| [X] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| [       ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------------|----------------------------------------------------------------------------------------------------|

| Nevada                                                              |   |                   82-6008492 |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                                                |   |                                                                                     |
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer I.D. No.)                                                          |

| Common      Stock, Par Value $0.001 |   | 40,107,158                                             |
|-------------------------------------|--------|--------------------------------------------------------|
|                                |   |                                                   |
| Title      of Class                 |   | Number      of Shares Outstanding as of August 12,2008 |

----

| Part      I                                                     |   |   | 1  |   |
|-----------------------------------------------------------------|--------|--------|----|--------|
| Financial      Statement Item                                   |   |   | 1  |   |
| Financial      Statements                                       |   |   | 1  |   |
| Balance      Sheet                                              |   |   | 1  |   |
| Income      Statement                                           |   |   | 2  |   |
| Cashflow      Statement                                         |   |   | 3  |   |
| Financial      Footnotes                                        |   |   | 4  |   |
| Management      Discussion & Analysis or Plan of Operations |   |   | 15 |   |
| Controls      and Procedures                                    |   |   | 27 |   |
| Part      II                                                    |   |   | 28 |   |
| Legal      Proceedings                                          |   |   | 28 |   |
| Changes      in Securities                                      |   |   | 29 |   |
| Defaults      Upon Securities                                   |   |   | 29 |   |
| Submission      to a Vote                                       |   |   | 30 |   |
| Other      Information                                          |   |   | 30 |   |
| Exhibits      and Reports                                       |   |   | 30 |   |
| Signatures                                                      |   |   | 32 |   |

| Index      to Exhibits |   |   | 33 |   |
|------------------------|--------|--------|----|--------|
| Exhibits               |   |   | 34 |   |

----

|                                                                                                  |                                                                                                         |  As      of June 30,                                                                                                                                                 | As      of December 31,                                                                                                                                      |
|-------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                  |                                                                                                         | 2008                                                                                                                                                                      |                                                                                                                                                         | 2007 |
|                                                                                                  |                                                                                                         | (Unaudited)                                                                                                                                                               |                                                                                                                                                         | (Audited) |
| ASSETS                                                                                                |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| Current      Assets                                                                                   |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Cash                                                                                      |                                                                                                         |  $             55,327                                                                               |                                                                                                                                                         |  $                      96,524 |
|   Accounts      receivable, net                                                             |                                                                                                         |                  74,694                                                              |                                                                                                                                                         |                          13,953 |
|   Inventory                                                                                 |                                                                                                         |                  23,583                                                              |                                                                                                                                                         |                          37,057 |
|   Prepaid      expenses and other current assets                                            |                                                                                                         |                  29,559                                                              |                                                                                                                                                         |                          27,518 |
|     Total      Current Assets                                                     |                                                                                                         |               183,163                                                                               |                                                                                                                                                         |                        175,052 |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| Property      and equipment, net                                                                      |                                                                                                         |                  87,033                                                              |                                                                                                                                                         |                          99,403 |
| Debt      issuance cost, net                                                                          |                                                                                                         |                  11,055                                                              |                                                                                                                                                         |                          23,805 |
| Other      assets                                                                                     |                                                                                                         |                  51,413                                                              |                                                                                                                                                         |                          51,413 |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| TOTAL      ASSETS                                                                                     |                                                                                                         |  $           332,664                                                                                          |                                                                                                                                                         |  $                    349,673 |
| LIABILITIES      AND STOCKHOLDERS' DEFICIT                                                            |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| Current      Liabilities                                                                              |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Accounts      payable                                                                     |                                                                                                         |  $           154,650                                                                                          |                                                                                                                                                         |  $                    182,269 |
|   Accrued      liabilities                                                                  |                                                                                                         |               699,557                                                                               |                                                                                                                                                         |                        764,033 |
|   Cash      Overdraft                                                                       |                                                                                                         |                  39,614                                                              |                                                                                                                                                         |                                    - |
|   Unearned      revenue                                                                     |                                                                                                         |                  35,800                                                              |                                                                                                                                                         |                        116,945 |
|   Net      liabilities of discontinued operations                                           |                                                                                                         |                  18,088                                                              |                                                                                                                                                         |                          10,588 |
|   Short-term      notes payable to related parties                                          |                                                                                                         |               249,987                                                                               |                                                                                                                                                         |                        269,487 |
|   Current      portion of long-term notes payable                                           |                                                                                                         |                    1,436                                                   |                                                                                                                                                         |                            3,430 |
|   Current      portion of capital lease obligations                                         |                                                                                                         |                       756                                   |                                                                                                                                                         |                            1,542 |
|     Total      Current Liabilities                                                |                                                                                                         |            1,199,888                                                                                               |                                                                                                                                                         |                     1,348,294 |
| Long-Term      Debt                                                                                   |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Convertible      notes payable, net of unamortized discount of $1,314,341    and          |            1,158,047                                  |                                                                                                                                                                      |                        698,786            |
|   $1,394,249      for 2008 and 2007, respectively                                           |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Derivative      liabilities                                                               |                                                                                                         |            5,021,026                                                                                               |                                                                                                                                                         |                     3,909,035 |
|     Total      Long-Term Liabilities                                              |                                                                                                         |            6,179,073                                                                                               |                                                                                                                                                         |                     4,607,821 |
|     Total      Liabilities                                                        |                                                                                                         |            7,378,961                                                                                               |                                                                                                                                                         |                     5,956,115 |
| Stockholders'      Deficit                                                                            |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Preferred      Stock, $0.001 par value; 100,000,000 shares authorized;                    |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |
|     none      issued and outstanding                                              |                                                                                                         |                             - |                                                                                                                                                         |                                    - |
|   Common      Stock, $0.001 par value; 300,000,000 shares authorized;                       |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |
|     issued      and outstanding 2008 30,330,158 shares; 2007 16,266,157    shares |                  30,231 |                                                                                                                                                                      |                          16,267 |
|   Paid-in      Capital                                                                      |                                                                                                         |            2,554,314                                                                                               |                                                                                                                                                         |                     2,546,761 |
|   Accumulated      deficit                                                                  |                                                                                                         |          (9,630,842)                                                                                                         |                                                                                                                                                         |                    (8,169,470) |
|     Total      Stockholders' Deficit                                              |                                                                                                         |          (7,046,297)                                                                                                         |                                                                                                                                                         |                    (5,606,442) |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' DEFICIT                                                      |                                                                                                         |  $           332,664                                                                                          |                                                                                                                                                         |  $                    349,673 |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |

----

|                                                                  | For      three months ended                                                                                                                       |                                                                                                                      | For      six months ended |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                  |  June      30, 2008                                                                                                                          |                                                                                                                      |                      | June      30, 2008 |   |
|                                                                  | 2008                                                                                                                                              | 2007                                                                                                                      |                      | 2008 | 2007 |
| Sales:                                                                |                                                                                                                                              |                                                                                                                      |                      |   |   |
|   Sales      - products                                     |  $            5,331                                                              |  $     184,673                                                                              |                      |  $          6,418 |  $  395,679 |
|   Sales      - services                                     |           664,869                                                                               |         516,960                                                                   |                      |      1,272,052 |      945,456 |
|      Total      sales                        |           670,200                                                                               |         701,633                                                                   |                      |      1,278,470 |   1,341,135 |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Cost      of sales                                                    |                                                                                                                                              |                                                                                                                      |                      |   |   |
|   Cost      of products                                     |                         - |         176,860                                                                   |                      |                       - |      361,527 |
|   Cost      of services                                     |           503,560                                                                               |         476,801                                                                   |                      |      1,033,693 |      896,193 |
|      Total      costs of sales               |           503,560                                                                               |         653,661                                                                   |                      |      1,033,693 |   1,257,720 |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Gross      profit                                                     |           166,640                                                                               |           47,972                                                        |                      |         244,777 |        83,415 |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Operating      Expenses:                                              |                                                                                                                                              |                                                                                                                      |                      |   |   |
|   Selling,      general and administrative Expenses         |           206,770                                                                               |         222,396                                                                   |                      |         386,287 |      459,751 |
|   Loss      on disposal of assets                           |                         - |                     - |                      |                       - |          1,703 |
|      Total      Operating Expenses           |           206,770                                                                               |         222,396                                                                   |                      |         386,287 |      461,454 |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Operating      loss                                                   |            (40,130)                                                                        |        (174,424)                                                                       |                      |        (141,510) |     (378,039) |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Other      income(expenses)                                           |                                                                                                                                              |                                                                                                                      |                      |   |   |
|   Interest      and other income                            |                   426                                   |             2,408                                             |                      |                 834 |          2,884 |
|   Change      in derivative liabilities                     |            (61,106)                                                                        |           44,224                                                        |                      |        (292,691) |        50,027 |
|   Interest      expense                                     |            (46,229)                                                                        |          (42,065)                                                            |                      |          (93,451) |       (84,881) |
|   Financing      costs                                      |          (711,981)                                                                                   |        (114,931)                                                                       |                      |        (924,654) |     (208,334) |
|       Total      other income(expenses) |          (818,890)                                                                                   |        (110,364)                                                                       |                      |    (1,309,962) |     (240,304) |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Net      loss before state franchise tax                              |          (859,020)                                                                                   |        (284,788)                                                                       |                      |    (1,451,472) |     (618,343) |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| State      franchise tax                                              |                         - |                     - |                      |              2,400 |          2,400 |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Net      loss from continuing operations                              |          (859,020)                                                                                   |        (284,788)                                                                       |                      |    (1,453,872) |     (620,743) |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Discontinued      Operations                                          |                                                                                                                                              |                                                                                                                      |                      |   |   |
|   Net      loss from discontinued operations (net of        |                                                                                                                                              |                                                                                                                      |                      |   |   |
|   applicable      taxes of $0 for 2008 and 2007)            |              (3,750)                                                             |        (119,012)                                                                       |                      |            (7,500) |     (179,956) |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Net      loss                                                         |  $     (862,770)                                                                                                    |  $    (403,800)                                                                                  |                      |  $(1,461,372) |  $      (800,699) |
|                                                                  |                                                                                                                                              |                                                                                                                      |                      |   |   |
| Net      loss from continuing operations per share-Basic andDiluted   |  $            (0.03)                                                             |  $          (0.04)                                                 |                      |  $          (0.07) |  $       (0.09) |
| Net      loss                                                         |  $            (0.03)                                                             |  $          (0.06)                                                 |                      |  $          (0.07) |  $       (0.11) |
| Weighted      Average Number of Shares                                |      26,288,158                                                                                                          |      7,232,781                                                                                   |                      |    22,235,491 |   7,139,122 |

----

| For      Six Months Ended June 30,                                                                |   | 2008                                                                                                                                  |   | 2007                                                                                                                      |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
| CASH      FLOW FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS:                              |   |                                                                                                                                  |   |                                                                                                                      |
|   Net      loss                                                                         |   |  $   (1,461,372)                                                                                                  |   |  $   (800,699)                                                                                        |
|   Add:      Net loss from discontinued operations, net of tax                           |   |               7,500                                             |   |         179,956                                                                   |
|   Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                                                                                                                                  |   |                                                                                                                      |
|    Depreciation                                                                    |   |             12,370                                                        |   |           11,451                                                        |
|    Noncash      interest expense and financing costs                               |   |           924,654                                                                   |   |         208,333                                                                   |
|    Change      in derivative liabilities                                           |   |           292,691                                                                   |   |         (50,027)                                                                  |
|    Provision      for bad debt                                                     |   |               1,843                                             |   |                     - |
|    Loss      on disposal of assets                                                 |   |                       - |   |             1,703                                             |
|    (Increase)      Decrease in:                                                    |   |                                                                                                                                  |   |                                                                                                                      |
|      Accounts      receivable                                            |   |            (62,584)                                                            |   |         (16,838)                                                                  |
|      Inventory                                                           |   |             13,474                                                        |   |         320,695                                                                   |
|      Prepaid      and other assets                                       |   |              (2,041)                                                 |   |         (28,098)                                                                  |
|    Increase      (Decrease) in:                                                    |   |                                                                                                                                  |   |                                                                                                                      |
|      Accounts      payable and accrued liabilities                       |   |           196,079                                                                   |   |         192,931                                                                   |
|      Unearned      revenue                                               |   |            (81,145)                                                            |   |         (30,000)                                                                  |
| Net      cash flows used in operating activities from continuing      operations                  |   |          (158,531)                                                                       |   |         (10,593)                                                                  |
| CASH      FLOW FROM INVESTING ACTIVITIES FROM CONTINUING OPERATIONS:                              |   |                                                                                                                                  |   |                                                                                                                      |
|   Purchase      of property and equipment                                               |   |                       - |   |           (1,985)                                                       |
| Net      cash flows provided by (used in) investing activities from continuing      operations    |   |                       - |   |           (1,985)                                                       |
| CASH      FLOW FROM FINANCING ACTIVITIES FROM CONTINUING OPERATIONS:                              |   |                                                                                                                                  |   |                                                                                                                      |
|   Repayment      on long-term notes payable and capital lease obligations               |   |              (2,780)                                                 |   |         (15,292)                                                                  |
|   Net      repayments to related parties                                                |   |            (19,500)                                                            |   |           (6,021)                                                       |
|   Proceeds      from convertible debt                                                   |   |           100,000                                                                   |   |                     - |
|   Cash      Overdraft                                                                   |   |             39,614                                                        |   |                     - |
| Net      cash flows provided by (used in) financing activities from continuing      operations    |   |           117,334                                                                   |   |         (21,313)                                                                  |
| NET      CASH USED IN CONTINUING OPERATIONS                                                       |   |            (41,197)                                                            |   |         (33,891)                                                                  |
| NET      CASH PROVIDED BY(USED IN) DISCONTINUED OPERATIONS                                        |   |                       - |   |         (53,386)                                                                  |
| NET      DECREASE IN CASH                                                                         |   |            (41,197)                                                            |   |         (87,277)                                                                  |
| CASH      AT BEGINNING OF YEAR                                                                    |   |             96,524                                                        |   |         180,952                                                                   |
| CASH      AT END OF PERIOD                                                                        |   |  $         55,327                                                                   |   |  $       93,675                                                                   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                            |   |                                                                                                                                  |   |                                                                                                                      |
|   Interest      Paid                                                                    |   |  $                90                             |   |  $         1,915                                                        |
|   Noncash      Investing and Financing  Activities:                           |   |                                                                                                                                  |   |                                                                                                                      |
|    Conversion      of notes payable                                                |   |  $           8,820                                                        |   |  $         2,544                                                        |
|    Transfer      unamortized discount and derivative liabilities to paid in        |   |                                                                                                                                  |   |                                                                                                                      |
|     capital      due to debt conversion                                       |   |  $         12,697                                                                   |   |  $         3,092                                                        |
|    Conversion      of accrued interest into convertible debt                       |   |  $       288,174                                                                              |   |  $                 -            |
|    Issuance      of warrants in lieu of convertible debt                           |   |  $         15,000                                                                   |   |  $                 -            |
|    Recorded      a beneficial conversion feature                                   |   |  $       820,887                                                                              |   |  $                 -            |

----

----

----

|                                                     |   | June      30,                                                               |   | December      31,                                                                                                               |
|----------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|                                                     |   | 2008                                                                        |   | 2007                                                                                                                            |
|                                                     |   | (Unaudited)                                                                 |   | (Audited)                                                                                                                       |
| Inventory                                                |   |                                                                        |   |                                                                                                                            |
|   Painted      materials                       |   |  $      6,061                            |   |  $           5,689                                                  |
|   Mechanical      materials                    |   |        10,087                            |   |             20,536                                                  |
|   Body      shop materials                     |   |          7,435                 |   |             10,832                                                  |
|     Total      inventory             |   |  $    23,583                                       |   |  $         37,057                                                             |
| Property      and Equipment, net                         |   |                                                                        |   |                                                                                                                            |
|   Automobiles                                  |   |  $    19,026                                       |   |  $         19,026                                                             |
|   Furniture      and fixtures                  |   |          4,129                 |   |               4,129                                       |
|   Machinery      and equipment                 |   |      143,279                                       |   |           143,279                                                             |
|                                                     |   |      166,434                                       |   |           166,434                                                             |
| Less:      accumulated depreciation                      |   |       (79,401)                                |   |           (67,031)                                                            |
|     Property      and Equipment, net |   |  $    87,033                                       |   |  $         99,403                                                             |
| Accrued      Liabilities                                 |   |                                                                        |   |                                                                                                                            |
|   Accrued      payroll and related taxes       |   |  $  519,506                                                  |   |  $       327,028                                                                        |
|   Credit      cards payable                    |   |             377 |   |               1,452                                       |
|   Accrued      vacation                        |   |        19,924                            |   |                      - |
|   Accrued      interest                        |   |      140,346                                       |   |           336,673                                                             |
|   Accrued      warranty                        |   |          8,994                 |   |                      - |
|   Others                                       |   |        10,410                            |   |               2,745                                       |
|     Total      accrued liabilities   |   |  $  699,557                                                  |   |  $       667,898                                                                        |
|                                                     |   |                                                                        |   |                                                                                                                            |

----

----

|                                            | 11/30/05Traunch | 1/4/06Traunch | 1/30/06Traunch | 11/16/07Traunch | 1/31/08Traunch | 4/22/08Traunch |
|-------------------------------------------------|-----------------|---------------|----------------|-----------------|----------------|----------------|
| Approximate      risk free rate                 | 4.41%           | 4.28%         | 4.47%          | 3.30%           | 2.27%          | 2.43%          |
| Average      expected life                      | 3      years    | 3      years  | 3      years   | 3      years    | 3      years   | 3      years   |
| Dividend      yield                             | 0%              | 0%            | 0%             | 0%              | 0%             | 0%             |
| Volatility                                      | 356.33%         | 348.92%       | 342.77%        | 286.90%         | 289.55%        | 325.91%        |
| Estimated      fair value of conversion feature | $599,200        | $998,346      | $2,395,289     | $346,997        | $571,604       | $249,283       |
| Charged      to debt discount                   | $300,000        | $500,000      | $1,200,000     | $175,000        | $288,174       | $100,000       |
| Charged      to expenses                        | $299,200        | $498,346      | $1,195,289     | $171,997        | $283,434       | $149,283       |

|                                                | 11/30/05Traunch | 1/4/06Traunch | 1/30/06Traunch   | 11/16/07Traunch | 4/22/08Traunch |
|-----------------------------------------------------|-----------------|---------------|------------------|-----------------|----------------|
| Approximate      risk free rate                     | 4.42%           | 4.28%         | 4.46%            | 3.88%           | 3.29%          |
| Average      expected life                          | 5      years    | 5      years  | 5      years     | 7      years    | 7      years   |
| Dividend      yield                                 | 0%              | 0%            | 0%               | 0%              | 0%             |
| Volatility                                          | 356.33%         | 348.92%       | 342.77%          | 286.90%         | 325.91%        |
| Number      of warrants granted                     | 375,000         | 625,000       | 1,500,000        | 15,000,000      | 10,000,000     |
| Estimated      fair value of total warrants granted | $299,975        | $493,692      |  $1,184,815 |  $59,995   |  $15,000  |

----

|                                                                      | For      Three months ended                                                     | For      Six months ended                                                       |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                                                      | June      30,                                                                   |                                                                            |   | June      30, |   |
|                                                                      | 2008                                                                            | 2007                                                                            |   | 2008 | 2007 |
| Numerator:                                                                |                                                                            |                                                                            |   |   |   |
| Net      loss from continuing operations                                  |  $     (859,020)                                  |  $     (284,788)                                  |   |  $   (1,453,872) |  $      (620,743) |
| Net      loss from discontinued operations                                |  $         (3,750)            |  $     (119,012)                                  |   |  $          (7,500) |  $      (179,956) |
| Net      loss                                                             |  $     (862,770)                                  |  $     (403,800)                                  |   |  $   (1,461,372) |  $      (800,699) |
| Denominator:                                                              |                                                                            |                                                                            |   |   |   |
| Weighted      average number of shares outstanding                        |      26,288,158                                        |        7,232,781                             |   |      22,235,491 |    7,139,122 |
| Net      loss per share from continuing operations-basic anddiluted       |  $           (0.03) |  $           (0.04) |   |  $            (0.07) |  $       (0.09) |
| Net      loss per share from discontinued operations-basic and    diluted |  $           (0.00) |  $           (0.02) |   |  $            (0.00) |  $       (0.03) |
| Net      loss per share-basic and diluted                                 |  $           (0.03) |  $           (0.06) |   |  $            (0.07) |  $       (0.11) |

----

|                                                                                                                    | For      Three Months ended June 30,                                                                                                   | For      Six Months ended June 30,                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    | 2008                                                                                                                                   | 2007                                                                                                                             |   | 2008 | 2007 |
| Revenues                                                                                                                |  $                     - |  $                    - |   |  $                  - |  $          8,810 |
|                                                                                                                    |                                                                                                                                   |                                                                                                                             |   |   |   |
| Net      loss from discontinued operations (a)                                                                          |  $           (3,750)                                                       |  $       (119,012)                                                                       |   |  $        (7,500) |  $    (179,956) |
| (Net      of tax of $0 for 2008 and 2007)                                                                               |                                                                                                                                   |                                                                                                                             |   |   |   |
|                                                                                                                    |                                                                                                                                   |                                                                                                                             |   |   |   |
| (a)      A loss of disposal of assets of $15,054 and $17,041 was included in      net loss from discontinued operations |
|       for      three and six months ended June 30, 2007, respectively. None in      2008. |                                                                                                                                   |

|                                                                                               | June      30, 2008                                                                                          | December      31, 2007                                                                                                                    |
|----------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
| NET      ASSETS (LIABILITIES) OF DISCONTINUED OPERATIONS:                                          | (Unaudited)                                                                                                 | (Audited)                                                                                                                                 |
| Current      Assets                                                                                |                                                                                                        |                                                                                                                                      |
|   Cash                                                                                   |  $                (24) |  $                     (24) |
|   Inventory                                                                              |               50,922                  |                    50,922                  |
|   Net      other assets                                                                  |                 8,038       |                    13,304                  |
| Current      liabilities                                                                           |                                                                                                        |                                                                                                                                      |
|   Accounts      payable                                                                  |             (22,055)                            |                  (22,055)                            |
|   Accrued      liabilities                                                               |             (53,989)                            |                  (51,755)                            |
|   Other      liabilities                                                                 |                  (980) |                       (980) |
|        Net      assets (liabilities) of discontinued operations |  $         (18,088)                                       |  $              (10,588)                                       |
|                                                                                               |                                                                                                        |                                                                                                                                      |

|                                                                     | For      Six Months ended June 30,                                                                                                                |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                     | 2008                                                                                                                                              | 2007 |
| Net      cash used by operating activities of discontinued    operations |  $                     -            |  $              (53,386) |
| Net      cash used by investing activities of discontinued    operations |                         - |                             - |
| Net      cash used by financing activities of discontinued    operations |                         - |                             - |
|                                                                     |                                                                                                                                              |   |
| NET      CASH USED BY DISCONTINUED OPERATIONS                            |  $                     -            |  $              (53,386) |
|                                                                     |                                                                                                                                              |   |

----

| As      of June 30,          |   | 2008                                                               |   | 2007                                                               |
|------------------------------|--------|--------------------------------------------------------------------|--------|--------------------------------------------------------------------|
| Beginning      balance       |   |  $         8,994 |   |  $         8,994 |
| Provision      of warranties |   |           10,191 |   |           11,341 |
| Utilization      of reserve  |   |         (10,191)           |   |         (11,341)           |
| Ending      balance          |   |  $         8,994 |   |  $         8,994 |

----

----

|                                                  | Three      Months ended June 30,                                                |                                                                 | Six      Months ended June 30, |
|-------------------------------------------------------|---------------------------------------------------------------------------------|----------------------------------------------------------------------|--------------------------------|
|                                                  | 2008                                                                            | 2007                                                                 |                           | 2008 | 2007 |
| Net      Revenue to External Customers:               |                                                                            |                                                                 |                           |   |   |
|   Custom      Automotive                    |  $       670,200                        |  $      701,633                   |                           |  $   1,278,470 |  $   1,341,135 |
| Total      net revenue to external customers          |  $       670,200                        |  $      701,633                   |                           |  $   1,278,470 |  $   1,341,135 |
| Operating      Income (Loss):                         |                                                                            |                                                                 |                           |   |   |
|   Custom      Automotive                    |  $         34,027             |  $       (96,132)            |                           |  $         (8,286) |  $    (214,750) |
| Operating      loss by reportable segments            |             34,027  |           (96,132) |                           |             (8,286) |        (214,750) |
| All      other operating loss                         |           (74,156)            |           (78,292) |                           |         (133,223) |        (163,289) |
| Consolidated      operating loss                      |  $       (40,130)                       |  $     (174,424)                       |                           |  $     (141,510) |  $    (378,039) |
| Net      Loss from Continuing Operations              |                                                                            |                                                                 |                           |   |   |
|   Custom      Automotive                    |  $         34,758             |  $       (96,698)            |                           |  $         (9,122) |  $    (217,166) |
| Net      loss by reportable segments                  |             34,758  |           (96,698) |                           |             (9,122) |        (217,166) |
| All      other net loss                               |         (893,779)                       |         (188,090)            |                           |      (1,444,750) |        (403,577) |
| Consolidated      net loss from continuing operations |  $     (859,020)                                  |  $     (284,788)                       |                           |  $  (1,453,872) |  $    (620,743) |
| Net      loss from discontinued operations            |                                                                            |                                                                 |                           |   |   |
|   Custom      Motorcycle                    |             (3,750) |         (119,012)            |                           |             (7,500) |        (179,956) |
| Consolidated      net loss                            |  $     (862,770)                                  |  $     (403,800)                       |                           |  $  (1,461,372) |  $    (800,699) |

|                               |   | June      30,                                                                                                                         | December      31, |
|------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|-------------------|
| Total      Assets:                 |   | 2008                                                                                                                                  |              | 2007 |
| Custom      Automotive             |   |  $        256,101                                                                        |              |  $        223,664 |
| All      other segments            |   |              76,562                                                  |              |            126,009 |
|                               |   |            332,664                                                             |              |            349,673 |
| Discontinued      operations:      |   |                                                                                                                                  |              |   |
|   Custom      Motorcycle |   |                       - |              |                       - |
| Consolidated      assets           |   |  $        332,664                                                                        |              |  $        349,673 |

----

| ·   | Products      and services for independent dealers are sold directly to dealers and      include custom and signature finish and design work on a dealer’s own      restoration or manufactured work.  Dealer products and services      also include consultative work in the preparation of signature paint      blends, techniques and design advice related to the dealer’s own      project. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Products      and services for original equipment manufacturers include signature design      for manufactured parts and accessories which are part of a “designer” or      “signature” series of products or designthemes. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       |   | 3      Months EndedJune      30,2008 |   |   | 3      Months EndedJune      30,2007 |   | PercentageChangeIncrease(Decrease) |   |
|--------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|------------------------------------|--------|
|                                       |   |                                 |   |   |                                 |   |                               |   |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Revenue                                    | $      | 670,200                              |   |   | 701,633                              |   | (4.5)                              | %      |
| Cost      of revenue                       |   | 503,560                              |   |   | 653,661                              |   | (23.0)                             | %      |
| Gross      Profit (loss)                   |   | 166,640                              |   |   | 47,972                               |   | 247.4                              | %      |
| Total      Operating expenses              |   | 206,770                              |   |   | 222,396                              |   | (7.0)                              | %      |
| Total      Other expenses                  |   | 818,890                              |   |   | 110,364                              |   | 642.0                              | %      |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Provision      for income taxes            |   | 0                                    |   |   | 0                                    |   |                               |   |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Net      Loss from Continuing Operations   |   | 859,020                              |   |   | 284,788                              |   | 201.6                              | %      |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Net      Loss from Discontinued Operations |   | 3,750                                |   |   | 119,012                              |   | (96.8)                             | %      |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Net      Loss                              | $      | 862,770                              |   |   | 403,800                              |   | 113.7                              | %      |

----

|                       |   | 3      Months EndedJune      30, 2008 |   |   | 3      MonthsEndedJune      30, 2007 |   | PercentageChangeIncrease(Decrease) |   |
|----------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------|--------|------------------------------------|--------|
|                       |   |                                       |   |   |                                 |   |                               |   |
| Major      Expenses:       |   |                                       |   |   |                                 |   |                               |   |
| Rent                       | $      | 41,991                                     |   |   | 43,215                               |   | (2.8)                              | %      |
| Salary      & Wages    |   | 70,325                                     |   |   | 74,460                               |   | (5.6)                              | %      |
| Insurance                  |   | 16,155                                     |   |   | 35,461                               |   | (54.4)                             | %      |
| Accounting      Fees       |   | 0                                          |   |   | 11,000                               |   | (100)                              | %      |
| Consulting                 |   | 4,760                                      |   |   | 0                                    |   | 100                                | %      |
| Advertising/Promotions     |   | 2,103                                      |   |   | 4,305                                |   | (51.1)                             | %      |
| Shipping      and Delivery |   | 4,550                                      |   |   | 3,448                                |   | 31.9                               | %      |
| Depreciation               |   | 5,931                                      |   |   | 5,770                                |   | 2.8                                | %      |
| Bad      debt expense      |   | 1,843                                      |   |   | 0                                    |   | 100                                | %      |
| Utilities                  |   | 4,200                                      |   |   | 5,824                                |   | (27.9)                             | %      |
|                       |   |                                       |   |   |                                 |   |                               |   |
| Total      Major Expenses  |   | 151,858                                    |   |   | 183,484                              |   | (17.2)                             | %      |
|                       |   |                                       |   |   |                                 |   |                               |   |
| Total      Expenses        |   | 206,770                                    |   |   | 222,396                              |   | (7.0)                              | %      |
|                       |   |                                       |   |   |                                 |   |                               |   |

|                                     |   | 3      MonthsEndedJune      30, 2008 |   |   | 3      MonthsEnded June      30,2007 |   | PercentageChangeIncrease(Decrease) |   |
|------------------------------------------|--------|--------------------------------------|--------|--------|-------------------------------------------|--------|------------------------------------|--------|
| Other      income (expenses)             |   |                                 |   |   |                                      |   |                               |   |
|                                     |   |                                 |   |   |                                      |   |                               |   |
| Interest      and other income           |   | 426                                  |   |   | 2,408                                     |   | (82.3)                             | %      |
| Change      in derivative liabilities    |   | (61,106)                             |   |   | 44,224                                    |   | (238.2)                            | %      |
| Interest      and other expenses         |   | (46,229)                             |   |   | (42,065)                                  |   | 9.9                                | %      |
| Financing      costs                     |   | (711,981)                            |   |   | (114,931)                                 |   | 519.5                              | %      |
| Total      other income (expenses)       |   | (818,890)                            |   |   | (110,364)                                 |   | 642.0                              | %      |
|                                     |   |                                 |   |   |                                      |   |                               |   |
| Net      Loss from Continuing Operations | $      | 859,020                              |   |   | 284,788                                   |   | 201.6                              | %      |

----

|                                       |   | 6      Months EndedJune      30,2008 |   |   | 6      Months EndedJune      30,2007 |   | PercentageChangeIncrease(Decrease) |   |
|--------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|------------------------------------|--------|
|                                       |   |                                 |   |   |                                 |   |                               |   |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Revenue                                    | $      | 1,278,470                            |   |   | 1,341,135                            |   | (4.7)                              | %      |
| Cost      of revenue                       |   | 1,033,693                            |   |   | 1,257,720                            |   | (17.8)                             | %      |
| Gross      Profit (loss)                   |   | 244,777                              |   |   | 83,415                               |   | 193.4                              | %      |
| Total      Operating expenses              |   | 386,287                              |   |   | 461,454                              |   | (16.3)                             | %      |
| Total      Other expenses                  |   | 1,309,962                            |   |   | 240,304                              |   | 445.1                              | %      |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Provision      for income taxes            |   | 2,400                                |   |   | 2,400                                |   |                               |   |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Net      Loss from continuing operations   |   | 1,453,872                            |   |   | 620,743                              |   | 134.2                              | %      |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Net      Loss from discontinued operations |   | 7,500                                |   |   | 179,956                              |   | (95.8)                             | %      |
|                                       |   |                                 |   |   |                                 |   |                               |   |
| Net      Loss                              | $      | 1,461,372                            |   |   | 800,699                              |   | 82.5                               | %      |

----

|                            |   | 6      Months EndedJune      30, 2008 |   |   | 6      MonthsEndedJune      30, 2007 |   | PercentageChangeIncrease(Decrease) |   |
|---------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------|--------|------------------------------------|--------|
|                            |   |                                       |   |   |                                 |   |                               |   |
| Major      Expenses:            |   |                                       |   |   |                                 |   |                               |   |
| Rent                            | $      | 85,103                                     |   | $      | 86,430                               |   | (1.5)                              | %      |
| Salary      & Wages         |   | 154,693                                    |   |   | 156,344                              |   | (1.1)                              | %      |
| Insurance                       |   | 28,156                                     |   |   | 68,388                               |   | (58.8)                             | %      |
| Accounting      Fees            |   | 16,000                                     |   |   | 22,000                               |   | (27.3)                             | %      |
| Consulting                      |   | 4,760                                      |   |   | 3,811                                |   | 24.9                               | %      |
| Advertising/Promotions          |   | 4,099                                      |   |   | 6,803                                |   | (39.7)                             | %      |
| Shipping      and Delivery      |   | 12,218                                     |   |   | 9,866                                |   | 23.8                               | %      |
| Depreciation                    |   | 12,370                                     |   |   | 11,452                               |   | 8.0                                | %      |
| Bad      debt expense           |   | 1,843                                      |   |   | 0                                    |   | 100                                | %      |
| Loss      of disposal of assets |   | 0                                          |   |   | 1,703                                |   | (100)                              | %      |
| Utilities                       |   | 8,207                                      |   |   | 7,235                                |   | 13.4                               | %      |
|                            |   |                                       |   |   |                                 |   |                               |   |
| Total      Major Expenses       |   | 327,449                                    |   |   | 374,032                              |   | (12.5)                             | %      |
|                            |   |                                       |   |   |                                 |   |                               |   |
|  Total      Expenses       |   | 386,287                                    |   |   | 461,454                              |   | (16.3)                             | %      |
|                            |   |                                       |   |   |                                 |   |                               |   |

|                                     |   | 6      MonthsEndedJune      30, 2008 |   |   | 6      MonthsEnded June      30, 2007 |   | PercentageChangeIncrease(Decrease) |   |
|------------------------------------------|--------|--------------------------------------|--------|--------|--------------------------------------------|--------|------------------------------------|--------|
| Other      income (expenses)             |   |                                 |   |   |                                       |   |                               |   |
|                                     |   |                                 |   |   |                                       |   |                               |   |
| Interest      and other income           |   | 834                                  |   |   | 2,884                                      |   | (71.1)                             | %      |
| Change      in derivative liabilities    |   | (292,691)                            |   |   | 50,027                                     |   | (685.1)                            | %      |
| Interest      and other expenses         |   | (93,451)                             |   |   | (84,881)                                   |   | 10.1                               | %      |
| Financing      costs                     |   | (924,654)                            |   |   | (208,334)                                  |   | 343.8                              | %      |
| Total      other income (expenses)       |   | (1,309,962)                          |   |   | (240,304)                                  |   | 445.1                              | %      |
|                                     |   |                                 |   |   |                                       |   |                               |   |
| Net      Loss from Continuing Operations | $      | 1,453,872                            |   |   | 620,743                                    |   | 134.2                              | %      |

----

|                                       |   | June      30, |   |   | December      31, |   |
|--------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                       |   | 2008          |   |   | 2007              |   |
|                                       |   |          |   |   |              |   |
| Cash                                       | $      | 55,327        |   | $      | 96,524            |   |
| Accounts      receivable net               |   | 74,694        |   |   | 13,953            |   |
| Prepaid      expenses/other current assets |   | 29,559        |   |   | 27,518            |   |
| Inventory                                  |   | 23,583        |   |   | 37,057            |   |
| Total      current assets                  |   | 183,163       |   |   | 175,052           |   |
| Total      assets                          |   | 332,664       |   |   | 349,673           |   |
| Total      current liabilities             |   | 1,199,888     |   |   | 1,348,294         |   |
| Total      liabilities                     |   | 7,378,961     |   |   | 5,956,115         |   |

----

----

----

----

| ·   | our      ability to distribute, sell and market our services and      products; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | our      ability to develop and offer new services and  products; |
|--------------------|-------------------------------------------------------------------|

| ·   | the      performance of our automotive products and  accessories; |
|--------------------|-------------------------------------------------------------------|

| ·   | the      significant and ongoing funds needed to achieve our production, marketing      and sales objectives; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | the      appeal of our services and products to  consumers; |
|--------------------|-------------------------------------------------------------|

| ·   | our      ability to generate adequate revenue to support our      operations; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | our      ability to maintain positive cash flow resulting from extended periods of      monetary responsibility in the form of labor for extensive custom works in      progress; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      loss or injury of our principal design or technical staff;    and |
|--------------------|----------------------------------------------------------------------------|

| ·   | changes      in environmental regulation and enforcement relating to our operations,      including those governing VOCemissions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to maintain the operations of its  acquisitions |
|--------------------|------------------------------------------------------------------|

| ·   | our      ability to retain existingcustomers; |
|--------------------|-----------------------------------------------|

| ·   | our      ability to attract new customers at a steady  rate; |
|--------------------|--------------------------------------------------------------|

| ·   | our      ability to maintain customersatisfaction; |
|--------------------|----------------------------------------------------|

| ·   | the      extent to which our products and services gain market      acceptance; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | introductions      of products and services bycompetitors; |
|--------------------|------------------------------------------------------------|

| ·   | price      competition in the markets in which wecompete; |
|--------------------|-----------------------------------------------------------|

| ·   | our      ability to attract, train, and retain skilled  management, |
|--------------------|---------------------------------------------------------------------|

| ·   | the      amount and timing of operating costs and capital expenditures relating to      the expansion of our business, operations, and infrastructure;      and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | general      economic conditions and economic conditions specific to the aftermarket      automotive parts, service and accessories  industry. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ·   | issue      stock that would dilute our current stockholders’ percentage      ownership; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | incur      debt; |
|--------------------|------------------|

| ·   | assume      liabilities; |
|--------------------|--------------------------|

| ·   | incur      amortization expenses related to goodwill and other intangible assets;      or |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | incur      large and immediate write-offs. |
|--------------------|--------------------------------------------|

| ·   | integration      of the operations of the acquired business and its    products; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | unanticipated      costs; |
|--------------------|---------------------------|

| ·   | diversion      of management’s attention from our core  business; |
|--------------------|-------------------------------------------------------------------------|

| ·   | adverse      effects on existing business relationships with suppliers and      customers; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | risks      associated with entering markets in which we have limited prior      experience; and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | potential      loss of key employees, particularly those of the purchased      organizations. |
|--------------------|-----------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| INDEX      TO EXHIBITS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                             |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|
|  Exhibit      31.1 – Certification required by Rule 13a-14(a) or Rule      15d-14(a). Exhibit      31.2 – Certification required by Rule 13a-14(a) or Rule      15d-14(a). Exhibit      32.1 – Certification Required by Rule 13a-14(b) or Rule 15d-14(b) and      section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section      1350. Exhibit      32.1 – Certification Required by Rule 13a-14(b) or Rule 15d-14(b) and      section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section      1350. |  34 35 36 37 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                             |

----