UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


Washington,
      DC 20549





FORM
      10-KSB





(Mark
      One)


x  Annual
      Report under Section 13 or 15 (d) of The Securities Exchange Act of
      1934




For
      the
      fiscal year ended June 30, 2007 or




o  Transition
      Report under Section 14 or 15 (d) of The Securities Exchange Act of
      1934




For
      the
      transition period from _________ to __________.





**ISDERA,
      NORTH AMERICA, INC.**


(Exact
      name of registrant as specified in its charter)





New
                York
            
            333-138059
            
            11-2885989(State
                or otherjurisdiction
              of
                incorporation)
            
            (Commission
                File No.)
            
            (I.R.S.
                Employer
              Identification
                No.)





50
      Pine
      Drive


Cold
      Spring Harbor New York 11724


(516)
      971-3385


**(Address,
      including zip code, and telephone number, including area
      code,**


**of
      registrant's principal executive offices)**





Ruediger
      Albrecht, President


50
      Pine
      Drive


Cold
      Spring Harbor, New York 11724


(516)
      971-3385


(Name,
      address, including zip code, and telephone number,


Including
      area code, of agent for service)





Securities
      registered under Section 12 (b) of the Exchange Act: None





Securities
      registered under Section 12 (g) of the Exchange Act: Common Stock, $0.001 par
      value.





Check
      whether the issuer is not required to file reports pursuant to Section 13 or
      15(d) of the Exchange Act: o









Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15 (d) of the Exchange Act during the past twelve 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
x
      No o





Indicate
      by check mark whether the registrant is an accelerated filer (as defined in
      Rule
      12b-2 of the Exchange Act).  Yes
o
      No x





Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of Regulation
      S-B is not contained in this form, and no disclosure will be contained, to
      the
      best of registrant’s knowledge, in definitive proxy or information statements
      incorporated by reference in Part III of the Form 10-KSB or any amendment to
      this Form 10-KSB. x





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act.)  Yes
o
      No x





State
      issuer’s revenues for its most recent fiscal year: None for the year ended June
      30, 2007.





Number
      of
      voting or non-voting shares of common equity held by non-affiliates of the
      Registrant as of June 30, 2007.  30,000





The
      number of outstanding shares of the registrant’s Common Stock, $0.0001 par
      value, as of June 30, 2007 was 4,284,400 shares.





DOCUMENTS
      INCORPORATED BY REFERENCE: Not
      applicable





Transitional
      Small Business Disclosure
      Format:  Yes
o
      No x




ii




TABLE
      OF
      CONTENTS





PagePART
                IItem
                1.
            Description
                of Business
            1Item
                2.
            Description
                of Property
            4Item
                3.
            Legal
                Proceedings
            4Item
              4.
            Submission
              of Matters to a Vote of Security Holders
            4PART
                IIItem
                5.
            Market
                for Common Equity, Related Stockholder Matters and Small Business
                Issuer
                Purchases of Equity Securities
            4Item
                6.
            Management’s
                Discussion and Analysis or Plan of Operation
            5Item
                7.
            Financial
                Statements
            F-1Item
                8.
            Changes
                in and Disagreements with Accountants on Accounting and Financial
                Disclosure
            9Item
                8A.
            Controls
                and Procedures
            10Item
                8B.
            Other
                Information
            10PART
                IIIItem
                9.
            Directors,
                Executive Officers, Promoters, Control Persons and Corporate Governance;
                Compliance with Section 16(a) of the Exchange Act
            10Item
                10.
            Executive
                Compensation
            11Item
                11.
            Security
                Ownership of Certain Beneficial Owners and Management And Related
                Stockholder Matters
            11Item
                12.
            Transactions
                with Related Persons, Promoters and Certain Control
                Persons
            13Item
                13.
            Exhibits
            13Item
                14.
            Principal
                Accountant Fees and Services
            14SIGNATURES
            
            15





iii




CAUTIONARY
      STATEMENT REGARDING FORWARD-LOOKING STATEMENTS





This
      annual report on Form 10-KSB and other reports that we file with the SEC contain
      statements that are considered forward-looking statements. Forward-looking
      statements give the Company’s current expectations, plans, objectives,
      assumptions or forecasts of future events. All statements other than statements
      of current or historical fact contained in this annual report, including
      statements regarding the Company’s future financial position, business strategy,
      budgets, projected costs and plans and objectives of management for future
      operations, are forward-looking statements. In some cases, you can identify
      forward-looking statements by terminology such as “anticipate,” “estimate,”
“plans,” “potential,” “projects,” “ongoing,” “expects,” “management believes,”
“we believe,” “we intend,” and similar expressions. These statements are based
      on the Company’s current plans and are subject to risks and uncertainties, and
      as such the Company’s actual future activities and results of operations may be
      materially different from those set forth in the forward looking statements.
      Any
      or all of the forward-looking statements in this annual report may turn out
      to
      be inaccurate and as such, you should not place undue reliance on these
      forward-looking statements. The Company has based these forward-looking
      statements largely on its current expectations and projections about future
      events and financial trends that it believes may affect its financial condition,
      results of operations, business strategy and financial needs. The
      forward-looking statements can be affected by inaccurate assumptions or by
      known
      or unknown risks, uncertainties and assumptions due to a number of factors,
      including:


Ÿ dependence
        on key personnel;


Ÿ competitive
        factors;


Ÿ the
        operation of our business; and


Ÿ general
        economic conditions in the United States





These
      forward-looking statements speak only as of the date on which they are made,
      and
      except to the extent required by federal securities laws, we undertake no
      obligation to update any forward-looking statements to reflect events or
      circumstances after the date on which the statement is made or to reflect the
      occurrence of unanticipated events. In addition, we cannot assess the impact
      of
      each factor on our business or the extent to which any factor, or combination
      of
      factors, may cause actual results to differ materially from those contained
      in
      any forward-looking statements. All subsequent written and oral forward-looking
      statements attributable to the Company or persons acting on its behalf are
      expressly qualified in their entirety by the cautionary statements contained
      in
      this annual report.





iv


ITEM
      1.
      DESCRIPTION OF BUSINESS




**How
      our company is organized**


Isdera,
      North America, Inc., was incorporated in the State of New York on October 19,
      1987. On August 9, 2006, we amended our Certificate of Incorporation to increase
      the authorized capital to 50,000,000 shares of common stock, par value of $0.001
      per share.





The
      business of the Company was discontinued about October 6, 1997, and the Company
      remained dormant until August 9, 2006 at which time we raised capital through
      a
      private placement of common stock with the intention to start a similar
      business.





**Business**


Isdera
      North America, Inc. was founded in 1987 by Rudy Albrecht as a marketing, sales
      and service company for high tech high-end automobiles. We do not manufacture
      and will not manufacture any of the products we plan to sell. The Company was
      primarily established to market and sell the sports car products of Isdera
      GMBH,
      Germany. We have no formal or direct link to Isdera GMBH, other than a verbal
      agreement to receive commissions if any vehicles are sold by us. The business
      of
      the Company was discontinued about October 6, 1997, and the Company remained
      dormant until August 9, 2006. Prior to the business being discontinued, we
      attempted to and were unsuccessfully involved in the sale and marketing of
      automobiles manufactured by Isdera.




**Where
      you can find us**


Our
      corporate offices are located at 50 Pine Drive, Cold Spring Harbor, New York.
      Our telephone number is (516) 971-3385.





**Available
      Information**


The
      Company does not maintain an Internet web site address. The Company’s filings
      with the Securities and Exchange Commission (“SEC”) may be accessed at the
      internet address of the SEC, which is http://www.sec.gov. Also, the public
      may
      read and copy any materials that the Company files with at the SEC’s Public
      Reference Room at 100 F Street, N.E., Room 1580 Washington, D.C. 20549. The
      public may obtain information on the operation of the Public Reference Room
      by
      calling the SEC at 1-800-SEC-0330.











**RISK
      FACTORS**





**We
      may continue to lose money, and if we do not achieve profitability, we may
      not
      be able to continue our business.**


We
      have,
      in our history, generated no revenues from operations, have incurred substantial
      expenses and have sustained losses. We have not generated revenues and incurred
      losses both before we discontinued operations in 1997 and since August 9, 2006.
      In addition, we expect to continue to incur significant operating expenses.
      As a
      result, we will need to generate significant revenues to achieve profitability,
      which may not occur. Even if we do achieve profitability, we may be unable
      to
      sustain or increase profitability on a quarterly or annual basis in the future.
      We expect to have quarter-to-quarter fluctuations in revenues, expenses, losses
      and cash flow, some of which could be significant. Results of operations will
      depend upon numerous factors, some beyond our control, market acceptance of
      our
      products and services and competition.





**Our
      independent registered public accounting firms issued reports for the years
      ended June 30, 2007 and 2006 that contained a “** ***going
      concern”*** **explanatory paragraph** .


Our
      independent Auditors
      issued reports on their audits of our financial statements for the years ended
      June 30, 2007 and 2006. Our notes to the financial statements disclose that
      the
      cash flow of Isdera, North America, Inc. has been absorbed in operating
      activities and they have incurred net losses for
      the
      period from August 9, 2006 to June 30, 2007 ,
      and
      have a working capital deficiency. In the event that funding from internal
      sources or from public or private financing is insufficient to fund the business
      at current levels, we will have to substantially cut back our level of spending
      which could substantially curtail our operations. The independent Auditor’s
      reports contain an explanatory paragraph indicating that these factors raise
      substantial doubt about our ability to continue as a going concern. Our going
      concern uncertainty may affect our ability to raise additional capital, and
      may
      also affect our relationships with suppliers and customers. Investors should
      carefully read the independent Auditor’s report and examine our financial
      statements.





**If
      we fail to develop new or expand existing customer relationships, our ability
      to
      grow our business will be impaired.**


Our
      growth depends to a significant degree upon our ability to develop new customer
      relationships an d
      to
      expand existing relationships. We cannot guarantee that new customers will
      be
      found, that any such new relationships will be successful when they are in
      place. Further we have no guarantee that we will be able to make any sales
      with
      customers. Failure to develop and expand such relationships could have a
      material adverse effect on our business, results of operations and financial
      condition.





**We
      are dependent on our key personnel for sales and marketing and if we lose those
      personnel, our business would fail.**


Our
      future success depends, in significant part, upon the continued service of
      our
      management. Mr. Albrecht is the individual that has developed the many contacts
      and relationships that would enable the Company to conduct sales. The Company
      does not have any employees and only a part time president and chief financial
      officer. This individual presently is the only person who has the experience
      to
      market and sell the products for the Company. If this individual were no longer
      willing to function in that capacity the Company would be negatively affected.
      We do not maintain key man life insurance covering him. Our future success
      also
      depends on our ability to try and attract and retain highly qualified sales
      and
      marketing personnel. Competition for such personnel is intense, and we may
      experience difficulties in attracting the required number and caliber of such
      individuals. If we were unable to hire and retain personnel in key positions,
      our business could fail. As a result, we might incur substantially more expenses
      than income and might not have enough resources to fund growth that may be
      commercially viable.




2




**Some
      of our competitors may be able to use their financial strength to dominate
      the
      market, which may affect our ability to generate revenues.**


Some
      of
      our competitors may be much larger companies than us and very well capitalized
      and very experienced in sales and marketing. They could choose to use their
      greater resources to finance their continued participation and penetration
      of
      this market, which may impede our ability to generate sufficient revenues to
      cover our costs. Their better financial resources could allow them to
      significantly out spend us in sales and marketing areas. We might not be able
      to
      maintain our ability to compete in this circumstance.





**We
      will need additional capital to allow us to expand our business plan to
      implement our sales and marketing plans and such financing may be unavailable
      or
      too costly.**


Our
      ability to continue our sales and marketing strategies is dependent on our
      ability to secure financing and allocate sufficient funds required to support
      our marketing activity. Additional financing may not be available on favorable
      terms, or even at all. If we raise additional funds by selling stock, the
      percentage ownership of our then current stockholders will be reduced. If we
      cannot raise adequate funds to satisfy our capital requirements, we may have
      to
      limit our operations significantly. Our ability to raise additional funds may
      diminish if the public equity markets become less supportive of the industry.
      If
      we raise additional capital through debt offerings, it will have a significant
      impact on our cash flow.





**Neither
      Isdera, North America nor Mr. Albrecht has successfully marketed or sold any
      Isdera cars or parts.**


While
      the
      Company believes it has a viable business plan, neither Isdera, North America
      nor Mr. Albrecht has successfully marketed or sold any Isdera cars or parts,
      nor
      can we be assured that we will be able to sell an Isdera car or any parts.
      Even
      though the high-end car market is, we believe, expanding, there is no assurance
      that we will be able to compete and succeed in selling any
      automobiles.





**We
      do not have a written agreement with Isdera GMBH or any other car manufacturers
      to market or sell their products**


Since
      we
      do not have a written agreement with Isdera GMBH, or any other car manufacturer
      to market and sell their products, we are not able to ensure a long term
      relationship or specific commission fee structure with any of them. This may
      cause us to not be able to collect any commissions or be able to participate
      in
      any sale. We have a verbal agreement with the owner of Isdera GMBH that we
      will
      receive a commission for any Isdera car for which we arrange the sale. The
      exact
      amount of the commission is dependent upon the sale price of the
      car.





**We
      are dependent upon finding sources of high-end automobiles, and parts, to
      sell.**


Our
      business model is based upon our ability to market and sell and then receive
      commission payments for the sale of ultra luxury, high-end, automobile and
      automobile parts. If we are unable to locate and secure agreements to make
      such
      sales, we will be unable to operate successfully. There is a large, but finite
      number of potential manufacturers we can approach. Our Chairman and President,
      while having many such contacts in the industry, can not assure that we will
      be
      successful in obtaining the necessary approvals to market such
      products.





3





ITEM
      2.
      DESCRIPTION OF PROPERTY





Our
      Principal executive offices are at 50 Pine Drive, Cold Spring Harbor, New York.
      Our telephone number is (516) 971-3385. The space is sufficient for the needs
      of
      the Company for the foreseeable future.





ITEM
      3.
      LEGAL PROCEEDINGS





There
      are
      no material pending legal proceedings to which we are a party or to which any
      of
      our property is subject and, to the best of our knowledge, no such actions
      against us are contemplated or threatened.





ITEM
      4.
      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS





None





ITEM
      5.
      MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS





The
      authorized capital stock consists of 50,000,000 shares of common stock, par
      value $0.001 per share. As of September 28, 2007, there were 4,284,400 shares
      of
      Common Stock issued and outstanding. The following summary description of the
      Common Stock is qualified in its entirety by reference to the Company's
      Certificate of Incorporation and all amendments thereto.





**Common
      Stock**


Our
      authorized capital stock consists of 50,000,000 **** shares
      of
      common stock, par value $0.001 per share. Each share of Common Stock entitles
      its holder to one non-cumulative vote per share and, the holders of more than
      fifty percent (50%) of the shares voting for the election of directors can
      elect
      all the directors if they choose to do so, and in such event the holders of
      the
      remaining shares will not be able to elect a single director. Holders of shares
      of Common Stock are entitled to receive such dividends, as the board of
      directors may, from time to time, declare out of Company funds legally available
      for the payment of dividends. Upon any liquidation, dissolution or winding
      up of
      the Company, holders of shares of Common Stock are entitled to receive pro
      rata
      all of the assets of the Company available for distribution to
      stockholders.





Stockholders
      do not have any pre-emptive rights to subscribe for or purchase any stock,
      warrants or other securities of the Company. The Common Stock is not convertible
      or redeemable. Neither the Company's Certificate of Incorporation nor its
      By-Laws provide for pre-emptive rights.





4






**Price
      Ranges of the Company’s Common Stock**




Market
      Information




The
      Company’s Common Stock is traded on the NASD operated Over the Country Bulletin
      Board under the symbol “INAI” commencing on July 9, 2007, without any trading or
      volume.





Dividend
      Policy





We
      have
      never paid any cash dividends and have no plans to do so in the foreseeable
      future. Our future dividend policy will be determined by our Board of Directors
      and will depend upon a number of factors, including our financial condition
      and
      performance, our cash needs and expansion plans, income tax consequences, and
      the restrictions that applicable laws and other arrangements then
      impose.





Recent
      Sales of Unregistered Securities





During
      the fourth quarter for the fiscal year ended June 30, 2007, we have not issued
      any unregistered securities.




ITEM
      6.
      Management’s Discussion and Analysis or Plan of Operation





The
      following is our plan of operation for the following 12 months, and should
      be
      read in conjunction with our financial statements and notes thereto appearing
      in
      this Annual Report.





**BUSINESS
      OF THE COMPANY – PRINCIPAL PRODUCTS AND SERVICES**




Isdera
      North America, Inc. was founded in 1987 by Rudy Albrecht as a marketing, sales
      and service company for high tech high-end automobiles. We do not manufacture
      and will not manufacture any of the products we plan to sell. The Company was
      primarily established to market and sell the sports car products of Isdera
      GMBH,
      Germany. The business was discontinued about October 6, 1997, and the Company
      remained dormant until August 9, 2006. Prior to the business being discontinued,
      we attempted to and were unsuccessfully involved in the sale and marketing
      of
      automobiles manufactured by Isdera GMBH. We have determined that we will attempt
      to market and sell many different high-end automobiles and automobile related
      products and services for high end uses. Since the market for high-end
      automobiles has, in our opinion, greatly expanded, with prices having greatly
      appreciated, we believe that we can be successful in marketing many different
      brands, products and services.




After
      the
      Company was formed and the initial start up of operations, our chairman,
      Ruediger Albrecht, pursued other opportunities. However, he maintained his
      initial contacts and marketing connections. The market for high-end cars, and
      related products, we believe, has grown and was an opportunity to re-start
      the
      initial business.




5




The
      following information applies to Isdera GMBH. We, and Mr. Albrecht, have no
      connection with Isdera GMBH, either formally or informally. Mr. Albrecht has
      a
      verbal agreement with the owner of Isdera GMBH to pay commissions for any car
      sold by us to a third party. To date, we have had no sales of any cars
      manufactured by Isdera GMBH, nor do we currently have any potential customers
      for Isdera GMBH. Mr. Albrecht has many contacts in this industry, but has never
      successfully marketed and sold a high-end luxury automobile for Isdera GMBH,
      or
      any other manufacturer.





As
      an
      example of the types of high-end automobiles we are going to market and sell,
      there is Isdera.





Isdera
      stands for **I** ngenieurbuero
      (engineering) for **S** tyling, **DE** sign
      and **RA** cing.
      Eberhard Schulz, the owner and chief designer of Isdera, Germany started out
      to
      build a racecar. In 1968 he built the prototype racecar with a tubular frame
      and
      carbon fiber chassis. Today this racecar still wins vintage races throughout
      Europe. From 1971 to 1978 he joined the Porsche Company as a development and
      design engineer, primarily responsible for the styling of new Porsches. During
      that time other prototypes were developed, which consisted mainly of building
      race ready motorbikes. After the work at Porsche, Eberhard Schulz started
      designing various types of cars with Mercedes Benz components. A new CW311
      was
      in the works showing some similarities to the old Mercedes Benz C111 sports
      car.





In
      1983,
      Schulz founded Isdera GMBH, Germany. The CW311 was further developed. The
      tubular frame held the carbon fiber chassis with two huge gull wings for easy
      access to the interior. The power plant was a V8 cylinder tuned Mercedes Benz
      AMG engine placed in the middle of the automobile. A five-speed manual gearbox
      was placed behind the engine. Only high-end parts and components available
      from
      the car manufacturers market were bought. The most reliable sub suppliers for
      Mercedes Benz and Porsche were hand picked.





The
      new
      sports car was born, the “ISDERA SPYDER”. This sports car was developed as a
      concept car without a roof. Again, a tubular frame held the chassis. A six
      cylinder tuned Mercedes Benz engine is placed in the middle of the sports car
      with a five-speed transmission. Only highest-end components available were
      used
      to build this automobile. The ISDERA SPYDER was awarded the designer Price
      of
      the year 1984 by the state of Baden-Wuerttemberg. In 1985 the “Spyder” went into
      production.





In
      1993 a
      new car was born: the “ISDERA COMMENDATORE”. The tubular frame became a basis to
      hold the carbon fiber chassis. All components were selected from only high-end
      suppliers and manufacturers. The four huge gull wings - two for the passengers
      and two for the engine compartment - give the sports car, in some opinions,
      a
      transparent, very light and bright feeling.





The
      rear
      spoiler will adjust automatically to the speed of the car and will lift up
      to
      its fullest at high speed. The large openings in the front, on the sides and
      in
      the rear will allow more than adequate cooling for the brakes and the engine.
      A
      V12 Mercedes Benz AMG 6.9 liter specially tuned power plant is centered in
      the
      middle of the sports car. A six speed manual transmission similar to the newest
      Porsche turbo sits behind the engine. An automatic system will lower the car
      at
      high speeds by seven centimeters.




6





Isdera
      North America, Inc., previously, when it was first operating, advertised in
      various car magazines like: the Robb Report, Du Pont Registry, Road & Track
      and others. Some of these magazines wrote articles about the Isdera GMBH sports
      cars. These cars became well known in the high-end high tech automobile market.
      Some dealerships were established and two cars were made for the American
      Market. Isdera GMBH manufactured a total of 50 cars. The old models are now
      becoming collector’s items. Isdera, North American has not done any advertising
      since it resumed operations in August 2006. We may or may not advertise in
      the
      future.





In
      December 2005, Keith Martin’s Sports Car Market, a high-end showcase magazine
      listing high-end automobiles for sale, listing auction and sales results, showed
      a sale of a 1999 Isdera C112 coupe with a sale price of $4,800,000. While we
      were not involved in the sale, this is an example of the types of sales we
      are
      aiming for in our niche market.





Currently
      we only have experience with attempting to market automobiles from Isdera GMBH.
      We anticipate that we will also sell automobiles from other specialty makers
      and
      other high-end companies. In addition, we are investigating and looking to
      sell
      automobile parts and aftermarket items from these same companies. Currently,
      Isdera GMBH does not have enough units sold to make selling their parts and
      aftermarket items viable.





We
      do not
      have a distribution system in place. It is anticipated that upon the sale of
      any
      high-end parts, they will be shipped directly from the manufacturer and/or
      supplier. In the event we are able to sell any automobiles, the delivery to
      the
      customer will be specifically arranged at the time of sale.





Our
      business is extremely competitive, with respect to all levels of pricing. We
      have no special ability that would set up apart from any other marketer and
      distributor of similar products and automobiles. Our only advantage is our
      contact with Isdera GMBH, an agreement that is not in writing, allows us to
      market its cars.





Our
      intention is to not limit ourselves to only automobiles and automotive parts
      from Isdera GMBH, but to market them from as many other high-end sellers as
      we
      can establish relationships with. Currently we do not have any relationship
      other than the one with Isdera GMBH.





There
      are
      no material patents, trademarks, licenses, franchises, concessions or royalty
      agreements on which our business is dependent, such as licenses or royalty
      agreements with Isdera GMBH.





Our
      marketing of these automobiles and other products is not affected by
      governmental regulations, or compliance with environmental laws, as we are
      not
      the manufacturers, who are the ones that must ensure compliance with all
      governmental regulations. We do not need any governmental approval to market
      these items. Nor have we incurred any research or developmental expenses in
      the
      past two years.




7


**Plans
      for the next twelve months**





The
      promotional and demonstration expenses are estimated to be approximately $37,500
      per year, as follows:





Advertising:
            
            $
            10,000Trade
                Shows
            
            $
            10,000Travel
                and Accommodation:
            
            $
            5,000Miscellaneous
            
            $
            12,500




The
      Company does not have enough cash resources or revenues to cover expenses for
      the foreseeable future. Without increased revenues or additional capital, it
      is
      extremely likely that our sales and marketing plan will not be able to be
      completed. This would significantly hamper out efforts to enter into the sales
      niche as and when we would like.





The
      source of additional liquidity would come from sales. Internally, as we slowly
      increase sales, we would be able to increase the marketing operations. This
      would increase the short-term liquidity of the Company.





There
      are
      no known trends, events or uncertainties that have or are reasonably likely
      to
      have a material impact on the Company’s short-term or long-term liquidity, other
      than the inability to sell our products and services.





The
      company does not expect to significantly increase its employees in the next
      fiscal year.





The
      Company has never filed for Bankruptcy protection.




**OFF-BALANCE
      SHEET ARRANGEMENTS**




We
      do not
      have any off-balance sheet arrangements that have or are reasonably likely
      to
      have a current or future effect on our financial condition, changes in financial
      condition, revenues or expenses, results of operations, liquidity, capital
      expenditures or capital resources that are material to investors.




**INFLATION**




The
      amounts presented in the financial statements do not provide for the effect
      of
      inflation on the Company’s operations or its financial position. Amounts shown
      for machinery, equipment and leasehold improvements and for costs and expenses
      reflect historical cost and do not necessarily represent replacement cost.
      The
      net operating losses shown would be greater than reported if the effects of
      inflation were reflected either by charging operations with amounts that
      represent replacement costs or by using other inflation
      adjustments.




8


ITEM
      7.
      FINANCIAL STATEMENTS


**ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **INDEX
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2007, AND 2006**
  Report
                    of Registered Independent Auditors - 2007
                
                
                F-2Report
                    of Registered Independent Auditor - 2006
                
                
                F-3Financial
                    Statements-Balance
                    Sheet as of June 30, 2007
                
                
                F-4Statements
                    of Operations for the Years Ended June 30, 2007, and 2006, andthe
                    Period from Re-entering the Development Stage through June 30,
                    2007
                
                
                F-5Statements
                    of Stockholders’ (Deficit) from June 30, 2005 through June 30, 2007,and
                    the Period from Re-entering the Development Stage through June
                    30,
                    2007
                
                
                F-6Statements
                    of Cash Flows for the Years Ended June 30, 2007, and 2006, and
                    the Period
                    from Re-entering the Development Stage through June 30,
                    2007
                
                
                F-7Notes
                    to Financial Statements June 30, 2007, and 2006
                
                
                F-8
  F-1
  **REPORT
        OF REGISTERED INDEPENDENT AUDITORS - 2007**
 
 To
        the
        Board of Directors and Stockholders
 of
        Isdera, North America, Inc.:
 
 We
        have
        audited the accompanying balance sheet of Isdera, North America, Inc. (a
        New
        York corporation in the development stage) as of June 30, 2007, and the related
        statements of operations, stockholders’ (deficit), and cash flows for the year
        then ended, and the period from re-entering the development stage (August
        9,
        2007) through June 30, 2007. These financial statements are the responsibility
        of the Company’s management. Our responsibility is to express an opinion on
        these financial statements based on our audit.
 
 We
        conducted our audits in accordance with standards of the Public Company
        Accounting Oversight Board (United States of America). Those standards require
        that we plan and perform the audit to obtain reasonable assurance about whether
        the financial statements are free of material misstatement. An audit includes
        examining, on a test basis, evidence supporting the amounts and disclosures
        in
        the financial statements. An audit also includes assessing the accounting
        principles used and significant estimates made by management, as well as
        evaluating the overall financial statement presentation. We believe that
        our
        audit provides a reasonable basis for our opinion.
 
 In
        our
        opinion, the financial statements referred to above present fairly, in all
        material respects, the financial position of Isdera, North America, Inc.
        as of
        June 30, 2007, and the results of its operations and its cash flows for the
        year
        ended June 30, 2007, and for the period from re-entering the development
        stage
        (August 9, 2007) through June 30, 2007, in conformity with accounting principles
        generally accepted in the United States of America.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern. As discussed in Note 2 to the financial
        statements, the Company is in the development stage, and has not established
        any
        source of revenue to cover its operating costs. As such, it has incurred
        an
        operating loss since inception. These and other factors raise substantial
        doubt
        about the Company’s ability to continue as a going concern. Management’s plan
        regarding these matters is also described in Note 2 to the financial statements.
        The financial statements do not include any adjustments that might result
        from
        the outcome of this uncertainty.
 
 As
        discussed in Note 3 to the financial statements, an error in the balance
        of cash
        which amounted to $900, and in the amount due to related party - Director
        and
        stockholder was determined by management of the Company subsequent to June
        30,
        2006. This error resulted in the understatement of current assets and current
        liabilities as of June 30, 2006. Accordingly, the statement of cash flows
        for
        the year ended June 30, 2006, has been restated to correct this error.
  Respectfully
                    submitted,/S/
                    Davis Accounting Group P.C.Cedar
                    City, Utah,September
                    28, 2007.
  F-2
 
 **REPORT
        OF REGISTERED INDEPENDENT AUDITOR - 2006**
 
 To
        the
        Board of Directors and Stockholders
 of
        Isdera, North America, Inc.:
 
 I
        have
        audited the accompanying statements of operations, stockholders’ (deficit), and
        cash flows of Isdera, North America, Inc. (a New York corporation in the
        development stage) for the year ended June 30, 2006. These financial statements
        are the responsibility of the Company’s management. My responsibility is to
        express an opinion on these financial statements based on my audit.
 
 I
        conducted my audit in accordance with standards of the Public Company Accounting
        Oversight Board (United States). Those standards require that I plan and
        perform
        the audit to obtain reasonable assurance about whether the financial statements
        are free of material misstatement. An audit includes examining, on a test
        basis,
        evidence supporting the amounts and disclosures in the financial statements.
        An
        audit also includes assessing the accounting principles used and significant
        estimates made by management, as well as evaluating the overall financial
        statement presentation. I believe that my audit provides a reasonable basis
        for
        my opinion.
 
 In
        my
        opinion, the financial statements referred to above present fairly, in all
        material respects, the results of operations and cash flows of Isdera, North
        America, Inc. for the year ended June 30, 2006, in conformity with accounting
        principles generally accepted in the United States of America.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern. As discussed in Note 2 to the financial
        statements, the Company has suffered recurring losses from operations and
        needs
        to obtain additional financing, which raise doubt about its ability to continue
        as a going concern as of June 30, 2006. Management’s plans in regard to these
        matters are also described in Note 2. The financial statements do not include
        any adjustments that might result from the outcome of this
        uncertainty.
 
 As
        discussed in Note 3 to the financial statements, an error in the balance
        of cash
        which amounted to $900, and in the amount due to related party - Director
        and
        stockholder was determined by management of the Company subsequent to June
        30,
        2006. This error resulted in the understatement of current assets and current
        liabilities as of June 30, 2006. Accordingly, the statement of cash flows
        for
        the year ended June 30, 2006, has been restated to correct this
        error.
  /S/
                    Aaron Stein CPAWoodmere,
                    New York,April
                    5, 2007, except for Note 3, for whichthe
                    date is September 28, 2007.
 
 F-3
 
 
 **ISDERA,
                  NORTH AMERICA, INC.****(A
                  DEVELOPMENT STAGE COMPANY)****BALANCE
                  SHEET (NOTE 2)****AS
                  OF JUNE 30, 2007**
  **2007****ASSETS****Current
                  Assets:**Cash
                  in bank
              
              $
              30Prepaid
                  consulting fees
              
              
              3,212Total
                  current assets
              
              
              3,242**Total
                  Assets**
              
              $
              3,242**LIABILITIES
                  AND STOCKHOLDERS' (DEFICIT)****Current
                  Liabilities:**Accrued
                  liabilities
              
              $
              5,000Due
                  to related party - Director and stockholder
              
              
              1,600Total
                  current liabilities
              
              
              6,600Total
                  liabilities
              
              
              6,600**Stockholders'
                  (Deficit):**Common
                    stock, par value $.001 per share, 50,000,000 sharesauthorized;
                    4,284,400 shares issued and outstanding
              
              
              4,284Additional
                  paid-in capital
              
              
              161,029Prior
                  accumulated (deficit)
              
              
              (53,862
              )(Deficit)
                  accumulated during the development stage
              
              
              (114,809
              )Total
                  stockholders' (deficit)
              
              
              (3,358
              )**Total
                  Liabilities and Stockholders' (Deficit)**
              
              $
              3,242
  The
          accompanying notes to financial statements
 are
          an
          integral part of this balance sheet.
 F-4
  **ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF OPERATIONS (NOTE 2)**
 **FOR
        THE YEARS ENDED JUNE 30, 2007, AND 2006, AND THE PERIOD FROM
        RE-ENTERING**
 **THE
        DEVELOPMENT STAGE (AUGUST 9, 2006) THROUGH JUNE 30, 2007**
 
 **Period
                  From****Re-entering****Year
                  Ended**
              
              **Year
                  Ended**
              
              **The Development****June
                  30,**
              
              **June
                  30,**
              
              **Stage Through****2007**
              
              **2006**
              
              **June
                  30, 2007****Revenues**
              
              $
              -
              
              $
              -
              
              $
              -**Expenses:**General
                  and administrative -Legal
                  fees
              
              
              50,000
              
              
              -
              
              
              50,000Accounting
                  and audit fees
              
              
              26,020
              
              
              -
              
              
              26,020Consulting
                  fees
              
              
              35,333
              
              
              -
              
              
              35,333Transfer
                  agent fees
              
              
              1,750
              
              
              -
              
              
              1,750Registration
                  fees
              
              
              330
              
              
              -
              
              
              330Other
              
              
              200
              
              
              -
              
              
              200Bank
                  fees
              
              
              65
              
              
              -
              
              
              65Total
                  general and administrative expenses
              
              
              113,698
              
              
              -
              
              
              113,698**(Loss)
                  from Operations**
              
              
              (113,698
              )
              
              -
              
              
              (113,698
              )**Other
                  (Expense)**Interest
                  expense
              
              
              (956
              )
              
              -
              
              
              (956
              )**Provision
                  for income taxes**
              
              
              (155
              )
              
              (155
              )
              
              (155
              )**Net
                  (Loss)**
              
              $
              (114,809
              )
              $
              (155
              )
              $
              (114,809
              )**(Loss)
                  Per Common Share:**(Loss)
                  per common share - Basic and Diluted
              
              $
              (0.06
              )
              $
              (1.55
              )**Weighted
                    Average Number of Common SharesOutstanding
                    - Basic and Diluted**
              
              
              2,030,741
              
              
              100
 
 The
        accompanying notes to financial statements are
 an
        integral part of these statements
  F-5
 
 **ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF STOCKHOLDERS' (DEFICIT) (NOTE 2)**
 **FOR
        THE YEARS ENDED THROUGH JUNE 30, 2007, AND THE PERIOD FROM
        RE-ENTERING**
 **THE
        DEVELOPMENT STAGE (AUGUST 9, 2006) THROUGH JUNE 30, 2007**
 
 **(Deficit)****Accumulated****Additional**
              
              **Prior**
              
              **During
                  the****Common stock**
              
              
              
              **Paid-in**
              
              **Accumulated**
              
              **Development****Description**
              
              **Shares**
              
              **Amount**
              
              **Capital**
              
              **(Deficit)**
              
              **Stage**
              
              **Totals****Balance
                  - June 30, 2005**
              
              
              100
              
              $
              -
              
              $
              1,000
              
              $
              (53,707
              )
              $
              -
              
              $
              (52,707
              )Net
                  (loss) for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              (155
              )
              
              -
              
              
              (155
              )**Balance
                  - June 30, 2006**
              
              
              100
              
              
              -
              
              
              1,000
              
              
              (53,862
              )
              
              -
              
              
              (52,862
              )Issuance
                  of common stock for cash
              
              
              39,000
              
              
              39
              
              
              1,911
              
              
              -
              
              
              -
              
              
              1,950Consulting
                  services paid by issued shares
              
              
              2,995,400
              
              
              2,995
              
              
              105,550
              
              
              -
              
              
              -
              
              
              108,545Loan
                  from director paid by issued shares
              
              
              1,249,900
              
              
              1,250
              
              
              52,568
              
              
              -
              
              
              -
              
              
              53,911Net
                  (loss) for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (114,809
              )
              
              (114,902
              )**Balance
                  - June 30, 2007**
              
              
              4,284,400
              
              $
              4,284
              
              $
              161,029
              
              $
              (53,862
              )
              $
              (114,809
              )
              $
              (3,358
              )
 
 The
        accompanying notes to financial statements are
 an
        integral part of these statements.
  F-6
 
 **ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **STATEMENTS
        OF CASH FLOWS (NOTE 2)**
 **FOR
        THE YEARS ENDED JUNE 30, 2007, AND 2006 (RESTATED), AND THE PERIOD
        FROM**
 **RE-ENTERING
        THE DEVELOPMENT STAGE (AUGUST 9, 2006) THROUGH JUNE 30,
        2007**
 
 **Year Ended****July
                    30,****2007**
              
              **Year
                    Ended**
                  **July
                    30,**
                  **2006 (Restated)**
              
              **Period
                      From****Re-entering****The Development****Stage Through**June
                    30, 2007******Operating
                  Activities:**Net
                  (loss)
              
              $
              (114,809
              )
              $
              (155
              )
              $
              (114,809
              )Adjustments
                    to reconcile net (loss) to net cash(used
                    in) operating activities:Consulting
                  and professional fees paid by issued shares
              
              
              105,333
              
              
              -
              
              
              105,333Accrued
                  interest expense paid by issued shares
              
              
              956
              
              
              -
              
              
              956Changes
                    in net assets and liabilities -Accrued
                    liabilities
              
              
              5,000
              
              
              -
              
              
              5,000**Net
                  Cash (Used in) Operating Activities**
              
              
              (3,520
              )
              
              (155
              )
              
              (3,520
              )**Investing
                  Activities:**Cash
                  provided by investing activities
              
              
              -
              
              
              -
              
              
              -**Net
                  Cash Provided by Investing Activities**
              
              
              -
              
              
              -
              
              
              -**Financing
                  Activities:**Due
                  to related party - Director and stockholder
              
              
              700
              
              
              1,055
              
              
              700Issuance
                  of common stock for cash
              
              
              1,950
              
              
              -
              
              
              1,950**Net
                  Cash Provided by Financing Activities**
              
              
              2,650
              
              
              1,055
              
              
              2,650**Net
                  Increase (Decrease) in Cash**
              
              
              (870
              )
              
              900
              
              
              (870
              )**Cash
                  - Beginning of Period**
              
              
              900
              
              
              -
              
              
              900**Cash
                  - End of Period**
              
              $
              30
              
              $
              900
              
              $
              30**Supplemental
                  Disclosure of Cash Flow Information:**Cash
                  paid during the period for:Interest
              
              $
              -
              
              $
              -
              
              $
              -Income
                  taxes
              
              $
              155
              
              $
              155
              
              $
              155
 
 **Supplemental
        Information of Noncash Investing and Financing Activities:**
 
 On
        January 9, 2007, a loan to the Company of $52,862 by a Director and stockholder
        plus accrued interest of $956 were satisfied with the issuance of 1,249,900
        shares of common stock.
 
 On
        January 9, 2007, the Company issued 2,097,200 shares of common stock for
        consulting services of $70,000 performed in agreement with a Consulting
        Agreement dated August 10, 2006.
 
 On
        January 9, 2007, the Company issued 898,200 shares of common stock for
        consulting services of $38,545 performed in agreement with a Consulting
        Agreement dated August 10, 2006.
 
 The
        accompanying notes to financial statements are
 an
        integral part of these statements.
 
 F-7
  **ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2007, AND 2006**
  **(1)**  **Summary
        of Significant Accounting Policies**
 
 **** *General
        Organization and Business*
 
 Isdera,
        North America, Inc. (“Isdera” or the “Company”) is a New York corporation in the
        development stage and has not commenced operations. The Company was incorporated
        under the laws of the State of New York on October 20, 1987. The original
        business plan of the Company was to market and sell, in North America, high
        end
        automobiles and products produced by the German automaker Isdera GMBH. The
        Company has no formal or direct link to Isdera GMBH, other than a verbal
        agreement to receive commissions on the automobiles that the Company sells.
        The
        business was discontinued on about October 6, 1997, and remained dormant
        until
        August 9, 2006. As of August 9, 2006, the Company re-entered the development
        stage and raised capital through a private placement of common stock with
        the
        purpose of starting a similar business. **** The
        accompanying financial statements of Isdera were prepared from the accounts
        of
        the Company under the accrual basis of accounting.
  *Cash
        and Cash Equivalents*
 
 For
        purposes of reporting within the statement of cash flows, the Company considers
        all cash on hand, cash accounts not subject to withdrawal restrictions or
        penalties, and all highly liquid debt instruments purchased with a maturity
        of
        three months or less to be cash and cash equivalents.
 
 *Revenue
        Recognition*
 
 The
        Company is in the development stage and has yet to realize revenues from
        operations. Once the Company has commenced operations, it will recognize
        revenues when delivery of goods or completion of services has occurred provided
        there is persuasive evidence of an agreement, acceptance has been approved
        by
        its customers, the fee is fixed or determinable based on the completion of
        stated terms and conditions, and collection of any related receivable is
        probable.
  *Loss
        per Common Share*
 
 Basic
        loss per share is computed by dividing the net loss attributable to the common
        stockholders by the weighted average number of shares of common stock
        outstanding during the period. Fully diluted loss per share is computed similar
        to basic loss per share except that the denominator is increased to include
        the
        number of additional common shares that would have been outstanding if the
        potential common shares had been issued and if the additional common shares
        were
        dilutive. There were no dilutive financial instruments issued or outstanding
        for
        the period ended June 30, 2007.
 
 *Income
        Taxes*
 
 The
        Company accounts for income taxes pursuant to SFAS No. 109, *Accounting
        for Income Taxes* (“SFAS
        109”). Under SFAS 109, deferred tax assets and liabilities are determined based
        on temporary differences between the bases of certain assets and liabilities
        for
        income tax and financial reporting purposes. The deferred tax assets and
        liabilities are classified according to the financial statement classification
        of the assets and liabilities generating the differences.
  F-8
  **ISDERA,
          NORTH AMERICA, INC.**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2007, AND 2006**
 The
        Company maintains a valuation allowance with respect to deferred tax assets.
        The
        Company establishes a valuation allowance based upon the potential likelihood
        of
        realizing the deferred tax asset and taking into consideration the Company’s
        financial position and results of operations for the current period. Future
        realization of the deferred tax benefit depends on the existence of sufficient
        taxable income within the carryforward period under the Federal tax
        laws.
 
 Changes
        in circumstances, such as the Company generating taxable income, could cause
        a
        change in judgment about the realizability of the related deferred tax asset.
        Any change in the valuation allowance will be included in income in the year
        of
        the change in estimate.
 
 *Fair
        Value of Financial Instruments*
 
 The
        Company estimates the fair value of financial instruments using the available
        market information and valuation methods. Considerable judgment is required
        in
        estimating fair value. Accordingly, the estimates of fair value may not be
        indicative of the amounts the Company could realize in a current market
        exchange. As of June 30, 2007, the carrying value of accrued liabilities
        approximated fair value due to the short-term nature and maturity of these
        instruments.
  *Deferred
        Offering Costs*
 
 The
        Company defers as other assets the direct incremental costs of raising capital
        until such time as the offering is completed. At the time of the completion
        of
        the offering, the costs are charged against the capital raised. Should the
        offering be terminated, deferred offering costs are charged to operations
        during
        the period in which the offering is terminated.
  *Common
        Stock Registration Expenses*
 
 The
        Company considers incremental costs and expenses related to the registration
        of
        equity securities with the SEC, whether by contractual arrangement as of
        a
        certain date or by demand, to be unrelated to original issuance transactions.
        As
        such, subsequent registration costs and expenses are reflected in the
        accompanying financial statements as general and administrative expenses,
        and
        are expensed as incurred.
 
 *Estimates*
 
 The
        financial statements are prepared on the basis of accounting principles
        generally accepted in the United States. 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 as of June 30, 2007, and expenses for the year ended June 30,
        2007,
        and the
        period from re-entering the development stage (August 9, 2007) through June
        30,
        2007. Actual
        results could differ from those estimates made by management.
  F-9
  **ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2007, AND 2006**
  (2)Development
        Stage Activities and Going Concern
 
 The
        Company is currently in the development stage, and has no operations.  The
        business plan of the Company is to market and sell, in North America, high
        end
        automobiles and products produced by the German automaker Isdera GMBH.
 
 Initial
        activities of the Company through June 30, 2007, include organization,
        completion of a capital formation activity to raise $1,950 from the sale
        of
        common stock to various stockholders, target market identification, and
        marketing plans. The Company completed in early May 2007 an activity to submit
        a
        Registration Statement on Form SB-2 to the Securities and Exchange Commission
        (“SEC”) to register 2,788,600 shares of common stock on behalf of selling
        stockholders. The Company will not receive any of the proceeds of this
        registration activity once the shares of common stock are sold. The Company
        intends to conduct additional capital formation activities through the issuance
        of its common stock to establish sufficient working capital to commence
        operations. While management of the Company believes that the Company will
        be
        successful in its capital formation and operating activities, there can be
        no
        assurance that the Company will be able to raise additional equity capital,
        or
        be able to generate sufficient revenues to sustain the operations of the
        Company.
 
 The
        accompanying financial statements have been prepared in conformity with
        accounting principals generally accepted in the United States of America,
        which
        contemplate continuation of the Company as a going concern. The Company has
        incurred an operating loss since inception and the cash resources of the
        Company
        are insufficient to meet its planned business objectives. These and other
        factors raise substantial doubt about the Company’s ability to continue as a
        going concern. The accompanying financial statements do not include any
        adjustments to reflect the possible future effects on the recoverability
        and
        classification of assets or the amounts and classification of liabilities
        that
        may result from the possible inability of the Company to continue as a going
        concern.
 
 **(3)**  **Correction
        of Error**
 
 Subsequent
        to June 30, 2006, an error in the balance of cash which amounted to $900,
        and in
        the amount due to related party – Director
        and
        stockholder was determined by management of the Company. This error resulted
        in
        the understatement of current assets and current liabilities as of June 30,
        2006. Accordingly, the accompanying statement of cash flows for the year
        ended
        June 30, 2006, has been restated to correct this error.
 
 **(4)**  **Common
        Stock**
 
 On
        January 9, 2007, the Company issued 39,000 shares of common stock in connection
        with a Private Placement Offering (“PPO”), exempt from registration under the
        Securities Act of 1933, that was offered by the Company at $0.05 per share
        of
        common stock for total proceeds of $1,950.
 
 On
        January 9, 2007, the Company issued 1,249,900 shares of common stock to a
        Director and shareholder as repayment of a loan. See Note 6 for additional
        information.
  F-10
  **ISDERA,
        NORTH AMERICA, INC.**
 **(A
        DEVELOPMENT STAGE COMPANY)**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **JUNE
        30, 2007, AND 2006**
  On
        January 9, 2007 the Company issued 2,097,200 shares of common stock to satisfy
        the terms of a Consulting Agreement with Kingsgate Development Ltd. See Note
        8
        for additional information.
 
 On
        January 9, 2007 the Company issued 898,200 shares of common stock to satisfy
        the
        terms of a Consulting Agreement with Eastern Glow Investments, Ltd. See Note
        8
        for additional information.
 
 Subsequently,
        the Company completed on May 9, 2007, an activity to submit a Registration
        Statement on Form SB-2 to the Securities and Exchange Commission (“SEC”) and
        register 2,788,600 shares of common stock on behalf of selling stockholders.
        The
        Company will not receive any of the proceeds of this registration activity
        once
        the shares of common stock are sold. The Company intends to conduct additional
        capital formation activities through the issuance of its common stock to
        establish sufficient working capital to commence operations.
 
 **(5)**  **Income
        Taxes**
 
 The
        provision (benefit) for income taxes for the period ended June 30, 2007,
        and
        2006, was as follows (using a 22.5 percent effective Federal and state income
        tax rate):
  **2007**
              
              **2006**Current
                  Tax Provision:Federal
                  and state-Minimum
                  state tax
              
              $
              155
              
              $
              155Total
                  current tax provision
              
              $
              155
              
              $
              155Deferred
                  Tax Provision:Federal
                  and state-Loss
                  carryforwards
              
              $
              25,832
              
              $
              35Change
                  in valuation allowance
              
              
              (25,832
              )
              
              (35
              )Total
                  deferred tax provision
              
              $
              -
              
              $
              -
  The
        Company had deferred income tax assets as of June 30, 2007, as
        follows:
  **2007**Loss
                  carryforwards
              
              $
              37,951Less
                  - Valuation allowance
              
              
              (37,951
              )Total
                  net deferred tax assets
              
              $
              -
  The
        Company provided a valuation allowance equal to the deferred income tax assets
        for the period ended June 30, 2007, because it is not presently known whether
        future taxable income will be sufficient to utilize the loss
        carryforwards.
  F-11
 **ISDERA,
          NORTH AMERICA, INC.**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2007, AND 2006**
 As
        of
        June 30, 2007, the Company had approximately $168,671 in tax loss carryforwards
        that can be utilized in future periods to reduce taxable income, and expire
        at
        various times through the year 2026.
 
 **(6)**  **Related
        Party Transactions**
 
 In
        August
        2006, the Company signed a promissory note with Mr. Ruediger Albrecht, the
        President and Director of Isdera, for $52,862. The Company borrowed the money
        from Mr. Albrecht at various times from 1987 through 2006. The note is dated
        August 9, 2006, is payable on June 30, 2007, and bears interest at five percent
        per annum with interesting accruing on September 1, 2006. The promissory
        note
        and accrued interest of $956 were satisfied on January 9, 2007, through the
        issuance of 1,249,900 shares of common stock of the Company.
 
 As
        of
        June 30, 2007, the Company owed to a Director and shareholder $1,600 that
        he
        loaned to the Company. The loans were provided for working capital purposes,
        are
        unsecured, non-interest bearing, and have no terms for repayment.
 
 **(7)**  **Recent
        Accounting Pronouncements**
 
 In
        June
        2006, the FASB issued SFAS Board Interpretation No. 48, “ *Accounting
        for Uncertainty in Income Taxes - an Interpretation of FASB statement No.
        109* ”
(“FIN
        48”), which clarifies the accounting for uncertainty in income taxes recognized
        in an enterprise’s financial statements in accordance with FASB No. 109. The
        interpretation prescribes a recognition threshold and measurement attribute
        for
        the financial statement recognition and measurement of a tax position taken
        or
        expected to be taken in a tax return. This interpretation also provides guidance
        on derecognition, classification, interest and penalties, accounting in interim
        periods, disclosure, and transition. FIN 48 is effective for fiscal years
        beginning after December 15, 2006. Earlier application of the provisions
        of FIN
        48 is encouraged if the enterprise has not yet issued financial statements,
        including interim financial statements, in the period this Interpretation
        is
        adopted. The Company does not believe that the adoption of this standard
        will
        have a material impact on the results of operations or financial
        position.
 
 In
        September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS
        No. 157”). This statement defines fair value, established a framework for
        measuring fair value in generally accepted accounting principles, and expands
        disclosure about fair value measurements. This statement applies under other
        accounting pronouncements that require or permit fair value measurement,
        FASB
        having previously concluded in those accounting pronouncements that fair
        value
        is the relevant measurement attribute. This statement does not require and
        new
        fair value measurements, however, for some entities, the application of the
        statement will changes current practice. This statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007,
        and interim periods within those fiscal years. The Company does not believe
        that
        the adoption of this standard will have a material impact on the results
        of
        operations or financial position.
  F-12
 **ISDERA,
          NORTH AMERICA, INC.**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2007, AND 2006**
 In
        September 2006, the Securities and Exchange Commission (“SEC”) issued Staff
        Accounting Bulletin No. 108 (Topic 1N), “Quantifying Misstatement in Current
        Year Financial Statements” (“SAB No. 108). SAB No. 108 addressed how the effect
        of prior year uncorrected misstatements should be considered when quantifying
        misstatements in current year financial statements SAB No. 108 requires SEC
        registrants (1) to quantify misstatements using a combined approach which
        considers both the balance sheet and income statement approaches; (2) to
        evaluate whether either approach results in quantifying an error that is
        material in light of relevant quantitative and qualitative factors; and (3)
        to
        adjust their financial statements if the new combined approach results in
        a
        conclusion that an error is material. SAB No. 108 addresses the mechanics
        of
        correcting misstatements that include effects from prior years. It indicates
        that the current year correction of a material error that includes prior
        year
        effects may result in the need to correct prior year financial statements
        even
        if the misstatement in the prior year or years is considered immaterial.
        Any
        prior year financial statements found to be materially misstated in years
        subsequent to the issuance of SAB No. 108 would be restated in accordance
        with
        SFAS No. 154, “Accounting Changes and Error Corrections.” Because the combined
        approach represents a change in practice, the SEC staff will not require
        registrants that followed an acceptable approach in the past to restate prior
        years’ historical financial statements. Rather, these registrants can report the
        cumulative effect of adopting the new approach as an adjustment to the current
        year’s beginning balance of retained earnings. If the new approach is adopted
        in
        a quarter other than the first quarter, financial statements for the prior
        interim periods within the year of adoption may need to be restated. SAB
        No. 108
        is effective for fiscal years ending after November 15, 2006. The implementation
        of SAB No. 108 does not have a material impact on the Company’s results of
        operations and financial condition. The Company does not believe that the
        adoption of this standard will have a material impact on the results of
        operations or financial position.
  In
        September 2006, the FASB issued 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).” This statement improves financial reporting by
        requiring an employer to recognize the over funded or under funded status
        of a
        defined benefit postretirement plan (other than a multi-employer plan) as
        an
        asset or liability in its statement of financial position and to recognize
        changes in that funded status in the year in which the changes occur through
        comprehensive income of a business entity or changes in unrestricted net
        assets
        for not-for-profit organization. This statement also improves financial
        reporting by requiring an employer to measure the funded status of a plan
        as of
        the date of its year-end statement of financial position, with limited
        exceptions. The Company does not believe that the adoption of this standard
        will
        have a material impact on the results of operations or financial
        position.
 
 In
        February 2007, the FASB issued SFAS No. 159, “The Fair Value of Option for
        Financial Assets and Liabilities” (“SFAS No. 159”), which permits entities to
        measure many financial instruments and certain other items at fair value
        that
        are not currently required to be measured at fair value. An entity would
        report
        unrealized gains and losses on items for which the fair value option had
        been
        elected in earnings at each subsequent reporting date. The objective is to
        improve financial reporting by providing entities with the opportunity to
        mitigate volatility in reported earrings caused by measuring related assets
        and
        liabilities differently without having to apply complex hedge accounting
        provisions. The decision about whether to elect the fair value option is
        applied
        instrument by instrument, with a few exceptions; the decision is irrevocable;
        and it is applied only to entire instruments and not to portions of instruments.
        The statement requires disclosures that facilitate comparisons (a) between
        entities that choose different measurement attributes for similar assets
        and
        liabilities and (b) between assets and liabilities in the financial statements
        of an entity that selects different measurement attributes for similar assets
        and liabilities. SFAS No. 159 is effective for financial statements issued
        for
        fiscal years beginning after November 15, 2007. Early adoption is permitted
        as
        of the beginning of a fiscal year provided the entity also elects to apply
        the
        provisions of SFAS No. 157. Upon implementation, an entity shall report the
        effect of the first re-measurement to fair value as a cumulative-effect
        adjustment to the opening balance of retained earnings. Since the provisions
        of
        SFAS No. 159 are applied prospectively, any potential impact will depend
        on the
        instruments selected for fair value measurement at the time of implementation.
        The Company does not believe that the adoption of this standard will have
        a
        material impact on the results of operations or financial position.
  F-13
 **ISDERA,
          NORTH AMERICA, INC.**
 **(A
          DEVELOPMENT STAGE COMPANY)**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **JUNE
          30, 2007, AND 2006**
  **(8)**  **Commitments
          and Contingencies**
 
 The
        Company entered into a one-year Consulting Agreement on August 1, 2006, with
        Kingsgate Development, Ltd. (a British Virgin Islands Corporation and
“Kingsgate”) whereby Kingsgate agreed to assist the Company in becoming publicly
        traded, by utilizing its skills and by bearing up to $90,000 of registration
        costs on behalf of the Company. In exchange for its services, on January
        9,
        2007, Kingsgate was issued 2,097,200 shares of common stock for a value of
        $70,000 or $0.033 per share to satisfy this obligation. At that time, Kingsgate
        owned 49 percent of the issued and outstanding shares of common stock of
        the
        Company
 
 On
        August
        1, 2006, the Company entered into a one-year Consulting Agreement with Eastern
        Glow Investments, Ltd, (a British Virgin Islands Corporation and “Eastern Glow”)
        whereby Eastern Glow agreed to assist the Company in becoming publicly traded,
        by utilizing its skills on behalf of the Company as well as a commitment
        to loan
        to the Company up to a maximum of $50,000, at the libor interest rate plus
        2.5
        percent for the marketing plan of the Company. In exchange for its services,
        on
        January 9, 2007, Eastern Glow was issued 898,800 shares of common stock of
        the
        Company at $0.043 per share to satisfy this obligation. At that time, Eastern
        Glow owned 21 percent of the issued and outstanding shares of common stock
        of
        the Company.
 
 F-14




ITEM
      8.
      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
      DISCLOSURE





(a)  On
      August
      14, 2007, the Registrant’s Independent Auditor, Aaron Stein, C.P.A., PO Box 406,
      981 Allen Lane, Woodmere, NY 11598, 516-569-0520, notified the Registrant that
      he declined to stand for re-appointment as the Independent Auditor of the
      Registrant.





On
      August
      14, 2007, the management of the Registrant engaged Davis Accounting Group,
      P.C.,
      located at 1957 W. Royal Hunte Drive #150, P.O. Box 1768, Cedar City, Utah
      84720, (435) 865-2808, as its independent auditors to audit its financial
      statements for the fiscal year ended June 30, 2007. The decision to retain
      Davis
      Accounting Group, P.C. was approved by the Registrant's Board of
      Directors.





During
      the period of his engagement through August 14, 2007, there were no
      disagreements between Aaron Stein, C.P.A., and the Registrant 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
      Aaron Stein, C.P.A., would have caused them to make reference to the subject
      matter of the disagreement in connection with its reports on the Registrant's
      financial statements.





(b)  Effective
      August 14, 2007,  Davis
      Accounting Group, P.C. was retained as independent auditor of Isdera, North
      America, Inc., the Registrant, and was retained as independent auditor of the
      registrant for the fiscal year ending June 30, 2007. Prior to the engagement,
      Registrant did not consult with Davis Accounting Group, P.C. regarding the
      application of accounting principles to a specified transaction, or the type
      of
      audit opinion that may be rendered with respect to the Registrant’s financial
      statements, as well did not consult with Davis Accounting Group, P.C., as to
      the
      application of accounting principles to a specific completed or contemplated
      transaction, or the type of audit opinion that might be rendered on the small
      business issuer's financial statements and either written or oral advice was
      provided that was an important factor considered by the small business issuer
      in
      reaching a decision as to the accounting, auditing or financial reporting
      issue.





During
      the two fiscal year ended June 30, 2007, and through September 27, 2006, we
      have
      not consulted with Davis Accounting Group P.C. regarding either:





1.
      The
      application of accounting principles to any specific transaction, either
      completed or proposed, or the type of audit opinion that might be rendered
      on
      our financial statements, and neither a written report was provided to Davis
      Accounting Group P.C. nor oral advice was provided that Davis Accounting Group
      P.C. concluded was an important factor considered by our Board of Directors
      in
      reaching a decision as to the accounting, auditing or financial reporting issue;
      or





2.
      Any
      matter that was either subject of disagreement or event, as defined in Item
      304(a)(1)(iv) of Regulation S-B and the related instruction to Item 304 of
      Regulation S-B, or a reportable event, as that term is explained in Item
      304(a)(1)(iv) of Regulation S-B.




9




ITEM
        8A.
        CONTROLS AND PROCEDURES
 
 Based
        on
        their evaluation as of the end of the period covered by this annual report
        on
        Form 10-KSB, our principal executive officer/principal financial officer
        concluded that our disclosure controls and procedures, as defined in Rule
        13a-15(e) promulgated under the Securities Exchange Act of 1924, were effective
        in design and operation. There have been no changes in our system of internal
        control over financial reporting in connection with the evaluation by our
        principal executive officer and principal financial officer during the period
        since June 30, 2007 through the date of the filing of this Annual Report
        on Form
        10-KSB that have materially affected, or are reasonably likely to materially
        affect, our internal control over financial reporting.
 
 ITEM
        8B.
        OTHER INFORMATION
 
 Not
        applicable.
 
 ITEM
        9.
        DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
        WITH
        SECTION 16(a) OF THE EXCHANGE ACT
 
 The
        directors and officers of the Company are listed below with information about
        their respective backgrounds. Each Director is elected to serve a one year
        term,
        until the next annual meeting of the shareholders or until his/her successor
        is
        elected (or appointed) and qualified.
 
 **Name**
              **Age**
              **Position**Ruediger
                  Albrecht
              61
              President/CEO,
                  CFO and Chairman
 
 **Ruediger
        Albrecht**
 Since
        1987, Mr. Albrecht has held the office of President for Isdera North America,
        Inc. While there is no connection between Mr. Albrecht, the Company and Isdera
        GMBH, Mr. Albrecht has extensive general management and marketing experience
        in
        international trade, transportation, logistics, import/export and service
        industries and in providing direction and control for the logistics,
        transportation, marketing and administrative functions. Mr. Albrecht in his
        role
        as President has acted as coordinator between customers, representatives,
        agents
        and carriers, improving performance and enhancing growth and possesses general
        knowledge in manufacturing and designing high performance motorcars with
        a
        strong commitment in marketing and sales. Since 1987, Mr. Albrecht has also
        held
        the office of President of ASG International, Ltd. Transportation, Import-Export
        and worldwide, handling all marketing, sales, administrative and financial
        aspects, as well as system introduction of ABI (automatic release of imports
        by
        customs) to affiliated Co. Imexsys Inc., custom broker, international forwarder.
        ASG International, Ltd. is an internationally oriented company mainly involved
        in import and export of goods, mainly motorcars worldwide. Transportation
        was
        arranged by the affiliated company, Imexsys, Inc., a fully licensed forwarding
        agent and custom house broker, under the supervision of ASG International,
        Ltd.
        ASG International, Ltd. assisted to implement a computer program especially
        made
        for custom house brokers. The system is called ABI, which will file customs
        clearance electronically.




10




Involvement
      in Certain Legal Proceedings





We
      are
      not aware of any material legal proceedings that have occurred within the past
      five years concerning any director, director nominee, or control person which
      involved a criminal conviction, a pending criminal proceeding, a pending or
      concluded administrative or civil proceeding limiting one’s participation in the
      securities or banking industries, or a finding of securities or commodities
      law
      violations.





Limitation
      on Liability and Indemnification of Directors and Officers





Our
      Certificate of Incorporation, as amended, provides to the fullest extent
      permitted by New York law, that our directors or officers shall not be
      personally liable to us or our shareholders for damages for breach of such
      director’s or officer’s fiduciary duty. The effect of this provision of our
      Articles of Incorporation, as amended, is to eliminate our right and that of
      our
      stockholders (through stockholders’ derivative suits on behalf of our company)
      to recover damages against a director or officer for breach of the fiduciary
      duty of care as a director or officer (including breaches resulting from
      negligent or grossly negligent behavior), except under certain situations
      defined by statute. We believe that the indemnification provisions in our Certificate
      of Incorporation, as amended, are necessary to attract and retain qualified
      persons as directors and officers.





Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      may
      be permitted to directors, officers and controlling persons of the registrant
      pursuant to the foregoing provisions, or otherwise, the registrant has been
      advised that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Securities Act
      and
      is, therefore, unenforceable. In the event that a claim for indemnification
      against such liabilities (other than the payment by the registrant of expenses
      incurred or paid by a director, officer or controlling person of the registrant
      in the successful defense of any action, suit or proceeding) is asserted by
      such
      director, officer or controlling person in connection with the securities being
      registered, the registrant will, unless in the opinion of its counsel the matter
      has been settled by controlling precedent, submit to a court of appropriate
      jurisdiction the question whether such indemnification by it is against public
      policy as expressed in the Securities Act and will be governed by the final
      adjudication of such issue.





Section
      16(a) Beneficial Ownership Reporting Compliance





Section
      16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
      requires executive officers and directors and persons who own more than ten
      percent of our common stock to file reports of ownership and changes in
      ownership with the SEC. Such executive officers, directors and greater than
      ten
      percent stockholders are also required by SEC rules to furnish us with copies
      of
      all Section 16(a) forms they file. Based on information supplied to the Company
      and filings made with the SEC, the Company believes that during the fiscal
      year
      ended June 30, 2007, all Section 16(a) filing requirements applicable to its
      Directors, officers, and greater than ten percent beneficial owners were
      complied with.





11





ITEM
      10.
      EXECUTIVE COMPENSATION





None
      of
      our officers or directors received or earned any compensation or bonus
      from us for services rendered to us in fiscal year ended June 30, 2007. We
      also
      have not made cash payment for salaries or bonuses in 2006.





All
      directors hold office until the next annual meeting of stockholders and the
      election and qualification of their successors. Each executive officer is
      elected annually by the Board of Directors to hold their respective office
      until
      the annual meeting of shareholders and until their successors is chosen and
      qualified.





We
      do not
      maintain key-man life insurance for any of our executive officers or
      directors.





Stock
      Options





None.





ITEM
      11.
      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ANDRELATED
      STOCKHOLDER MATTERS





(i)
      The
      following table sets forth certain information concerning the ownership of
      the
      Common Stock by (a) each person who, to the best of our knowledge, beneficially
      owned on that date more than 5% of our outstanding common stock, (b) each of
      our
      directors and executive officers and (c) all current directors and executive
      officers as a group. The following table is based upon an aggregate of 4,284,400
      shares of our common stock outstanding as of September 28, 2007.




Identity
                of Stockholder or Group
            
            Number
                of
              Shares Beneficially
              Owned
                (1)
            
            Percentage of Shares Owned
              before
                the OfferingWiebke
                Albrecht (2)
              c/o
                the Company
            
            
            1,250,000
            
            
            29.1%Kingsgate
                Development, Ltd. (3)
            
            
            2,097,200
            
            
            49.0%First
                Floor17
                The EsplanadeSt
                Helier, Jersey JE2 3QAEastern
                Glow Investment, Ltd (4)
            
            
            898,200
            
            
            21.1%PO
                Box 3152, RG Hodge Plaza,Second
                Street, Wickhams Cay 1,Road
                Town, Tortola, British Virgin IslandsAll
                  Officers and Directors as
            
            
            1,250,000
            
            
            29.1%A
                Group (1 Persons)




12




*  Less
      than
      5%


(1)  Pursuant
      to the rules and regulations of the Securities and Exchange Commission, shares
      of Common Stock that an individual or entity has a right to acquire within
      60
      days pursuant to the exercise of options or warrants are deemed to be
      outstanding for the purposes of computing the percentage ownership of such
      individual or entity, but are not deemed to be outstanding for the purposes
      of
      computing the percentage ownership of any other person or entity shown in the
      table.


(2)  Wiebke
      Albrecht is the wife of our Chairman/CEO Ruediger Albrecht.


(3)  Control
      person for Kingsgate Development, Ltd, is Michael Bettison.


(4)  Control
      person for Eastern Glow Investment, Ltd, is Chris Ash.





ITEM
      12.
      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


The
      Company has issued the following shares to affiliates of the Company; the
      transactions took place on August 10, 2006.




On
      January 9, 2007, the Company issued to Wibeke Albrecht, wife of our
      Chairman/CEO, Ruediger Albrecht, a total of 1,249,900 shares of common stock
      in
      exchange for the loan from Ruediger Albrecht to the Company in the amount of
      $52,862, plus accrued interest, and valued at a conversion of $0.04 per
      share.





The
      Company entered into a Consulting Agreement with Kingsgate Development, Ltd,
      whereby Kingsgate agreed to assist the Company in becoming publicly traded,
      by
      utilizing its skills and by advancing a total of up to $90,000 on behalf of
      the
      Company to be used only to pay registration expenses and not to fund future
      operations. In exchange for its services, on January 9, 2007 Kingsgate was
      issued 2,097,200 shares of commons stock for a value of $70,000 or $0.033 per
      share.





The
      Company entered into a Consulting Agreement with Eastern Glow Investments,
      Ltd,
      whereby Eastern Glow agreed to assist the Company in becoming publicly traded,
      by utilizing its skills on behalf of the Company as well as a commitment for
      a
      loan to the Company for up to a maximum of $50,000, at LIBOR plus 2.5% for
      the
      marketing plan of the Company. In exchange for its services, on January 9,
      2007,
      Eastern Glow was issued 898,800 shares of commons stock for a value of $0.043
      per share.





ITEM
      13.  EXHIBITS





3.1
            Articles
                of Incorporation of the Company (*)3.2
            By-Laws
                of the Company (*)31.1
            Certification
                of Chief Executive Officer pursuant to Rule 13a-14(a)32.1
            Certification
                of Chief Executive Officer pursuant to 18 U.S.C. Section
                1350




13




(*)  Previously
      filed on Form SB-2 on October 18, 2006; file No. 333-138059 and incorporated
      herein by reference.





ITEM
      14.
      PRINCIPAL ACCOUNTANT FEES AND SERVICES





1)
      Audit
      Fees





The
      aggregate fees billed by Davis Accounting Group, P.C. for professional services
      rendered for the audit of the Company’s annual financial statements for the
      fiscal year ended June 30, 2007 was $5,000.





2)
      Audit-Related Fees





The
      Company did not engage its principal accountants to provide assurance and
      related services during the last two fiscal years.





3)
      Tax
      Fees





The
      Company did not engage its principal accountants to provide tax compliance,
      tax
      advice and tax planning services during the last two fiscal years.





4)
      All
      Other Fees





The
      Company did not engage its principal accountants to render services to the
      Company during the last three fiscal years, other than reported
      above.




14




SIGNATURES





In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





Isdera,
                North America, Inc.Dated:
                September 28, 2007
            By:
                /**Ruediger
                Albrecht**Title:
                President and Principal Accounting/Financial Officer and
                Director





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.





Signature
            
            Title
            
            Date/s/**Ruediger Albrecht**
            
            President
                and Principal
            
            September
                28, 2007Accounting/Financial
                Officer and Director




15