----

| [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                      |
|---------------------------------------------------------------------|--------|---------------------------------|
| [Missing Graphic Reference]                                         |   | [Missing Graphic Reference]     |
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer I.D. No.) |

| Common      Stock, Par Value $0.001 |   | 20,862,158                                          |
|-------------------------------------|--------|-----------------------------------------------------|
| [Missing Graphic Reference]         |   | [Missing Graphic Reference]                         |
| Title      of Class                 |   | Number      of Shares Outstanding as of May 15,2008 |

----

| 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                                    |   |   | 25 |   |
| Part      II                                                    |   |   | 26 |   |
| Legal      Proceedings                                          |   |   | 26 |   |
| Changes      in Securities                                      |   |   | 27 |   |
| Defaults      Upon Securities                                   |   |   | 27 |   |
| Submission      to a Vote                                       |   |   | 27 |   |
| Other      Information                                          |   |   | 27 |   |
| Exhibits      and Reports                                       |   |   | 28 |   |
| Signatures                                                      |   |   | 29 |   |

| Index      to Exhibits |   |   | 30 |   |
|------------------------|--------|--------|----|--------|
| Exhibits               |   |   | 31 |   |

----

|                                                                                                  |                                                                                                         |  As      of March 31,                                                                                                                                                | As      of December 31,                                                                                                                                      |
|-------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                  |                                                                                                         | 2008                                                                                                                                                                      |                                                                                                                                                         | 2007 |
|                                                                                                  |                                                                                                         | (Audited)                                                                                                                                                                 |                                                                                                                                                         | (Unaudited) |
| ASSETS                                                                                                |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| Current      Assets                                                                                   |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Cash                                                                                      |                                                                                                         |  $                   476                                              |                                                                                                                                                         |  $                      96,524 |
|   Accounts      receivable, net                                                             |                                                                                                         |                  56,972                                                              |                                                                                                                                                         |                          13,953 |
|   Inventory                                                                                 |                                                                                                         |                  42,953                                                              |                                                                                                                                                         |                          37,057 |
|   Prepaid      expenses and other current assets                                            |                                                                                                         |                  28,266                                                              |                                                                                                                                                         |                          27,518 |
|     Total      Current Assets                                                     |                                                                                                         |               128,667                                                                               |                                                                                                                                                         |                        175,052 |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| Property      and equipment, net                                                                      |                                                                                                         |                  92,964                                                              |                                                                                                                                                         |                          99,403 |
| Debt      issuance cost, net                                                                          |                                                                                                         |                  17,430                                                              |                                                                                                                                                         |                          23,805 |
| Other      assets                                                                                     |                                                                                                         |                  51,413                                                              |                                                                                                                                                         |                          51,413 |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| TOTAL      ASSETS                                                                                     |                                                                                                         |  $           290,474                                                                                          |                                                                                                                                                         |  $                    349,673 |
| LIABILITIES      AND STOCKHOLDERS' DEFICIT                                                            |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| Current      Liabilities                                                                              |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Accounts      payable                                                                     |                                                                                                         |  $           157,934                                                                                          |                                                                                                                                                         |  $                    182,269 |
|   Accrued      liabilities                                                                  |                                                                                                         |               607,591                                                                               |                                                                                                                                                         |                        764,033 |
|   Cash      Overdraft                                                                       |                                                                                                         |                  23,000                                                              |                                                                                                                                                         |                                    - |
|   Unearned      revenue                                                                     |                                                                                                         |               105,230                                                                               |                                                                                                                                                         |                        116,945 |
|   Net      liabilities of discontinued operations                                           |                                                                                                         |                  14,338                                                              |                                                                                                                                                         |                          10,588 |
|   Short-term      notes payable to related parties                                          |                                                                                                         |               249,987                                                                               |                                                                                                                                                         |                        269,487 |
|   Current      portion of long-term notes payable                                           |                                                                                                         |                    2,418                                                   |                                                                                                                                                         |                            3,430 |
|   Current      portion of capital lease obligations                                         |                                                                                                         |                    1,142                                                   |                                                                                                                                                         |                            1,542 |
|     Total      Current Liabilities                                                |                                                                                                         |            1,161,640                                                                                               |                                                                                                                                                         |                     1,348,294 |
| Long-Term      Debt                                                                                   |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Convertible      notes payable, net of unamortized discount of $1,186,500    and          |            1,191,984                                  |                                                                                                                                                                      |                        698,786            |
|   $1,394,249      for 2008 and 2007, respectively                                           |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
|   Derivative      liabilities                                                               |                                                                                                         |            4,135,757                                                                                               |                                                                                                                                                         |                     3,909,035 |
|     Total      Long-Term Liabilities                                              |                                                                                                         |            5,327,741                                                                                               |                                                                                                                                                         |                     4,607,821 |
|     Total      Liabilities                                                        |                                                                                                         |            6,489,381                                                                                               |                                                                                                                                                         |                     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 19,016,158 shares; 2007 16,266,157    shares |                  19,017 |                                                                                                                                                                      |                          16,267 |
|   Paid-in      Capital                                                                      |                                                                                                         |            2,550,148                                                                                               |                                                                                                                                                         |                     2,546,761 |
|   Accumulated      deficit                                                                  |                                                                                                         |          (8,768,072)                                                                                                         |                                                                                                                                                         |                    (8,169,470) |
|     Total      Stockholders' Deficit                                              |                                                                                                         |          (6,198,907)                                                                                                         |                                                                                                                                                         |                    (5,606,442) |
|                                                                                                  |                                                                                                         |                                                                                                                                                                      |                                                                                                                                                         |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' DEFICIT                                                      |                                                                                                         |  $           290,474                                                                                          |                                                                                                                                                         |  $                    349,673 |

----

| For      Three Months Ended March 31,                                 |                                                                                                          | 2008                                                                                                                                                                      |                                                                                                                      | 2007                                                                                                                                          |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| Sales:                                                                |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
|   Sales      - products                                     |                                                                                                          |  $                1,087                                                              |                                                                                                                      |  $             211,006                                                  |
|   Sales      - services                                     |                                                                                                          |               607,183                                                                               |                                                                                                                      |                 428,496                                       |
|      Total      sales                        |                                                                                                          |               608,270                                                                               |                                                                                                                      |                 639,502                                       |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Cost      of sales                                                    |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
|   Cost      of products                                     |                                                                                                          |                             - |                                                                                                                      |                 184,667                                       |
|   Cost      of services                                     |                                                                                                          |               530,133                                                                               |                                                                                                                      |                 419,392                                       |
|      Total      costs of sales               |                                                                                                          |               530,133                                                                               |                                                                                                                      |                 604,059                                       |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Gross      profit                                                     |                                                                                                          |                  78,137                                                              |                                                                                                                      |                   35,443                            |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Operating      Expenses:                                              |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
|   Selling,      general and administrative Expenses         |                                                                                                          |               179,517                                                                               |                                                                                                                      |                 237,355                                       |
|   Loss      on disposal of assets                           |                                                                                                          |                             - |                                                                                                                      |                     1,703                 |
|      Total      Operating Expenses           |                                                                                                          |               179,517                                                                               |                                                                                                                      |                 239,058                                       |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Operating      loss                                                   |                                                                                                          |              (101,380)                                                                                   |                                                                                                                      |                (203,615)                                           |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Other      income(expenses)                                           |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
|   Interest      and other income                            |                                                                                                          |                       408                                   |                                                                                                                      |                        476 |
|   Change      in derivative liabilities                     |                                                                                                          |              (231,585)                                                                                   |                                                                                                                      |                     5,803                 |
|   Interest      expense                                     |                                                                                                          |                (47,222)                                                                        |                                                                                                                      |                  (42,816)                                |
|   Financing      costs                                      |                                                                                                          |              (212,673)                                                                                   |                                                                                                                      |                  (93,403)                                |
|       Total      other income(expenses) |                                                                                                          |              (491,072)                                                                                   |                                                                                                                      |                (129,940)                                           |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Net      loss before state franchise tax                              |                                                                                                          |              (592,452)                                                                                   |                                                                                                                      |                (333,555)                                           |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| State      franchise tax                                              |                                                                                                          |                    2,400                                                   |                                                                                                                      |                     2,400                 |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Net      loss from continuing operations                              |                                                                                                          |              (594,852)                                                                                   |                                                                                                                      |                (335,955)                                           |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Discontinued      Operations                                          |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
|   Net      loss from discontinued operations (net of        |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
|   applicable      taxes of $0 for 2008 and 2007)            |                                                                                                          |                  (3,750)                                                             |                                                                                                                      |                  (60,944)                                |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Net      loss                                                         |                                                                                                          |  $         (598,602)                                                                                                    |                                                                                                                      |  $            (396,899)                                                      |
|                                                                  |                                                                                                          |                                                                                                                                                                      |                                                                                                                      |                                                                                                                                          |
| Net      loss from continuing operations per share-Basic andDiluted   |  $                (0.03) |                                                                                                                                                                      |  $                  (0.05) |
| Net      loss                                                         |                                                                                                          |  $                (0.03)                                                             |                                                                                                                      |  $                  (0.06)                     |
| Weighted      Average Number of Shares                                |                                                                                                          |          18,182,825                                                                                                          |                                                                                                                      |              7,045,464                                                       |

----

| For      Three Months Ended March 31,                                                             |   | 2008                                                                                                                                  |   | 2007                                                                                                                      |
|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
| CASH      FLOW FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS:                              |   |                                                                                                                                  |   |                                                                                                                      |
|   Net      loss                                                                         |   |  $      (598,602)                                                                                  |   |  $   (396,899)                                                                                        |
|   Add:      Net loss from discontinued operations, net of tax                           |   |               3,750                                             |   |           60,944                                                        |
|   Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                                                                                                                                  |   |                                                                                                                      |
|    Depreciation                                                                    |   |               6,439                                             |   |             5,682                                             |
|    Noncash      interest expense and financing costs                               |   |           212,673                                                                   |   |           93,403                                                        |
|    Change      in derivative liabilities                                           |   |           231,585                                                                   |   |           (5,803)                                                       |
|    Loss      on disposal of assets                                                 |   |                       - |   |             1,703                                             |
|    (Increase)      Decrease in:                                                    |   |                                                                                                                                  |   |                                                                                                                      |
|      Accounts      receivable                                            |   |            (43,019)                                                            |   |         (11,735)                                                                  |
|      Inventory                                                           |   |              (5,896)                                                 |   |         151,219                                                                   |
|      Prepaid      and other assets                                       |   |                 (748)                                 |   |         (36,971)                                                                  |
|    Increase      (Decrease) in:                                                    |   |                                                                                                                                  |   |                                                                                                                      |
|      Accounts      payable and accrued liabilities                       |   |           107,397                                                                   |   |         132,683                                                                   |
|      Unearned      revenue                                               |   |            (11,715)                                                            |   |             5,000                                             |
| Net      cash flows used in operating activities from continuing      operations                  |   |            (98,136)                                                            |   |              (774)                                       |
| 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               |   |              (1,412)                                                 |   |         (11,826)                                                                  |
|   Net      repayments to related parties                                                |   |            (19,500)                                                            |   |           (3,000)                                                       |
|   Cash      Overdraft                                                                   |   |             23,000                                                        |   |                     - |
| Net      cash flows provided by (used in) financing activities from continuing      operations    |   |               2,088                                             |   |         (14,826)                                                                  |
| NET      CASH USED IN CONTINUING OPERATIONS                                                       |   |            (96,048)                                                            |   |         (17,585)                                                                  |
| NET      CASH PROVIDED BY(USED IN) DISCONTINUED OPERATIONS                                        |   |                       - |   |         (20,373)                                                                  |
| NET      DECREASE IN CASH                                                                         |   |            (96,048)                                                            |   |         (37,958)                                                                  |
| CASH      AT BEGINNING OF YEAR                                                                    |   |             96,524                                                        |   |         180,952                                                                   |
| CASH      AT END OF PERIOD                                                                        |   |  $              476                                        |   |  $     142,994                                                                              |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                            |   |                                                                                                                                  |   |                                                                                                                      |
|   Income      Taxes Paid                                                                |   |  $                   -            |   |  $                 -            |
|   Interest      Paid                                                                    |   |  $              398                                        |   |  $         1,474                                                        |
|   Noncash      Investing and Financing  Activities:                           |   |                                                                                                                                  |   |                                                                                                                      |
|    Conversion      of notes payable                                                |   |  $           2,725                                                        |   |  $                 -            |
|    Transfer      unamortized discount and derivative liabilities to paid in        |   |                                                                                                                                  |   |                                                                                                                      |
|     capital      due to debt conversion                                       |   |  $           3,412                                                        |   |  $                 -            |
|    Conversion      of accrued interest into convertible debt                       |   |  $       288,174                                                                              |   |  $                 -            |

----

----

----

----

|                                                     |   | March      31,                                              |   | December      31,                                                                                         |
|----------------------------------------------------------|--------|-------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|                                                     |   | 2008                                                        |   | 2007                                                                                                      |
|                                                     |   | (Unaudited)                                                 |   | (Audited)                                                                                                 |
| Inventory                                                |   |                                                        |   |                                                                                                      |
|   Painted      materials                       |   |  $      6,697            |   |  $           5,689                            |
|   Mechanical      materials                    |   |        24,226            |   |             20,536                            |
|   Body      shop materials                     |   |        12,030            |   |             10,832                            |
|     Total      inventory             |   |  $    42,953                       |   |  $         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                      |   |       (73,470)                |   |           (67,031)                                      |
|     Property      and Equipment, net |   |  $    92,964                       |   |  $         99,403                                       |
| Accrued      Liabilities                                 |   |                                                        |   |                                                                                                      |
|   Accrued      payroll and related taxes       |   |  $  472,987                                  |   |  $       380,402                                                  |
|   Credit      cards payable                    |   |          3,041 |   |                  503 |
|   Accrued      vacation                        |   |        15,186            |   |             23,421                            |
|   Accrued      interest                        |   |        93,830            |   |           336,673                                       |
|   Accurd      warranty                         |   |          8,994 |   |               8,994                 |
|   Others                                       |   |        13,553            |   |             14,040                            |
|     Total      accrued liabilities   |   |  $  607,591                                  |   |  $       764,033                                                  |
|                                                     |   |                                                        |   |                                                                                                      |

----

|                                            | 11/30/05Traunch | 1/4/06Traunch | 1/30/06Traunch | 11/16/07Traunch |
|-------------------------------------------------|-----------------|---------------|----------------|-----------------|
| Approximate      risk free rate                 | 4.41%           | 4.28%         | 4.47%          | 3.30%           |
| Average      expected life                      | 3      years    | 3      years  | 3      years   | 3      years    |
| Dividend      yield                             | 0%              | 0%            | 0%             | 0%              |
| Volatility                                      | 356.33%         | 348.92%       | 342.77%        | 286.90%         |
| Estimated      fair value of conversion feature | $599,200        | $998,346      | $2,395,289     | $346,997        |

----

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

|                                                                      |   | For      three months ended March 31,                                                                                                        |
|---------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                      |   | 2008                                                                                                                                         |   | 2007 |
| Numerator:                                                                |   |                                                                                                                                         |   |   |
| Net      loss from continuing operations                                  |   |  $          (594,852)                                                                 |   |  $       (335,955) |
| Net      loss from discontinued operations                                |   |  $              (3,750)                                           |   |  $         (60,944) |
| Net      loss                                                             |   |  $          (598,602)                                                                 |   |  $       (396,899) |
| Denominator:                                                              |   |                                                                                                                                         |   |   |
| Weighted      average number of shares outstanding                        |   |           18,182,825                                                                       |   |          7,045,464 |
| Net      loss per share from continuing operations-basic anddiluted       |   |  $                (0.03)                                |   |  $             (0.05) |
| Net      loss per share from discontinued operations-basic and    diluted |   |  $                      - |   |  $             (0.01) |
| Net      loss per share-basic and diluted                                 |   |  $                (0.03)                                |   |  $             (0.06) |

----

|                                                                                                              |   | For      Three Months ended March 31,                                                                                                  |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                              |   | 2008                                                                                                                                   |   | 2007 |
| REVENUES                                                                                                          |   |  $                     - |   |  $                    8,810 |
| NET      LOSS FROM DISCONTINUED OPERATIONS (a)                                                                    |   |  $           (3,750)                                                       |   |  $                 (60,944) |
| (Net      of tax of $0 for 2008 and 2007)                                                                         |   |                                                                                                                                   |   |   |
|                                                                                                              |   | March      31, 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                                                                                 |   |               10,671                                             |   |                      13,304 |
| Current      liabilities                                                                                          |   |                                                                                                                                   |   |   |
|   Accounts      payable                                                                                 |   |             (22,055)                                                       |   |                     (22,055) |
|   Accrued      liabilities                                                                              |   |             (52,872)                                                       |   |                     (51,755) |
|   Other      liabilities                                                                                |   |                  (980)                            |   |                          (980) |
|        Net      assets (liabilities) of discontinued operations                |   |  $         (14,338)                                                                  |   |  $                 (10,588) |
|                                                                                                              |   |                                                                                                                                   |   |   |
| (a)      A loss of disposal of assets of $0 and $1,987 was included in net      loss from discontinued operations |   |                                                                                                                                   |   |   |
|       for      three months ended March 31, 2008 and 2007, respectively.            |   |                                                                                                                                   |   |   |

----

|                                                                     |   | For      Three Months ended March 31,                                                                                           |
|--------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|                                                                     |   | 2008                                                                                                                            |   | 2007 |
| Net      cash used by operating activities of discontinued    operations |   |  $                  -            |   |  $        (20,373) |
| Net      cash used by investing activities of discontinued    operations |   |                      - |   |                      - |
|                                                                     |   |                                                                                                                            |   |   |
| NET      CASH USED BY DISCONTINUED OPERATIONS                            |   |  $                  -            |   |  $        (20,373) |
|                                                                     |   |                                                                                                                            |   |   |

| For      Three Months ended March 31, |   | 2008   |                                                        | 2007   |
|---------------------------------------|--------|--------|-------------------------------------------------------------|--------|
| Beginning      Balance                |   |   |  $      8,994            |   |  $      8,994 |
| Provision      of warranties          |   |   |          4,487 |   |          2,887 |
| Utilization      of warranty reserve  |   |   |         (4,487)     |   |         (2,887) |
| Ending      Balance                   |   |   |  $      8,994            |   |  $      8,994 |

----

----

|                                                  |   | Three      Months ended March 31,                             |
|-------------------------------------------------------|--------|---------------------------------------------------------------|
|                                                  |   | 2008                                                          |   | 2007 |
| Net      Revenue to External Customers:               |   |                                                          |   |   |
|   Custom      Automotive                    |   |  $    608,270                        |   |  $    639,502 |
| Total      net revenue to external customers          |   |  $    608,270                        |   |  $    639,502 |
| Operating      Loss:                                  |   |                                                          |   |   |
|   Custom      Automotive                    |   |  $     (42,313)                 |   |  $   (118,618) |
| Operating      loss by reportable segments            |   |        (42,313)            |   |       (118,618) |
| All      other operating loss                         |   |        (59,067)            |   |        (84,997) |
| Consolidated      operating loss                      |   |  $   (101,380)                            |   |  $   (203,615) |
| Net      Loss from Continuing Operations              |   |                                                          |   |   |
|   Custom      Automotive                    |   |  $     (43,881)                 |   |  $   (120,468) |
| Net      loss by reportable segments                  |   |        (43,881)            |   |       (120,468) |
| All      other net loss                               |   |       (550,971)                 |   |       (215,487) |
| Consolidated      net loss from continuing operations |   |  $   (594,852)                            |   |  $   (335,955) |
| Net      loss from discontinued operations            |   |                                                          |   |   |
|   Custom      Motorcycle                    |   |          (3,750) |   |        (60,944) |
| Consolidated      net loss from continuing operations |   |  $   (598,602)                            |   |  $   (396,899) |

|                               |   | March      31,                                                                                                                        | December      31, |
|------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|-------------------|
| Total      Assets:                 |   | 2008                                                                                                                                  |              | 2007 |
| Custom      Automotive             |   |  $        255,040                                                                        |              |  $        223,664 |
| All      other segments            |   |              35,434                                                  |              |            126,009 |
|                               |   |            290,474                                                             |              |            349,673 |
| Discontinued      operations:      |   |                                                                                                                                  |              |   |
|   Custom      Motorcycle |   |                       - |              |                       - |
| Consolidated      assets           |   |  $        290,474                                                                        |              |  $        349,673 |
|                               |   |                                                                                                                                  |              |   |

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| ·   | Products      and services provided to individual retail clients are sold directly to      our retail clients and include restoration work, finish and paint for      automobiles as well as signature paint and design applied to non      automotive personal property. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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      and fabrication for manufactured parts and accessories which are part of a      “designer” or “signature” series of products or design      themes.  These products and services are sold directly to the      original equipment manufacturer. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                            |   | 3      Months EndedMarch      31,2008 |   |   | 3      Months EndedMarch      31,2007 |   | PercentageChangeIncrease(Decrease) |   |
|---------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|------------------------------------|--------|
|                            |   |                                  |   |   |                                  |   |                               |   |
|                            |   |                                  |   |   |                                  |   |                               |   |
| Revenue                         | $      | 608,270                               |   |   | 639,502                               |   | (4.9)                              | %      |
| Cost      of revenue            |   | 530,133                               |   |   | 604,059                               |   | (12.2)                             | %      |
| Gross      Profit (loss)        |   | 78,137                                |   |   | 35,443                                |   | 120.5                              | %      |
| Total      Operating expenses   |   | 179,517                               |   |   | 239,058                               |   | (24.9)                             | %      |
| Total      Other expenses       |   | 491,072                               |   |   | 129,940                               |   | 277.9                              | %      |
|                            |   |                                  |   |   |                                  |   |                               |   |
| Provision      for income taxes |   | 2,400                                 |   |   | 2,400                                 |   | 0                                  | %      |
|                            |   |                                  |   |   |                                  |   |                               |   |
| Operating      (loss)           | $      | 598,602                               |   |   | 396,899                               |   | 50.8                               | %      |

----

|                            |   | 3      Months EndedMarch      31, 2008 |   |   | 3      MonthsEndedMarch      31, 2007 |   | PercentageChangeIncrease(Decrease) |   |
|---------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------|--------|------------------------------------|--------|
|                            |   |                                        |   |   |                                  |   |                               |   |
| Major      Expenses:            |   |                                        |   |   |                                  |   |                               |   |
| Rent                            | $      | 43,112                                      |   |   | 43,215                                |   | (0.2)                              | %      |
| Salary      & Wages         |   | 84,368                                      |   |   | 81,884                                |   | 3.0                                | %      |
| Insurance                       |   | 12,018                                      |   |   | 32,927                                |   | (63.5)                             | %      |
| Accounting      Fees            |   | 0                                           |   |   | 11,000                                |   | (100)                              | %      |
| Consulting                      |   | 0                                           |   |   | 3,811                                 |   | (100)                              | %      |
| Advertising/Promotions          |   | 2,896                                       |   |   | 2,498                                 |   | 16.0                               | %      |
| Shipping      and Delivery      |   | 7,669                                       |   |   | 6,418                                 |   | 19.5                               | %      |
| Depreciation                    |   | 6,439                                       |   |   | 5,682                                 |   | 13.3                               | %      |
| Loss      of disposal of assets |   | 0                                           |   |   | 1,703                                 |   | (100)                              | %      |
| Utilities                       |   | 3,440                                       |   |   | 3,277                                 |   | 5.0                                | %      |
|                            |   |                                        |   |   |                                  |   |                               |   |
| Total      Major Expenses       |   | 159,942                                     |   |   | 192,414                               |   | (16.9)                             | %      |
|                            |   |                                        |   |   |                                  |   |                               |   |
| Total      Expenses             |   | 179,517                                     |   |   | 239,058                               |   | (24.9)                             | %      |
|                            |   |                                        |   |   |                                  |   |                               |   |

|                                  |   | 3      MonthsEndedMarch      31, 2008 |   |   | 3      MonthsEnded March      31,2007 |   | PercentageChangeIncrease(Decrease) |   |
|---------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------------|--------|------------------------------------|--------|
| Other      income (expenses)          |   |                                  |   |   |                                       |   |                               |   |
|                                  |   |                                  |   |   |                                       |   |                               |   |
| Interest      and other income        |   | 408                                   |   |   | 476                                        |   | (14.3)                             | %      |
| Change      in derivative liabilities |   | (231,585)                             |   |   | 5,803                                      |   | 4,090.8                            | %      |
| Interest      and other expenses      |   | (47,222)                              |   |   | (42,816)                                   |   | 10.3                               | %      |
| Financing      costs                  |   | (212,673)                             |   |   | (129,940)                                  |   | 127.7                              | %      |
| Total      other income (expenses)    |   | (491,072)                             |   |   | (129,940)                                  |   | 277.9                              | %      |
|                                  |   |                                  |   |   |                                       |   |                               |   |
| Net      (loss)                       | $      | (598,602)                             |   |   | 396,899                                    |   | 50.8                               | %      |

----

|                                       |   | March      31, |   |   | March      31, |   |
|--------------------------------------------|--------|----------------|--------|--------|----------------|--------|
|                                       |   | 2008           |   |   | 2007           |   |
|                                       |   |           |   |   |           |   |
| Cash                                       | $      | 476            |   | $      | 96,524         |   |
| Accounts      receivable net               |   | 56,972         |   |   | 13,953         |   |
| Prepaid      expenses/other current assets |   | 28,266         |   |   | 27,518         |   |
| Inventory                                  |   | 42,953         |   |   | 37,057         |   |
| Total      current assets                  |   | 128,667        |   |   | 175,052        |   |
| Total      assets                          |   | 290,474        |   |   | 349,673        |   |
| Total      current liabilities             |   | 1,161,640      |   |   | 1,348,294      |   |
| Total      liabilities                     |   | 6,489,381      |   |   | 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 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. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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| ·   | 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. |
|--------------------|-----------------------------------------------------------------------------------------------|

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