; · the history of operations, if any; · prospects for the future; · the nature of present and expected competition; · the quality and experience of management services which may be available and the depth of the management; · the potential for further research, development or exploration; · the potential for growth and expansion; · the potential for profit; · the perceived public recognition or acceptance of products, services, trade or service marks, name identification; and other relevant factors.  Generally, our management will analyze all available factors and make a determination based upon a composite of available facts, without relying on any single factor.  Methods of Participation of Acquisition  Management will review specific business opportunities and then select the most suitable opportunities based on legal structure or method of participation.  Such structures and methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures, other contractual arrangements, and may involve a reorganization, merger or consolidation transaction.  Management may act directly or indirectly through an interest in a partnership, corporation, or other form of organization.  Procedures  As part of our investigation of business opportunities, officers and directors may meet personally with management and key personnel of the firm sponsoring the business opportunity.  We may visit and inspect material facilities, obtain independent analysis or verification of certain information provided, check references of management and key personnel, and conduct other reasonable measures.  We will generally ask to be provided with written materials regarding the business opportunity.  These materials may include the following:  · descriptions of product, service and company history; management resumes; · financial information; · available projections with related assumptions upon which they are based; · an explanation of proprietary products and services; · evidence of existing patents, trademarks or service marks or rights thereto;  4    · present and proposed forms of compensation to management; · a description of transactions between the prospective entity and its affiliates; · relevant analysis of risks and competitive conditions; · a financial plan of operation and estimated capital requirements; and other information deemed relevant.  Competition  We expect to encounter substantial competition in our efforts to acquire a business opportunity.  The primary competition is from other companies organized and funded for similar purposes, small venture capital partnerships and corporations, small business investment companies and wealthy individuals.  Employees  We do not have any employees and do not anticipate hiring additional employees until our operations resume and expand to such a degree that necessitates hiring auxiliary staff. Our officers and directors will contribute the necessary time and resources to manage the Company, but will not be compensated.  Subsequent Events  None.  Item 2. Description of Property.  We do not currently own any property.  We utilize office space in Woods Cross, Utah where our president provides office space at no charge.  We will not seek independent office space until we pursue a viable business opportunity and recognize income.  Item 3. Legal Proceedings.  None.  Item 4. Submission of Matters to a Vote of Security Holders.  On November 28, 2006, a majority of shareholders representing 52.8% of the issued and outstanding common stock of the Company approved by written consent the following actions:  1. Reverse split the currently issued and outstanding common shares on a basis of 200 to 1; 2. Increase the capitalization of the Company to 100,000,000 shares of common stock, $.001 par value and 10,000,000 shares of preferred stock, $.001 par value; 3. Change the name of the Company to Liberator Medical Supply, Inc.  The Company submitted a preliminary 14C Information Statement to the Securities and Exchange Commission but has not yet received approval for a definitive 14C Information Statement for mailing to shareholders.  No action can be taken by the Company until a definitive 14C Information Statement is filed with the Securities and Exchange Commission and mailed to all shareholders of record.  The Company must then wait an additional 20 days before it will take the action and file amended articles of incorporation reflecting the actions with the state of Delaware.  The Company anticipates it will continue to pursue taking the above actions and will mail the definitive 14C Information Statement to shareholders at such time as it receives approval from the Securities and Exchange Commission.   5     PART II  Item 5. Market for Common Equity and Related Stockholder Matters.  The Company's common stock is listed on the Pinksheets under the ticker "INNI". The approximate high and low bid prices for 2006 through 2005 were summarized by quarter below:  20062005Q1Q2Q3Q4Q1Q2Q3Q4Hi$0.008$0.008$0.02$0.012$0.035$0.03$0.02$0.015Low$0.006$0.006$0.006$0.006$0.02$0.015$0.015$0.008  The above quotations, as provided by Pink Sheets, LLC, represent prices between dealers and do not include retail markup, markdown or commission.  In addition, these quotations do not represent actual transactions.  Holders  The number of record holders of the Company's common stock as of December 31, 2006, was 285. There were approximately 3,000 beneficial holders as of that date.  Dividends  There are currently present material restrictions that limit the ability of the Company to pay dividends on its common stock as it has a deficit in its stockholders' equity. The Company has not paid any dividends with respect to its common stock nor does it intend to do so in the foreseeable future.  Item 6. Managements Discussion and Analysis or Plan of Operation.  Forward Looking Statements  This report contains certain forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934.  I/NET, Inc. cautions readers that expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements.  Words such as May, Will, Expect, Believe, Anticipate, Intend, and comparable terminology are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those currently anticipated or discussed in this report.  Factors that may affect our results include, but are not limited to, market acceptance of our products and technologies, our ability to secure financing, potential competition from other companies with greater technical and marketing resources, and other factors described in our filings with the Securities and Exchange Commission.  Plan of Operation  The Company had limited operations in 2006 and generated $15,475 in revenue for the year ended December 31, 2006 and revenue of $39,746 for the year ended December 31, 2005. The Company decided to wind down its operations in the summer of 2006.  The Companys plan is to seek a business venture in which to participate. The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of its business judgment. There is no assurance that the Company will be able to identify and acquire any business opportunity that will ultimately prove to be beneficial to the Company and its shareholders.  6     The Company is pursuing its search for a business opportunity primarily through its officers and directors, although other sources, such as professional advisors, securities broker-dealers, venture capitalists, members of the financial community, and others, may present unsolicited proposals.  The activities of the Company are subject to several significant risks that arise primarily as a result of the fact that the Company has no specific business and may acquire or participate in a business opportunity based on the decision of management which will, in all probability, act without the consent, vote, or approval of the Companys shareholders. A description of the manner in which the Company will pursue the search for and participation in a business venture is described above.  Although the Company has no operations, it does incur expenses in connection with complying with reporting requirements under the Securities Exchange Act of 1934. General and administrative expenses for the fiscal years ended December 31, 2006 and 2005 were $4,735 and $6,343 respectively. Interest expense to related parties was $1,428 for the fiscal year ended December 31, 2006 and $1,028 for the fiscal year ended December 31, 2005.  The Company had net income for the fiscal year ended December 31, 2006 of $19,787 due to notes that had portions forgiven.  For the same period in 2005 the Company had a loss of $4,360.  Expenses consisted of professional fees to carry on software support, other professional fees and expenses incurred to prepare financial statements and periodic reports filed by the Company with the Securities and Exchange Commission. Funds required to pay these expenses were obtained through loans from various sources.  The Company does not expect to generate any meaningful revenue unless and until it acquires an interest in an operating business. At that time, the Company will evaluate the need to hire additional employees.  Liquidity and Capital Resources  As of December 31, 2006, the Company had $38 in cash and no other assets.  Liabilities were $60,603 as of December 31, 2006 and consisted of $28,103 in accounts payable, $32,500 in advances and accruals payable to related parties.  Further, management will attempt to raise capital for its current operational needs through loans from related parties, debt financing, equity financing or a combination of financing options. However, there are no existing understandings, commitments or agreements for extension of outstanding notes or an infusion of capital, and there are no assurances to that effect. Moreover, the Companys need for capital may change dramatically if and during that period, it acquires an interest in a business opportunity. Unless the Company can obtain additional financing, its ability to continue as a going concern is doubtful.  Recent Changes in Securities  None.  Item 7. Financial Statements  The financial statements of the Company appear at the end of this report beginning with the Index to Financial Statements on page F-2.  Item 8.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure  None.   7    Item 8A.  Controls and Procedures  (a) Evaluation of Disclosure Controls and Procedures.  The Company's management, with the participation of the chief executive officer and the chief financial officer, carried out an evaluation of the effectiveness of the Company's "disclosure, controls and procedures" (as defined in the Securities Exchange Act of 1934 (the "Exchange Act") Rules 13a-15(e) and 15-d-15(e) as of the end of the period covered by this annual report (the "Evaluation Date").  Based upon that evaluation, the chief executive officer and the chief financial officer concluded that, as of the Evaluation Date, the Company's disclosure, controls and procedures are effective, providing them with material information relating to the Company as required to be disclosed in the reports the Company files or submits under the Exchange Act on a timely basis.  (b) Changes in Internal Control over Financial Reporting.  There were no changes in the Company's internal controls over financial reporting, known to the chief executive officer or the chief financial officer, that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. Item 8B.  Other Information There are no further disclosures. No information was required to be disclosed in a Form 8-K during the fourth quarter, 2006. PART III  Item 9. Directors, Executive Officers, Promoters, Control Persons and Corporate Governance; Compliance With Section 16(a) of the Exchange Act.  The following table sets forth the name, age, and position of each officer and director of the Company.  All directors hold office until the next annual meeting of stockholders or until their successors are duly elected and qualified. Officers serve at the discretion of the Board of Directors.  The Company has no audit committee financial expert, as defined under Section 228.401, serving on its audit committee because it has no audit committee and is not required to have an audit committee because it is not a listed security as defined in Section 240.10A-3.  NameAgePositionsSinceJeff Jenson35CEO and DirectorMarch 2006Alex Ferries33Secretary/Treasurer/DirectorMarch 2006Steve Markee61Director1986  The following is information on the business experience of each officer and director:  Jeff Jenson is the Managing Director of Tryant, LLC. Mr. Jenson has been a financial consultant to development stage businesses and public corporations for ten years. Formerly, Mr. Jenson was president of Jenson Services, a Utah merger and acquisition corporation. During his tenure at Jenson Services, Inc., Mr. Jenson completed upwards of 30 reorganizations at a rate of three to five transactions per year. Mr. Jenson was the founder of Vics Nutritional Products, Inc., which owned interests in twenty retail locations in shopping malls throughout the U.S. He is current President and director of Micro-Tech Identification Systems, Inc.   8    Alex Ferries has served as the Company's Secretary and Treasurer and a Director of I/NET, Inc. since July 2006.  He has been an associate at Tryant, LLC since February 2004. From July 2003 to January 2004, he worked part-time as an independent consultant, evaluating the merits of a potential retail pharmacy chain, which never materialized. He was not actively employed from January 2002 to July 2003. Mr. Ferries is President and Director of Wrap-N-Roll USA, Inc., Secretary and Director of AcuRx, Inc., and Secretary and Director of West Coast Car Company.  Stephen J. Markee, Director: Mr. Markee is 61 years of age. He received a BS Degree from Ferris State University in 1970 and an MBA from Western Michigan University ("WMU") in 1971. He is a licensed certified public accountant in the state of Michigan. Mr. Markee served in the United States Army during the Viet Nam conflict, and was decorated and medically retired in 1968. After completing his education, he served as assistant Auditor General for the State of Michigan before joining WMU as Director of Internal Auditing in 1976. While at WMU, he also taught accounting classes in the MBA program. He then changed directions, from public to private sector, as Vice President of Planning and Control for a division of Standex International Corporation, where he was responsible for information systems, accounting, and human resources. He joined I/NET in 1985 as President and CEO. He has guided I/NET to a successful equity partnership with IBM, and engineered the sale of intellectual property rights to IBM. Mr. Markee has served on the Board of Directors of the Kalamazoo County Chamber of Commerce, Chairman of the Kalamazoo County Convention and Visitors Bureau, Past President of the local chapter of the Institute of Management Accountants, and President of the Parchment Schools Foundation. He is a frequent speaker to civic and business groups, and has appeared on the Financial News Network ("FNN"). company, he also directed projects in natural language understanding, intelligent control and smart web sites. He worked extensively on research for the National Aeronautics and Space Administration (NASA), specializing in the areas of complex event recognition and intelligent information workbenches. He has published extensively in these areas.  Family Relationships  None.  Involvement in Certain Legal Proceedings.  Except as indicated below and to the knowledge of management, during the past five years, no present or former director, person nominated to become a director, executive officer, promoter or control person of our Company:  (1)  Was a general partner or executive officer of any business by or against which any bankruptcy petition was filed, whether at the time of such filing or two years prior thereto;  (2)  Was convicted in a criminal proceeding or named the subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);  (3)  Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting, the following activities:  (i)  Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;  (ii)  Engaging in any type of business practice; or  9     (iii) Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws;  (4)  Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described above under this Item, or to be associated with persons engaged in any such activity;  (5)  Was found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission to have violated any federal or state securities law, and the judgment in such civil action or finding by the Securities and Exchange Commission has not been subsequently reversed, suspended, or vacated; or  (6)  Was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated.   Board and Committee Meetings  In the fiscal year ended December 31, 2006, the board of directors of the Company acted by written consent 2 times to approve the appointment of new officers and directors and to approve a proposal to stockholders for a 200 to 1 reverse stock split, name change and other matters. There are no standing committees of the board of directors. Due to the fact the Company has no active operations and its assets consist entirely of a nominal amount of cash, the board of directors determined that it is not necessary or practical for the Company to establish an audit committee, recruit a financial expert to serve on the board, or adopt a code of ethics applicable to its chief executive and financial officers. Section 16(a) Filing Compliance Section 16(a) of the Securities Exchange Act of 1934 requires officers and directors of the Company and persons who own more than ten percent of a registered class of its equity securities to file reports of ownership and changes in their ownership on Forms 3, 4, and 5 with the Securities and Exchange Commission, and forward copies of such filings to the Company. Based on the copies of filings received by the Company during the most recent fiscal year the directors, officers, and beneficial owners of more than ten percent of the equity securities of the Company registered pursuant to Section 12 of the Exchange Act have filed on a timely basis all required Forms 3, 4, and 5 and any amendments thereto.  10     Item 10. Executive Compensation  The following executive compensation disclosure reflects all compensation awarded to, earned by or paid to the executive officers below, for the fiscal years ended December 31, 2006 and 2005.  The following table summarizes all compensation for fiscal years 2006 and 2005 received by all of officers in fiscal year 2006.  SUMMARY COMPENSATION TABLEName and principal positionYearSalary ($)Bonus ($)Stock
Awards
($)Option
Awards
($)Non-
Equity
Incentive
Plan
Compen-
sation
($)Nonquali-
fied
Deferred
Compen-
sation
Earnings
($)All Other
Compen-
sation ($)Total ($)Jeff Jenson
President and
Director2006
2005--
----
----
----
----
----
----
----
--Alex Ferries
Secretary, Treasurer and Director2006
2005--
----
----
----
----
----
----
----
--Steven Markee
President, Secretary, Treasurer and Director2006
2005--
----
----
----
----
----
----
----
--  Director Compensation  No director received compensation for services during the fiscal year ended December 31, 2006.  Item 11.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.  The following tables set forth, as of March 10, 2007, certain information regarding the ownership of the Companys capital stock by the following persons on such date: each of the directors and executive officers, each person who is known to be a beneficial owner of more than 5% of any class of our voting stock, and all of our officers and directors as a group. Unless otherwise indicated below, to our knowledge, all persons listed below had sole voting and investing power with respect to their shares of capital stock, except to the extent authority was shared by spouses under applicable community property laws.  Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of our common stock subject to options, warrants or convertible securities exercisable or convertible within 60 days of March 10, 2007 were deemed outstanding for computing the percentage of the person or entity holding such options, warrants or convertible securities but are not deemed outstanding for computing the percentage of any other person, and was based on 50,000,000 shares of the Common Stock issued and outstanding as of March 10, 2007.  11     Title of
ClassName and Address
Of
Beneficial OwnersAmount and Nature
Of Beneficial OwnershipPercent
Of
ClassCommon StockJeff Jenson (1) (2)
1608 W 2225 S
Woods Cross, UT 8408725,500,00151%Alex Ferries (1)
1608 W 2225 S
Woods Cross, UT 84087--%Steve Markee (1)
5587 Texas Drive
Kalamazoo, MI 49009901,2831.8%All officers and directors as a group (3 persons)26,401,28452.8% __________ (1)Officer and Director of I/NET, Inc.(2)Consists of shares owned by Tryant, LLC, of which Mr. Jenson is the managing member.   Item 12.  Certain Relationships, Related Transactions and Director Independence.  The Company utilizes office space at 1608 W 2225 S, Woods Cross, Utah 84087, provided by Jeff Jenson, an officer and director of the Company. It does not pay rent for this office space.  Item 13.  Exhibits.  Exhibit #TitleLocation31.1Certification of the Principal Executive Officer pursuant toAttachedSection 302 of the Sarbanes-Oxley Act of 200231.2Certification of the Principal Financial Officer pursuant toAttachedSection 302 of the Sarbanes-Oxley Act of 200232.1Certification of the Principal Executive Officer pursuant toAttachedU.S.C. Section 1350 as adopted pursuant to Section 906 of theSarbanes-Oxley Act of 2002***32.2Certification of the Principal Financial Officer pursuant toAttachedU.S.C. Section 1350 as adopted pursuant to Section 906 of theSarbanes-Oxley Act of 2002***  * Incorporated by reference. Filed as exhibit to Form 10-SB filed September 26, 2005 *** The Exhibit attached to this Form 10-KSB shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.  12    Item 14.  Principal Accountant Fees and Services.  Audit Fee  The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Companys annual financial statement and review of financial statements included in the Companys 10-QSB reports and services normally provided by the accountant in connection with statutory and regulatory filings or engagements were $0 for fiscal year ended 2005 and $40,000 for fiscal year ended 2006. The audit fees for 2006, included the auditing of periods from December 31, 2002 through December 2005. The audit fees for 2006 were paid by Tryant, LLC a shareholder of the Company.  Audit-Related Fees  There were no fees for other audit related services for fiscal years ended 2005 and 2006.  Tax Fees  Fees for tax compliance, tax advice and tax planning for the fiscal year 2005 was $0 and $10,000 for 2006.  All Other Fees  There were no other fees billed in 2006 or 2005.  We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee.  Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.  We do not rely on pre-approval policies and procedures.  SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  I/NET, INC.  Date: March 30, 2007 /s/ Jeff Jenson Jeff Jenson Chief Executive Officer    Date: March 30, 2007 /s/ Alex Ferries Alex Ferries Chief Financial Officer   13    In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.   By: /s/ Jeff Jenson By: /s/ Alex Ferries Jeff Jenson, Director Alex Ferries, Director  Date: March 30, 2007 Date: March 30, 2007  14         I/NET, Inc.      Financial Statements  Years Ended December 31, 2006 and 2005        F-1   I/NET, Inc.   Contents       Report of Independent Registered Public Accounting FirmF-3Financial Statements:Balance SheetsF-4Statements of OperationsF-5Statements of Capital DeficitF-6Statements of Cash FlowsF-7Summary of Accounting PoliciesF-8 and F-9Notes to Financial StatementsF-10  F-12       F-2


Report of Independent Registered Public Accounting Firm   Board of Directors and Stockholders I/NET, Inc. Woods Cross, Utah  We have audited the accompanying balance sheets of I/NET, Inc. as of December 31, 2006 and 2005 and the related statements of operations, capital deficit, and cash flows for the years then ended. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.  In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of I/NET, Inc. at December 31, 2006 and 2005, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.  The accompanying financial statements have been prepared assuming that Company will continue as a going concern. As discussed in Note 10 to the financial statements, the Company has suffered recurring losses from its operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a gong concern. Managements plans in regard to these matters are also described in Note 10. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.   /s/ BDO Seidman, LLP Certified Public Accountants BDO Seidman, LLP Kalamazoo, Michigan  March 30, 2007  F-3


I/NET, Inc.  Balance Sheet   December 31,20062005Assets (Notes 3 & 4)Current:Cash and Cash Equivalents$38$1,656Trade Receivables-8,867Total Current Assets3810,523Total Assets$38$10,523Liabilities and Capital DeficitCurrent Liabilities:Note payable to bank (Note 2)$-$34,500Accounts Payable28,10373,875Accruals10,00010,000Advances from stockholders (Note 3)13,50013,500Current Maturities of Long Term Debt to Stockholders
(Note 4)9,0009,000Total Current Liabilities60,603140,875Capital DeficitCommon Stock, $.001 par value50,000,000 shares authorized;50,000,000 issued and outstanding at December 31,
2006; 35,070,509 issued and outstanding at
December 31, 2005 (Note 9)50,00035,071Additional paid-in capital12,843,71012,808,639Deficit(12,954,275)(12,974,062)Total Capital Deficit(60,565)(130,352)Total Liabilities and Capital Deficit$38$10,523  See accompanying report of independent registered public accounting firm, summary of accounting policies and notes to financial statements.   F-4   I/NET, Inc.  Statements of Operations      Year Ended December 31,20062005Revenues (Note 5)$15,475$39,746Cost of Goods Sold19,11637,937Gross Profit (Loss)(3,641)1,809Selling, General, and Administrative Expenses5,4836,343Operating Loss(9,124)(4,534)Other Income/(Expense):Gain on extinguishment of Debt (Note 2)30,3391,010Interest Expense, net of interest income(1,428)(1,028)Miscellaneous-192Total Other Income28,911174Net Income (Loss)$19,787$(4,360)Net Earnings per Share (Note 9)$-$-Average Number of Basic Common Shares Outstanding (Note 9)38,802,88235,070,509Average Number of Diluted Common Shares Outstanding(Note 9)38,802,88235,070,509  See accompanying report of independent registered public accounting firm, summary of accounting policies and notes to financial statements.    F-5   I/NET, Inc.  Statements of Capital Deficit      Common StockAdditional PaidSharesAmountin CapitalDeficitTotalBalance, January 1, 200535,070,509$35,071$12,808,639($12,969,702)($125,992)Net loss for the year---($4,360)($4,360)Balance, December 31, 200535,070,509$35,071$12,808,639($12,974,062)($130,352)Net Income for the year---$19,787$19,787Issuance of Stock14,929,491$14,929$35,071-$50,000Balance, December 31, 200650,000,000$50,000$12,843,710(12,954,275)($60,565)  See accompanying report of independent registered public accounting firm, summary of accounting policies and notes to financial statements.   F-6   I/NET, Inc.  Statements of Cash Flows       Year Ended December 31,20062005Operating Activities: (Note 8)Net Income (Loss)$19,787$(4,360)Gain on extinguishment of debt(30,339)(1,010)Changes in assets and liabilities:Receivables8,8676,160Deposits-2,552Accounts Payable(39,933)(8,224)Accruals-423Cash Used in Operating Activities(41,618)(4,459)Financing Activities:Net change in note payable to bank(10,000)-Proceeds from issuance of common stock50,000-Proceeds from issuance of notes to stockholders2,000Cash Provided by Financing Activities40,0002,000Decrease in Cash(1,618)(2,459)Cash, Beginning of Year1,6564,115Cash, End of Year$38$1,656  See accompanying report of independent registered public accounting firm, summary of accounting policies and notes to financial statements.   F-7   I/NET, Inc.  Summary of Accounting Policies      Basis of PresentationThe financial statements include the accounts of the Company, I/NET, Inc. (a Delaware corporation), and its wholly owned subsidiary, I/NET, Inc. (a Michigan corporation), and its wholly owned subsidiary, Stek, Ltd. (a Caymanian Corporation).  Stek, Ltd., was formed to receive and hold shares of SEGOES, Ltd. (a privately held Caymanian corporation).  These shares were earned for the successful completion of the development, installation, and operation of the SEGOES web site, an Internet-based offshore asset management and trading system.Cash and Cash
EquivalentsFor purposes of the Statements of Cash Flows, the Company considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.Trade ReceivablesTrade receivables are customer obligations due under normal trade terms. The Companys management continually evaluates customers financial condition and credit worthiness. All receivables are deemed collectible and no allowance for doubtful accounts has been established.Developed Computer
SoftwareSoftware development costs and certain product enhancements, when significant, are capitalized subsequent to the establishment of technological feasibility for the product and prior to the products general release to customers.Costs incurred prior to technological feasibility or subsequent to the products general release to customers, as well as selling, general, and administrative costs associated with the products, are expensed as incurred.Revenue RecognitionRevenues for the sale of the Companys Internet products are recognized when the customer has accepted the product.  The Company records its revenues from consulting contracts on a monthly basis, as amounts are invoiced for time and expenses incurred.  See accompanying report of independent registered public accounting firm and  notes to financial statements.  F-8   I/NET, Inc.  Summary of Accounting Policies      EstimatesThe 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 reporting period.  Actual results could differ from those estimates.Fair Value of
Financial InstrumentsThe Companys financial instruments consist of cash, receivables, notes payable, accounts payable, and long-term debt.  Due to the short-term nature of the items, other than long-term debt, and the variable interest rates on a substantial portion of the long-term debt, management estimates that carrying amounts of the Companys financial instruments approximate their fair values at December 31, 2006 and 2005.  See accompanying report of independent registered public accounting firm and  notes to financial statements.  F-9   I/NET, Inc.  Summary of Accounting Policies      1.BusinessThe Company operated in one segment consisting of software development and Internet consulting services, support services, and contract services.  The Company did not operate based upon product lines but as one business unit. As of September 30, 2006, the Company discontinued its business operations.2.Note Payable to BankDuring March, 2002, the Company obtained a $35,000 unsecured line-of-credit from a bank which expired in January, 2006. Interest was payable at the banks prime rate plus 3% (effectively 10.25% at December 31, 2005). The Company had $34,500 outstanding under this agreement as of December 31, 2005.During the year ended 2006, the Company negotiated the extinguishment of this note for $10,000 in cash.3.Short-Term
Advances from
StockholdersAdvances from stockholders consist of the following:  December 31,20062005Non-interest bearing notes payable to stockholders, due on demand.$ 13,500$ 13,500Total$ 13,500$ 13,500  4.Long-Term DebtLong-term debt consists of the following:  December 31,20062005Notes payable to stockholders, bearing interest at 8%, due currently, secured by all the Company's assets.$ 9,000$ 9,000  5.Major CustomersThe Company provided Internet products, web site consulting services, support services, and contract services to major customers as follows:  Year ended December 31,20062005Customer A12%10%Customer B4%46% See accompanying report of independent registered public accounting firm.  F-10   I/NET, Inc.  Notes to Financial Statements      6.Taxes on IncomeIncome taxes are calculated using the liability method.Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.Significant components of the Companys deferred tax assets are as follows:  December 31,20062005Deferred tax assetsNet operating loss carryforward$ 2,560,000$ 2,567,000Valuation allowance(2,560,000)(2,567,000)$            -$            -  As of December 31, 2006 and 2005, the Company had net operating loss carryforwards of approximately $7,528,000 and $7,549,000, respectively, available to reduce future taxable income. These carryforwards expire from 2007 through 2012.The net operating loss carryforward requires the Company to record a deferred tax asset. Management has elected to record a valuation allowance for the entire balance of the deferred tax asset due to the uncertainty of its future realization.7.Employee Benefit
PlanThe Company had a profit sharing and defined contribution retirement plan covering substantially all employees.  Under the plan, employees could make tax deferred voluntary contributions which, at the discretion of the Companys Board of Directors, could be matched within certain limits by the Company.  In addition, the Company could make additional discretionary contributions to the plan as profit sharing contributions.  All contributions to the plan were limited by applicable Internal Revenue Code regulations.  There were no company contributions charged against operations in 2006 and 2005. See accompanying report of independent registered public accounting firm.  F-11   I/NET, Inc.  Notes to Financial Statements


8.Supplemental
Disclosure of
Cash Flow
InformationInterest paid for the years ended December 31, 2006 and 2005 was $0 and $1,000 respectively.  The Company paid no income taxes or received any interest income during 2006 and 2005.  9.Earnings (Loss) Per ShareA reconciliation of shares used in calculating basic and diluted earnings (loss) per share are as follows:  Year ended December 31,20062005Basic38,802,88235,070,509Diluted38,802,88235,070,509  10.Continued
ExistenceThe Companys financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has suffered recurring losses from operations, has a significant working capital deficit, and requires additional capital to continue its product development.

During the period ended September 30, 2006, the Company accepted an offer from Tryant, LLC for the acquisition of the Company.

The Companys management decided to wind up all business operations related to the former products sold by I/NET. As a courtesy to its former customers who were still using I/NETs software products, the Company has contracted with a former employee to provide ongoing software support. As this subcontractor has been compensated for providing support services, he agreed to assume full responsibility for the support obligations. With this transfer of obligation the Company has no other obligations to provide future services. The Company paid approximately $17,000 to the subcontractor during 2006 and has no additional required payments.  See accompanying report of independent registered public accounting firm.  F-12