UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-KSB  S ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the fiscal year ended December 31, 2006  £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934  Commission file number: 000-30245  IDI Global, Inc. (Exact name of small business issuer as specified in its charter)   Nevada87-0617040(State of incorporation)(I.R.S. Employer Identification No.)   462 East 800 North, Orem, Utah       84097 (Address of principal executive offices) (Zip code)  Issuer's telephone number, including area code: (801) 224-4444  Securities registered pursuant to Section 12(b) of the Act:  None.  Securities registered pursuant to Section 12(g) of the Act:  Common Stock par value $.001 per share  Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. ⁭  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 disclosure of delinquent filers in response to item 405 of Regulation S-B is not contained herein, and will not 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. £  Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).  Yes £   No S  State issuer's revenue for its most recent fiscal year: $ 7,999,860  As of April 12, 2007, the registrant had 19,160,174 shares of common stock outstanding. The aggregate market value of the 19,037,834 shares of voting stock held by non-affiliates as of that date was approximately $190,378.  Documents incorporated by reference: None.  Transitional Small Business Disclosure Format (check one): Yes £  No S   1     TABLE OF CONTENTS  PART IItem 1.Description of Business3Item 2.Description of Property12Item 3.Legal Proceedings13Item 4.Submission of Matters to a Vote of Security Holders15PART IIItem 5.Market for Common Equity, Related Stockholder Matters and Issuer
Purchase of Securities15Item 6.Management's Discussion and Analysis or Plan of Operation18Item 7.Financial Statements23Item 8.Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure24Item 8A.Controls and Procedures24Item 8B.Other Information25PART IIIItem 9.Directors, Executive Officers, Promoters, Control Persons and Corporate
Governance; Compliance with Section 16(a) of the Exchange Act25Item 10.Executive Compensation26Item 11.Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters28Item 12.Certain Relationships and Related Transactions, and Director Independence30Item 13.Exhibits30Item 14.Principal Accountant Fees and Services32Signatures33    2   FORWARD LOOKING STATEMENTS  In this annual report, references to "IDI," "we," "us," and "our" refer to IDI Global, Inc., and its subsidiaries.  This annual report contains certain forward-looking statements, and for this purpose any statements contained in this annual report that are not statements of historical fact may be deemed to be forward-looking statements.  Without limiting the foregoing, words such as "may," "expect," "believe," "anticipate," "estimate" or "continue" or comparable terminology are intended to identify forward-looking statements.  These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within IDI's control.  These factors include but are not limited to economic conditions generally and in the markets in which IDI may participate; competition within IDI's chosen industry, including competition from much larger competitors; technological advances and failure by IDI to successfully develop business relationships.  Additional factors which could affect future operating results, financial position, and cash flows, and which could cause actual results to differ materially from those expressed in forward-looking statements are set forth in the Risk Factors Section below.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.  PART I  ITEM 1. DESCRIPTION OF BUSINESS  IDI Global, Inc. was incorporated in the state of Nevada on August 27, 1998, as Bennion Corporation.  On January 14, 2002, the corporation name was changed to IDI Global, Inc. ("IDI Global").  On January 23, 2002, IDI Global formed a wholly owned subsidiary, Internet Development, Inc., a Nevada corporation, for the purpose of completing a forward triangular merger between Internet Development and idiglobal.com, Inc. a Delaware corporation ("idiglobal.com").  Internet Development delivered approximately 7,500,000 shares of IDI Global common stock to idiglobal.com's seventeen shareholders in exchange for 100% of idiglobal.coms shares.  The former idiglobal.com shareholders beneficially owned 65% of IDI Global's outstanding common stock immediately following the acquisition.  This transaction was treated as a reverse acquisition with idiglobal.com being the accounting acquirer and was completed in March 2002.  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., (the Debtors), filed for petitions of relief under Chapter 11 of the federal bankruptcy laws in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  Under Chapter 11, certain claims against the Debtor in existence prior to the filing of the petitions for relief under the federal bankruptcy laws are stayed while the Debtor continues business operations as Debtor-in possession.  These claims are reflected in the December 31, 2006, balance sheet as liabilities subject to compromise. Additional claims (liabilities subject to compromise) may arise subsequent to the filing date as a result of the determination by the court of allowed claims for contingencies and other disputed amounts.  The Companies anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  Settlement and Sale Agreement with Mentoring Parties.  IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc. and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  3   The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  In March of 2006, IDI Global or one of its affiliates transferred $597,000 to ABD Development or one of its affiliates to develop an infomercial to use to generate leads to be used on the sales and marketing floor of the St. George Call Center.  IDI Global understood that these funds would be used by ABD to develop an infomercial, and the  remainder of the funds were to be used to pay for the testing and tuning and the eventual media time to run the infomercial on television stations through out the country.   It was anticipated that the leads to be generated by the infomercial would replace the leads that Mentoring of America, LLC threatened to pull from the Call Center floor by no later than July 2006.  ABD continually delayed the creation of the infomercial, and eventually IDI Global was informed that ABD had run out of money, and would not test the infomercial.  In addition, ABD sent invoices to IDI Global many months after services had been rendered indicating that IDI Global in fact owed ABD an additional $83,400.  The invoices are not representative of what was contracted to be accomplished.  At the request of IDI Global, the Bankruptcy Court authorized the Committee to commence legal action against ABD and its affiliates to attempt to recover the money transferred to it.  IDI Global will cooperate in that litigation.  As part of any such action, it is anticipated that the $83,400 claim asserted by ABD will be disputed in full.  On February 6, 2007, Internet Development filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors ("Committee") to defend this lawsuit on behalf of the IDI Debtors' estates.  In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to Advanced Business Development, Inc. ("ABD") or any of ABD's insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  On February 12, 2007, the "exclusivity period" for the IDI Debtors to file a plan of reorganization, as set forth in section 1121 of title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors' Chapter 11 Cases.  On or about March 8, 2007, MCB Printing, Inc. dba Excel Graphics, Inc. provided to the IDI Debtors and the Committee an offer to purchase Internet Development and to merge with IDI Global, Inc.  This offer has not been accepted by the IDI Debtors as of the date of this report, but negotiations with MCB are continuing.  IDI Technology, Inc., a Nevada Corporation and a wholly owned subsidiary of IDI Global, entered into an agreement for purchase and sale of assets on December 1, 2005, with Circle Tree Media, Inc. (Circle Tree), an Idaho corporation, and Ryan Riley, an Idaho resident and an officer and director of Circle Tree, and Jared Riley, an Idaho resident and an officer and director of Circle Tree.  As of December 31, 2006, a transfer of IDI Global stock or other consideration was to take place with Circle Tree, however, business circumstances and the Bankruptcy proceedings have not allowed this transaction to be fulfilled, and the agreement has been voided by the Parties.  4   OUR BUSINESS  IDI Global is a holding company operating through its wholly owned subsidiary, Internet Development.  Internet Development offers web development services and software, web hosting services, and related support.  It provides websites and related tools for large and small vertical businesses with a network of affiliates, allowing for communication, marketing, e-commerce and business management online.  Chief Financial, IDI Small Business, IDI Technology and Sports Media are no longer operational subsidiaries of IDI Global.  Chief Financial was originally acquired to provide administrative support to our sales centers, as well as trending reports, sales tracking, lead generation and new lead source opportunities.  Sports Media sold advertising and marketing programs for media companies.  IDI Small Business managed our direct marketing operations in St. George, Utah.  IDI Technology provided Internet-based lead generation offerings aimed at producing monthly residual income.  Professional Consulting Services (PCS), located in St. George, Utah, was a wholly owned subsidiary of Chief Financial.  PCS sells add-on services and products to customers and other lead suppliers.  These products are focused on the small office and home office marketplace and include self-replicating web site tools, individual web sites, e-commerce solutions, and coaching and training services for small office/home office customers.  Pursuant to a settlement agreement signed on April 11, 2007, and approved by the federal bankruptcy court, PCS is no longer a wholly owned subsidiary of Chief Financial and is now owned and managed entirely by the Mentoring Parties (Mentoring of American and HG Marketing, Inc.), with no affiliation to Chief Financial or IDI Global.  INTERNET DEVELOPMENT INC. (IDI)  Internet Development designs, develops and markets user-friendly, web-based software applications and development tools on an integrated service platform. It also provides in-house servers and management to host all of its software applications and provide maintenance & support and security for its clients.  Internet Developments software products allow both large organizations comprised of a substantial network of affiliates within specific vertical markets, as well as small stand-alone businesses, to exploit the full capabilities of the Internet as a communications, information management, marketing, and e-commerce platform.  Internet Developments applications and tools enable vertical organizations to deploy, integrate, interact with, and centrally administer large networks of e-commerce enabled affiliate web sites.  Internet Development has received notice in early 2007 that one of its significant clients, Internet Services Corporation (ISC), plans to transition away from the ARRAY software and will not remain a client of IDIs.  ISC gave sufficient notice required by contract and continues using the ARRAY software on a month to month basis as of the date of this report.  It is unknown for certain the exact date of ISCs departure but is anticipated by mid-summer of this year.  Internet Development also had an in-house sales call center that marketed and sold a variety of small business packages, including the QuickSite Builder, coaching programs, and other products and services, to a variety of internal and third-party lead sources within the small office / home office sector.  As of October, 2006, the sales call center is no longer operational due to cash flow and management challenges, and is not a functional revenue component of IDI.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development, Inc.  In October 2006, however, with the loss of the call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  Products  QuickSite Builder  The QuickSite Builder is a completely browser-based, point-and-click website builder technology for the Internet.  QuickSite Builder allows a user without any programming knowledge to build a functional, e-commerce-enabled website in a short time.  QuickSite Builder provides small businesses with access to an application service platform that is sophisticated, functional and versatile, as well as affordable.  Available features include auto-responders, counters, banners, search engine site registration, online shopping mall presence, shopping cart, merchant account, secure online ordering and transaction processing, e-mail, incentive sweepstakes giveaways, and customer demographic proofing.  Internet Development normally bundles QuickSite Builder with a business education course that is designed to help small business owners make optimal use of e-commerce and Internet Developments web technology.  5   QuickSite Builder is targeted at small businesses and the small office / home office entrepreneurs who wish to establish an online business presence quickly, easily, and cost-effectively.  Internet Development acquires new customers through qualified third-party leads based on lists of individuals who have previously purchased business education products or services through infomercials or other direct sales channels.  Odyssey Billing System  Odyssey is a distributed electronic billing system.  It handles both credit card and ACH electronic check transactions. Because Odyssey can authorize against multiple card processors, it can handle the needs of merchant accounts from a variety of sources.  Odyssey can also perform one-time transactions, or be set to charge credit cards on a regular, recurring basis without intervention.  Odyssey's main attraction comes from its Service Oriented Architecture, which enables it to plug in to a variety of e-commerce solutions without reprogramming.  Because of this architecture, Odyssey can securely integrate with third party applications running in remote data centers.  This allows Odyssey to be used as the "plug in" billing system for both in-house projects and external clients.  ARRAY  ARRAY is a website solution for network marketing and direct sales companies, as well as other vertical industries, such as the insurance industry, or any organization that has a network of affiliates or members and desires communication, marketing, and/or e-commerce functionality.  It is an integrated suite of web applications and business development tools that provide a customizable, database-driven virtual intranet/extranet and e-commerce solution for any vertical enterprise with a network of affiliates.  ARRAY enables organizations to deploy, integrate, interact with and centrally administer a large network of e-commerce enabled affiliate websites, while maintaining a consistent, unified brand image for the organization as a whole.  Using ARRAY, a network of distributed affiliate websites can be rapidly and inexpensively deployed, interconnected and e-commerce enabled.  ARRAY provides the corporate parent and each affiliate with a unique, personalized, and highly functional e-commerce website.  The parent company avoids having to invest heavily in the development of an entire Internet division and web-enabling technology because ARRAY is an outsourced and hosted application platform.  In addition, because ARRAY is built on a flexible, scalable and customizable platform capable of integrating with other applications and services, the platform can readily accommodate any organization's custom requirements as well as new features that the organization may want to add in the future.  ARRAY is designed to provide each affiliate of the parent organization with the ability to create and maintain a unique business presence with simple point-and-click technology.  At the same time, ARRAY allows the parent organization (1) to project a consistent brand on the Internet; and (2) to maintain complete umbrella control through a database-driven feature called the Administrative Office.  The Administrative Office can incorporate sophisticated tools for publishing, monitoring and controlling content on affiliate websites, analyzing statistics, delivering intelligent advertising, communicating with all affiliates, and evaluating critical data.  The system has the ability to interface with multiple databases to access, extract, or download information from anywhere in the world, and ties in seamlessly with genealogy databases and commission systems in place within the organization.  For the affiliate, ARRAY represents a flexible and easy-to-use productivity solution permitting initial setup and updates to a website without requiring the user to have computer programming knowledge.  It provides the following features to the affiliate user:   Automation of administrative tasks, such as product ordering, billing, and reporting  Downline management and communication  Website statistical analysis  Customer and Prospect tracking and profiling  Intelligent, targeted marketing features  Personal productivity tools (online contact management, calendaring, event planning)  E-commerce tools (shopping cart, secure payment, transaction processing, site links)  Publishing of product catalogues  Proprietary, sophisticated email and email marketing campaigns  Access to relevant database information   6   ARRAY's Site Manager tool allows each distributor to administer his or her website in a unique fashion, enjoying the ability to update news and events, welcome messages, announcements, and product displays, as well as to choose among numerous professionally designed layouts and colors that are all pre-approved by the parent company and that exude the appropriate look and feel of the corporate entity.  The site also contains an area that allows the distributor to post messages and communicate with his or her organization or up-line.  Markets  ARRAY has been marketed primarily to the United States direct sales industry.  Direct sales organizations benefit greatly from the capabilities of the Internet, and many have taken advantage of the ARRAY technology to effectively do so.  The industry requires an affordable, integrated web-based solution that allows (1) parent corporations to interact with a vast network of independent distributors and (2) independent distributors in turn to interact with their own sponsors, down-lines, recruits and customers.  Additionally, these organizations must have control over the content that is delivered via the Internet by distributors, regulatory compliance, corporate image, and public relations, which ARRAY allows them to accomplish.  The complex, hierarchal direct sales industry is ideally suited to exploiting the Internet for communications, commerce, and community.  Direct sales organizations require a comprehensive web-based solution that (1) offers a professional yet quick, easy, and affordable online presence to the individual distributors (who are typically sole proprietors working out of a home office) and (2) delivers low-cost, user-friendly organizational management, distribution, marketing, communications, personal productivity, back-office, and online retail sales tools to increase productivity and sales.  We believe that ARRAY satisfies the needs of this market niche.  Distribution  Internet Development relies on the marketing expertise and contracts of its own in-house sales force as well as third-party resellers for marketing and distribution.  Internet Development has forged strategic relationships, based on revenue sharing arrangements and joint product development initiatives, with leading network marketers and clients in vertical markets.  Internet Development is also working with several leading developers of specialized database programs and back office software applications for direct sales companies to integrate their products into ARRAY at a future date.  Internet Development has focused its initial marketing efforts on the parent companies and principal lines of sponsorship of leading direct sales companies.  By so doing, Internet Development is able to harness the existing internal marketing infrastructure of these organizations to promote its products down the line to millions of independent distributors.  Direct sales companies are by nature efficient marketing organizations, with a revenue model predicated on the parent selling products to independent distributors, who in turn recruit and sell products to their own network of distributors.  Internet Development's marketing strategy is to encourage this existing sales network to promote its ARRAY product to the independent distributors by establishing ARRAY not only as a cost saving measure, but also as a profit center for the parent company.  Internet Development provides the full ARRAY technology in its ARRAY Express model to a new client often at no cost up front for basic development and setup.  In exchange, the new client commits to incorporate ARRAY into its monthly auto-ship package or other similar program, at a reduced cost to the end-user, or to market the product aggressively to its organization and user base.  The corporate parent is paid a recurring monthly commission for each distributor who signs up for a personal website.  The parent is thus encouraged to endorse and actively promote the product to the sales organization.  Recurring revenues are created by providing independent affiliates with their own e-commerce-enabled web sites for a monthly hosting fee.  Value-added services are offered and available to the affiliate end users for a small additional monthly fee.  Also, distributors who refer the product to other distributors may be given a discount off their own monthly hosting fee.  ARRAY has been utilized by several large direct sales companies, including such industry leaders as New Vision, Tupperware, and Avon.  Independent distributors are currently using the product at an average price of $10 per month. Exclusive contracts normally prohibit these companies from working with another developer for the same applications and services.  Under the terms of these agreements, upon termination of the agreement, Internet Development is entitled to remove the web technology and underlying source code for all of the applications developed for the corporation, unless a lucrative purchase agreement has been negotiated with the client for continued use only within their organization.   7   Internet Development expects to introduce ARRAY to other high-growth business-to-business and business-to-customer vertical markets characterized by a network of affiliated distributors, dealers, brokers, agents, members or independent service providers.  These adjacent vertical markets include the telecom, medical, real estate brokerage, insurance, healthcare and financial services industries, among many others.  Customers of Internet Developments various products and services are obtained through an in-house sales & marketing operation that has participation at trade shows, conferences, and corporate-sponsored events, as well as through the networking of strategic partners that recommend the companys services  Competition  There are now numerous other self-replicating web site solutions available on the market.  ARRAY competes primarily with custom, proprietary enterprise solutions usually developed internally or outsourced to similar vendors by a prospective company.  These proprietary solutions are often more expensive and difficult to implement and maintain.  Internet Developments competitors include companies that provide online marketing services and develop distributed e-commerce enabled web networks with centralized administrative functions.  The companies target a wide range of professional organizations, while Internet Development is more focused and specialized on specific markets, such as the direct sales industry.  To a lesser extent, ARRAY selectively competes in certain of its specific applications with web site publishing companies, integrated business applications providers, publishers of web-authoring and content management software, and Internet infrastructure software developers.  Internet Development maintains its competitive position because its program is easy to use and functional.  Also, it has focused its efforts on rapid market penetration sold through proven reseller channels and segment-specific strategic partners to capture significant market share and create a barrier to entry.  Internet Development will continue to leverage its website design expertise and applications technology developed for large enterprises to develop leading-edge web applications for small businesses and consumer markets and to bundle this technology with its expertise in business education and training to create innovative courses.  Principal Suppliers  Internet Developments software is developed in-house, and does not depend on outside suppliers for any significant portions of its software offering. IDI's production servers, which provide service for customers, are co-located at a local facility ("FiberNet"). Internet connectivity and data backup rely on FiberNet and could be adversely affected by errors on FiberNet's part.  Internet Development uses computer manufacturers for its hardware needs, but does not rely on a specific manufacturer.  Major Clients  Major clients include Avon, Univera, New Vision, and Visalus Sciences.  Internet Development has received notice in early 2007 that one of its significant clients, Internet Services Corporation (ISC), plans to transition away from the ARRAY software and will not remain a client of IDIs.  ISC gave sufficient notice required by contract and continues using the ARRAY software on a month to month basis as of the date of this report.  It is unknown for certain the exact date of ISCs departure but is anticipated by mid-summer of this year.  Intellectual Property  Internet Development has internally developed all of its own proprietary source code for its applications.  To the best of our knowledge, ARRAY's corporate Administrative Office, with its umbrella control and processing capabilities, is unique to a large degree.  We have exclusive agreements with each ARRAY client to provide technology for their e-commerce and individual web site needs.  Employees  Internet Development employs 20 -30 full-time employees.  These employees are not as of the date of this report covered by any collective bargaining agreement.  We believe that relations with these employees are good, and we have not experienced any work stoppages.  8   RISK FACTORS  The short- and long-term success of IDI Global is subject to certain risks, many of which are substantial in nature and outside the control of IDI Global.  You should consider carefully the following risk factors, in addition to other information contained herein.  All forward-looking statements contained herein are deemed by IDI Global to be covered by and to qualify for the safe harbor protection provided by Section 21E of the Private Securities Litigation Reform Act of 1995.  When used in this report, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates," and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.  You should understand that several factors govern whether any forward-looking statement contained herein will or can be achieved.  Any one of those factors could cause actual results to differ materially from those projected herein.  These forward-looking statements include plans and objectives of management for future operations, including the strategies, plans and objectives relating to the products and the future economic performance of IDI Global and its subsidiaries discussed above.  In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of any such statement should not be regarded as a representation by IDI Global or any other person that the objectives or plans of IDI Global will be achieved.  We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.  RISKS RELATED TO OUR BUSINESS  We may need additional external capital and may be unable to raise it.  Our success will depend upon our ability to access equity capital markets as needed and borrow on terms that are financially advantageous to us.  However, we may not be able to obtain additional funds if necessary on acceptable terms.  If we fail to obtain funds on acceptable terms, then we might be forced to delay or abandon some or all of our business plans, or may not have sufficient working capital to develop products, finance acquisitions, or pursue business opportunities.  If we borrow funds, we could be forced to use a large portion of our cash reserves to repay principal and interest on those funds.  If we issue our securities for capital, the interests of investors and shareholders could be diluted.  We are subject to intense competition from large and small companies which limits our ability to obtain market share.  We face competition in the overall Internet software market, as well as in the web site development market.  We expect competition to persist, increase, and intensify in the future as the markets for our products and services continue to develop, and as additional competitors enter our market.  Our success in obtaining market share will depend upon our ability to build name brand recognition and to provide cost-effective, high-quality products and services to our customers.  We have developed our products to meet the needs of both small and large businesses in a targeted way, and we believe the generality of our competitors services may inadequately address our potential customers needs.  In addition, many of our current or potential competitors have broad distribution channels that they may use to bundle competing products directly to end-users or purchasers.  If these competitors were to bundle competing products for their customers, it could adversely affect our ability to obtain market share and may force our prices down.  We are dependent upon certain relationships with third parties, the loss of which may result in loss of customers.  We are dependent upon certain merchant and banking relationships, as well as strategic relationships with third parties, who provide payment processing to all our customers.  Failure of these financial institutions and third parties to continue to provide services in a satisfactory way to our customers could result in our loss of the business of the merchants to whom we sell products and services.  If these financial institutions and third parties do not continue to provide services to our customers, we may not be able to find other third party service providers.  In that scenario, our customers may terminate their agreements with us and move their business to our competitors, which could adversely affect our revenues and earnings.   9   Our research and development efforts could result in increased costs that could reduce our operating profit, a loss of revenue if promised new products are not delivered to our customers in a timely manner, or a loss of revenue and possible claims for damages if new products and services do not perform as anticipated.  The electronic commerce, web hosting and merchant processing markets in which we compete are characterized by technological change, new product introductions, evolving industry standards and changing customer needs.  In order to remain competitive, we may be required to engage in a number of research and development projects, which carry the risks associated with any research and development effort, including cost overruns, delays in delivery and performance problems.  In our core Internet-based services, these risks are even more acute.  These projects could result in increased research and development costs in excess of historical levels, as well as the loss of revenues, or we could lose customers if the new products and services do not perform as intended or are not acceptable in the marketplace.  Any delay in the delivery of new products or services could render them less desirable by our customers, or possibly even obsolete.  In addition, the products and services we deliver to the small business market are designed to process critical transactions, including key reports and other information associated with those transactions, all at very high volumes and processing speeds.  Any performance problems that arise with a new product or service could result in significant processing or reporting errors.  If competitive practices prevent our ability to pass along all increased merchant fees to our customers in the future, we would have to absorb all or a portion of these increases, thereby increasing our operating costs and reducing our profit margin.  From time to time VISA and MasterCard increase the fees that they charge processors.  We may attempt to pass these increases along to our merchant customers, but this could result in the loss of those customers to our competitors who do not pass along the increases.  Our revenues from merchant account processing are dependant upon our continued merchant relationships, which are highly sensitive and can be canceled if customer charge-backs escalate and generate concern - even if we have held back sufficient funds in reserve accounts to cover these charge-backs.  Cancellation by our merchant providers would most likely result in the loss of new customers and lead to a reduction in our revenues.  We rely on co-marketing alliances to generate clients, end-users, and revenue, and these agreements could hinder us from directly contacting potential clients in certain industries.  We have key co-marketing arrangements with strategic partners in order to use their industry and marketing expertise.  Some of these arrangements may provide or allow co-marketing partners some exclusive rights to co-market our services in a particular industry, which will limit our right to contact potential clients in that industry.  Also, if a co-marketing relationship is terminated, we may be unable to replace that relationship with other alliances that have comparable customer bases and user demographics.  This limitation may affect our revenues because we expect that revenues generated from the sale of our products and services through these strategic co-marketing arrangements will account for a significant portion of our revenues for the foreseeable future.  However, there can be no assurance that these arrangements will be successful in generating meaningful revenue.  We may experience software defects that may damage customer relations.  Despite rigorous testing, our software may nevertheless contain undetected bugs, errors or experience failures when introduced, or when the volume of services provided to end users increases substantially.  Any material errors could damage the reputation of our service or software, as well as damage our customer relations.  We have detected errors, defects, and bugs in the past and have corrected them as quickly as possible.  Correcting any defects or bugs we may discover in the future could require us to make significant expenditures of capital and other resources.  We believe that we follow industry-standard practices relating to the identification and resolution of errors, defects, or bugs encountered in the development of new software and in the enhancement of existing features in our products.  As of this date, we have not experienced any material adverse effect by reason of an error, defect, or bug.   10   We may experience breakdowns in our hosting services, infrastructure, or payment processing systems, which may expose us to liabilities and cause customers to abandon our products and services.  We would be unable to deliver our payment processing services or hosting services if our system infrastructures break down or are otherwise interrupted.  Events that could cause system interruptions include, but are not limited to, the following:  v fire, v earthquake, v power loss, v terrorist attacks, v telecommunications failure, v un-authorized entry or other events.  Although we regularly back up data from operations, and take other measures to protect against loss of data, there is still always some inherent risk of these losses.  Despite the security measures we maintain, our infrastructure may be vulnerable to computer viruses, hackers, rouge employees or similar sources of disruption.  Any problem of this nature could result in significant liability to customers or financial institutions and also may deter potential customers from using our services.  We attempt to limit this sort of liability through back-up systems, contractual provisions, insurance coverage, and other security measures.  However, we cannot assure that these contractual limitations on liability would be enforceable, or that our insurance coverage would be adequate to cover any liabilities we might sustain.  Also, a breach of our e-commerce security measures could reduce demand for our services.  The e-commerce industry is intensely focused on the need for Internet security, particularly with respect to the transmission and storage of confidential personal and financial data.  Any compromise or elimination of our security could erode customer confidence in our systems, and could result in decreased demand for our services, as well as possible litigation.  We depend upon our proprietary rights, none of which can be completely safeguarded against infringement.  We rely upon trade secrets with respect to our source code and functionalities and other non-patented proprietary information in our product development activities.  We seek to protect trade secrets and proprietary knowledge in part through confidentiality agreements with our employees, resellers, and collaborators.  These agreements may not effectively prevent disclosure of our confidential information and may not provide us with an adequate remedy in the event of unauthorized disclosure of this information.  In addition, if employees or collaborators develop products independently that may be applicable to our products under development, then disputes may arise about ownership of proprietary rights to those products or services.  Protracted and costly litigation could be necessary to enforce and determine the scope of our proprietary rights.  It would be impossible to predict whether litigation might be successful.  We depend on key employees who may leave at any time.  Our business, and specifically that of Sports Media, is dependent upon relationships that our key employees have formed. We have not entered into any contracts with these employees and they may leave us at anytime.  Also, if the key employee's important relationships with production firms and advertisers do degrade or changes occur in associations, then our revenues will be adversely affected.  Economic downturns may lead to a reduction in the marketing activities of our clients, which could result in decreased revenues.  As economic downturns begin, marketing dollars are often the first budgets to be cut.  Despite informal agreements and strong relationship-based opportunities, when marketing dollars are reduced, then marketing budgets are curtailed.  Because such a large part of our business is based on marketing, any reduction in the marketing budgets of our customers or clients could have a material adverse impact on our business.   11   RISKS RELATED TO OUR INDUSTRY  Our industry is characterized by technological change, and for us to remain competitive, we must rely on research and development projects which could increase costs and which could be unsuccessful.  The e-commerce, web hosting, and merchant processing markets in which we compete are characterized by technological change, new product introductions, evolving industry standards, and changing customer needs.   To remain competitive, we may be required to engage in a number of research and development projects, which carry the risks associated with any research and development effort, including cost overruns, delays in delivery, and performance problems. In our core Internet-based services, these risks are even more acute.  These projects could result in increased research and development costs in excess of historical levels and the loss of revenues, or we could lose customers if our new products and services do not perform as intended or are not acceptable in the marketplace.  Any delay in the delivery of new products or services could render our products and services less desirable to our customers, or possibly even obsolete. In addition, the products and services we deliver to the small business market are designed to process critical transactions, including key reports and other information associated with those transactions, all at very high volumes and processing speeds. Any performance problems that arise with a new product or service could result in significant processing or reporting errors and the loss of customers.  If competitive practices prevent our passing along increased fees to our merchant customers in the future, we would have to absorb a portion of these increases which would increase our operating costs and reduce our profit margin.  From time to time, VISA and MasterCard increase the fees that they charge processors.  If this occurs, we may attempt to pass these fee increases along to our merchant customers, but doing so could result in the loss of those customers to our competitors who do not pass along the increases.  Our revenues from merchant account processing are dependent upon our continued merchant relationships, which are highly sensitive and can be canceled if customer charge-backs escalate and generate concern over whether we have held back sufficient funds in reserve accounts to cover these charge-backs.  Cancellation by our merchant providers most likely would result in the loss of new customers and lead to a reduction in our revenues.  There may be additional unknown risks which could have a negative effect on our business.  The risks and uncertainties described in this section are not the only ones facing us.  Additional risks and uncertainties not as of the date of this report known to us or that we currently deem immaterial may also impair our business operations.  If any of the foregoing risks actually occur, our business, financial condition, or results of operations could be materially adversely affected.  In such case, the trading price of our common stock could decline.  ITEM 2. DESCRIPTION OF PROPERTY  Our operations are headquartered in a 6,350 square foot facility located in the Stratford Park business complex in Orem, Utah.  Internet Development entered into a lease agreement with Stratford Park, LC on November 3, 2000 .  The lease provided for a five-year term, which commenced on December 1, 2000, and expired on November 31, 2005.  It is now a month to month lease requiring a monthly rent of approximately $7,218.  The lease may be terminated by the landlord in the case of damage or destruction of the property by fire, subject to listed conditions in the lease, with written notice within 30 days of the casualty.  The lease also may be terminated by the landlord if we fail to pay rent, make a material false statement in connection with the negotiation of the lease, abandon or vacate the property, fail to abide by the terms and covenants of the lease, or if we declare bankruptcy.  Currently, the lease has been extended on a month-to-month basis, requiring sufficient notice to the owner if IDI determines to move its headquarters to another office location.   12   ITEM 3. LEGAL PROCEEDINGS  In March 2005, two former employees, Ryan Romero and Jeremy Hall, filed suit against IDI Global in the 4th Judicial District Court, Provo Department, State of Utah.  The suit alleges that Romero and Hall are entitled to options that were allegedly promised to them in connection with the termination of their employment. We filed our answer and discovery is proceeding. We deny these allegations, and intend to defend vigorously against this suit. On June 24, 2004, Independent Marketing, Inc. filed a lawsuit in the Third District Court for Salt Lake County, State of Utah, against Internet Development, Inc.  The allegations in the suit relate to the alleged hiring of three employees who were bound by a non-competition agreement with Independent Marketing, Inc.  However, we believe the three employees were not hired by Internet Development, Inc., and intend to vigorously defend this suit.  On April 1, 2004, Ascendiant Capital Group, LLC, filed a complaint against IDI Global in the Superior Court of the State of California for the County of Orange - Central Justice Center.  The complaint alleges that IDI Global breached a consulting agreement with Ascendiant Capital Group, and that Ascendiant Capital Group is entitled to damages in excess of $25,000.  We intend to defend against the claims, and on May 11, 2004, we filed a cross-complaint alleging breach of contract by Ascendiant Capital Group.  This case has been stayed pending the outcome of the Mercator litigation discussed below.  On March 12, 2004 Mercator Momentum Fund, L.P. and Mercator Momentum Fund III, both California limited partnerships, and Mercator Advisory Group, L.L.C., a California limited liability company, filed a complaint against IDI Global, Inc. in the Superior Court of the State of California for the County of Los Angeles.  The complaint alleges that IDI Global breached a Securities Purchase Agreement by refusing to accept $3,500,000 in consideration for promissory notes in the amount of $3,500,000 with 3.5% interest, warrants to purchase 1,312,500 shares of IDI Global common stock at an exercise price of $1.20, a $175,000 due diligence fee, and failure to register the shares of common stock.  We intend to defend against the claims.  Newave, Inc., vs. IDI Global, Inc., Chief Financial, Inc., et al., Superior Court for the State of California, in and for the County of Santa Barbara, Case No.  1167126.  Plaintiff Newave, Inc., filed a lawsuit against IDI Global and Chief Financial for breach of contract and unjust enrichment.  The lawsuit relates to a Lead Marketing Agreement between Newave and Chief Financial.  We dispute that we are a party to the Lead Marketing Agreement, and have filed our answer.  The case began trial on April 17, 2006, but was stayed in connection with the bankruptcy proceedings discussed below.  On August 8, 2005, Paul Watson, a former employee of the Company brought suit against the Company and Kevin Griffith in the 4th Judicial District Court for Utah County, State of Utah.  Mr. Watson brought claims for breach of contract, false light, and wrongful discharge, and seeks back pay and loss of income.  The Company and Mr. Griffith filed an answer and counterclaim against Mr. Watson, bringing claims of defamation, intentional and negligent interference with prospective economic relations, breach of fiduciary duty, breach of contract, conversion, and unjust enrichment.  The Company and Mr. Griffith dispute the claims brought by Mr. Watson and intend to vigorously pursue this action.  On or about February 21, 2006, Presson Airport, LLC served an amended complaint asserting claims against Chief Financial, Inc. and Internet Development, Inc., in the Third Judicial District Court, State of Utah. Plaintiff seeks to recover approximately $46,000 for unpaid rent plus continuing rent and other charges in the amount of $9,800 per month based on allegations of breach of a lease and guaranty.  The Company and its subsidiaries dispute this liability and intend to vigorously defend these claims.  HG Marketing, Inc., and Mentoring of America, Inc., vs. IDI Global, Inc., IDI Small Business, Inc., and Kevin Griffith, District Court, Clark County, Nevada, Case No. A518002.  Plaintiffs HG Marketing and Mentoring of America filed this lawsuit claiming breach of contract, conversion, fraud, and constructive trust.  The lawsuit relates to the asset purchase agreement between the parties relating to the call center located in St. George, Utah.  Plaintiffs filed a motion for a temporary restraining order, which was denied, and also sought a preliminary injunction, which was also denied.  We filed an answer, counterclaim, and third party complaint against the plaintiffs and their principals on April 10, 2006.  Pursuant to a settlement agreement signed on April 11, 2007, and approved by the federal bankruptcy court, the St. George call center, PCS, is no longer a wholly owned subsidiary of Chief Financial and is now owned and managed entirely by the Mentoring Parties (Mentoring of American and HG Marketing, Inc.), with no affiliation to Chief Financial or IDI Global.  13   Filing of Bankruptcy under Chapter 11  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  (IDI Global, Case No. 0621261; IDI Small Business, Case No. 0621266; Chief Financial, Case No. 0621270; and PCS, Case No. 0621268.)  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  Settlement and Sale Agreement with Mentoring Parties.  IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc. and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  In March of 2006, IDI Global or one of its affiliates transferred $597,000 to ABD Development or one of its affiliates to develop an infomercial to use to generate leads to be used on the sales and marketing floor of the St. George Call Center.  IDI Global understood that these funds would be used by ABD to develop an infomercial, and the  remainder of the funds were to be used to pay for the testing and tuning and the eventual media time to run the infomercial on television stations through out the country.  It was anticipated that the leads to be generated by the infomercial would replace the leads that Mentoring of America, LLC threatened to pull from the Call Center floor by no later than July 2006.  ABD continually delayed the creation of the infomercial, and eventually IDI Global was informed that ABD had run out of money, and would not test the infomercial.  In addition, ABD sent invoices to IDI Global many months after services had been rendered indicating that IDI Global in fact owed ABD an additional $83,400.  The invoices are not representative of what was contracted to be accomplished.  At the request of IDI Global, the Bankruptcy Court authorized the Committee to commence legal action against ABD and its affiliates to attempt to recover the money transferred to it.  IDI Global will cooperate in that litigation.  As part of any such action, it is anticipated that the $83,400 claim asserted by ABD will be disputed in full.   14   On February 6, 2007, Internet Development filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors ("Committee") to defend this lawsuit on behalf of the IDI Debtors' estates.  In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to Advanced Business Development, Inc. ("ABD") or any of ABD's insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  On February 12, 2007, the "exclusivity period" for the IDI Debtors to file a plan of reorganization, as set forth in section 1121 of title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors' Chapter 11 Cases.  On or about March 8, 2007, MCB Printing, Inc. dba Excel Graphics, Inc. provided to the IDI Debtors and the Committee an offer to purchase Internet Development and to merge with IDI Global, Inc.  This offer has not been accepted by the IDI Debtors as of the date of this report, but negotiations with MCB are continuing.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development.  In October 2006, however, with the loss of the sales call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS  We did not submit any matter to a vote of our shareholders during the fourth quarter of the 2006 fiscal year.  PART II  ITEM 5. MARKET PRICE FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASE OF SECURITIES  Market Information  Our common stock is listed on the NASD OTC Bulletin Board under the symbol "IDIB."  The following table presents the range of the high and low bid of our stock for each quarter for the past two years as reported by the OTC Bulletin Board Historical Data Service.  Such quotations represent prices between dealers and may not include retail markups, markdowns, or commissions and may not necessarily represent actual transactions.  YearQuarter EndedHigh BidLow Bid2005March 31$0.51$0.44June 300.370.33September 300.250.23December 310.140.132006March 310.510.44June 300.370.33September 300.250.23December 310.050.05   15   Our shares are subject to Section 15(g) and Rule 15g-9 of the Securities and Exchange Act, commonly referred to as the "penny stock" rule.  The rule defines penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions.  The rule provides that any equity security is considered to be a penny stock unless that security is:  · registered and traded on a national securities exchange meeting specified criteria set by the SEC; · authorized for quotation from the NASDAQ stock market; · issued by a registered investment company; or · excluded from the definition on the basis of price (at least $5.00 per share) or the issuer's net tangible assets.  If our shares are deemed to be a penny stock, trading in the shares will be subject to additional sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors.  Accredited investors, in general, include certain institutional investors and individuals with assets in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 together with their spouse.  For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of our securities and must have received the purchaser's written consent to the transaction prior to the purchase.  Additionally, for any transaction involving a penny stock, the rules require the delivery, prior to the first transaction, of a risk disclosure document relating to the penny stock.  A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the security.  Finally, monthly statements must be sent to the purchaser disclosing recent price information for the penny stocks.  Consequently, these rules may restrict the ability of broker-dealers to trade or maintain a market in our common stock and may affect the ability of shareholders to sell their shares.  Holders  As of April 13, 2006, we had approximately 100 stockholders of record.  Dividends  We have not paid cash or stock dividends and have no present plan to pay any dividends.  Instead, we intend to retain any earnings to finance the operation and expansion of our business.  Recent Sales of Unregistered Securities  The following discussion describes all securities sold by us during the past two fiscal years without registration.  On July 28, 2005, the Company entered into an Asset Purchase Agreement with Hire Solutions, LLC (Hire) for all related assets, products, and training services in an all-stock transaction.  The Company agreed to issue 294,118 shares of its common stock (representing a purchase price amount of $100,000), and to place such shares into escrow.  The Company also granted to Hire a put, in connection with which Hire could put the shares back to the Company in exchange for the purchase price to be paid in cash.  Pursuant to the Asset Purchase Agreement, if Hire exercises its put, the Company is not required to pay the purchase price in cash until the sales channel purchased has generated net income of at least $100,000.  On October 18, 2005, Hire exercised the put.  However, because as of the date of this report the sale channel had not yet generated at least $100,000 in net income, the Company was not yet required to pay the purchase price in cash.  The Company relied on an exemption from the registration requirements provided by Section 4(2) of the Securities Act and regulations promulgated thereunder in connection with the issuance of the securities.  On December 30, 2005, the Hire Solutions LLC assets that were purchase by IDI Small Business were incorporated into a new subsidiary company called Worldwide Recruiting Solutions Inc., a Nevada Corporation.  Business circumstances have not allowed this transaction to be fulfilled, and the agreement will very likely not be executed.   16   On January 14, 2005, IDI Global and IDI Small Business entered into an Asset Purchase Agreement with Mentoring of America, a Utah limited liability company, and HG Marketing, Inc., a Nevada corporation.  Pursuant to the agreement, IDI Small Business acquired the sales and marketing assets of HG Marketing.  IDI Small Business granted warrants to purchase up to 2,500,000 shares of IDI Global common stock and agreed to issue and place 4,356,436 shares of IDI Global common stock into an escrow.  The warrants become exercisable between 2008 and 2012 at exercise prices that escalate annually from $0.80 to $1.80.  The 4,356,436 shares of IDI Global common stock held in escrow will be released to Mentoring of America based upon performance of the sales and marketing operation over the first two years of operations.  We relied on an exemption from the registration requirements of the Securities Act for a private transaction not involving a public distribution provided by Section 4(2) under the Securities Act.  As agreed, based on the required performance of the sales and marketing operation during 2005, 1,529,547 of the 4,356,436 common shares held in escrow were delivered to Mentoring of America via certificate on March 17, 2006, to fulfill the first portion of the agreement.  The remaining 2,826,889 shares will remain in escrow and will be delivered to Mentoring of America based on the performance of the sales and marketing operation during 2006.  There has been a settlement agreement signed with Mentoring on April 11, 2007 and the shares will like be returned to the treasury and all warrants will be canceled.  On January 14, 2005, we granted a warrant to purchase 250,000 shares to SBI USA LLC (SBI USA) in consideration for SBI Advisors and SBI Brightline not exercising their legal right to re-price the Term Credit Agreement and Securities Purchase Agreement when we agreed to sell additional shares and warrants under an Asset Purchase Agreement, dated January 14, 2005, between IDI Global and IDI Small Business, on the one hand, and Mentoring of America, LLC and HG Marketing, Inc., on the other hand.  This warrant is exercisable at $0.70 per share for a period of four years commencing on January 14, 2007.  We relied on an exemption from the registration requirements of the Securities Act for a private transaction not involving a public distribution provided by Section 4(2) under the Securities Act.  On December 24, 2004, pursuant to a Securities Purchase Agreement, we agreed to issue up to 3,428,570 shares of our common stock at $0.70 per share to SBI Brightline X LLC, granted a warrant to purchase an aggregate of 571,429 shares of common stock at $0.70 per share, and agreed to grant an additional warrant to purchase 571,429 shares of common stock at $0.70 per share.  We relied on an exemption from the registration requirements of the Securities Act for a private transaction not involving a public distribution provided by Section 4(2) under the Securities Act.  On December 24, 2004, pursuant to the Term Credit Agreement, we granted a warrant to SBI Advisors LLC to purchase 525,000 shares of common stock at $0.70 per share.  We relied on an exemption from the registration requirements of the Securities Act for a private transaction not involving a public distribution provided by Section 4(2) under the Securities Act.  On December 21, 2004, we converted loans and interest totaling $1,295,182 at $0.50 a share to 2,588,364 shares of common stock.  We issued 800,000 shares each to Compass Equity Partners, Empire Fund Managers and Liberty Partners, and issued 188,364 shares to First Equity Holdings.  We relied on an exemption from the registration requirements of the Securities Act for a private transaction not involving a public distribution provided by Section 4(2) under the Securities Act.  On September 28, 2004 we issued 150,000 shares as part of the settlement of a law suit brought by Gary Winterton.  We relied on an exemption from the registration requirements provided by Section 3(10) of the Securities Act.  On January 16, 2004, we issued an aggregate of 1,000,000 common shares valued at $1,500,000 to acquire Chief Financial, Inc.  We relied on an exemption from the registration requirements of the Securities Act for a private transaction not involving a public distribution provided by Section 4(2) under the Securities Act.   17   On December 1, 2005, IDI Global Inc. agreed to transfer 250,000 shares of its restricted common stock (the Shares) of IDI Global, Inc., at the closing of the acquisition of Circle Tree by IDI Technology, as described in Item 8B in Other Information below.  The parties agreed that if the Shares were not worth one dollar ($1.00) per share by December 31, 2006, then IDI Global Inc. shall pay to Circle Tree Media (or Riley, if Circle Tree Media no longer exists) a True-Up Payment, as that term is defined herein.  For purposes of determining the value of the Shares at December 31, 2006, the parties were to examine the publicly reported share price of the IDI Global Inc. common stock over the last 60 trading days of 2006; if the closing share price equaled or exceeded one dollar ($1.00) on any day over that period of time, then the Shares were deemed to be worth one dollar ($1.00), and IDI Global was not obligated to make the True-Up Payment.  The True-Up Payment was equal to $250,000 less 250,000 multiplied by the highest trading price of the Shares over the last 60 days of 2006, to be paid in restricted common stock to Circle Tree.  Business circumstances and Chapter 11 Bankruptcy proceedings have not allowed this transaction to be fulfilled, and the agreement has been voided by the Parties.  Issuer Purchase of Securities  None.  ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS  Critical Accounting Policies  The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in our consolidated financial statements and accompanying notes.  Critical accounting policies are defined as those which are most important to the portrayal of the financial condition and results of operations and which also require a company to make its most difficult and subjective judgments. Based on this definition, we have identified the critical accounting policies and judgments addressed below. Although we believe that our estimates, assumptions, and judgments are reasonable, they are based upon information as of the date of this report available. Actual results may differ significantly from these estimates under different assumptions, judgments, or conditions.  Metrics:  As an internet retailer, we consider growth in revenue to be a key indicator of our overall financial performance. We examine our revenue by using several key metrics, including: overall change in net sales; gross margin percent; gross profit; and operating income.  Our strategy for growth includes not only increasing our market share by expanding sales in existing channels, but also taking advantage of strategic opportunities for acquisitions Ensuring adequate financing is central to the success of our growth strategy.  As a result, we have entered into a variety of financing arrangements which we believe will contribute to the long-term success of IDI Global.  Reserves:  The reserve for refunds and chargebacks is maintained at a level that, in managements judgment, is sufficient to absorb any anticipated refunds or chargebacks as of the balance sheet date. The reserve is not specifically associated with individual sales transactions, but is a general reserve set aside to accommodate any future refunds or disputed transactions with an original transaction date prior to December 31, 2004.  We review the appropriateness of the reserve quarterly and have developed a methodology for projecting the needed reserve that is based on our historical refund and chargeback data.  Income Taxes:  We record a tax provision for the anticipated tax consequences of our reported results of operations. In accordance with SFAS No. 109, Accounting for Income Taxes, the provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.   18   Goodwill:  We test goodwill for impairment annually as well as whenever events or circumstances make it more likely than not that impairment may have occurred, such as the occurrence of a significant adverse change in the business climate or a decision to sell or dispose of a reporting unit. Determining whether an impairment has occurred requires valuation of the respective reporting unit, which we estimate using a discounted cash flow method. In applying this methodology, we rely on a number of factors, including actual operating results, future business plans, economic projections and market data.  If this analysis indicates that goodwill is impaired, measuring the impairment requires a fair value estimate of each identified tangible and intangible asset.  Should this be the case, we will supplement the cash flow approach discussed above and make the appropriate changes.  Executive Overview  IDI Global is a holding company operating through its wholly owned subsidiary,, Internet Development.  Internet Development offers web development services and software, web hosting services, and related support..  It provides websites and related tools for large and small vertical businesses with a network of affiliates, allowing for communication, marketing, e-commerce and business management online.  Chief Financial, IDI Small Business, IDI Technology and Sports Media are no longer operational subsidiaries of IDI Global.  Chief Financial was originally acquired to provide administrative support to our sales centers, as well as trending reports, sales tracking, lead generation and new lead source opportunities.  IDI Small Business managed our direct marketing operations in St. George, Utah.  Sports Media sold sports advertising and marketing programs for media companies.  IDI Technology provided Internet-based lead generation offerings aimed at producing monthly residual income.  Professional Consulting Services (PCS), located in St. George, Utah, was a wholly owned subsidiary of Chief Financial.  PCS sells add-on services and products to customers and other lead suppliers.  These products are focused on the small office and home office marketplace and include self-replicating web site tools, individual web sites, e-commerce solutions, and coaching and training services for small office/home office customers.  Pursuant to a settlement agreement signed on April 11, 2007, and approved by the federal bankruptcy court, PCS is no longer a wholly owned subsidiary of Chief Financial and is now owned and managed entirely by the Mentoring Parties (Mentoring of American and HG Marketing, Inc.), with no affiliation to Chief Financial or IDI Global.  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, filed for Chapter 11 bankruptcy protection under Title 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  During 2006, we have continued our efforts to grow the business of our primary subsidiary, Internet Development through strategic partnerships and focused sales & marketing efforts.  The ARRAY software application continues to be considered as one of the leading web tool solutions for companies and their representatives in the Direct Sales and Network Marketing arena.  Version 5 of the application has proven to be a dynamic and effective platform for IDIs clients and affiliates using the software on a day to day basis to communicate, market and manage their businesses online.  The next release of the software is underway as Internet Development intends to maintain its position as one of the leading web solutions for the direct sales industry.  ARRAY version 6 is expected to be released later this year, which will again provide enhanced tools and functioning, with a number of improvements and additional features.  IDI plans to continue its focus on third-party relationships that can add value to the ARRAY offering, while capitalizing on those specialties.  Internet Development has received notice in early 2007 that one of its significant clients, Internet Services Corporation (ISC), plans to transition away from the ARRAY software and will not remain a client of IDIs.  ISC gave sufficient notice required by contract and continues using the ARRAY software on a month to month basis as of the date of this report.  It is unknown for certain the exact date of ISCs departure but is anticipated by mid-summer of this year.   19   Internet Development also had an in-house sales call center that marketed and sold a variety of small business packages, including the QuickSite Builder, coaching programs, and other products and services, to a variety of internal and third-party lead sources within the small office / home office sector.  As of October, 2006, the sales call center is no longer operational due to cash flow and management challenges, and is not a functional revenue component of IDI.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development, Inc.  In October 2006, however, with the loss of the call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  For the year ended December 31, 2006, we recorded total revenues on a consolidated basis of $7,999,860, compared to total revenues of $21,090,496 for the year ended December 31, 2005.  We recorded net loss of $(1,499,577) for 2006 compared to net income (loss) of $(5,868,737) for 2005.   The 2006 loss was the result of our SOHO  operations and we have closed this sale floor. Our challenges include increased competition within the direct sales industry, both from vendors like ourselves, as well as from companies determining to fulfill their web site needs internally and not use outside providers.  These two trends combine to produce an increasingly competitive and challenging environment for our ARRAY product within the direct sales arena.  Management may investigate additional acquisitions in order to acquire new technology.  We cannot predict the manner in which we may complete future acquisitions, and management will determine the method used based upon our review of the situation and our relative negotiating strength.  Possible methods may include, but are not limited to, leases, purchase and sale agreements, licenses, joint ventures and other contractual arrangements.  We may act directly or indirectly through an interest in a partnership, corporation or other forms of organization.  We may also choose to acquire a business opportunity through the issuance of common stock or other securities, if possible.  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  LIQUIDITY AND CAPITAL RESOURCES  We are currently able to support our recurring day-to-day cash operating expenses with recurring cash inflows and existing cash balances.  However, we are unable to satisfy our total current liabilities with cash on hand.  Also, we are dependent on the efforts of our subsidiaries and other third parties to increase sales and, thus, increase our cash balances.  Our revenues are primarily from product sales, Internet applications, and web-site hosting and training services.  Our monthly cash outflow is primarily related to cost of sales and general and administrative expenses.  Net cash provided by operations for the 2006 twelve-month period was $(919,429), compared to net cash used by operating activities of $(994,070) for the 2005 twelve-month period.  In 2005, we recognized impairment on our goodwill on the following investments:  Sports Media had $1.5 million in impairment recognized, which is equal to 100% of the investment.  This determination was made after testing the goodwill for 2006.  HG Marketing had $1.8 million in impairment recognized and Chief Financial had $1.1 million in impairment recognized.  This is due to a lack of payment on a management contract with Mentoring of America.  Mentoring of America agreed in the contract to manage both sales floors and provide $150,000 per month to IDI Small Business.  However, since January of 2006, we have not received the minimum amount from the contract.  New Connexions was impaired by $151,200 in investment and written off to bad debt in the amount of $1,101,825.  This is due to a lack of payment since March 2005, when the first payment was due.  This company has also refused to provide financial information.  These impairments and bad debts were contributing factor to the loss and net cash by operations.  Net cash used by investing activities was $(9,610) for year ended December 31, 2006, compared to $(27,218) for the year ended December 31, 2005.  20   Financing  For the year ended December 31, 2005, net cash provided by financing activities was $196,528 compared to net cash provided by financing activities of $0.00 for the year ended December 31, 2006.   The following statements below describe the financing events during 2005 and 2006.  On December 24, 2004, we entered into a Term Credit Agreement (the Credit Agreement) with Hong Kong League Central Credit Union and SBI Advisors, LLC (SBI Advisors).  Under this Credit Agreement, we received a loan in the principal amount of $1,750,000 and will pay interest of 2.0% per month.  We are negotiating an extension or other arrangement regarding this Credit Agreement prior to entering in chapter 11 bankruptcy.  In connection with the Credit Agreement, we entered into a Securities Purchase Agreement (the Purchase Agreement) with SBI Brightline X LLC (SBI Brightline).  Under the Purchase Agreement, we may sell up to 3,428,570 shares of IDI Global common stock at $0.70 per share to SBI Brightline.  We may put eighteen separate 200,000-share tranches to SBI Brightline, which it must purchase at $140,000 each.  The potential proceeds to us from this Purchase Agreement could be as much as $2.4 million, less fees.  However, we agreed to use 100% of the proceeds from the first and second tranche to repay the Credit Agreement.  After the second tranche we agreed to use one-half of the proceeds of each tranche to repay the outstanding balance under the Credit Agreement.  As part of these transactions, we granted SBI Advisors, the agent for Hong Kong League Central Credit Union, a warrant to purchase 525,000 shares of common stock at an exercise price of $0.70 per share with a term that expires four years from the initial effective date of the applicable registration statement.  We also granted a warrant at the time of signing the Purchase Agreement to SBI Brightline to purchase an aggregate of 571,429 shares of common stock at an exercise price of $0.70 per share with a term that expires four years from the initial effective date of the registration statement.  We granted a second warrant to SBI Brightline which is exercisable after the delivery of the ninth tranche of funding (the Additional Warrant) to purchase 571,429 shares of common stock.  This Additional Warrant will have a four-year term and exercise price of $0.70 per share. The potential proceeds from the exercise of the warrants are approximately $1,167,500; however, the Selling Stockholders have discretion when or whether to exercise the warrants.  We also agreed to use one-half of the proceeds from the exercise of warrants granted under the agreement to repay the Credit Agreement.  We used the proceeds from this Credit Agreement to acquire the call center assets of Mentoring of America, LLC.  On January 14, 2005, IDI Global and IDI Small Business entered into an Asset Purchase Agreement with Mentoring of America, a Utah limited liability company, and HG Marketing, Inc., a Nevada corporation.  Pursuant to the agreement, IDI Small Business acquired the sales and marketing assets of HG Marketing.  IDI Small Business assumed certain liabilities of the sales and marketing operation, paid $1,800,000 cash, granted warrants to purchase up to 2,500,000 shares of IDI Global common stock and agreed to issue and place 4,356,436 shares of IDI Global common stock into an escrow.  The warrants become exercisable between 2008 and 2012 at exercise prices that escalate annually from $0.80 to $1.80.  The 4,356,436 shares of IDI Global common stock held in escrow will be released to Mentoring of America based upon performance of the sales and marketing operation over the first two years of operations.  HG Marketing must generate $150,000 operating profit per month for the first two years.  As described above in Legal Proceedings, we are involved in litigation against Mentoring of America and HG Marketing, with respect to the Asset Purchase Agreement.  COMMITMENTS AND CONTINGENT LIABILITIES  Our principle commitments consist of operating leases for office space in Orem, Utah, and repayment of the Credit Agreement and our total current liabilities.  The total monthly lease payment for the Orem office is $7,218.  As of March 30, 2006, we owed $1,750,000, plus 2% interest, or an aggregate of $1,785,000, under the Credit Agreement. The interest for this was stayed by the bankrupt for April though December..  At December 31, 2006, we had total current liabilities of $4,004,288, and had notes payable totaling $2,254,527, which included notes payable of $1,750,000 to SBI Brightline, a third party, and $504,527 in notes payable to Kevin R. Griffith, our CEO.  21   At December 31, 2006, our total current liabilities also included accrued expenses of $1,138,542, primarily related to deferred compensation, accrued interest, and payroll liabilities.  Accounts payable of $589,135 , Derivatives of $7,084,and reserves for refunds and charge-backs of $15,000 added to our total current liabilities.  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  OFF-BALANCE SHEET ARRANGEMENTS  None.  RESULTS OF OPERATIONS  Comparison of Years Ended December 31, 2005 and 2006  The following discussions are based on the audited consolidated financial statements of IDI Global, Internet Development, Sports Media, and Chief Financial.  These charts and discussions summarize our financial statements for the years ended December 31, 2005 and 2006, and should be read in conjunction with the financial statements and notes to the financial statements included in this report, starting on page F-6.  Summary Comparison of years ended December 31, 2005 and 2006  Twelve monthsTwelve monthsendedEndedDec. 31, 2005Dec. 31, 2006Total revenues$21,090,496$7,999,860Total cost of sales14,784,5734,476,549Gross profit6,305,9233,523,311Total operating expenses11,866,5974,905,505Net operating income (loss)(5,560,674)(1,382,194)Total other income (expense)(173,818)(117,383)Total income tax expense134,2450.00Net income(5,868,737)(1,499,577)Net earnings (loss) per share$(0.31)$(0.08)  Total revenues decreased by approximately $13.1 million for the year ended December 31, 2006, to approximately $8.0 million for the year ended December 31, 2006. The $13.1 million decrease in revenue was mainly caused by HG marketing not following through on their contract. This alone accounted for an $8.8 million decrease and the other $4.3 million decrease was in relation to the Internet Development Inc. SOHO sales floor.  Cost of sales decreased along with total revenues for the year ended December 31, 2006.  Cost of sales includes commissions for outsourced sales and our in-house sales force, costs of merchant accounts, fulfillment, and other third party products and services.  For 2005, total cost of sales was 70.1% of total revenues, compared to 56.0% of total revenues for 2006.   22   As a result of decreased revenues, our gross profit decreased from approximately $6.3 million for 2005 to approximately $3.5 million for 2006.  Total operating expenses include salaries and benefits, rental of office space, professional fees, and other general office expenses.  These operating expenses decreased by $7.0 million for 2006. This decrease was caused by the in rev.  Total other income and expense for 2006 was primarily related to interest expenses from the SBI note. We paid $134,245 in interest and extinction fees. However, we recorded a net loss for the year ended December 31, 2006,.  Net loss per share was $(0.31) for 2005 compared to $(0.08) loss for 2006.  The following chart and related discussions summarize our consolidated balance sheet for the years ended December 31, 2005 and 2006, and should be read in conjunction with the financial statements and notes to the financial statements included in this report, starting on page F-1.  Summary of Balance Sheet  December 31, 2006Cash$143,522Total current assets$174,614Total assets$985,953Total current liabilities$4,004,288Total liabilities$4,004,288Retained earnings (deficit)$(9,781,763)Total stockholders equity$(3,018,335)  The decrease of total current assets at December 31, 2006, compared to the year ended December 31, 2005, was primarily the result of a decrease in cash and accounts receivables.  Total current liabilities and total liabilities increased at December 31, 2006, compared to the year ended December 31, 2005, primarily due to increases in Accounts Payable and Accrued Expenses.  Our retained deficit increased significantly at December 31, 2006, due to the loss in net income.   ITEM 7. FINANCIAL STATEMENTS   23        IDI GLOBAL, INC. AND SUBSIDIARIES  Consolidated Financial Statements  December 31, 2006 and 2005          F-1     C O N T E N T S   Reports of Independent Registered Public Accounting FirmsF3Consolidated Balance SheetF5Consolidated Statements of OperationsF7Consolidated Statements of Stockholders EquityF8Consolidated Statements of Cash FlowsF9Notes to the Consolidated Financial StatementsF11      F-2       REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    To the Board of Directors IDI Global, Inc. and Subsidiaries Orem, Utah   We have audited the accompanying consolidated balance sheet of IDI Global, Inc. and Subsidiaries at December 31, 2006, and the related statement of operations, stockholders equity (deficit) and cash flows for the year ended December 31, 2006. These consolidated financial statements are the responsibility of the Companys management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audit.  We conducted our audit 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 consolidated financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.  In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of IDI Global, Inc. and Subsidiaries at December 31, 2006, and the results of their operations and their cash flows for the year ended December 31, 2006 in conformity with United States generally accepted accounting principles.  The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 1 to the financial statements, the parent company as well as two subsidiaries have filed for Chapter 11 Bankruptcy protection.  Additionally, the Company has incurred significant losses and has a deficit in working capital, raising substantial doubt about its ability to continue as a going concern.  Managements plans in regard to these matters are also described in Note 1.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.  /s/ HJ & Associates, LLC  HJ  & Associates, LLC Salt Lake City, Utah April 11, 2007    F-3      REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM   To the Board of Directors and Stockholders of IDI Global Inc.  We have audited the accompanying consolidated statement of operations, stockholders equity and cash flows of IDI Global Inc. and subsidiaries for the year ended December 31, 2005.  These financial statements are the responsibility of the Companys management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audits.  We conducted our audit in accordance with the standards of the PCAOB (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated 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 audit 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.  In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated results of its operations and cash flows of IDI Global Inc. and subsidiaries for the year ended December 31, 2005 in conformity with U.S. generally accepted accounting principles.  The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 12, the Company has negative working capital, negative cash flows from operations, operating losses and has recognized an impairment of goodwill of $4,640,683 which raises substantial doubt about its ability to continue as a going concern.  Managements plans in those matters are also described in Note 12.  The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.  /s/Chisholm, Bierwolf & Nilson Chisholm, Bierwolf & Nilson, LLC Bountiful, UT February 10, 2006  F-4     IDIGlobal, Inc. and SubsidiariesConsolidated Balance SheetASSETSDecember 31,2006Current AssetsCash$143,522Accounts Receivable, net31,092Total Current Assets174,614Software Development and Equipment, Net79,923Other AssetsRestricted Cash731,416Total Other Assets731,416Total Assets$985,953        The accompanying notes are an integral part of these consolidated financial statements. F-5     IDIGlobal, Inc. and SubsidiariesConsolidated Balance SheetLIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)December 31,2006Current LiabilitiesAccounts Payable$589,135Accrued Expenses1,138,542Reserve for Refunds and Chargebacks15,000Derivatives7,084Notes Payable - Related Party504,527Notes Payable1,750,000Total Current Liabilities4,004,288Total Liabilities4,004,288Contingencies (See Note 6)Stockholders' Equity (Deficit)Common Stock, Authorized 50,000,000 Shares, $.001 Par Value,Issued and Outstanding 19,160,17419,160Additional Paid in Capital6,744,268Retained Earnings (Deficit)(9,781,763)Total Stockholders' Equity (Deficit)(3,018,335)Total Liabilities and Stockholders' Equity (Deficit)$985,953    The accompanying notes are an integral part of these consolidated financial statements. F-6     IDIGlobal, Inc. and SubsidiariesConsolidated Statements of OperationsFor the Year EndedDecember 31,20062005Revenues, NetProduct Sales$7,078,298$18,815,860Training Revenues921,5622,274,636Total Revenues7,999,86021,090,496Cost of SalesProduct Costs3,989,12813,637,698Training Costs487,4211,146,875Total cost of sales4,476,54914,784,573Gross Profit (Loss)3,523,3116,305,923Operating ExpensesGeneral & Administrative4,905,5056,751,056Impairment of Goodwill-4,791,884Impairment of Deferred Financing Costs-323,657Total Operating Expenses4,905,50511,866,597Net Operating Income (Loss)(1,382,194)(5,560,674)Other Income(Expense)Interest Income20,83117,882Interest Expense(181,719)(625,705)Gain (Loss) on Valuation of Derivatives33,188311,729Other Income (Expense)10,317122,276Total Other Income(Expense)(117,383)(173,818)Income (Loss) Before Income Taxes(1,499,577)(5,734,492)Income Tax ExpenseIncome Tax Expense-134,245Deferred Income Tax (Benefit) Expense--Total Income Tax Expense-134,245Net Income (Loss)$(1,499,577)$(5,868,737)Net Income (Loss) Per Share$(0.08)$(0.31)Weighted Average Shares Outstanding19,160,17419,037,834   The accompanying notes are an integral part of these consolidated financial statements. F-7     IDI Global, Inc. and SubsidiariesConsolidated Statements of Stockholders' Equity (Deficit)AdditionalRetainedCommon StockPaid-inEarningsSharesAmountCapital(Deficit)Balance, December 31, 200418,711,174$18,711$6,541,217$(2,413,449)February 2005 - Shares issued forlegal fees at $0.50 per share249,000249124,251-June 2005 - Shares issued forservices at $0.39 per share200,00020077,800-2005 - Cash contribution byshareholder--1,000-Net Loss for the year endedDecember 31, 2005---(5,868,737)Balance, December 31, 200519,160,17419,1606,744,268(8,282,186)Net Loss for the year endedDecember 31, 2006---(1,499,577)Balance, December 31, 200619,160,174$19,160$6,744,268$(9,781,763)      The accompanying notes are an integral part of these consolidated financial statements. F-8     IDIGlobal, Inc. and SubsidiariesConsolidated Statements of Cash FlowsFor the Year EndedDecember 31,20062005Cash Flows from Operating Activities:Net Loss$(1,499,577)$(5,868,737)Adjustments to Reconcile Net Loss to Net CashUsed by Operations:Depreciation & Amortization130,542156,784Bad Debts-1,114,325Impairment of Goodwill-2,991,884Deferred Income Taxes-134,245Stock Issued for Services & Accrued Expenses-202,500Deferred Financing Costs-316,236Change in Operating Assets and Liabilities:(Increase) Decrease in:Accounts Receivable92,469(2,825)Other Receivables-26,597Inventories-6,300Other Assets28,3383,195Increase (Decrease) in:Accounts Payable220,018242,921Accrued Expenses190,947164,743Income Taxes Payable(183)83Derivative Liability(33,187)(311,729)Reserved for Refunds and Chargebacks(48,796)(170,592)Net Cash (Used) by Operating Activities(919,429)(994,070)Cash Flows from Investing Activities:Purchase of Software and Equipment(9,610)(27,218)Net Cash (Used) by Investing Activities(9,610)(27,218)Cash Flows from Financing Activities:Proceeds from Issuance of Notes Payable-195,528Proceeds from Cash Contribution-1,000Net Cash Provided by Financing Activities-196,528Increase (Decrease) in Cash(929,039)(824,760)Cash at Beginning of Period1,803,9772,628,737Cash at End of Period$874,938$1,803,977   The accompanying notes are an integral part of these consolidated financial statements. F-9     IDIGlobal, Inc. and SubsidiariesConsolidated Statements of Cash Flows (Continued)For the Year EndedDecember 31,20062005Cash Paid For:Interest$-$-Income Taxes$100$100        The accompanying notes are an integral part of these consolidated financial statements. F-10    IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005     NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  a.  Organization  IDIGlobal, Inc. (the Company), formerly Bennion Corporation, was incorporated on August 17, 1998.  On December 31, 1998, the Company merged with Bennion Corporation, an Arkansas corporation (Bennion-AR).  The Company was the surviving corporation.  The merger was recorded under the pooling of interest method of accounting.  From inception on August 17, 1998 to January 15, 2002, the Company was inactive.  On January 16, 2002, Bennion Corporation, a public company, entered into an agreement to complete a forward triangular merger with idiglobal.com, Inc., a private Delaware company, and Internet Development, Inc.,  a private Nevada company.   Per the terms of the agreement, Internet Development agreed to deliver 7,500,000 shares of the Companys common stock to idiglobal.coms shareholders in exchange for 100% of idiglobal.coms shares.  The merger was treated as a reverse merger with idiglobal.com, Inc. being the accounting acquirer, therefore, all historical financial information prior to the acquisition date is that of idiglobal.com, Inc.  Pursuant to the merger, the Company changed their name from Bennion Corporation to IDIGlobal, Inc.  In October 2003, the Company issued 954,600 shares of common stock to acquire 100% of the outstanding shares of Integrated Communication Systems (Integrated), a New York corporation, through a merger with Sports Media International, Inc. a subsidiary organized by the Company as a merger subsidiary.  Integrateds offices are located in New York City, and they are engaged in sports media and advertising.  In January 2004, the Company acquired 100% ownership in Chief Financial and their wholly owned subsidiary Professional Consulting Services. Prior to the acquisition, the Company outsourced a share of its small office home office (SOHO) sales and marketing operations to Chief Financial.  Chief Financial was located in Ft. Worth Texas, and PCS was located in St. George, Utah.    F-11    IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  In January 2005, the Company entered into an Asset Purchase Agreement with Mentoring of America, LLC, a Utah limited liability company and HG Marketing, Inc (HG), a Nevada corporation pursuant to which HG agreed to sell to the Company certain assets and rights used in the operation of a call center business located in St. George, UT.  The purchase price was the assumption of certain liabilities of the sales and marketing operation, $1,800,000 in cash, warrants to purchase up to 2,500,000 shares of the Companys common stock, which become exercisable between 2008 and 2012 at exercise prices escalating annually from $0.80 to $1.80, and the issuance of 4,356,436 shares of the Companys common stock to escrow, which will be released based upon the performance of the sales and marketing operation over the first two years of operations. IDI Common Stock shall be released from escrow based on Net Income of the Mentoring Call Center during (i) the period January 1, 2005 to December 31, 2005 (Year One), (ii) the period January 1, 2006 to December 31, 2006 (Year Two) and (iii) the three month periods ending June 30, 2005, September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, and September 30, 2006 (each a Measurement Quarter); provided, that the Year One Target has been achieved before the first day of any Measurement Quarter.  The 4,356,436 contingent shares designated for this acquisition have been placed in escrow and have not been accounted for in assets or equity, but will be valued (if issued) using the stock price determined at the date of acquisition, and the corresponding value will be an adjustment to goodwill. No value was assigned to the 2.5 million warrants due to the fact that the warrants vest in 3 years. The Company will recognize approximately $500,000 in goodwill whan the warrants vest, based on the Black Scholes Model with the following assumptions: Stock price $.05, exercise price:$.80 to $1.80, dividend yield: $0, term: 3 to 7 years, risk freerate: 3.58%, volitiliy: 86%. The company is recorded the acquisition as an asset acquisition not a business combination.  The Companys wholly owned subsidiary, IDI Small Business (IDISB), entered into an agreement to purchase the assets of Hire Solutions, LLC (Hire), a business that provides training and other services regarding job placement opportunities and transactions.  IDISB purchased all of the assets utilized in the operation of the business, and obtained all rights and interests required to assume control and operation of the business.  IDISB also executed an employment agreement with the owner and founder of Hire Solutions, LLC for the continued executive leadership and development of the assets purchased in the above mentioned transaction.  The purchase price was 294,118 shares of the Companys stock.  The Company also granted to Hire a put, in connection with which Hire could put the shares back to the Company in exchange for the purchase price to be paid in cash.  Pursuant to the Asset Purchase Agreement, if Hire exercises its put, the Company is not required to pay the purchase price in cash until the sales channel purchased has generated net income of at least $100,000.  On October 18, 2005, Hires exercised the put.  Since Hire has not yet generated at least $100,000 in net income, the Company is not required to pay the purchase price in cash. As of April 11, 2007 no consideration or adjustment for hire solution have been made nor is one expected.  The Company is an ASP (applications service provider) of unique web based Internet applications for companies that have large affiliate networks.  In addition, the Company  provides proprietary applications for small business and home office businesses that require web and ecommerce enabled tools to create a virtual presence on the Internet.  The Company provides in house servers and management to host all of its applications and control security for its customers.  The agreements above has been stayed by the Bankruptcy filed on April 17, 2006  b.  Accounting Method  The Company recognizes income and expense on the accrual basis of accounting.  The Company has elected a December 31 year end.   F-12   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  c.  Principles of Consolidation  The consolidated financial statements include the books and records of IDI Global, Inc., Internet Development, Inc., idiglobal.com, Integrated Communication Systems Chief Financial, Inc., Professional Consulting Services and Sports Media International, Inc.  All inter-company transactions and accounts have been eliminated in the consolidation.  d.  Cash and Cash Equivalents  The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents.  e.  Restricted Cash  Restricted cash consists of monies required by the merchant account provider to be set aside for refunds and chargebacks.  f.  Receivables Accounts Receivable primarily consists of monies due the Company for  services preformed in December of 2006 that are paid the next month. An allowance for doubtful accounts was determined by looking at each current customer and  $0 has been established as of December 31, 2007.   F-13      IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  g.  Property and Equipment  Software and equipment as of December 31, 2006 and 2005 consists of the following  and are recorded at cost: 2006Computer equipment$314,741Software and loan costs272,589Office equipment136,726Furniture and fixtures185,260Leasehold improvements3,562Total fixed assets912,878Accumulated depreciation(832,955)Net software and equipment$79,923  Provision for depreciation of software and equipment is computed on the straight-line method for financial reporting purposes.  Depreciation is based upon estimated useful lives as follows:  Computer equipment5 YearsSoftware and loan costs3 YearsOffice equipment6 YearsFurniture and fixtures10 YearsLeasehold improvements5 Years  Maintenance, repairs, and renewals which neither materially add to the value of the equipment nor appreciably prolong its life are charged to expense as incurred.  Depreciation and amortization charged to operations was $130,421 and $156,784 for the years ended December 31, 2006 and 2005, respectively.  In accordance with Financial Accounting Standards Board Statement No. 144, the Company records impairment of long-lived assets to be held and used or to be disposed of when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount.  At December 31, 2005 impairments were recorded; See Note 1; and Note 11.  h.  Marketing Rights  During 2002, the Company issued 250,000 shares of common stock and 500,000 options for marketing rights for a business marketing model valued at $151,200.  During 2003, the Company sold its marketing rights to New Connexions, Inc., for a 10% ownership interest. New Connexions is considered a related party, as Steve Comer, a former officer, is the brother of an officer and shareholder of New Connexions (See note disclosure in investments).  At December 31, 2005 the management has determined after receiving no payments from the initial payment to current that this should be written off to bad debt and that the 10% ownership was of no value and is fully impaired.  F-14     IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005   NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  i. Earnings (Loss) Per Share of Common Stock  The computation of earnings (loss) per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements.    At December 31, 2006 and 2005, the Company had warrants convertible into 4,464,429 common shares and employee stock options outstanding convertible into 2,149,227 common shares, which were not used in the computation of loss per share because their effect would be anti-dilutive.  The following data show the amounts used in computing loss per share for the periods presented:  For the Years EndedDecember 31,Basic Earnings per share:20062005Income (Loss)(numerator)$(1,499,577)$(5,868,737)Shares (denominator)19,160,17419,037,834Per Share Amount$(0.08)$(0.31)Fully diluted Earnings per share:Income (Loss)(numerator)$(1,499,577)$(5,868,737)Shares (denominator)19,160,17419,037,834Per Share Amount$(0.08)$(0.31)  j. Revenue Recognition  When recognizing revenue for development of the Array software, we follow SOP 97-2 Paragraph 65 in the fact that fair value is allocated to each element of the arrangement, the adjustment is not essential to the functional of the product, and there is a contract that states the conditional Revenue for each element.  In most cases we are following the premise of SAB 104 paragraph 84(A), whereas revenue should not be recognized until it is realized or realizable and earned.  We recognize our SOHO revenue in a batch or bundle in pursuant to EITF 00-21, paragraph 9, section A, which states if a deliverable does not have value on its own or is not a stand-alone product, then the revenue is recognized in a batch.  None of the services are stand alone, if the customer does not buy the business opportunity -Small Office Home Office; then none of the other services are needed.  Without the initial purchase, there would be no need for seminar mentoring and training, web-based products, software, audio training courses, DVDs, training supplements, printed materials, and training manuals.  All of these services are dependent on the initial purchase.  When it comes to developmental revenue we are following SOP 81-1, Paragraph 32.  When developmental costs are incurred for the Array software, we recognize the portion of revenue related to completion of the project to the completed contract method.   F-15     IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  k. Software Development Costs  In accordance with SFAS No. 86, software development costs are expensed as incurred until technological feasibility has been established, at which time such costs are capitalized until the product is available for general release to customers.  Capitalized costs are then amortized on a straight-line basis over the estimated product life, or on the ratio of current revenues to total projected product revenues, whichever is greater.  Total capitalized software development costs at December 31, 2006 were $0.  Amortization expense for the years ended December 31, 2006 and 2005 was $0 and $67,443 respectively.  Research and development costs are expensed as incurred.  During 2006 and 2005, there were no research and development expenses.  l. Reserve for Refunds and Chargebacks  The reserve for refunds and chargebacks is maintained at a level that, in managements judgment, is sufficient to absorb any anticipated refunds or chargebacks as of the balance sheet date. The reserve is not specifically associated with individual sales transactions, but is a general reserve set aside to accommodate any future refunds or disputed transactions with an original transaction date prior to December 31, 2006.  We review the appropriateness of the reserve quarterly and have developed a methodology for projecting the needed reserve that is based on our historical refund and chargeback data.  m. Commissions  During 2006 and 2005, the company contracted with other entities to sell its products.  The Company can pay a large sales commission for outsourced sales, depending on the contract arrangements with each particular entity.  n. Advertising and Promotion  Advertising and promotion costs are expensed as incurred and totaled $605,403 and $16,928 for the years ended December 31, 2006 and 2005, respectively.  o. Stock Options and Warrants  Prior to 2006, as permitted by SFAS No. 123, the Company elected to measure and record compensation cost relative to stock option costs in accordance with APB Opinion 25 which requires the Company to make pro forma disclosures of net income (loss) and basic earnings (loss) per share as if the fair value method of valuing stock options has been applied.  For 2006 the company adopted SFAS No. 123(R) which requires the Company to record compensation expense equal to the fair value of the options issued.  To measure and record compensation for warrants, the Company applies SFAS No. 123(R).  This requires the Company to use a Black-Scholes pricing model to estimate the fair value of the warrants at the grant date.    F-16     IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  p. Estimates  The preparation of financial statements in conformity with generally accepted accounting principles 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.  q.Recently Enacted Accounting Standards  Statement of Financial Accounting Standards (SFAS) No. 151, Inventory Costs - an amendment of ARB No. 43, Chapter 4, SFAS No. 152, Accounting for Real Estate Time-Sharing Transactions - an amendment of FASB Statements No. 66 and 67, SFAS No. 153, Exchanges of Nonmonetary Assets - an amendment of APB Opinion No. 29, SFAS No. 123 (revised 2004), Share-Based Payment, SFAS No. 154, Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3, SFAS No. 155, Accounting for Certain Hybrid Financial Instruments  an amendment of FASB Statements No. 133 and 140, SFAS No. 156, Accounting for the Servicing of Financial Assets, SFAS No. 157, Fair Value Measurements, and SFAS No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106, and 132(R), were recently issued.  SFAS No. 151, 152, 153, 123 (revised 2004), 154, 155, 156, 157 and 158 have no current applicability to the Company or their effect on the financial statements would not have been significant.  r. Fair Value of Financial Instruments  The fair value of the Companys cash and cash equivalents, receivables, accounts payable, accrued liabilities and notes payable approximate carrying value based on their effective interest rates compared to current market prices.   F-17   Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 2 - INCOME TAXES  The provision for income taxes is based on income and expense reported in the financial statements, which differs from that reported for income tax purpose.  Accordingly, deferred income taxes are provided in recognition of such differences.  At December 31, 2006, the Company had net operating losses totaling approximately $4,800,000 which expire in various years through 2026.  Income tax liabilities, expense and deferred taxes are computed by following the procedures outlined in Financial Accounting Standards Board Statement No. 109, Accounting for Income Taxes.  The applicable federal and state tax rates in effect at December 31, 2006  and 2005 were used in calculating the income tax liabilities, expense, and deferred taxes.  Income tax expense for the years ended December 31, 2006 and 2005 is computed as follows:  20062005Current:Federal$-$-State-100Total Current-100Deferred:Federal(0)(0)State(0)(0)Total Deferred(0)(0)Total Income Tax Expense$(0)$(0)  The income tax provision reconciled to the tax computed at the federal statutory rate of 34 percent is as follows:  20062005Income taxes at statutory rate$(509,856)$(1,949,727)Nondeductible expenses120,7850Valuation allowance389,0711,815,302Total$(0)$134,425Deferred tax asset:Net operation loss1,797,600-Other424,500-Less valuation allowance(2,222,100)-Net deferred tax asset$0$0   F-18   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 2 - INCOME TAXES (Continued)  The Company has recorded a valuation allowance to reflect the estimated amount of deferred tax assets which may not be realized, principally due to the expiration of net operating loss carry forwards.  As of December 31, 2006 and 2005, a valuation allowance has been recorded in the amount of $1,916,944 and $1,408,511, respectively.   NOTE 3 - NOTES PAYABLE  Notes payable are detailed as follows at December 31, 2006:  2006Note payable to an officer and stockholder, bearsinterest at 12%, payable on demand, convertibleinto common stock at $.30, unsecured$195,527Note payable to an officer of the Company, bearsinterest at 12%, matures May 2003, convertibleinto common stock at $.20, unsecured, in default309,000Note payable to a corporation, bears interestat 24%, matures May 2005, unsecured, in default1,750,000Total Notes Payable$2,254,527  NOTE 4 - CONCENTRATIONS  At December 31, 2006 the company had cash deposits in excess of federally insured limits of $631,416.  The Company relied on an outside company for customer leads.  During 2006 and 2005, the Companys SOHO revenues generated thru this lead source was 65% and 45%, respectively.  NOTE 5 - RELATED PARTY TRANSACTIONS  During 2005, the Company received $195,527 from an officer.  The balance of the note at December 31, 2006 is $195,527.  During 2001, the Company received $309,000 from an officer of the Company.  The balance of the note at December 31, 2006 and 2005 is $309,000.  During 2003, the Company transferred its marketing rights to New Connexions, Inc. for a 10% interest in New Connexions.  Steve Comer, the Companys prior CEO is the brother of the principal of New Connexions. In addition the Company agreed to fund the development of the New Connexions business model. During 2003, the Company advanced funds of $953,038 to New Connexions for such development. During 2004 the Company advanced an additional $148,787 to New Connexions.  In March advances in the amount of $1,078,040 were converted into a Note Receivable due March 2009.  The Company recorded the additional advances as a long term asset called Advances to Related Party.   During 2005, the advances were deemed uncollectible and written off to bad debt expense.  As of December 31, 2006  $707,585 is outstanding in deferred compensation to Kevin Griffith, and Interest on deferred compensation and the above stated notes is $375,773.   F-19   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the consolidated Financial Statements December 31, 2006 and 2005   NOTE 6 - COMMITMENTS AND CONTINGENCIES  The Company leases office space at one location.  The total monthly lease payment for this office is $7,218.  The Company leases equipment on one lease.  The total monthly lease payment for this lease is $ 213.  This is a month to month lease and has no future minimum operating lease payments as of December 31, 2006  Total expense for all operating leases at December 31, 2006 and 2005 is $231,638 and $298,362, respectively.  In March 2005, two former employees, Ryan Romero and Jeremy Hall, filed suit against IDI Global in the 4th Judicial District Court, Provo Department, State of Utah.  The suit alleges that Romero and Hall are entitled to options that were allegedly promised to them in connection with the termination of their employment. We filed our answer and discovery is proceeding. We deny these allegations, and intend to defend vigorously against this suit. On June 24, 2004, Independent Marketing, Inc. filed a lawsuit in the Third District Court for Salt Lake County, State of Utah, against Internet Development, Inc.  The allegations in the suit relate to the alleged hiring of three employees who were bound by a non-competition agreement with Independent Marketing, Inc.  However, we believe the three employees were not hired by Internet Development, Inc., and intend to vigorously defend this suit. As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  On April 1, 2004, Ascendiant Capital Group, LLC, filed a complaint against IDI Global in the Superior Court of the State of California for the County of Orange - Central Justice Center.  The complaint alleges that IDI Global breached a consulting agreement with Ascendiant Capital Group, and that Ascendiant Capital Group is entitled to damages in excess of $25,000.  We intend to defend against the claims, and on May 11, 2004, we filed a cross-complaint alleging breach of contract by Ascendiant Capital Group.  This case has been stayed pending the outcome of the Mercator litigation discussed below. As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  On March 12, 2004 Mercator Momentum Fund, L.P. and Mercator Momemtum Fund III, both California limited partnerships, and Mercator Advisory Group, L.L.C., a California limited liability company, filed a complaint against IDI Global, Inc. in the Superior Court of the State of California for the County of Los Angeles.  The complaint alleges that IDI Global breached a Securities Purchase Agreement by refusing to accept $3,500,000 in consideration for promissory notes in the amount of $3,500,000 with 3.5% interest, warrants to purchase 1,312,500 shares of IDI Global common stock at an exercise price of $1.20, a $175,000 due diligence fee, and failure to register the shares of common stock.  We intend to defend against the claims. As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  Newave, Inc., vs. IDI Global, Inc., Chief Financial, Inc., et al., Superior Court for the State of California, in and for the County of Santa Barbara, Case No.  1167126.  Plaintiff Newave, Inc., filed a lawsuit against IDI Global and Chief Financial for breach of contract and unjust enrichment.  The lawsuit relates to a Lead Marketing Agreement between Newave and Chief Financial.  We dispute that we are a party to the Lead Marketing Agreement, and have filed our answer.  The case began trial on April 17, 2006, but was stayed in connection with the bankruptcy proceedings discussed below. As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  F-20   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the consolidated Financial Statements December 31, 2006 and 2005   NOTE 6 - COMMITMENTS AND CONTINGENCIES (Continued)  On August 8, 2005, Paul Watson, a former employee of the Company brought suit against the Company and Kevin Griffith in the 4th Judicial District Court for Utah County, State of Utah.  Mr. Watson brought claims for breach of contract, false light, and wrongful discharge, and seeks back pay and loss of income.  The Company and Mr. Griffith filed an answer and counterclaim against Mr. Watson, bringing claims of defamation, intentional and negligent interference with prospective economic relations, breach of fiduciary duty, breach of contract, conversion, and unjust enrichment.  The Company and Mr. Griffith dispute the claims brought by Mr. Watson and intend to vigorously pursue this action.As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  On or about February 21, 2006, Presson Airport, LLC served an amended complaint asserting claims against Chief Financial, Inc. and Internet Development, Inc., in the Third Judicial District Court, State of Utah. Plaintiff seeks to recover approximately $46,000 for unpaid rent plus continuing rent and other charges in the amount of $9,800 per month based on allegations of breach of a lease and guaranty.  The Company and its subsidiaries dispute this liability and intend to vigorously defend these claims. As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  HG Marketing, Inc., and Mentoring of America, Inc., vs. IDI Global, Inc., IDI Small Business, Inc., and Kevin Griffith, District Court, Clark County, Nevada, Case No. A518002.  Plaintiffs HG Marketing and Mentoring of America filed this lawsuit claiming breach of contract, conversion, fraud, and constructive trust.  The lawsuit relates to the asset purchase agreement between the parties relating to the call center located in St. George, Utah.  Plaintiffs filed a motion for a temporary restraining order, which was denied, and also sought a preliminary injunction, which was also denied.  We filed an answer, counterclaim, and third party complaint against the plaintiffs and their principals on April 10, 2006.  Pursuant to a settlement agreement signed on April 11, 2007, and approved by the federal bankruptcy court, the St. George call center, PCS, is no longer a wholly owned subsidiary of Chief Financial and is now owned and managed entirely by the Mentoring Parties (Mentoring of American and HG Marketing, Inc.), with no affiliation to Chief Financial or IDI Global. As of April 11 2007 no consideration or adjustment for hire solution have been made nor is one expected.  Filing of Bankruptcy under Chapter 11  On April 17, 2006, IDI Global, Inc., as well as two of its wholly owned subsidiaries, IDI Small Business, Inc., and Chief Financial, Inc., along with the wholly owned subsidiary of Chief Financial, Professional Consulting Services, Inc., filed for bankruptcy protection in the United States Bankruptcy Court for the District of Utah (the Bankruptcy Court).  (IDI Global, Case No. 0621261; IDI Small Business, Case No. 0621266; Chief Financial, Case No. 0621270; and PCS, Case No. 0621268.)  We anticipate that each entity will remain as debtor in possession, subject to the jurisdiction of the supervision and orders of the Bankruptcy Court.  Settlement and Sale Agreement with Mentoring Parties:   IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc. and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).   F-21   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the consolidated Financial Statements December 31, 2006 and 2005   NOTE 6 - COMMITMENTS AND CONTINGENCIES (Continued)  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.  As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  In March of 2006, IDI Global or one of its affiliates transferred $597,000 to ABD Development or one of its affiliates to develop an infomercial to use to generate leads to be used on the sales and marketing floor of the St. George Call Center.  IDI Global understood that these funds would be used by ABD to develop an infomercial, and the  remainder of the funds were to be used to pay for the testing and tuning and the eventual media time to run the infomercial on television stations through out the country.  It was anticipated that the leads to be generated by the infomercial would replace the leads that Mentoring of America, LLC threatened to pull from the Call Center floor by no later than July 2006.  ABD continually delayed the creation of the infomercial, and eventually IDI Global was informed that ABD had run out of money, and would not test the infomercial.  In addition, ABD sent invoices to IDI Global many months after services had been rendered indicating that IDI Global in fact owed ABD an additional $83,400.  The invoices are not representative of what was contracted to be accomplished.  At the request of IDI Global, the Bankruptcy Court authorized the Committee to commence legal action against ABD and its affiliates to attempt to recover the money transferred to it.  IDI Global will cooperate in that litigation.  As part of any such action, it is anticipated that the $83,400 claim asserted by ABD will be disputed in full.  On February 6, 2007, Internet Development filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors ("Committee") to defend this lawsuit on behalf of the IDI Debtors' estates.   F-22   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the consolidated Financial Statements December 31, 2006 and 2005   NOTE 6 - COMMITMENTS AND CONTINGENCIES (Continued)  In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to Advanced Business Development, Inc. ("ABD") or any of ABD's insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  On February 12, 2007, the "exclusivity period" for the IDI Debtors to file a plan of reorganization, as set forth in section 1121 of title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors' Chapter 11 Cases.  On or about March 8, 2007, MCB Printing, Inc. dba Excel Graphics, Inc. provided to the IDI Debtors and the Committee an offer to purchase Internet Development and to merge with IDI Global, Inc.  This offer has not been accepted by the IDI Debtors as of the date of this report, but negotiations with MCB are continuing.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of IDI Global, Inc. Chief Financial, Inc. and Professional Consulting Services, Inc. to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development.  In October 2006, however, with the loss of the sales call center, Internet Development informed the IDI Debtors that it would no longer have funds to pay any expenses or charges related to the Debtors and Bankruptcy proceedings.  NOTE 7 - PENSION PLAN  On July 1, 2000, the Company established a defined contribution 401(k) pension plan.  The Companys contributions to the plan are based on matching 100 percent of the employees contributions to a maximum of six percent of compensation per participant.  All employees with more than six months of service and who are age 20 1⁄2 or older are eligible for participation in the plan.  Company contributions totaled $9,975 and $12,164 for the years ended December 31, 2006 and 2005, respectively.    F-23   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 8 - STOCK OPTIONS  The Plan was adopted by the Board on December 4, 2002, effective as of November 1, 2002.  The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership.  The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares, Options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights.  The Plan shall be governed by, and construed in accordance with, the laws of the State of Nevada (except their choice-of-law provisions).  Prior to 2006, as permitted by SFAS No. 123 (R), the Company elected to measure and record compensation cost relative to stock option costs in accordance with APB Opinion 25 which required the Company to make pro forma disclosures of net income (loss) and basic earnings (loss) per share as if the fair value method of valuing stock options has been applied.  A summary of the option activity for 2006 and 2005 follows:  WeightedAverageOptionsExerciseOutstandingPriceOutstanding, January 1, 20055,977,155$0.15Granted--Exercised--Canceled/forfeited--Balances, December 31, 20055,977,155$0.15Granted--Exercised--Canceled/forfeited(3,827,928)-Balances, December 31, 20062,149,2270.15  Number ofWeightedOptionsAverageWeightedOutstanding atRemainingAverageDecember 31,ContractualExerciseExercise Prices2006Life (years)Price$0.001,000,0000.60$0.00$0.201,111,7270.60$0.20$0.5037,5000.25$0.50    F-24   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 8 - STOCK OPTIONS (Continued)  Proforma Net Income (Loss):  December 31,December 31,20062005Net income(loss) as reported$(1,499,577)$(5,988,465)Pro forma net income(loss)(1,499,577)(5,988,465)Basic income (loss) per share as reported(0.08)(0.00)Pro forma income (loss) per share(0.08)(0.31)  NOTE 9 - WARRANTS  Management has determined that due to the fact that the warrant agreements require the Company to issue free trading shares for the exercise of warrants that EITF 00-19 requires a reclassification of the warrants from equity to a liability account. The December 31, 2004 financials have been restated to reclassify the warrant value of $307,000 previously recorded in Paid In Capital, to a liability account.  The 250,000 warrants issued in January 2005, were recorded in Paid In Capital but should have been recorded in the same manner, recording 45,000 as a liability. To measure and record compensation for warrants, the Company applies SFAS No. 123.  This requires the Company to use a Black-Scholes pricing model to estimate the fair value of the warrants at the grant date.  The following summarizes the warrant activity for 2006 and 2005:  Warrants outstanding at January 1, 20052,274,879Granted2,750,000Exercised-Canceled/forfeited378,450Balance, December 31, 20054,646,429Granted-Exercised-Canceled/forfeited-Balance, December 31, 20064,646,429Weighted average exercise price of warrantsoutstanding at December 31, 2005$1.51     F-25    IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 9 - Warrants (Continued)  Number ofWeightedWarrantsAverageWeightedOutstanding atRemainingAverageDecember 31,ContractualExerciseExercise Prices2006LifePrice$2.75500,0001.50$2.75$3.75300,0001.50$3.75$0.70571,4292.00$0.70$0.70525,0002.00$0.70$0.70250,0002.00$0.70$0.80500,0002.00$0.80$1.05500,0002.00$1.05$1.30500,0002.00$1.30$1.55500,0002.00$1.55$1.80500,0002.00$1.80  Derivatives decreased by $39,729 during the year use the Black-Scholes pricing model to estimate the fair value of the warrants at the grant date.  NOTE 10 - INVESTMENTS  During 2003, the Company transferred its marketing rights acquired in 2002 to New Connexion for a 10% ownership interest. The cost incurred for the marketing rights of $151,200 was carried over as the basis for the investment. This investment is restricted in a closely held private corporation, and is therefore not currently available for sale.  During 2005, the investment was deemed to be impaired and a loss on the investment was recognized of $151,200.  NOTE 11 - GOODWILL  The Company has adopted SFAS No. 142, Goodwill and Other Intangible Assets, Under SFAS No. 142, goodwill is no longer amortized, but is tested for impairment at a reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, and adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends or projected future results of operations.  As of December 31, 2005, the Company has recognized an impairment loss on goodwill of $4,791,884.    F-26   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 11 - GOODWILL (Continued)  With regards to the acquisition of Integrated Communications System, the Company issued 954,600 shares of common stock with a listed market value of $1.60 for a value of $1,500,000. Since there were no identifiable assets of ICS, the entire acquisition was related to goodwill. The value of ICS was the relationships the principals had with ESPN radio and ABC radio wherein the Company would receive 20% of all promotional and media packages with the radio clientele , the first of which would be a contract with Coca-Cola Corporate for media for Subway and Burger King. At the time of acquisition, no contracts had been signed; however the principals were negotiating agreements. There were no physical or intangible assets acquired that could be separately identified and valued. Integrated Communications System (SMI) has not produced any revenue from its contracts and we do not project that it will do so in 2006. All contracts are currently still in place and efforts are being made to generate income from these relationships. At December 31, 2005, an impairment of goodwill has been recognized of $1,500,000.  With regards to the acquisition of Chief Financial, the Company was to issue 1,000,000 shares of common stock valued at the date of agreement at $1.50 per share.  Five hundred thousand shares were issued at closing and another 500,000 shares were placed in escrow for issuance at certain benchmarks. Two hundred thousand of the escrowed shares had been issued and valued as part of the acquisition. An additional $50,000 in cash was paid on the acquisition to attain the value of $1,100,000. There were fixed assets of Chief and its wholly owned subsidiary, PCS that were recorded at acquisition, including goodwill of $60,000 that Chief had recorded for its acquisition of PCS, along with liabilities in excess of assets of approximately $180,000. Goodwill was therefore increased by this amount to produce a total goodwill for Chief of approximately $1,340,000. In 2005, we made the determination that Chief Financial has not provided the expected Revenues projected and that any further expenditure would not be prudent.  No cash flow activity is anticipated from Chief Financial during 2006. In connection with the acquisition of Chief Financial, Inc. and their wholly owned subsidiary, Professional Consulting Services, Inc., the Company recorded goodwill in the amount of $1,280,684.   As of December 31, 2005, an impairment of goodwill has been recognized of $1,280,684.  Professional Consulting Services and HG Marketing are included in a management agreement with Mentoring of America, in which IDI is to receive $150,000.00 per month or $1.8 million a year. However, since January of 2006 we have not received the minimum amount from the contract, and they have been unwilling to provide any financial information. We have initiated litigation to recapture this income of $150,000 a month (or $1,800,000 a year).  We are confident we will prevail in this legal action but are unsure when the litigation will be settled, and how collectable these funds will be once the settlement is made.  In connection with the Asset Purchase Agreement with Mentoring of America, LLC, a Utah limited liability company and HG Marketing, Inc., a Nevada corporation pursuant to which HG agreed to sell to IDI  Global certain assets and rights used in the operation of a call center business located in St. George, Utah.  As disclosed in Note 1, the purchase price of $1,800,000 was recognized as goodwill.  The Company is currently not collecting any funds from HG and has begun legal proceedings.  Since the collectibility of funds is uncertain, an impairment of the goodwill of $1,800,000 has been recognized as of December 31, 2005.    F-27   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 12  GOING CONCERN  In 2006, the Company filed a Chapter 11 case under title 11 of the United States Bankruptcy Code.  Although the Company has endeavored to maximize its value for the benefit of creditors and shareholders, as of the date of this report, it was unknown whether the Company would be able to continue as a going concern.    As of the date of this report, the Company was entertaining offers from third parties for a potential merger and was working to formulate a plan of reorganization, which will include its divestment of certain assets.  However, there can be no guarantee that the Company's negotiations will be successful or will enable the Company to continue as a going concern.  The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has negative working capital, negative cash flows from operations, operating losses.  The consolidated financial statements do not include any adjustments that might result from the outcome of the uncertainty.  The Company filed for bankruptcy under Chapter 11 by the close of business on April 17, 2006, as discussed in Note 14.  NOTE 13  ACCRUED EXPENSES  As of December 31, 2006 Accrued Expenses were a total $1,138,542. This is made up of $707,585 in Deferred Compensation to Kevin Griffith, $6,000 to board members, $375,773 in accrued interest, and  $49,184 in services contracts, payroll and payroll taxes.  NOTE 14  SUBSEQUENT EVENTS  EVENTS SUBSEQUENT TO DECEMBER 31, 2006  Settlement and Sale Agreement with Mentoring Parties.  IDI Global, IDI Small Business, and Professional Consulting Services (the IDI Debtors) entered into an Agreement for Purchase and Sale of Assets and for Settlement of Disputes dated March 16, 2007 (the Settlement and Sale Agreement), with HG Marketing, Inc. and Mentoring of America, LLC (the Mentoring Parties).  The Settlement and Sale Agreement contemplates, except in one circumstance, the global resolution of all litigation between these IDI entities and the Mentoring Parties and the resolution of disputes and the sale of rights of the IDI Debtors in a call center located in St. George, Utah (the St. George Call Center).  Pursuant to the Settlement and Sale Agreement, the Mentoring Parties will pay the IDI Debtors $171,409.10, in addition to other funds previously paid, in settlement of disputes between the parties.  Unless a higher and better offer is received, the Mentoring Parties will pay $337,500 for all of the IDI Debtors rights in the St. George Call Center.  If a better offer is received, the St. George Call Center will be sold to the party making the better offer, but the settlement between the IDI Debtors and the Mentoring Parties will still close and all outstanding litigation and disputes between the parties will be settled.  If either the Mentoring Parties or a party making a higher bid purchases the IDI Debtors rights in the St. George Call Center, the Mentoring Parties will retain obligations related to the operation of the St. George Call Center prior to the closing of the sale.  The Bankruptcy Court approved the Settlement and Sale Agreement following hearing on April 11, 2007.  As of January 1, 2007, all pending litigation in the Bankruptcy Court between the IDI Debtors and the Mentoring Parties was subject to continuance to allow the parties to pursue settlement negotiations.   F-28   IDI GLOBAL, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements December 31, 2006 and 2005  NOTE 14  SUBSEQUENT EVENTS (Continued)  Payments by IDI Small Business.  On February 2, 2007, the Bankruptcy Court entered an order authorizing certain expenses of the IDI Debtors to be paid from funds held by IDI Small Business, Inc.  Prior to this time, and as authorized by the Bankruptcy Court, most expenses of the IDI Debtors were being paid with funds provided by Internet Development, Inc.  In October 2006, however, Internet Development, Inc. informed the IDI Debtors that it would no longer have funds to pay the expenses.  Lawsuit filed by Internet Development, Inc. Against the IDI Debtors.  On February 6, 2007, Internet Development, Inc. filed a Complaint in the Bankruptcy Court against the IDI Debtors, seeking to impose a constructive trust on certain funds that are being held on behalf of the IDI Debtors in a trust account.  Court Authority for Creditors Committee to Represent IDI Debtors Bankruptcy Estate in Certain Claims.  On April 11, 2007, the Bankruptcy Court granted a motion authorizing the Official Committee of Unsecured Creditors (Committee) to defend this lawsuit on behalf of the IDI Debtors' estates.  In addition to authorizing the Committee to defend the lawsuit commenced by Internet Development, on April 11, 2007, the Bankruptcy Court authorized the Committee to take whatever actions are necessary to recover funds that the IDI Debtors transferred prior to the petition date to Advanced Business Development, Inc. (ABD) or any of ABD's insiders or affiliates.  As a result of the funds transferred to ABD, ABD produced an infomercial, and has provided a copy of the infomercial to the IDI Debtors.  Contrary to the parties' agreement, ABD has refused to test the infomercial.  The IDI Debtors are currently engaged in negotiations with the personality featured in the infomercial related to the testing and use of the infomercial.  No Extension of Exclusivity for Plan Confirmation.  On February 12, 2007, the exclusivity period for the IDI Debtors to file a plan of reorganization, as set forth in section 1121 of title 11 of the United States Code, expired and, as a result, any party in interest, including the IDI Debtors, may file a plan of reorganization in the IDI Debtors' Chapter 11 Cases.  Offer by MCB Printing, Inc.  On or about March 8, 2007, MCB Printing, Inc. dba excelgraphics, Inc. provided to the IDI Debtors and the Committee an offer to purchase Internet Development, Inc. and to merge with IDI Global, Inc.  This offer has not been accepted by the IDI Debtors as of the date of this report, but negotiations with MCB are continuing.    F-29   ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE  Change in Company's Certifying Accountant  Effective as of April 4, 2007, IDI Global, Inc. (the Company) dismissed Chisholm, Bierwolf & Nilson, LLC (CBN) as the Company's certifying public accountant. Additionally, effective as of April 4, 2007, the Company engaged HJ & Associates, (HJ), as the Company's certifying public accountant.  The Companys decision to dismiss CBN and engage HJ was approved by the Bankruptcy Court on April 4, 2007.  CBN reported on the Company's consolidated financial statements for the years ending December 31, 2005 and December 31, 2004, and reviewed the Company's unaudited condensed consolidated financial statements for the quarterly periods ended March 31, June 30, and September 30, 2006. For these periods and up to April 4, 2007, there were no disagreements with CBN on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of CBN, would have caused it to make reference to the subject matter of the disagreement in connection with its report.  The audit report of CBN dated February 10, 2006, on the Company's consolidated financial statements as of December 31, 2005, and for the year then ended, did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles, other than with respect to the Company's ability to continue as a going concern without raising additional working capital.  Additionally, the audit report of CBN dated January 15, 2005, on the Company's consolidated financial statements as of December 31, 2004, and for the year then ended, did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles, other than with respect to the Company's ability to continue as a going concern without raising additional working capital.  There were no reportable events (as defined in the Regulation S-B Item 304(a)(1)) during the year ended December 31, 2004, December 31, 2005, or the subsequent interim periods through April 4, 2007.  The Company has provided CBN with a copy of the foregoing disclosure, and has received from CBN stating that they agreed with the statements made above by the Company.  No consultations occurred between the Company and HJ during the two most recent fiscal years and any subsequent interim period prior to HJs appointment as the Company's independent registered public accounting firm regarding either (i) the application of accounting principles to a specific completed or contemplated transaction, the type of audit opinion that might be rendered on the Company's consolidated financial statements, or other information provided that was considered by the Company in reaching a decision as to an accounting, auditing, or financial reporting issue, or (ii) any matter that was the subject of disagreement or a reportable event requiring disclosure under Item 304(a)(1) of Regulation S-B, as the case may be.  ITEM 8A. CONTROLS AND PROCEDURES  Evaluation of Disclosure Controls and Procedures. Our Chief Executive Officer and our Chief Financial Officer, after evaluating the effectiveness of the Company's "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 (Exchange Act) Rules 13a-15(e) or 15d-15(e)) as of the end of the period covered by this annual report, have concluded that our disclosure controls and procedures are effective based on their evaluation of these controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15.  Changes in Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.   24    Section 404 Assessment.  Section 404 of the Sarbanes-Oxley Act of 2002 requires management's annual review and evaluation of our internal controls beginning with our Form 10-K for the fiscal year ending on December 31, 2007, and an attestation of the effectiveness of these controls by our independent registered public accountants beginning with our Form 10-K for the fiscal year ending on December 31, 2008. We plan to dedicate significant resources, including management time and effort, and to incur substantial costs in connection with our Section 404 assessment. The evaluation of our internal controls will be conducted under the direction of our senior management. We will continue to work to improve our controls and procedures, and to educate and train our employees on our existing controls and procedures in connection with our efforts to maintain an effective controls infrastructure at our Company.  Limitations on Effectiveness of Controls. A system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the system will meet its objectives. The design of a control system is based, in part, upon the benefits of the control system relative to its costs. Control systems can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. In addition, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. In addition, the design of any control system is based in part upon assumptions about the likelihood of future events.  ITEM 8B. OTHER INFORMATION As discussed in Legal Proceedings above, IDI Global, along with three subsidiary entities, filed for bankruptcy protection in the U.S. Bankruptcy court for the District of Utah on April 17, 2006.  PART III  ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT  Our executive officers and directors, their respective ages, positions and biographical information are presented below.  Our bylaws provide for two directors to serve until the next shareholder annual meeting or until succeeded by another qualified director.  Our executive officers are chosen by our board of directors and serve at its discretion.  There are no existing family relationships between or among any of our executive officers or directors.  NameAgePosition HeldDirector or Officer SinceKevin R. Griffith51President, CEO,January 16, 2002Chairman of the BoardEugene Bergmann48DirectorApril 17, 2006Secretary/TreasurerSteven Weatherly51Consultant performing services commonly provided by a Chief Financial OfficerSeptember 2004  Kevin Griffith B Starting in March 1999, Mr. Griffith served as Executive Vice-President of Internet Development, Inc., a Utah corporation, and he later became President and Director of that company.  He was appointed as a Director, Chief Executive Officer, Secretary/Treasurer of IDI Global in January 2002.  In May 2004 he was appointed as President of IDI Global and Chairman of the Board.  From December 2000 to December 2002, he served as Chief Executive Officer of Worldwide Financial Holdings, Inc, In January of 2005 he became President, Secretary/Treasurer, of IDI Small Business, Inc.  He has over twenty eight years of experience in sales and marketing, finance and corporate management.  Mr. Griffith received a bachelors degree in communications, magna cum laude, from Brigham Young University.  Eugene Bergmann B On April 17, 2006, Mr. Bergmann was appointed as a Director, and the Secretary/Treasurer of the Company.  Mr. Bergmann has had years of management and executive management experience in high tech industries.  He has guided small start up firms, including Imall Inc., Cogito Inc., Fibernet Inc., as well as working with major firms such as Novell, Excite at Home and WordPerfect. He also has served and still serves on the Boards of several companies today. Mr. Bergman is a B.A. candidate in marketing at Brigham Young University.  25    Steven D. Weatherly  Mr. Weatherly started SDW Services in January of 2000. In May 2003, Mr. Weatherly started as Consultant performing certain services for Chief Financial Inc commonly provided by a Chief Financial Officer.  Chief was purchased by IDI Global in January of 2004 and he became a consultant performing certain services for IDI Global commonly provided by a Chief Financial Officer in September of 2004. He has over 20 years of experience in management, accounting, and financial controls; this includes 15 plus years in the position of Chief Financial Officer of several sales and service corporations. Mr. Weatherly has a Bachelor of Business Administration in Finance, West Texas A & M University.  Michael T. Morely  Resigned as a director of the Company effective as of April 15, 2006. As of April 17, 2006 the Companys Board of Directors appointed Eugene Bergmann to the Board of Directors, and as Secretary/Treasurer of the Company.  Audit Committee Financial Expert  We do not currently have a serving audit committee and, accordingly, we do not have an audit committee financial expert serving on an audit committee.  Compliance with Section 16(a) of the Exchange Act.  Section 16(a) of the Securities Exchange Act of 1934 requires our directors, executive officers and persons who own more than five percent of our common stock to file initial reports of ownership and reports of changes in ownership of our common stock with the SEC.  Officers, directors and ten-percent or greater beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) reports they file.  Based upon review of the copies of such forms furnished to us during the fiscal year ended December 31, 2005, and representations from these reporting persons that no Forms 5 were required, we are aware of the following untimely filings:  Messrs. Griffith, Bergmann, and Weatherly filed untimely Forms 5.  Code of Ethics  We are in the process of adopting a code of ethics for our principal executive and financial officers.  In the meantime, our management intends to promote honest and ethical conduct, full and fair disclosure in our reports to the SEC, and compliance with applicable governmental laws and regulations.  ITEM 10. EXECUTIVE COMPENSATION   SUMMARY COMPENSATION TABLE  Name and Principal PositionYearSalary
($)Bonus
($)Stock Awards
($)Option Grants
($)Non-Equity Incentive Plan Compensation
($)Change in Pension Value and Nonqualified Deferred Compensation Earnings
($)All Other CompensationTotal
($)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)PEOKevin R. Griffith2006180,00045,0000.000.000.000.000.00225,000PFOABC  - total compensation.   26    OUTSTANDING EQUITY AWARDS AT FISCAL 2006 YEAR-END  Option AwardsStock AwardsNameNumber of Securities Underlying Unexercised Options (#) ExercisableNumber of Securities Underlying Unexercised Options
(#)
UnexercisableEquity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options
(#)Option Exercise Price ($)Option Expiration DateNumber of Shares or Units of Stock That Have Not Vested (#)Market Value of Shares or Units of Stock That Have Not Vested ($)Equity Incentive Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not Vested
(#)Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units, or Other Rights That Have Not Vested
($)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)PEO1,000,000  shares at  with a strike price of $0.001 with no expiration datePFOABC  This table requires disclosure of the number of securities underlying awards that were exercised during the fiscal year that were exercised during the fiscal year and those that are still outstanding, as well as their market value and vesting information.  The Outstanding Equity Awards at Fiscal Year-end Table is intended to provide information about potential future amounts of compensation that a named executive officer might realize.  DIRECTOR COMPENSATION For Fiscal Year Ended December 31, 2006  NameFees Earned or Paid in Cash
($)Stock Awards
($)Option Awards
($)Non-Equity Incentive Plan Compensation
($)Change in Pension Value and Nonqualified Deferred Compensation Earnings
($)All Other Compensation
($)Total
($)(a)(b)(c)(d)(e)(f)(g)(h)Eugene Bergmann18,0000.000.000.000.000.0018.000WXYZ  V, W, X, Y, and Z = All directors of the Issuer  The new rules require tabular disclosure of director compensation for each director, together with a narrative discussion of all of the elements of director compensation.  This table follows a format similar to that of the Summary Compensation Table, but substitutes a Fees Earned or Paid in Cash column for the Salary and Bonus columns.   27    Employment Agreements  In April 1, 2002, Internet Development, Inc. entered into an employment agreement with Kevin R. Griffith.  The agreement provided for a signing bonus of $35,000 payable upon the completion of six months employment.  Mr. Griffith is entitled to receive an annual salary of $150,000, commissions of at least $2,000 per month up, to $4,000 per month, and he is entitled to stock options and an incentive bonus of $27,000 based upon criteria established by our board of directors.  If Internet Development terminates Mr. Griffith's employment, with or without cause, then he is entitled to receive full compensation for a period of four months.  If he terminates his employment, then he is not entitled to any severance compensation.  Compensation of Directors  Effect April of 2006 Eugene Bergmann elected to the board of directors and agreed to be compensated $2,000 per month.  ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS  The following table lists the beneficial ownership of our outstanding common stock by our management and any person or group which beneficially owns more than 5% of our outstanding common stock.  Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities.  Except as indicated by footnote, the persons named in the table below have sole voting power and investment power with respect to all shares of common stock shown as beneficially owned by them.  The percentage of beneficial ownership is based on 23,816,610 shares of common stock outstanding as of April 13,, 2006, and any shares that each of the following persons may acquire within 60 days by the exercise of warrants and/or options.  Name and Address ofNumber of SharesPercentage ofBeneficial Ownersof Common StockClassKevin R. Griffith6,933,796 (1)36.19%462 East 800 NorthOrem, Utah 84097Eugene Bergmann0*462 East 800 NorthOrem, Utah 84097Steve Weatherly0*462 East 800 NorthOrem, Utah 84097Officers and Directors6,933,79636.19%as a Group (3 persons) _______________ * Less than 1%   (1) Represents 3,000,000 shares, options to purchase 1,000,000 shares, and a past due note convertible into 2,933,796 shares.   28    Securities Authorized Under Equity Compensation Plans  The following table lists the securities authorized for issuance under any equity compensation plans approved by our shareholders and any equity compensation plans not approved by our shareholders.  This chart also includes individual compensation arrangements. Descriptions of these plans are provided below.  EQUITY COMPENSATION PLAN INFORMATION Plan CategoryNumber of securities to be
issued upon exercise of
outstanding options,
warrants, and rightsWeighted average
exercise price of
outstanding options,
warrants, and rightsNumber of securities
remaining available for
future issuance under
equity compensation plansEquity compensation plans approved by shareholders0$00Equity compensation plans not approved by shareholders6,365,951(1)$0.24567,845Total6,365,951567,845  (1) Represents options to buy 5,498,155 shares and warrants to buy 800,000 shares.  As part of the merger between Internet Development and idiglobal.com, we agreed to honor option agreements granted by idiglobal.com to its employees and management prior to the merger.  As a result, we will honor options to purchase an aggregate of 4,484,000 shares of IDI Global's common stock under our 2002 Equity Incentive Plan.  These options expire through April 2007 and have exercise prices up to $0.50 per share.  IDI Global, Inc. 2002 Equity Incentive Plan - This plan was adopted on December 1, 2002, and deemed effective November 1, 2002.  The aggregate number of common shares to be issued under the plan is 6,500,000 authorized but un-issued shares of common stock.  No more than 1,000,000 shares shall be issued under stock options to a single participant in a single fiscal year and no more than 1,000,000 shares shall be issued under stock appreciation rights to a single participant in a single fiscal year.  Only employees who are common-law employees of IDI Global, a parent corporation or a subsidiary corporation, are eligible for the grant of incentive stock options.  Only employees, outside directors and consultants are eligible for the grant of restricted shares, non-statuary stock options and stock appreciation rights.  Each award of stock options, stock appreciation rights and restricted securities is formalized in a written agreement between the participant and the company. The written agreement establishes the number of underlying common shares, the exercise price, the term of the award and the other terms, conditions and restrictions related to any award.  Any common shares issued under the plan without registration are subject to the limitations on resale established by Rule 144 under the Securities Act of 1933.  On July 23, 2003 we registered 197,500 common shares to be issued upon exercise of options granted to employees and consultants pursuant to the plan.  The shares were registered under a registration statement on Form S-8, File No. 333-107270.  The common shares will be issued to participants of the plan upon the exercise of options granted to them under the plan.  Individual Compensation Arrangements.  On July 31, 2002, we entered into a consulting contract with Summit Resource Group, Inc.  Summit Resource Group agreed to provide investor relations consulting services related to dealing with NASD broker/dealers and the investing public.  The term of the agreement was for a six month period and could be terminated by either party with a 45-day written notice after the agreement had been effective 90 days.  We agreed to grant warrants to Summit Resource Group to purchase an aggregate of 800,000 shares.  Warrants with an exercise price of $2.75 to purchase 250,000 shares vested on the effective date of the agreement and another 250,000 vested on September 1, 2002.  The remaining 300,000 warrants, with an exercise price of $3.75 vested on November 1, 2002.  29    ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.  The following information summarizes transactions we have either engaged in during the past two years or propose to engage in involving our executive officers, directors, more than 5% stockholders, or immediate family members of such persons.  These transactions were negotiated between related parties without "arms length" bargaining and as a result the terms of these transactions may be different than transactions between unrelated parties.  In January 2004, IDI Global entered into an acquisition agreement with Chief Financial, Inc.  Chris Flores, a key employee of Internet Development, is the President of Chief Financial.  IDI Global issued 1,000,000 common shares valued at approximately $1,500,000 in exchange for 100% of the Chief Financial outstanding shares and Professional Consulting Services outstanding shares, its wholly owned subsidiary.  During the 2003 year, Kevin R. Griffith, our CEO, loaned $35,000 to IDI Global, and he received $102,193 in the 2002 year as principal payment on a note payable.  This note is to be combined with deferred compensation of $98,542 to total $133,011.  Also, during the 2002 year, we exchanged 4,385,000 shares of common stock to satisfy a $300,000 note payable to Mr. Griffith.  Our CEO, Kevin R. Griffith, holds a secured convertible promissory note, dated April 16, 2001, related to an obligation of idiglobal.com to repay $300,000 provided to Worldwide Financial Holdings, Inc. by Mr. Griffith in anticipation of a merger with idiglobal.com.  Worldwide Financial Holdings, Inc. loaned the $300,000 to idiglobal.com as part of an expected merger and when the parties agreed to terminate the merger, idiglobal.com agreed to assume this obligation.  The promissory note carries 12% interest and, in addition to the principle and interest, Mr. Griffith will also receive a loan origination fee of $9,000.  This  note is in default.  The note may be converted by the holder at a conversion price of $0.20 per share.  If the note is converted into common stock, then the holder has the right to have those shares registered under any registration statement we file under the Securities Act of 1933.  Our CEO, Kevin R. Griffith, holds a secured convertible promissory note, dated January 11, 2005, related to an obligation of idiglobal.com to repay $195,528 provided to HG Marketing by Mr. Griffith in anticipation of a merger with idiglobal.com.  The balance of the note at December 31, 2005 was $195,528. The promissory note carries 12% interest.  This note is in default.  The note may be converted by the holder at a conversion price of $0.30 per share.  If the note is converted into common stock, then the holder has the right to have those shares registered under any registration statement we file under the Securities Act of 1933.  Currently none of our board of directors are independent.  ITEM 13. EXHIBITS Exhibits  2.1Agreement and Plan of Merger between Bennion Corporation, Internet Development and idiglobal.com, dated January 16, 2002  (Incorporated by reference to exhibit 2.1 for Form 10-KSB, filed January 31, 2002)2.2Agreement and Plan of Merger between IDI Global and Sports Media International, Inc. and Integrated Communication Systems, Inc., dated October 3, 2003 (Incorporated by reference to exhibit 2.1 for Form 8-K, filed October 15, 2003)2.3Agreement and Plan of Reorganization between IDI Global and Chief Financial, Inc., dated January 8, 20043.1Articles of Incorporation, as amended (Incorporated by reference to exhibit 3.1 for Form 10-KSB, filed January 31, 2002)3.2Restated bylaws of IDI Global, Inc. (Incorporated by reference to exhibit 3.2 for Form 10-KSB, filed January 31, 2002)10.1Lease Agreement between Internet Development Inc. and Stratford Park, L.C., dated July 7, 2000 (Incorporated by reference to exhibit 10.1 for Form 10-QSB, as amended, filed May 22, 2002)  30     10.2Employment agreement between Internet Development and Kevin R. Griffith, dated April 1, 2002 (Incorporated by reference to exhibit 10.2 for Form 10-QSB, as amended, filed August 15, 2002)10.3Secured Convertible Promissory Note between idiglobal.com and Kevin R. Griffith, as amended (Incorporated by reference to exhibit 10.3 for Form 10-KSB, filed January 31, 2002)10.4Consultant Agreement between IDI Global, Inc. and Summit Resource Group, Inc., dated July 31, 2002  (Incorporated by reference to exhibit 10.2 for Form 10-QSB, as amended, filed August 15, 2002)10.5Term Credit Agreement between IDI Global and Hong Kong League Central Credit Union, dated December 24, 2004 (previously filed as an exhibit to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on August 5, 2005, and incorporated herein by reference)10.6Securities Purchase Agreement between IDI Global, Inc., and SBI Brightline X, LLC, dated as of December 24, 2004 (previously filed as an exhibit to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on August 5, 2005, and incorporated herein by reference)10.7Form of Warrant (previously filed as an exhibit to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on August 5, 2005, and incorporated herein by reference)10.8Letter Agreement between IDI Global, Inc., and SBI USA, Inc., dated as of January 14, 2005 (previously filed as an exhibit to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on August 5, 2005, and incorporated herein by reference)10.9Warrant issued to SBI Advisors, dated December 24, 2004 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)10.10Warrant issued to SBI USA, dated January 14, 2005 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)10.11Registration Rights Agreement between IDI Global, Inc., SBI Advisors, LLC, and SBI Brightline X, LLC, dated as of December 24, 2004 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)10.12Asset Purchase Agreement by and among IDI Global, Inc., IDI Small Business, Inc., Mentoring of America, LLC, and HG Marketing, Inc., dated as of January 14, 2005 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)10.13Registration Rights Agreement between IDI Global, Inc., and HG Marketing, Inc., dated as of January 14, 2005 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)10.14Warrants issued to HG Marketing, dated January 14, 2005 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)10.15Assignment and Assumption Agreement by and among Mentoring of America, LLC, HG Marketing, Inc., and IDI Small Business, Inc., dated as of January 14, 2005 (previously filed as an exhibit to an amendment to the Companys Registration Statement on Form SB-2, SEC File No. 333-127220 on December 21, 2005, and incorporated herein by reference)21. 1Subsidiaries of IDI   31     31.1Chief Executive Officer Certification31.2Chief Financial Officer Certification32.1Section 1350 Certification  ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES  (1) AUDIT FEES  The aggregate fees billed for the fiscal year ended December 31, 2005, for professional services rendered by Chisholm & Associates, Certified Public Accountants, for the audit of the registrant's annual financial statements and review of the financial statements included in the registrant's Form 10-QSB and 10KSB or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal year was $34,000.  The aggregate fees billed for the fiscal year ended December 31, 2006, for professional services rendered by Chisholm & Associates, Certified Public Accountants, for the audit of the registrant's annual financial statements and review of the financial statements included in the registrant's Form 10-QSB or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal year was $4,745.  The aggregate fees billed for the fiscal year ended December 31, 2006, for professional services rendered by HJ & Associates, LLC, Certified Public Accountants, for the audit of the registrant's annual financial statements and review of the financial statements included in the registrant's Form 10-QSB or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for the fiscal year was $22,000.  (2) AUDIT-RELATED FEES  The aggregate fees billed for the fiscal year ended December 31, 2006, for assurance and related services by Chisholm & Associates, that are reasonably related to the performance of the audit or review of the registrant's financial statements for the fiscal year was $0.00.  The aggregate fees billed for the fiscal year ended December 31, 2006, for assurance and related services by CBN, that are reasonably related to the performance of the audit or review of the registrant's financial statements for the fiscal year was $0.00.  (3) TAX FEES  The aggregate fees billed for the fiscal year ended December 31, 2006, for professional services rendered by Chisholm & Associates - for tax compliance, tax advice, and tax planning, for the fiscal year was $3,500.  Services provided included preparation of the federal and state tax returns for the corporation.  The aggregate fees billed for the fiscal year ended December 31, 2006, for professional services rendered by CBN for tax compliance, tax advice, and tax planning, for the fiscal year was $0.00.  (4) ALL OTHER FEES  The aggregate fees billed in the fiscal year ended December 31, 2000, for products and services provided by Chisholm & Associates  other than those services reported above, for the fiscal year was $0.00.  The aggregate fees billed in the fiscal year ended December 31, 2005, for products and services provided by CBN other than those services reported above, for the fiscal year was $0.00.  (5) AUDIT COMMITTEE POLICIES AND PROCEDURES  Not applicable.  32     (6)  If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.  Not applicable.   SIGNATURES  In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  Date April 16, 2006  IDI Global, Inc.    By: /s/ Kevin R. Griffith   Kevin R. Griffith President, CEO, Secretary/Treasurer, and Director    By: /s/ Steven D. Weatherly   Steven D. Weatherly Consultant performing certain services for the Company commonly provided by a Chief Financial Officer and Principal Accounting Officer   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.    Date: April 16, 2006 By: /s/ Eugene Bergmann  Eugene Bergmann   Director  33