**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**FORM
      10-QSB**





(Mark
      One)


x
            QUARTERLY
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934





**For
      the quarterly period ended September 30, 2007**





o
            TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
                ACT





For
      the
      transition period from ______ to __________





*Commission
      File Number* : 0-27569





**NATURAL
      NUTRITION, INC.**


(Exact
      name of small business issuer as specified in its charter)





**Nevada**
            
            **65-0847995**(State
                or other jurisdiction of incorporation or organization)
            
            (IRS
                Employer Identification No.)





**109
                North Post Oak Lane, Suite 422****Houston,
                TX 77024**(Address
                of principal executive offices)





**(713)
                621-2737**(Issuer's
                telephone number)**(Formerly
                CSI Business Finance,
                Inc.)**





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days. Yes x No o





Indicate
      by check whether the registrant is a shell company (as defined in Rule 12b-2
      of
      the Exchange Act).


Yes o
      No x





The
      number of shares outstanding of our common stock at November 13, 2007 was
      29,757,110.





Transitional
      Small Business Disclosure Format (check one): Yes: o No: x










**NATURAL
      NUTRITION, INC.**


(Formerly
      CSI Business Finance, Inc.)


**FORM
      10-QSB**





**INDEX**




PageNumberPART
                I - FINANCIAL INFORMATIONItem
                1. Financial StatementsCondensed
                Consolidated Balance Sheet as of September 30, 2007
                (Unaudited)
            
            3Condensed
                Consolidated Statements of Operations for the three months ended
                September
                30, 2007 and 2006 (Unaudited)
            
            4Condensed
                Consolidated Statements of Operations for the nine months ended September
                30, 2007 and 2006 (Unaudited)
            
            5Condensed
                Consolidated Statements of Cash Flows for the nine months ended September
                30, 2007 and 2006 (Unaudited)
            
            6Notes
                to Condensed Consolidated Financial Statements (Unaudited)
            
            7-17Item
                2. Management's Discussion and Analysis or Plan of
                Operation
            
            18-22Item
                3. Controls and Procedures
            
            22-23PART
                II - OTHER INFORMATIONItem
                1. Legal Proceedings
            
            24Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            24Item
                3. Defaults Upon Senior Securities
            
            24Item
                4. Submission of Matters to a Vote of Security Holders
            
            24Item
                5. Other Information
            
            24Item
                6. Exhibits
            
            24SIGNATURES
            
            25





2





**PART
      I - FINANCIAL INFORMATION**


**ITEM
      1. FINANCIAL STATEMENTS**





**NATURAL
      NUTRITION, INC. AND SUBSIDIARIES**


**(Formerly
      CSI Business Finance, Inc.)**


**CONDENSED
      CONSOLIDATED BALANCE SHEET**


**September
      30, 2007**


**(Unaudited)**





**ASSETS****CURRENT
                ASSETS**Cash
            
            $
            2,943,692Trade
                accounts receivable-net of $25,229 allowance for doubtful
                accounts
            
            
            2,563,113Notes
                receivable-net of allowance of $447,377
            
            
            1,449,654Inventory-net
                of allowance of $250,810
            
            
            2,230,110Investment
                in marketable securities
            
            
            384,275Due
                from affiliates-net of allowance of $402,680
            
            
            44,790Deferred
                finance costs
            
            
            142,729Prepaids,
                accrued interest and other accounts receivable
            
            
            297,732Total
                current assets
            
            
            10,056,095**NONCURRENT
                ASSETS**Fixed
                assets, net
            
            
            1,401,630Intellectual
                property
            
            
            4,437,244Goodwill
            
            
            8,978,689Total
                noncurrent assets
            
            
            14,817,563**TOTAL
                ASSETS**
            
            $
            24,873,658**LIABILITIES
                AND SHAREHOLDERS' DEFICIT****CURRENT
                LIABILITIES**Accounts
                payable, accrued liabilities and other current liabilities
            
            $
            1,562,294Taxes
                payable
            
            
            2,407,209Total
                current liabilities
            
            
            3,969,503**NONCURRENT
                LIABILITIES**Convertible
                debenture payable-net of discount of $217,570
            
            
            15,398,629Convertible
                note payable-net of discount of $2,043,246
            
            
            7,249,648Derivative
                liabilities
            
            
            2,911,750Deferred
                taxes payable
            
            
            804,537Capital
                lease obligations
            
            
            161,323Accrued
                interest payable
            
            
            1,660,409Total
                liabilities
            
            
            32,155,799**COMMITMENTS
                AND CONTINGENCIES****SHAREHOLDERS'
                DEFICIT**Preferred
                stock, $.01 par value; 10,000,000 shares authorizedPreferred
                stock Series A Convertible $0.01 par value; 100,000 shares authorized,
                94,443 shares issued and outstanding and no liquidation or redemption
                value
            
            
            944Common
                stock, par value $0.001; 10,000,000,000 shares authorized; 20,776,804
                issued and outstanding
            
            
            20,777Additional
                paid-in capital
            
            
            290,753Retained
                deficit
            
            
            (8,789,208
            )Accumulated
                other comprehensive income, foreign currency translation
                adjustment
            
            
            1,194,593Total
                shareholders' deficit
            
            
            (7,282,141
            )**TOTAL
                LIABILITIES AND SHAREHOLDERS' DEFICIT**
            
            $
            24,873,658





See
      accompanying Notes to Condensed Consolidated Financial Statements
      (unaudited)




3





**NATURAL
      NUTRITION, INC. AND SUBSIDIARIES**


**(Formerly
      CSI Business Finance, Inc.)**


**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**


**(Unaudited)**





**Three months ended September 30,****2007**
            
            **2006****REVENUE**Sales
                revenue
            
            $
            4,201,764
            
            $
            -Fee
                income
            
            
            -
            
            
            19,854Trading
                losses
            
            
            (8,114
            )
            
            (19,903
            )Dividends
                from marketable securities
            
            
            546
            
            
            107,619Interest
                income from notes and debenture receivable
            
            
            52,826
            
            
            44,818Total
                revenue
            
            
            4,247,022
            
            
            152,388**OPERATING
                EXPENSES**Cost
                of sales revenue
            
            
            3,467,897
            
            
            -Selling,
                general and administrative expenses (2007 and 2006 include $50,114
                and
                $63,654, respectively of expenses allocated from an affiliated
                entity)
            
            
            1,152,694
            
            
            489,050Total
                operating expenses
            
            
            4,620,591
            
            
            489,050**OPERATING
                LOSS**
            
            
            (373,569
            )
            
            (336,662
            )**OTHER
                (INCOME) EXPENSE**Net
                change in fair value of derivative
            
            
            (1,201,440
            )
            
            (11,152
            )Interest
                and other income
            
            
            (16,538
            )
            
            (12,254
            )Interest
                expense
            
            
            648,459
            
            
            260,191Total
                other (income) expense
            
            
            (569,519
            )
            
            236,785Income
                (loss) before provision for income taxes
            
            
            195,950
            
            
            (573,447
            )**INCOME
                TAX PROVISION (BENEFIT):**Current
            
            
            (112,156
            )
            
            -Deferred
            
            
            19,977
            
            
            -(92,179
            )
            
            -**NET
                INCOME (LOSS) APPLICABLE TO COMMON SHARES**
            
            $
            288,129
            
            $
            (573,447
            )Basic
                income (loss) per share:
            
            $
            0.01
            
            $
            (0.08
            )Diluted
                income (loss)per share:
            
            $
            (0.00
            )
            $
            (0.08
            )Basic
                average shares outstanding
            
            
            19,259,139
            
            
            7,034,110Diluted
                average shares outstanding
            
            
            2,209,918,984
            
            
            698,693,491**OTHER
                COMPREHENSIVE INCOME****NET
                INCOME (LOSS)**
            
            $
            288,129
            
            $
            (573,447
            )Foreign
                currency translation adjustment
            
            
            1,133,419
            
            
            -**COMPREHENSIVE
                INCOME (LOSS)**
            
            $
            1,421,548
            
            $
            (573,447
            )





See
      accompanying Notes to Condensed Consolidated Financial Statements
      (unaudited)




4





**NATURAL
      NUTRITION, INC. AND SUBSIDIARIES**


**(Formerly
      CSI Business Finance, Inc.)**


**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**


**(Unaudited)**





**Nine months ended September 30,****2007**
            
            **2006****REVENUE**Sales
                revenue
            
            $
            5,771,105
            
            $
            -Lease
                income
            
            
            -
            
            
            39,684Fee
                income
            
            
            2,965
            
            
            86,009Trading
                gains (losses)
            
            
            3,897
            
            
            (66,795
            )Dividends
                from marketable securities
            
            
            9,015
            
            
            354,054Interest
                income from notes and debenture receivable
            
            
            206,309
            
            
            217,484Total
                revenue
            
            
            5,993,291
            
            
            630,436**OPERATING
                EXPENSES**Cost
                of sales revenue
            
            
            4,767,414
            
            
            -Selling,
                general and administrative expenses (2007 and 2006 include $199,835
                and
                $198,558, respectively of expenses allocated from an affiliated
                entity)
            
            
            3,417,787
            
            
            1,188,385Total
                operating expenses
            
            
            8,185,201
            
            
            1,188,385**OPERATING
                LOSS**
            
            
            (2,191,910
            )
            
            (557,949
            )**OTHER
                (INCOME) EXPENSE**Net
                change in fair value of derivative
            
            
            1,561,112
            
            
            (74,964
            )Loss
                on extinguishment of debenture receivable
            
            
            -
            
            
            639Interest
                and other income
            
            
            (33,776
            )
            
            (40,489
            )Interest
                expense
            
            
            1,279,193
            
            
            796,379Total
                other expense
            
            
            2,806,529
            
            
            681,565Loss
                before provision for income taxes
            
            
            (4,998,439
            )
            
            (1,239,514
            )**INCOME
                TAX PROVISION (BENEFIT):**Current
            
            
            (79,419
            )
            
            -Deferred
            
            
            19,977
            
            
            -(59,442
            )
            
            -**NET
                LOSS APPLICABLE TO COMMON SHARES**
            
            $
            (4,938,997
            )
            $
            (1,239,514
            )Net
                loss per share for basic and diluted
            
            $
            (0.31
            )
            $
            (0.19
            )Weighted
                shares outstanding for basic and diluted
            
            
            16,060,568
            
            
            6,539,222**OTHER
                COMPREHENSIVE INCOME****NET
                LOSS**
            
            $
            (4,938,997
            )
            $
            (1,239,514
            )Foreign
                currency translation adjustment
            
            
            1,194,593
            
            
            -**COMPREHENSIVE
                LOSS**
            
            $
            (3,744,404
            )
            $
            (1,239,514
            )





See
      accompanying Notes to Condensed Consolidated Financial Statements
      (unaudited)





5





**NATURAL
      NUTRITION, INC. AND SUBSIDIARIES**


**(Formerly
      CSI Business Finance, Inc.)**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**


**(Unaudited)**





**Nine Months Ended September 30,****2007**
            
            **2006****CASH
                FLOWS FROM OPERATING ACTIVITIES**Net
                loss
            
            $
            (4,938,997
            )
            $
            (1,239,514
            )Adjustment
                to reconcile net income to net cash provided by operating
                activities
            
            
            5,900,519
            
            
            2,670,295Net
                cash provided by operating activities
            
            
            961,522
            
            
            1,430,781**CASH
                FLOWS FROM INVESTING ACTIVITIES**Cash
                acquired in acquisition
            
            
            609,022
            
            
            -Purchase
                of asset
            
            
            (95,223
            )
            
            -Sale
                of asset
            
            
            100,000
            
            
            349,500Net
                cash provided by investing activities
            
            
            613,799
            
            
            349,500**CASH
                FLOWS FROM FINANCING ACTIVITIES**Proceeds
                from issuance of convertible note, net
            
            
            1,070,910
            
            
            -Payments
                on capital lease obligations
            
            
            (16,123
            )
            
            -Payments
                on notes payable to affiliate
            
            
            -
            
            
            (344,282
            )Net
                cash provided by (used in) financing activities
            
            
            1,054,787
            
            
            (344,282
            )**EFFECT
                OF EXCHANGE RATE CHANGE ON CASH**
            
            
            164,893
            
            
            -**NET
                CHANGE IN CASH**
            
            
            2,795,001
            
            
            1,435,999**CASH,
                BEGINNING OF PERIOD**
            
            
            148,691
            
            
            204,243**CASH,
                END OF PERIOD**
            
            $
            2,943,692
            
            $
            1,640,242**SUPPLEMENTAL
                INFORMATION**Interest
                paid
            
            $
            710
            
            $
            432,099Taxes
                paid
            
            $
            -
            
            $
            -Purchase
                of INII:Fair
                value of assets acquired
            
            $
            18,985,445
            
            $
            -Liabilities
                assumed
            
            $
            4,720,596
            
            $
            -Discount
                on convertible note
            
            $
            2,185,159
            
            $
            -Embeded
                derivative and warrant liability
            
            $
            1,180,870
            
            $
            -Non-cash
                portion of convertible note payable
            
            $
            8,221,964
            
            $
            -Deferred
                finance costs
            
            $
            153,000
            
            $
            -Conversion
                of debentures, preferred stock and stock for services:Convertible
                debt
            
            $
            12,000
            
            $
            -Preferred
                stock
            
            $
            8
            
            $
            -Common
                stock
            
            $
            8,658
            
            $
            -Paid
                in capital
            
            $
            87,443
            
            $
            -Exchange
                of certain receivable for common stock:Common
                stock acquired
            
            $
            -
            
            $
            9,887,959Debentures
                and notes receivable exchanged
            
            $
            -
            
            $
            9,609,283Accrued
                interest receivable exchanged
            
            $
            -
            
            $
            278,676





See
      accompanying Notes to Condensed Consolidated Financial Statements
      (unaudited)




6




**Natural
      Nutrition, Inc. and Subsidiaries**


**(Formerly
      CSI Business Finance, Inc.)**


**Notes
      to Condensed Consolidated Financial Statements**


**(Unaudited)**





**NOTE
      1**  **-
      BASIS OF PRESENTATION**





Our
      Condensed Consolidated Balance Sheet as of September 30, 2007, the Condensed
      Consolidated Statements of Operations for the three and nine months ended
      September 30, 2007 and September 30, 2006, and the Condensed Consolidated
      Statements of Cash Flows for the nine months ended September 30, 2007 and
      September 30, 2006 have not been audited. These statements have been prepared
      on
      a basis that is substantially consistent with the accounting principles applied
      in our Annual Report on Form 10-KSB for the fiscal year ended December 31,
      2006. In our opinion, these financial statements include all normal and
      recurring adjustments necessary for a fair presentation of Natural Nutrition,
      Inc. (the “Company”) and Subsidiaries. The results for the nine months are not
      necessarily indicative of the results expected for the year.





Footnotes
      number 2 and 6 through 11 and number 13 refer to our Canadian subsidiary only.





As
      used
      herein, the “Company”, “management”, “we”, “our” refers to Natural Nutrition,
      Inc., or Natural Nutrition, Inc. together with its subsidiaries. The Company's
      fiscal year ends on December 31st.




Certain
      information and footnote disclosures normally included in financial statements
      prepared in accordance with accounting principles generally accepted in the
      United States of America have been omitted in accordance with the published
      rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”)
      for interim financial statements. The unaudited Condensed Consolidated Financial
      Statements and the notes thereto in this report should be read in conjunction
      with the audited Consolidated Financial Statements and notes thereto included
      in
      our Annual Report on Form 10-KSB for the fiscal year ended December 31,
      2006 (the “10-KSB”).





Natural
      Nutrition, Inc. (the “Company”), formerly CSI Business Finance, Inc., formerly
      Health Express USA, Inc., was incorporated in Florida on July 2, 1998. On August
      25, 2005, the Company completed the closing of that certain Share Exchange
      Agreement, by and between the Company, CSI Business Finance, Inc., a Texas
      corporation and now wholly-owned subsidiary of the Company herein referred
      to as
      ("CSI") and the shareholder of CSI (the "CSI Shareholder").





On
      August
      25, 2005, the Company effectively exchanged with the CSI Shareholder the issued
      and outstanding common stock of CSI in exchange for 100,000 shares of Series
      A
      Convertible Preferred Stock, par value $0.01 per share, of the Company, and
      CSI
      became a wholly-owned subsidiary of the Company. Each share of the Company's
      Series A Preferred Stock is convertible into 780 shares of common stock of
      the
      Company, beginning one year after the effective date of the merger. The
      Preferred shares were subsequently distributed to the shareholders of Corporate
      Strategies, Inc., the former shareholder of CSI. In addition, at the exchange
      date, 4,326,861 shares of common stock of the Company were issued to pay off
      notes and debentures. If the preferred shareholders were to convert to common
      stock as of the date of the merger, they would hold 78,000,000 shares, or
      ninety-two and one half percent (92.5%) of the issued and outstanding shares
      of
      common stock of the Company. This conversion would result in the Series A
      Preferred Shareholders effectively controlling the Company.





The
      Series A Convertible Preferred Shareholders and the holders of the common stock
      of the Company vote together and not as separate classes, and the Preferred
      Stock shall be counted on an "as converted" basis, thereby giving the Preferred
      Shareholders control of the Company. The transaction was accounted for as a
      reverse acquisition since control of the Company passed to the shareholders
      of
      the acquired company (CSI).





The
      Company was subsequently renamed in 2005 to CSI Business Finance, Inc. (the
      Florida corporation). In September of 2006, CSI Business Finance, Inc. changed
      its name to Natural Nutrition, Inc. and simultaneously redomiciled from Florida
      to Nevada.





On
      May
      23, 2006, our Board of Directors approved a 1 for 25 reverse common stock split.
      All references to our common stock in this document are stated in shares after
      the reverse split.





The
      accompanying unaudited condensed consolidated financial statements for prior
      years contain certain reclassifications to conform with current year
      presentation.





The
      unaudited condensed consolidated financial statements include the accounts
      of
      the Company and its wholly-owned subsidiaries. All significant inter-company
      accounts and transactions have been eliminated in consolidation. A related
      party
      holds a 10% minority interest in the Company’s Canadian subsidiary. The minority
      interest for the three and nine months ended September 30, 2007 is not material.




7





**Change
      in Accounting Principle for Registration Payment
      Arrangements.**





In
      December 2006, the Financial Accounting Standards Board (“FASB”) issued FASB
      Staff Position on No. EITF 00-19-2, Accounting for Registration Payment
      Arrangements (“FSP EITF 00-19-2”). FSP EITF 00-19-2 provides that the contingent
      obligation to make future payments or otherwise transfer consideration under
      a
      registration payment arrangement should be separately recognized and measured
      in
      accordance with Statement of Financial Accounting Standards (“FAS”) No. 5,
      Accounting for Contingencies, which provides that loss contingencies should
      be
      recognized as liabilities if they are probable and can be reasonably estimated.
      Subsequent to the adoption of FSP EITF 00-19-2, any changes in the carrying
      amount of the contingent liability will result in a gain or loss that will
      be
      recognized in the consolidated statement of operations in the period the changes
      occur. The guidance in FSP EITF 00-19-2 is effective immediately for
      registration payment arrangements and the financial instruments subject to
      those
      arrangements that are entered into or modified subsequent to the date of
      issuance of FSP EITF 00-19-2. For registration payment arrangements and
      financial instruments subject to those arrangement that were entered into prior
      to the issuance of FSP EITF 00-19-2, this guidance is effective for our
      consolidated financial statements issued for the year beginning January 1,
      2007,
      and interim periods within that year.





On
      January 1, 2007, we adopted the provisions of FSP EITF 00-19-2 to account for
      the registration payment arrangement associated with our September 2005
      financing (the “September 2005 Registration Payment Arrangement”). As of January
      1, 2007 and September 30, 2007, management determined that it was not probable
      that we would have any payment obligation under the September 2005 Registration
      Payment Arrangement; therefore, no accrual for contingent obligation is required
      under the provisions of FSP EITF 00-19-2. Accordingly, the comparative condensed
      consolidated financial statements of prior periods have been adjusted to apply
      the new method prospectively.





We
      adopted the provisions of FSP EITF 00-19-2 to account for the registration
      payment arrangement associated with our May 2007 financing (the “May 2007
      Registration Payment Arrangement”). As of September 30, 2007, management
      determined that it was not probable that we would have any payment obligation
      under the May 2007 Registration Payment Arrangement; therefore, no accrual
      for
      contingent obligation is required under the provisions of FSP EITF 00-19-2.
      Accordingly, the comparative condensed consolidated financial statements of
      prior periods have been adjusted to apply the new method
      prospectively.





**NOTE
      2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**




**Inventories**
              Labels,
                  packaging and raw materials are stated at the lower of cost or
                  market.
                  Cost is determined using the moving average cost
                  method.Finished
                  goods are stated at the lower of cost or market. Cost is determined
                  using
                  the first-in, first-out (FIFO) method.**Advertising
                  Costs**
              Advertising
                  costs, including cooperative advertising payments to retailers,
                  are
                  charged to expense in the period that the advertising first takes
                  place.
                  Advertising costs for the four month ended September 30, 2007 was
                  $12,460.**Shipping
                  Costs**
              Shipping
                  costs associated with the distribution of finished product to our
                  customers are recorded as selling, general and administrative expense
                  and
                  are recognized when the related finished product is shipped to
                  the
                  customer. Shipping costs for the four month ended September 30,
                  2007 was
                  $41,211.**Research
                  and****Development**
              All
                  expenditures for research and development are charged against earnings
                  in
                  the year incurred.**Intangible
                  Assets**
              Intangible
                  assets consist of customer relations, trade secrets and goodwill.
                  Customer
                  relations and trade secrets are being amortized over 8 and 6 years,
                  respectively. Goodwill has an indefinite life and is carried at
                  cost. The
                  impairment evaluation of the carrying amount of intangible assets
                  with
                  indefinite lives is conducted annually, or more frequently if events
                  or
                  changes in circumstances indicate that an asset might be impaired.
                  An
                  impairment loss would be recognized when fair value is less than
                  the
                  carrying amount of the intangible, measured as the excess of the
                  carrying
                  amount of the intangible over its fair value.**Income
                  Taxes**
              Deferred
                  tax assets and liabilities are determined based on the temporary
                  differences between the financial reporting and tax bases of assets
                  and
                  liabilities, applying enacted statutory tax rates in effect for
                  the year
                  in which the differences are expected to reverse. A valuation allowance
                  is
                  recorded when it is more likely than not that some or all of the
                  deferred
                  tax assets will not be realized.
  8
  **Property
                  and****Equipment**
              Property
                  and equipment are recorded at cost. Depreciation is based on the
                  estimated
                  useful life of the asset and is provided as
                  follows:




Manufacturing
                  equipment
              7
                  years
              straight
                  lineFurniture
                  and office equipment
              5
                  years
              straight
                  lineComputer
                  equipment
              7
                  months
              straight
                  lineComputer
                  software
              7
                  months
              straight
                  lineLeasehold
                  improvements
              10
                  years
              straight
                  line





One-half
                of the above rates is used in the year of acquisition.The
                Company reviews long-lived assets for impairment whenever events
                or
                changes in circumstances indicate that their carrying amount may
                not be
                recoverable. An impairment loss would be recognized when estimated
                undiscounted future cash flows from the operation and disposition
                of the
                assets are less than the carrying amount of the assets. Measurement
                of an
                impairment loss would be based on the excess of the carrying amount
                of the
                assets over their fair value. Fair value is measured using discounted
                cash
                flows or independent appraisals as appropriate.**Revenue
                recognition**
            The
                Company's revenue recognition policies are in compliance with Staff
                Accounting Bulletin 104. Revenue is recognized upon acceptance of
                the
                shipment by the customer, no other significant obligation of the
                Company
                exists and collectibility is reasonably assured.**Foreign
                Exchange**
            Our
                wholly owned subsidiary, INII, considers the Canadian currency as
                its
                functional currency. The results of operations are translated in
                U.S.
                dollars using average exchange rates for the periods presented. Assets
                and
                liabilities are translated at the rate of exchange in effect at the
                balance sheet date, and differences from historical exchange rates
                are
                reflected within accumulated other comprehensive income in shareholders'
                equity as foreign currency translation
                adjustments.




**NOTE
      3. INCOME (LOSS) PER COMMON SHARE AND STOCK BASED
      COMPENSATION**




**Net
      Income (Loss) Per Common Share**




In
      accordance with SFAS No. 128, "Earnings per Share", basic earnings per share
      are
      computed based on the weighted average shares of common stock outstanding during
      the periods.  Diluted earnings per share are computed based on the weighted
      average shares of common stock plus the assumed issuance of common stock for
      all
      potentially dilutive securities.




9




The
      computations for basic and diluted net income (loss) per share consist of the
      following:





Three
                Months Ended
            
            Nine
                Months EndedSeptember
                30,
            
            September
                30,2007
            
            2006
            
            2007
            
            2006Income
                (loss) from continuing operations
            
            $
            288,129
            
            $
            (573,447
            )
            $
            (4,938,997
            )
            $
            (1,239,514
            )Less
                effect of derivatives and convertible note & debenture
            
            
            (552,992
            )
            
            220,435
            
            
            2,839,392
            
            
            608,816Net
                loss
            
            $
            (264,863
            )
            $
            (353,012
            )
            $
            (2,099,605
            )
            $
            (630,698
            )Basic
                weighted average shares
            
            
            19,259,139
            
            
            7,034,110
            
            
            16,060,568
            
            
            6,539,222Effect
                of dilutive securities:Preferred
                stock
            
            
            73,665,540
            
            
            74,559,420
            
            
            73,665,540
            
            
            74,559,420Convertible
                note and debenture
            
            
            2,116,994,305
            
            
            617,099,961
            
            
            2,116,994,305
            
            
            617,099,961Diluted
                weighted average shares
            
            
            2,209,918,984
            
            
            698,693,491
            
            
            2,206,720,413
            
            
            698,198,603Income
                (loss) per share:Basic:
            
            $
            0.01
            
            $
            (0.08
            )
            $
            (0.31
            )
            $
            (0.19
            )Diluted:
            
            $
            (0.00
            )
            $
            (0.08
            )
            $
            (0.31
            )
            $
            (0.19
            )





**Stock
      Based Compensation**




Statement
      of Financial Accounting Standards No. 123(R), “Accounting for Stock-Based
      Compensation” (“SFAS 123(R)”), provides for the use of a fair value-based method
      of accounting for employee stock compensation. There were outstanding stock
      options to purchase 5,695 of the Company's common stock at an exercise price
      of
      $32.75 per share. These options expired in August 2007.





**NOTE
      4**  **–
      PURCHASE OF THE SENIOR DEBT OF INTERACTIVE NUTRITION INTERNATIONAL,
      INC.**




Effective
      May 31, 2007, Natural Nutrition, Inc., a Nevada corporation (the “ Company ”)
      closed
      on a purchase agreement (the “ Purchase
      Agreement ”)
      with
      Nesracorp. Inc., a company organized under the laws of Canada (the “ Vendor ”)
      pursuant to which the Company purchased from the Vendor, and the Vendor sold,
      assigned transferred and conveyed to the Company, all of Vendor’s right, title,
      benefit and interest in (a) all of the then outstanding principal and interest
      accrued thereon (the “ Indebtedness ”)
      owed
      to the Vendor by Interactive Nutrition International, Inc. (“ INII ”),
      a
      company organized under the laws of Canada and a wholly-owned subsidiary of
      the
      Company, under a promissory note in the original principal amount of Fifteen
      Million Canadian Dollars (Cdn$15,000,000) issued (in part) by INII to the Vendor
      on March 31, 2004 (the “ Subsidiary
      Note ”)
      and
      (b) a general security agreement, of even date with the Subsidiary Note, and
      a
      share pledge agreement, of even date with the Subsidiary Note, both granted
      concurrently by INII and its shareholder, the Company (as successor in interest
      to the now defunct Bio One Corporation) in connection with the Indebtedness
      (together, both instruments are hereinafter referred to as the “ Security ”)
      for a
      purchase price equal to (i) Seven Million Six Hundred Fifty Thousand Canadian
      Dollars (Cdn$7,650,000) and (ii) the execution by the Company of that certain
      Mutual Release.  The Company and the Vendor entered into an Assignment and
      Conveyance (“ Assignment ”),
      of
      even date with the Purchase Agreement, in order to properly effectuate the
      assignment by the Vendor to the Company of all of the right, title, benefit
      and interest in and to the Purchased Assets (as defined therein), which such
      Purchased Assets include, without limitation, the Indebtedness, the Security
      and
      all loan, security and other documentation relating to the Indebtedness and
      the
      Security purchased under the Purchase Agreement.  The Company and the
      Vendor executed the Purchase Agreement, the Mutual Release and the Assignment
      on
      May 25, 2007; however they closed the transactions upon the execution of the
      SPA
      (as defined and discussed herein below) on May 31, 2007.




10




On
      May
      31, 2007, the Company entered into a securities purchase agreement (the
“ SPA ”)
      with
      Cornell Capital Partners, LP (the “ Investor ”)
      pursuant to which the Company sold to the Investor, and the Investor purchased
      from the Company, a secured convertible promissory note (the “ Note ”)
      in the
      principal amount of Nine Million Two Hundred Ninety-Two Thousand Eight Hundred
      Ninety-Four United States Dollars (US$9,292,894), the proceeds of which shall
      be
      used by the Company to finance the consideration paid by the Company to the
      Vendor in connection with the Purchase Agreement and Assignment (as discussed
      herein above) and for other general corporate purposes.





The
      Note
      shall accrue interest at a rate equal to twelve percent (12%) per annum, except
      that from and after the occurrence and during the continuance of an Event of
      Default (as defined in the Note), the interest rate shall be increased to
      eighteen percent (18%). The Note shall mature, unless extended by the holder,
      upon the earlier of (i) June 1, 2012, (ii) the consummation of a Change of
      Control (as defined in the Note) and (iii) the occurrence of an Event of Default
      or any event that with the passage of time and the failure to cure would result
      in an Event of Default. The Company may prepay the Note at any time upon not
      less than thirty (30) days prior written notice to the holder; provided, that
      any such prepayments shall applied first to unpaid late charges on principal
      and
      interest, if any, then to unpaid interest and then unpaid principal thereon.
      Furthermore, the Note shall be convertible into fully paid and nonassessable
      shares of the Company’s common stock, par value $0.001 per share (the
“ Common
      Stock ”),
      at
      the holder’s discretion, at a conversion rate to be determined by dividing the
      amount to be converted by the lesser or (x) $0.05, subject to adjustment as
      provided herein and (y) eighty percent (80%) of the lowest daily weighted
      average price of the Company’s common stock, par value $0.001 per share
      (“ Common
      Stock ”)
      during
      the five (5) trading days immediately preceding the conversion date. The Company
      shall not effect any conversion, and the holder of shall not have the right
      to
      convert any portion of the Note to the extent that after giving effect to such
      conversion, the holder (together with the holder’s affiliates) would
      beneficially own in excess of 4.99% of the number of shares of Common Stock
      outstanding immediately after giving effect to such conversion.





All
      payments due under the Note shall be senior to all other Indebtedness (as
      defined in the Note) of the Company and its subsidiaries other than certain
      Permitted Indebtedness (as defined in the Note). So long as the Note is
      outstanding, the Company shall not, and the Company shall not permit any of
      its
      subsidiaries to, directly or indirectly (a) incur or guarantee, assume or suffer
      to exist any Indebtedness, other than (i) the Indebtedness evidenced by the
      Note and the Subsidiary Note and (ii) other Permitted Indebtedness, (b)
      allow or suffer to exist any mortgage, lien, pledge, charge, security interest
      or other encumbrance upon or in any property or assets (including accounts
      and
      contract rights) owned by the Company or any of its subsidiaries other than
      certain permitted liens, (c) redeem, defease, repurchase, repay or make any
      payments in respect of, by the payment of cash or cash equivalents (in whole
      or
      in part, whether by way of open market purchases, tender offers, private
      transactions or otherwise), all or any portion of any Permitted Indebtedness,
      whether by way of payment in respect of principal of (or premium, if any) or
      interest on, such Indebtedness if at the time such payment is due or is
      otherwise made or, after giving effect to such payment: (i) an event
      constituting an Event of Default has occurred and is continuing; or (ii) an
      event that with the passage of time and without being cured would constitute
      an
      Event of Default has occurred and is continuing; or (iii) make any payments
      to
      Turnaround Partners, Inc. (“ TAP ”),
      Corporate Strategies, Inc. (“ CSI ”)
      or any
      of their members, partners, employees, stockholders, or any of their respective
      affiliates, except (1) with the prior consent of the holder, (2) pursuant to
      either the Zeidman Agreement (as defined herein below) or that certain Connolly
      Agreement (as defined herein below), (3) reasonable rent and overhead charges
      allocable to the Company in respect of shared space with CSI, (4) so long as
      Mr.
      Timothy J. Connolly (“ Mr.
      Connolly ”)
      is
      serving as CEO of the Company, the reimbursement to Mr. Connolly for all direct
      expenses incurred by Mr. Connolly in connection with such service and (5)
      payments by CSI Business Finance, Inc., the Texas corporation and wholly-owned
      subsidiary of the Company (“ CSIBF ”)
      to Mr.
      Connolly for compensation payable to Mr. Connolly solely out of cash generated
      from CSIBF’s operations.





Until
      the
      Note has been converted, redeemed or otherwise satisfied in full in accordance
      with its terms, the Company shall not, directly or indirectly, redeem,
      repurchase, or declare or pay any cash dividend or distribution on, its capital
      stock without the prior express written consent of the holder or, dissolve,
      liquidate, consolidate with or into another person, or dispose of or otherwise
      transfer (whether in one transaction or in a series of transactions) all or
      substantially all of its assets (whether now owned or hereafter acquired) to
      or
      in favor of any person or acquire any assets or business or any interest in
      any
      person or entity in excess of One Hundred Thousand United States Dollars
      (US$100,000), except for purchases of inventory, raw materials and equipment
      in
      the ordinary course of business. So long as the Note is outstanding, for each
      accounting period identified in an exhibit to the Note, the Company shall
      maintain EBITDA for such accounting period which equals or exceeds the
      applicable EBITDA threshold for such accounting period. Our EBITDA for the
      nine
      months ended September 30, 2007 was 1,616,462CDN versus 1,097,540CDN as required
      under the Exhibit to the Note. EBITDA for the three months ended September
      30,
      2007 was 549,652CDN versus a target of 519,207CDN as required under the Exhibit
      to the Note.




11




In
      connection with the SPA, the Company also issued to the Investor warrants to
      purchase, in Investor’s sole discretion, Sixty-Two Million Five Hundred Eight
      Thousand One Hundred Seventy-Nine (62,508,179) shares of Common Stock at a
      price
      of $0.01 per share (the “ Warrant ”).
      So
      long as the Company is in default under any of the Transaction Documents (as
      defined in the SPA) or the shares underlying the Warrant are not subject to
      an
      effective registration statement, the holder may, in its sole discretion during
      such time, exercise the Warrant in whole or in part and, in lieu of making
      the
      cash payment otherwise contemplated to be made to the Company upon such exercise
      in payment of the Aggregate Exercise Price (as defined in the Warrant), elect
      instead to receive upon such exercise the net number of shares of Common Stock
      determined according to a specified formula set forth in the Warrant. The
      Company shall not effect the exercise of the Warrant, and the holder shall
      not
      have the right to exercise the Warrant, to the extent that after giving effect
      to such exercise, such person (together with such person’s affiliates) would
      beneficially own in excess of 4.99% of the shares of Common Stock outstanding
      immediately after giving effect to such exercise.





Contemporaneously
      with the execution and delivery of the SPA, the Company and the Investor
      executed and delivered a registration rights agreement (the “ RRA ”)
      pursuant to which the Company shall provide certain registration rights to
      Investor with respect to the Registrable Securities (as defined in the RRA)
      under the Securities Act of 1933, as amended and the rules and regulations
      promulgated thereunder, and applicable state securities laws. Specifically,
      if
      the Company shall receive at any time and from time to time after the aggregate
      principal amount of the Note is below One Million Five Hundred Thousand United
      States Dollars (US$1,500,000) in whatever form, including without limitation,
      the reduction of the outstanding balance by conversions by the Investor into
      shares of Common Stock or cash payments by the Company, a written request from
      the holders of at least fifty percent (50%) of the Registrable Securities then
      outstanding, that the Company file with the U.S. Securities and Exchange
      Commission (“ SEC ”)
      a
      registration statement covering the resale of the Registrable Securities, then
      the Company shall, within thirty (30) days of the receipt thereof, provide
      written notice of such request to all other holders of Registrable Securities,
      if any, and file with the SEC such registration statement, as soon as
      practicable, following receipt of the registration request. The registration
      statement shall register for resale at least thirty-three percent (33%) of
      the
      Company’s market capitalization based on the Company’s shares of Common Stock
      issued and outstanding and market price of the Company’s shares of Common Stock
      at the time of the registration request less any shares of Common Stock held
      by
      affiliates of the Company, or such greater amount as the Company in good faith
      believes the SEC may permit to be registered. The Company shall use its best
      efforts to have the registration statement declared effective by the SEC no
      later than such date as follows: (i) in the event that the registration
      statement is not subject to a review by the SEC, sixty (60) calendar days after
      the date of the registration request or (ii) in the event that the
      registration statement is subject to a review by the SEC, one hundred twenty
      (120) calendar days after the date of the registration request.





In
      connection with the SPA, the Company and the Investor also entered into an
      amended and restated security agreement, of even date with the SPA (the
“ 2007
      Security Agreement ”),
      pursuant to which the Company amended and restated that certain Security
      Agreement, dated September 9, 2005 (the “ 2005
      Security Agreement ”),
      to
      secure within the definition of “Obligations” as previously defined under the
      2005 Security Agreement, those obligations of the Company under the SPA, the
      Note and the Transaction Documents (as defined in the SPA). The Company and
      the
      Investor also entered into a securities pledge agreement, of even date with
      the
      SPA (the “ 2007
      Pledge Agreement ”),
      in
      order for the Company to pledge that certain Pledged Property (as defined
      therein), which includes the Subsidiary Note, to secure its obligations under
      the SPA, the Note and the Transaction Documents (as defined in the SPA).




In
      connection with the SPA, the Company, the Investor and Mr. Timothy J. Connolly,
      acting on behalf of CSI, entered into an agreement, of even date with the SPA
      (the “ Connolly
      Agreement ”),
      pursuant to which the Company granted to Mr. Connolly, on behalf of CSI, shares
      representing ten percent (10%) of the common stock of INII (the “ INII
      Stock ”)
      outstanding as of the date of the Agreement as compensation for management
      services performed by CSI to the Company. Such grant vested and the INII Stock
      has been deemed fully earned as of the date of the Agreement. As a condition
      to
      this grant, Mr. Connolly entered into a lock-up agreement and a securities
      pledge agreement with the Investor, whereby Mr. Connolly pledged the INII Stock
      as collateral to secure all obligations owed by the Company to the Investor.





In
      connection with the SPA, the Company entered into a five (5) year employment
      agreement with Mr. Fred Zeidman pursuant to which Mr. Zeidman shall serve as
      a
      non-executive Chairman of the Board (the “ Zeidman
      Agreement ”).
      In
      consideration for his services, Mr. Zeidman shall receive, as compensation
      for
      all services rendered by Mr. Zeidman in performance of his duties or obligations
      under the Zeidman Agreement, a monthly base salary of Twelve Thousand Five
      Hundred United States Dollars (US$12,500). In addition to a base salary, Mr.
      Zeidman shall also have the right to receive an incentive fee equal to up to
      ten
      percent (10%) of the Net Proceeds (as defined therein) of the Sale (as defined
      therein) of INII. This bonus shall incrementally vest twenty percent (20%)
      per
      year on the anniversary date of the Zeidman Agreement, so long as (A) Mr.
      Zeidman’s employment with the Company has not terminated as of the applicable
      vesting date and (B) the actual financial results of INII for the twelve (12)
      month period prior to the applicable vesting date are not less than ninety
      percent (90%) of the pro forma EBITDA results of INII attached to the Zeidman
      Agreement as Exhibit
      A ; provided that
      upon a Sale prior to the fifth (5 th )
      anniversary of the commencement date, so long as Mr. Zeidman’s employment has
      not terminated prior to such Sale, then the remaining part of the bonus shall
      vest upon the consummation of such Sale. Mr. Zeidman is also entitled to be
      reimbursed by the Company for all reasonable and necessary expenses incurred
      by
      Mr. Zeidman in carrying out his duties under the Zeidman Agreement in accordance
      with the Company’s standard policies regarding such reimbursements. Mr. Zeidman
      is also entitled during the term of the Zeidman Agreement, upon satisfaction
      of
      all eligibility requirements, if any, to participate in all health, dental,
      disability, life insurance and other benefit programs now or hereafter established
      by the Company which cover substantially all other of the Company’s employees
      and shall receive such other benefits as may be approved from time to time
      by
      the Company.




12




Since
      the
      acquisition was completed on May 31, 2007, only the period from June 1 through
      September 30, 2007 is included in our three and nine months results of
      operations ending September 30, 2007.




The
      following unaudited pro forma financial information presents the consolidated
      results of operations for the nine months ended September 30, 2007, as if the
      acquisition had occurred on January 1, 2007, after giving effect to certain
      adjustments. The pro forma information does not necessarily reflect the results
      of operations that would have occurred had the entities been a single company
      during this period.




Nine months ended September 30,
            
            Three months ended September 30,2007
            
            2006
            
            2007
            
            2006(Unaudited)
            
            (Unaudited)
            
            (Unaudited)
            
            (Unaudited)Net
                sales
            
            $
            12,866,026
            
            $
            10,847,114
            
            $
            4,247,022
            
            $
            2,706,743Net
                loss
            
            $
            (5,445,645
            )
            $
            (1,080,920
            )
            $
            (358,367
            )
            $
            (205,535
            )Basic
                shares outstanding
            
            
            16,060,568
            
            
            6,539,222
            
            
            19,259,139
            
            
            7,034,110Diluted
                shares outstanding
            
            
            2,206,720,413
            
            
            698,198,603
            
            
            2,209,918,984
            
            
            698,693,491Income
                per common share - basic
            
            $
            (0.34
            )
            $
            (0.17
            )
            $
            (0.02
            )
            $
            (0.03
            )Income
                per common share - diluted
            
            $
            (0.00
            )
            $
            (0.17
            )
            $
            (0.02
            )
            $
            0.00




**NOTE
      5 - CONVERTIBLE DEBENTURES AND NOTES PAYABLE AND DERIVATIVE FINANCIAL
      INSTRUMENTS**




Effective
      September 9, 2005, the Company issued a secured convertible debenture (the
      "Debenture") to Cornell Capital Partners, LP in the amount of $15,635,199.
      Effective May 31, 2007, the convertible debenture was renegotiated and the
      due
      date was extended until June 1, 2012 and the fixed conversion price was reset.
      All other terms and conditions remained the same. The notes bear interest at
      5%,
      which is accrued until maturity on June 1, 2012. The note is convertible, at
      the
      option of the holders, into common stock of the Company at a price of $0.012
      per
      share, subject to standard anti-dilution provisions relating to splits, reverse
      splits and other transactions plus a reset provision whereby the conversion
      prices may be adjusted downward to a lower price per share based on the average
      of the three lowest closing prices for the five trading days prior to
      conversion. The Holder has the right to cause the notes to be converted into
      common stock, subject to an ownership limitation of 4.99% of the outstanding
      stock. The Company has the right to repurchase the Notes at 106% of the face
      amount.





On
      May
      31, 2007, the Company entered into a securities purchase agreement (the
“ SPA ”)
      with
      Cornell Capital Partners, LP (the “ Investor ”)
      pursuant to which the Company sold to the Investor, and the Investor purchased
      from the Company, a secured convertible promissory note (the “ Note ”)
      in the
      principal amount of Nine Million Two Hundred Ninety-Two Thousand Eight Hundred
      Ninety-Four United States Dollars (US$9,292,894), the proceeds of which shall
      be
      used by the Company to finance the consideration paid by the Company to the
      Vendor in connection with the Purchase Agreement and Assignment (as discussed
      herein above) and for other general corporate purposes.





The
      Note
      shall accrue interest at a rate equal to twelve percent (12%) per annum, except
      that from and after the occurrence and during the continuance of an Event of
      Default (as defined in the Note), the interest rate shall be increased to
      eighteen percent (18%). The Note shall mature, unless extended by the holder,
      upon the earlier of (i) June 1, 2012, (ii) the consummation of a Change of
      Control (as defined in the Note) and (iii) the occurrence of an Event of Default
      or any event that with the passage of time and the failure to cure would result

      in an Event of Default. The Company may prepay the Note at any time upon not
      less than thirty (30) days prior written notice to the holder; provided, that
      any such prepayments shall applied first to unpaid late charges on principal
      and
      interest, if any, then to unpaid interest and then unpaid principal thereon.
      Furthermore, the Note shall be convertible into fully paid and nonassessable
      shares of the Company’s common stock, par value $0.001 per share (the
“ Common
      Stock ”),
      at
      the holder’s discretion, at a conversion rate to be determined by dividing the
      amount to be converted by the lesser or (x) $0.05, subject to adjustment as provided
      herein and (y) eighty percent (80%) of the lowest daily weighted average price
      of the Company’s common stock, par value $0.001
      per share (“ Common
      Stock ”)
      during
      the five (5) trading days immediately preceding the conversion date. The Company
      shall not effect any conversion, and the holder of shall not have the right
      to
      convert any portion of the Note to the extent that after giving effect to such
      conversion, the holder (together with the holder’s affiliates) would
      beneficially own in excess of 4.99% of the number of shares of Common Stock
      outstanding immediately after giving effect to such conversion.




13




The
      derivatives from the debenture and note payable have been accounted for in
      accordance with SFAS 133 and EITF No. 00-19, "Accounting for Derivative
      Financial Instruments Indexed to, and Potentially Settled in, a Company's Own
      Stock."





The
      Company has determined that the following instruments have derivatives requiring
      evaluation and accounting under the relevant guidance applicable to financial
      derivatives:




Cornell
        Debenture Payable issued 9/9/05 in the face amount of $15,635,199
 Cornell
        Note Payable issued 5/31/07 in the face amount of $9,292,894




The
      Company has identified that the above debenture and note have embedded
      derivatives. These embedded derivatives have been bifurcated from their
      respective host debt contracts and accounted for as derivative liabilities
      in
      accordance with EITF 00-19. When multiple derivatives exist within the
      Convertible Debentures, they have been bundled together as a single hybrid
      compound instrument in accordance with SFAS No. 133 Derivatives Implementation
      Group Implementation Issue No. B-15, "Embedded Derivatives: Separate Accounting
      for Multiple Derivative Features Embedded in a Single Hybrid
      Instrument."




The
      embedded derivatives within the Convertible Debenture and Note have been
      recorded at fair value at the date of issuance; and are marked-to-market each
      reporting period with changes in fair value recorded to the Company's income
      statement as "Net change in fair value of derivatives." The Company has utilized
      a third party valuation firm to fair value the embedded derivatives using a
      layered discounted probability-weighted cash flow approach. The fair value
      model
      utilized to value the various embedded derivatives in the Convertible Debenture
      and Note, comprises multiple probability-weighted scenarios under various
      assumptions reflecting the economics of the Convertible Debenture, such as
      the
      risk-free interest rate, expected Issuer stock price and volatility, likelihood
      of conversion and or redemption, and likelihood default status.





The
      fair
      value of the derivative liabilities are subject to the changes in the trading
      value of the Company's common stock, as well as other factors. As a result,
      the
      Company's financial statements may fluctuate from quarter-to-quarter based
      on
      factors, such as the price of the Company's stock at the balance sheet date
      and
      the amount of shares converted by the debenture holders. Consequently, our
      financial position and results of operations may vary from quarter-to-quarter
      based on conditions other than our operating revenues and expenses.





The
      conversion feature, reset provision and the Company’s optional early redemption
      right to the debenture payable have been bundled together as a single compound
      embedded derivative liability, and using a layered discounted
      probability-weighted cash flow approach, was initially fair valued at $413,603
      at September 9, 2005. As of May 31, 2007, the maturity date of the Cornell
      debenture dated September 9, 2005 was extended to June 1, 2012 and the fixed
      conversion price was reset to $0.012. This modification of the debt was tested
      under EITF 96-19, Debtors Accounting for a Modification or Exchange of Debt
      Instruments and EITF 06-06, Debtors Accounting for a Modification (or Exchange)
      of Convertible Debt Instruments to determine if an extinguishment had occurred.
      The Company’s third party valuation firm determined that the debt was not
      extinguished, so no gain or loss was recorded. The compound embedded derivative
      was valued at $831,083 at September 30, 2007 using the same methodology. For
      the
      period since December 31, 2006 through September 30, 2007, the change in fair
      value of the derivative liability was an increase of $661,315, which has been
      classified as net change in fair value of derivative.





The
      above
      compound embedded derivative plus the loan costs paid the lender in the amount
      of $687,832 are recorded as a discount against the notional carrying amount
      of
      the debenture payable. The unamortized discount is being amortized over the
      term
      of the note using the effective interest method. Recorded in interest expense
      for this amortization is $169,955 at September 30, 2007 and $99,068 at September
      30, 2006.





The
      conversion feature, reset provision and the Company’s optional early redemption
      right to the note payable have been bundled together as a single compound
      embedded derivative liability, and using a layered discounted
      probability-weighted cash flow approach, was initially fair valued at $554,080
      at May 31, 2007. Using the same methodology, the single compound embedded
      derivative liability was valued at $1,137,903 at September 30, 2007. For the
      period since May 31, 2007 through September 30, 2007, the change in fair value
      of the derivative liability was an increase of $583,823, which has been
      classified as net change in fair value of derivative.





In
      addition to the above, the Company issued warrants that resulted in a warrant
      derivative liability. This warrant derivative liability using the Black-Sholes
      Option Pricing Model was initially fair valued at $626,790 at May 31, 2007.
      Using the same methodology, the warrant derivative liability was valued at
      $942,764 at September 30, 2007. For the period since May 31, 2007 through
      September 30, 2007, the change in fair value of the derivative liability was
      an
      increase of $315,974, which has been classified as net change in fair value
      of
      derivative. The significant assumptions for the Black-Sholes Option Pricing
      Model at September 30, 2007 was the current stock price, 0% dividend yield,
      a
      risk free interest rate of 4.38% and a 350% volatility.




14




The
      above
      compound embedded derivative plus the warrant derivative plus the loan costs
      paid the lender in the amount of $1,004,289 are recorded as a discount against
      the notional carrying amount of the note payable. The unamortized discount
      is
      being amortized over the term of the note using the effective interest method.
      Recorded in interest expense for this amortization is $152,184 at September
      30,
      2007 and $0 at September 30, 2006.





The
      significant assumptions for Natural Nutrition’s debenture and note utilized in
      valuing the embedded derivatives as of September 30, 2007:





-
            The
                stock price would increase at the cost of equity with a short-term
                volatility of 200%




-
            Registration
                default would occur only 5% of the
                time




-
            Other
                forms of default would occur 5% of the time, increasing .3% per
                quarter




-
            Alternative
                financing would be available starting at 0%, increasing 5% per quarter
                to
                a maximum of 20%




-
            Common
                Shares outstanding would increase 1% per
                quarter




-
            Exercise
                pricing reset events would occur 5% of the time with an adjustment
                factor
                to the warrant exercise price of
                0.9945




-
            Quarterly
                conversions of the debentures would be limited to the lesser of 4.99%
                of
                the outstanding stock or 25% of the average 22-day trading
                volume.




**NOTE
      6 - INVENTORIES:**




Inventories
      consist of the following:




Raw
                materials
            
            $
            1,611,447Packaging
                materials
            
            
            463,363Marketing
                materials
            
            
            50,085Finished
                goods
            
            
            105,215Total
            
            $
            2,230,110





**NOTE
      7 - PROPERTY AND EQUIPMENT**





September
                30, 2007AccumulatedCost
            
            DepreciationManufacturing
                equipment
            
            $
            1,088,858
            
            $
            47,389Furniture
                and office equipment
            
            
            60,314
            
            
            4,021Computer
                equipment
            
            
            21,516
            
            
            11,690Computer
                software
            
            
            20,990
            
            
            11,525Leasehold
                improvements
            
            
            291,516
            
            
            9,717$
            1,483,194
            
            $
            84,342





Property
      and equipment include manufacturing equipment and furniture and fixtures held
      under capital leases. These capital leases are depreciated under the Company’s
      normal depreciation schedule. Depreciation expense for the four month period
      ending September 30, 2007 for our Canadian subsidiary was $84,342.




15




**NOTE
      8 –
      INTELLICUTUAL PROPERTY AND GOODWILL**





September30, 2007AccumulatedCost
            
            AmortizationTrade
                secrets
            
            $
            1,190,538
            
            
            66,141Customer
                relations
            
            
            3,456,883
            
            
            144,036Goodwill
            
            
            8,978,689
            
            
            -$
            13,626,110
            
            $
            210,177





Goodwill
      was recorded in connection with the purchase of our Canadian subsidiary. The
      amortization of intangibles for the four month period ending September 30,
      2007
      for our Canadian subsidiary was $210,177.





**NOTE
      9 – LONG-TERM DEBT AND CAPITAL LEASES**





The
      Company has long-term debt payable to the Canadian subsidiaries landlord for
      leasehold improvements. The note is payable in monthly installment of $1,101.
      The balance at September 30, 2007 is $23,067.





The
      Company has capital lease obligations with a remaining term of approximately
      four and one-half years. The imputed interest ranges from 7.48% to 9.75%. The
      balance on these capital lease obligations at September 30, 2007 is
      $137,017.





**NOTE
      10 – CANADIAN INCOME TAXES**





The
      current taxes payable, non-current deferred taxes payable and the income tax
      provisions in the statement of operations belongs to our Canadian subsidiary.
      The current income tax expense differs from the amount calculated using Canadian
      statutory provincial and federal rates applied to the accounting net income
      due
      to the cumulative eligible capital deduction for taxes.





The
      significant temporary differences that give rise to deferred tax liabilities
      are
      property and equipment and intangible assets.





**NOTE
      11 – CONCENTRATION AND RISKS**





**Market
      Risks**





As
      part
      of the ongoing business operations, the Company is exposed to market risks
      such
      as foreign currency exchange rates, commodity prices and concentration risks.





**Foreign
      Exchange Transaction Risk**





The
      Company is exposed to fluctuations in foreign currency cash flows related
      primarily to third-party purchases and sales. The primary Canadian dollar
      exchange rate exposure is with the U.S. dollar.





**Commodity
      Price Risk**





The
      Company is exposed to price fluctuations primarily as a result of anticipated
      purchases of ingredients. The principal raw material that is used in the
      manufacturing of products is whey protein. Recently the price of whey has
      increased significantly, and may adversely affect the Canadian subsidiary’s
      historic margins.





**Credit
      Risk**





At
      September 30, 2007, one customer account made up approximately 42% of the total
      trade accounts receivable balance.





**Concentration
      Risk**





Sales
      to
      the largest customer for this reporting period accounted **** for
      approximately 52% of total sales for the four months of September 30,
      2007.





16




**NOTE
      12 – SEGMENT REPORTING**





Our
      company has two business segments: business services (which consist of lending
      services) and manufacturing and sales of nutritional products through our wholly
      owned subsidiary, Interactive Nutrition International, Inc. The Company intends
      to wind down the business services segment as these assets are monetized and
      devote these resources to expanding the international marketing, sales, and
      distribution of the Company’s nutritional products.





The
      Company's operations are conducted in the United States and Ottawa, Ontario,
      Canada.





**Business**
            
            **Nutritional****Services**
            
            **Products****Nine
                months ended September 30, 2007**Revenue
            
            $
            222,186
            
            $
            5,771,105Income
                (loss) before income tax
            
            
            (4,855,073
            )
            
            (143,366
            )Segment
                assets
            
            
            3,723,371
            
            
            21,150,287**Nine
                months ended September 30, 2006**Revenue
            
            $
            630,436
            
            $
            -Loss
                before income tax
            
            
            (1,239,514
            )
            
            -Segment
                assets
            
            
            13,474,576
            
            
            -





**NOTE
      13 – COMMITMENTS**





The
      Company leases its building and warehouse at a current minimum annual cost
      of
      $329,750. The Company is also responsible for its share of property tax,
      maintenance and utility costs on the warehouse lease. The leases expire on
      April
      30, 2009.




Future
      minimum payments under the building and warehouse leases described above, on
      a
      fiscal year basis are as follows:




2007
            
            $
            83,2802008
            
            
            333,1202009
            
            
            111,040$
            527,440





**NOTE
      14 – RELATED PARTY TRANSACTIONS**





We
      realized an expense of $889,804 for the three and nine months ended September
      30, 2007 for consulting services provided by an affiliated company, Turnaround
      Partners, Inc., for the acquisition of INII. This amount represents a one time
      fee only. The Company and Turnaround Partners, Inc. are separate public entities
      that are under common control.





**NOTE
      15 – COMMON STOCK**





During
      the first nine months of this year, we have issued 8,658,141 new shares of
      common stock. We issued 5,666,667 shares to officers and directors from our
      2006
      Stock Incentive Plan while the remaining 2,991,474 were a result of conversions
      of a convertible debenture and stock issued to four separate companies for
      consulting services. Subsequent to September 30, 2007, 8,980,306 shares of
      common stock have been issued as a result of conversions of a convertible
      debenture.





17




**ITEM
                  2**.
              **MANAGEMENT'S
                  DISCUSSION AND ANALYSIS OR PLAN OF
                  OPERATION.**


**FORWARD-LOOKING
      STATEMENTS AND ASSOCIATED RISKS**





This
      Quarterly Report on Form 10-QSB, and the accompanying MD&A, contains
      forward-looking statements.  Statements contained in this report about
      Natural Nutrition, Inc.'s future outlook, prospects, strategies and plans,
      and
      about industry conditions and demand for our financial services are
      forward-looking.  All statements that express belief, expectation,
      estimates or intentions, as well as those that are not statements of historical
      fact, are forward looking. The words "proposed," "anticipates," "anticipated,"
      "will," "would," "should," "estimates" and similar expressions are intended
      to
      identify forward-looking statements.  Forward-looking statements represent
      our reasonable belief and are based on our current expectations and assumptions
      with respect to future events. While we believe our expectations and assumptions
      are reasonable, they involve risks and uncertainties beyond our control that
      could cause the actual results or outcome to differ materially from the expected
      results or outcome reflected in our forward-looking statements.  In light
      of these risks, uncertainties and assumptions, the forward-looking events
      discussed in this quarterly report may not occur.  Such risks and
      uncertainties include, without limitation, our successful efforts in the outcome
      of our litigation concerning our investment in INII, or the extension of our
      agreement in lieu of foreclosure, our success in trading marketable securities,
      our ability to maintain contracts that are critical to our operations, actual
      customer demand for our financing and related services, collection of accounts
      and notes receivable, our ability to obtain and maintain normal terms with
      our
      vendors and service providers and conditions in the capital markets and equity
      markets during the periods covered by the forward-looking
      statements.





The
      forward-looking statements contained in this report speak only as of the date
      hereof.  We undertake no obligation to publicly update or revise any
      forward-looking statements, whether as a result of new information, future
      events or any other reason.  All


forward-looking
      statements attributable to Natural Nutrition, Inc. or any person acting on
      its
      behalf are expressly qualified in their entirety by the cautionary statements
      contained or referred to in our annual report filed on Form 10-KSB and in our
      future periodic reports filed with the SEC. The following M,D&A should be
      read in conjunction with these unaudited Condensed Consolidated Financial
      Statements of the Company, and the related notes thereto included elsewhere
      herein, and in conjunction with our audited financial statements, together
      with
      footnotes and the M,D&A, in our 2006 annual report filed on Form 10-KSB with
      the Securities Exchange Commission (the “SEC”).





**Overview**




On
      August
      25, 2005, Health Express USA, Inc., a Florida corporation, entered into a share
      exchange agreement with CSI Business Finance, Inc., a Texas corporation (“CSI”)
      and the shareholder of CSI (Corporate Strategies, Inc.). The transaction is
      being reflected as a reverse acquisition since control of the Company has passed
      to the shareholders of Corporate Strategies, Inc. (“Corporate Strategies”). The
      Company was subsequently renamed in 2005 to CSI Business Finance, Inc. (the
      Florida corporation). In September of 2006 CSI Business Finance, Inc. changed
      its name to Natural Nutrition, Inc. and simultaneously redomiciled from Florida
      to Nevada.





On
      May
      23, 2006, our Board of Directors approved a 1 for 25 reverse split of our common
      stock. All references to our common stock in this document are stated in shares
      after the reverse split.





All
      significant intercompany accounts and transactions have been eliminated in
      consolidation.





Prior
      to
      our settlement of the litigation related to INII, and our takeover of control
      of
      those operations, our Company, through our operating subsidiary, primarily
      generated cash and revenue from financing and investing activities. To date
      these activities have included equipment leasing, factoring, loan brokerage
      activities earned in originating and selling business leases, providing short
      term secured lending, and investing in marketable securities. Competition for
      the services we provide comes mainly from financial institutions that provide
      factoring services, equipment leases and small business loans, many of which
      have substantially more capital resources than our Company.





Management
      of the Company mitigates its risk in lending by securing loans with pledged
      assets (collateral) that, when liquidated, have a reasonable probability of
      realizing proceeds that would retire the liability. In some instances, we obtain
      personal guarantees from individuals of net worth which are adequate to repay
      the liability in the event of default. Additionally, in the example of public
      company finance, we utilize conversion features at a substantial discount to
      the
      market in the event of default that would enable us to realize adequate proceeds
      from the sale of the borrower's stock to repay the liability to the Company.
      Over the long term, management will be concentrating its efforts on growing
      the
      business of INII, our largest asset.





We
      intend
      to wind down the business services segment described above and as these assets
      are monetized we will devote these resources to expanding the international
      marketing, sales, and distribution of the Company’s nutritional products
      manufactured by INII.





18




Effective
      May 31, 2007, Natural Nutrition, Inc., a Nevada corporation (the “ Company ”)
      closed
      on a purchase agreement (the “ Purchase
      Agreement ”)
      with
      Nesracorp. Inc., a company organized under the laws of Canada (the “ Vendor ”)
      pursuant to which the Company purchased from the Vendor, and the Vendor sold,
      assigned transferred and conveyed to the Company, all of Vendor’s right, title,
      benefit and interest in (a) all of the then outstanding principal and interest
      accrued thereon (the “ Indebtedness ”)
      owed
      to the Vendor by Interactive Nutrition International, Inc. (“ INII ”),
      a
      company organized under the laws of Canada and a wholly-owned subsidiary of
      the
      Company, under a promissory note in the original principal amount of Fifteen
      Million Canadian Dollars (Cdn$15,000,000) issued (in part) by INII to the Vendor
      on March 31, 2004 (the “ Subsidiary
      Note ”)
      and
      (b) a general security agreement, of even date with the Subsidiary Note, and
      a
      share pledge agreement, of even date with the Subsidiary Note, both granted
      concurrently by INII and its shareholder, the Company (as successor in interest
      to the now defunct Bio One Corporation) in connection with the Indebtedness
      (together, both instruments are hereinafter referred to as the “ Security ”)
      for a
      purchase price equal to (i) Seven Million Six Hundred Fifty Thousand Canadian
      Dollars (Cdn$7,650,000) and (ii) the execution by the Company of that certain
      Mutual Release.  The Company and the Vendor entered into an Assignment and
      Conveyance (“ Assignment ”),
      of
      even date with the Purchase Agreement, in order to properly effectuate the
      assignment by the Vendor to the Company of all of the right, title, benefit
      and
      interest in and to the Purchased Assets (as defined therein), which such
      Purchased Assets include, without limitation, the Indebtedness, the Security
      and
      all loan, security and other documentation relating to the Indebtedness and
      the
      Security purchased under the Purchase Agreement.  The Company and the
      Vendor executed the Purchase Agreement, the Mutual Release and the Assignment
      on
      May 25, 2007; however they closed the transactions upon the execution of the
      SPA
      on May 31, 2007.





INII
      manufactures quality sport nutrition and health food products.





Recent
      Accounting Pronouncements





In
      February 2007, the FASB issued FASB Statement No. 159, *Establishing the Fair Value Option for Financial Assets and
      Liabilities* (“SFAS
      159”) *,* to
      permit all entities to choose to elect to measure eligible financial instruments
      at fair value. SFAS 159 applies to fiscal years beginning after November 15,
      2007, with early adoption permitted for an entity that has also elected to
      apply
      the provisions of SFAS 157, *Fair
      Value Measurements* .
      An
      entity is prohibited from retrospectively applying SFAS 159, unless it chooses
      early adoption. Management is currently evaluating the impact of SFAS 159 on
      the
      consolidated financial statements.





**RESULTS
      OF OPERATIONS**





**Three
      Months Ended September 30, 2007 and September 30, 2006**





Interactive
      Nutrition International, Inc. (“INII”) was acquired by us on May 31,
      2007.





Sales
      revenue for the three months ended September 30, 2007 included sales for
      Interactive Nutrition International, Inc. (“INII”) of $4,201,764. This revenue
      was generated from sales of nutritional products from INII.





Fee
      income from brokerage fees earned in originating and selling business leases
      and
      loans was $0 for the three months ended September 30, 2007 versus $19,854 for
      the three months ended September 30, 2006. We intend to wind down this activity
      and make the primary focus of management as well as devoting the Company’s
      resources to expanding the international marketing, sales and distribution
      or
      INII’s nutritional products.





Interest
      Income was $52,826 for the three months ended September 30, 2007 as compared
      to
      $44,818 for the three months ended September 30, 2006. Interest income was
      derived mainly from notes receivable relating to investments as well as interest
      from a debenture and notes that were subsequently traded on March 22, 2006
      for
      stock in a Canadian subsidiary of the maker of the debentures. Dividend income
      was $546 for the three months ended September 30, 2007 and $107,619 for the
      three months ended September 30, 2006. Dividend income is primarily derived
      from
      various investments in marketable securities. For the three months ended
      September 30, 2007, we recorded net trading losses from various investments
      in
      marketable securities in the amount of $8,114. For the three months ended
      September 30, 2006, we recorded $19,903 in net trading losses.





**Cost
      of goods sold, selling, general and administrative expenses and other income
      and
      expenses**





INII





Cost
      of
      sales for our revenue in INII was $3,467,897. Cost of sales includes material,
      labor and manufacturing costs associated with the production of our
      products.





Selling,
      general and administrative expenses were $421,742 for the three months ended
      September 30, 2007. These expenses include salaries and benefits, professional
      fees and other ordinary expenses necessary to carry out our
      operations.





19




Houston
      operations





Our
      corporate operations in Houston, Texas have not yet reached the size to benefit
      from separate office space and a dedicated staff. Our Company shares office
      space and certain administrative functions and staff with an affiliated company.
      Costs are allocated for these shared functions are based on an estimate of
      time
      usage.





Our
      Houston operating expenses were approximately $638,739 for the three months
      ended September 30, 2007 as compared to $489,050 for three months ended
      September 30, 2006. **** We
      incurred bad debt expense of $447,377 for the three months ended September
      30,
      2007 and $0 for the three months ended September 30, 2006.





Salaries
      and Benefits were $134,742 for the three months ended September 30,
      2007 **** as **** compared
      to $20,837 for the three months ended September 30, 2006. **** The
      primary reason for the increase was for the hiring of a part-time CFO in July
      2006 and an acquisition specialist in January 2007. Our acquisition specialist
      resigned in May 2007 after the completion of the INII purchase.




Professional
      fees were $20,475 for the three months ended September 30, 2007 **** as
      compared to $249,338 for the same period ending September 30, 2006. **** The
      primary reason for the decrease is expenses incurred in 2006 relating to the
      acquisition of INII. ****




Interest
      expense was $475,729 for the three months ended September 30, 2007 **** and
      $260,191 for the three months ended September 30, 2006. **** Interest
      expense primarily relates to the expense associated with the $15,635,199 five
      percent (5%) convertible debenture entered into in September 2005, three months
      interest on our May 31, 2007 note and interest on our margin loan.





The
      Company was allocated overhead from an affiliate in the amount of $50,114 for
      the three months ended September 30, 2007 as compared to $63,654 for the three
      months ended September 30, 2006. The expenses include rent, office supplies,
      travel and other ordinary expenses necessary to carry out our corporate
      operations. No contractual arrangement exists between the two
      companies.





We
      recorded income of $1,201,440 for the net change in fair value of our
      derivatives associated with our convertible debenture and note.





**Nine
      Months Ended September 30, 2007 and September 30, 2006**




Operational
      control of Interactive Nutrition International, Inc. (“INII”) was assumed by us
      on May 31, 2007. Accordingly, the results of operations for INII include only
      the four months from June 1, 2007 through September 30, 2007.





Sales
      revenue for the four months ended September 2007 was $5,771,105. This revenue
      was generated from sales of nutritional products from INII.





We
      had no
      leasing income for the nine months ended June 30, 2007. Leasing income for
      the
      nine months ended September 30, 2006 was $39,684. We intend to wind down this
      activity and make the primary focus of management as well as devoting the
      Company’s resources to expanding the international marketing, sales and
      distribution or INII’s nutritional products. Fee income from brokerage fees
      earned in originating and selling business leases and loans was $2,965 for
      the
      nine months ended September 30, 2007 versus $86,009 for the nine months ended
      September 30, 2006.





Interest
      Income was $206,309 for the nine months ended September 30, 2007 as compared
      to
      $217,484 for the nine months ended September 30, 2006. Interest income was
      derived mainly from notes receivable relating to investments as well as interest
      from a debenture and notes that were subsequently traded on March 22, 2006
      for
      stock in a Canadian subsidiary of the maker of the debentures. Dividend income
      was $9,015 for the nine months ended September 30, 2007 and $354,054 for the
      nine months ended September 30, 2006. Dividend income is primarily derived
      from
      various investments in marketable securities. For the nine months ended
      September 30, 2007, we recorded net trading gains from various investments
      in
      marketable securities in the amount of $3,897. For the nine months ended
      September 30, 2006, we recorded $66,795 in net trading losses.





**Cost
      of goods sold, selling, general and administrative expenses and other income
      and
      expenses**





INII





Cost
      of
      sales for our revenue in INII was $4,767,414. Cost of sales includes material,
      labor and manufacturing costs associated with the production of our
      products.





Selling,
      general and administrative expenses were $647,057 for the four months ended
      September 30, 2007. These expenses include salaries and benefits, professional
      fees and other ordinary expenses necessary to carry out our
      operations.





20




Houston
      operations





Our
      corporate operations in Houston, Texas have not yet reached the size to benefit
      from separate office space and a dedicated staff. Our Company shares office
      space and certain administrative functions and staff with an affiliated company.
      Costs are allocated for these shared functions are based on an estimate of
      time
      usage.





Our
      Houston operating expenses were approximately $2,770,730 for the nine months
      ended September 30, 2007 as compared to $1,188,385 for the nine months ended
      September 30, 2006. Approximately $890,000 of the total expenses was a one-time
      fee paid to an affiliate for past services rendered for control of INII. In
      addition, we incurred bad debt expense of $850,057 for the nine months ended
      September 30, 2007 and $0 for the nine months ended September 30,
      2006.





Salaries
      and Benefits for the nine months ended September 30, 2007 were $412,405 as
      compared to the nine months ended September 30, 2006 ($203,075). The primary
      reason for the increase was for the hiring of a part-time CFO in July 2006
      and
      an acquisition specialist in January 2007. Our acquisition specialist resigned
      in May 2007 after the completion of the INII purchase.




Professional
      fees were $1,154,218 for the nine months ended September 30, 2007 as compared
      to
      $645,734 for the same period ending September 30, 2006. The difference is
      primarily a result of legal fees incurred for our INII litigation in 2006 offset
      by the $890,000 one time fee in 2007 referred to above.




Interest
      expense was $957,054 for the nine months ended September 30, 2007 and $697,311
      for the nine months ended September 30, 2006. Interest expense primarily relates
      to the expense associated with the $15,635,199 five percent (5%) convertible
      debenture entered into in September 2005, four month’s interest on our May 31,
      2007 note and interest on our margin loan.





The
      Company was allocated overhead from an affiliate in the amount of $199,835
      for
      the nine months ended September 30, 2007 as compared to $198,588 for the nine
      months ended September 30, 2006. The expenses include rent, office supplies,
      travel and other ordinary expenses necessary to carry out our corporate
      operations. No contractual arrangement exists between the two
      companies.





We
      recorded an expense of $1,561,112 for the net change in fair value of our
      derivatives associated with our convertible debenture and note.





**Liquidity
      and Capital Resources**  ****





Operating
      Activities





We
      incurred a net loss for the nine months ended September 30, 2007 in the amount
      of $4,938,997. During the nine months ended September 30, 2007, our operations
      generated cash flow in the amount of $961,522. Our
      uses
      in operating cash flow were primarily due to an increase in notes receivable
      ($410,310) and an increase in trade receivables ($379,140). Cash flow from
      operating activities were generated primarily from a reserve on notes receivable
      ($850,057), a non-cash one time fee for services rendered in the acquisition
      of
      INII ($889,804), the change in value of our marketable securities ($735,362)
      and
      a net change in fair value of our derivatives ($1,561,112).





Investing
      Activities





We
      realized $100,000 in proceeds from the sale of assets. The asset was included
      as
      a part of our investment in INII. A receivable for this asset was not recorded
      when our original investment in INII was made because of the uncertainty of
      its
      collectability. The proceeds from the collection of this loan were charged
      to
      our investment in INII. We received cash in the amount of $609,022 from our
      subsidiary upon the acquisition of INII.





Financing
      Activities





We
      received cash in the amount of $1,070,910 as a result of the funding of our
      May
      31, 2007 note for the acquisition of INII. This amount is reserved for future
      working capital. The Company’s secured convertible promissory note in the amount
      of $9,292,894 requires that the Company maintain EBITDA for each accounting
      period which equals or exceeds the applicable EBITDA threshold for such
      accounting period. Our EBITDA for the nine months ended September 30, 2007
      was 1,616,462 (CDN) verse 1,097,540 (CDN) as required under the Exhibit to
      the Note. EBITDA for the three months ended September 30, 2007 was 549,652
      (CDN) verse a target of 519,207 (CDN) as required under the Exhibit to
      the Note.




The
      Company had working capital in the amount of $6,086,592 at September 30, 2007.
      Included in our working capital is $1,449,654 of short term notes receivable
      and
      $384,275 in investments in marketable securities.





21




Our
      cash
      flows for the periods are summarized below:





Nine Months Ended
            
            Nine Months EndedSeptember 30, 2007
            
            September 30, 2006Net
                cash provided by (used in) operating activities
            
            $
            961,522
            
            $
            1,430,781Net
                cash provided by investing activities
            
            $
            613,799
            
            $
            349,500Net
                cash provided by (used in) financing activities
            
            $
            1,054,787
            
            $
            (344,282
            )





Our
      cash
      increased by $2,795,001 since December 31, 2006.





Management
      believes the Company has adequate working capital and cash to be provided from
      operating activities to fund current levels of operations. We anticipate that
      our company will grow. As our business grows we believe that we will have to
      raise additional capital in the private debt and public equity markets to fund
      our investments.




**Off-Balance
      Sheet Arrangements**




Our
      Canadian subsidiary leases its building and warehouse at a current minimum
      annual cost of $329,750. The Company is also responsible for its share of
      property tax, maintenance and utility costs on the warehouse lease. The leases
      expire on April 30, 2009.




Future
      minimum payments under the building and warehouse leases described above, on
      a
      fiscal year basis are as follows:




2007
            
            $
            83,2802008
            
            
            333,1202009
            
            
            111,040$
            527,440





**Inflation**




The
      Company believes that inflation has not had a significant impact on operations
      since inception.





**ITEM
      3. CONTROLS AND PROCEDURES**




**(A)
      Evaluation of Disclosure Controls and Procedures**




The
      Company maintains disclosure controls and procedures designed to ensure that
      information required to be disclosed in reports filed under the Securities
      Exchange Act of 1934, as amended, is recorded, processed, summarized,
      accumulated and communicated to the Company’s management, including its Chief
      Executive Officer ("CEO") and Chief Financial Officer ("CFO"), as appropriate,
      to allow timely decisions regarding required disclosure.




As
      of the
      end of the period covered by this report, the Company's management carried
      out
      an evaluation, under the supervision and with the participation of the Company's
      Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the
      effectiveness of the design and operation of the Company's system of disclosure
      controls and procedures pursuant to the Securities and Exchange Act, Rule
      13a-15(e) and 15d-15(e) under the Exchange Act). Based on the material
      weaknesses described herein the Company's CEO and CFO have concluded that the
      Company's disclosure controls and procedures were not effective, as of the
      date
      of that evaluation, for the purposes of recording, processing, summarizing
      and
      timely reporting of material information required to be disclosed in reports
      filed by the Company under the Exchange Act. Because of our size, the Company
      shares its accounting staff with an affiliated company and is comprised of
      its
      part-time Chief Financial Officer, controller and data entry clerk. The
      controller and data entry clerk are considered contract employees whom also
      work
      for an affiliated company as contract employees. Our CFO is also an employee
      of
      an affiliate. Because of the structure of our staff, we have a failure to
      maintain effective controls over the selection, application and monitoring
      of
      our accounting policies to assure that certain complex equity transactions
      were
      accounted for in accordance with generally accepted accounting
      principles.




**(B)
      Changes**  **in
      Internal Controls over Financial Reporting**




In
      connection with the evaluation of the Company's internal controls during the
      Company's last fiscal quarter covered by this report, the Company's CEO and
      CFO
      have determined that there were no changes to the Company's internal controls
      over financial reporting that have materially affected, or are reasonably likely
      to materially effect, the Company's internal controls over financial
      reporting.




22




**Material
      Weaknesses Identified**




In
      connection with the audit of our consolidated financial statements for the
      fiscal year ended December 31, 2006, our independent registered public
      accounting firm informed us that we have significant deficiencies constituting
      material weaknesses. As defined by the Public Company Accounting Oversight
      Board
      Auditing Standard No. 2, a material weakness is a significant control
      deficiency or a combination of significant control deficiencies that result
      in
      there being more than a remote likelihood that a material misstatement in the
      annual or interim financial statements will not be prevented or detected. The
      material weaknesses identified by the auditor during the December 31, 2005
      and
      2006 audit were the lack of segregation of duties necessary to maintain proper
      checks and balances between functions and the lack of procedures to properly
      account for non-routine transactions and preparation of certain financial
      statement disclosures in accordance with U.S. GAAP. The absence of qualified
      full time accounting personnel was a contributing factor to the problems
      identified by the auditor. The specific circumstances giving rise to the
      weaknesses include utilizing the services of contract accountants on a part
      time
      basis in the absence of internal accounting personnel.





Further,
      based on the material weaknesses described herein, we concluded that our
      disclosure controls and procedures were not effective at September 30, 2007,
      the
      end of this reporting period.





**Remediation
      Plan regarding the Material Weaknesses**





The
      Company has taken the following steps to address the specific problems
      identified by the auditors:





(1)
            Our
                affiliate has hired of a Chief Financial Officer and a contract part-time
                bookkeeper to allow us to properly implement the segregation of duties
                necessary to maintain checks and balances between accounting and
                Executive
                functions.(2)
            All
                non-routine transactions will be reviewed by our Chief Financial
                Officer and contract controller before they are
                completed.





(3)
            The
                Company will emphasize enhancement of the segregation of duties based
                on
                the limited resources the Company has, and, where practical, the
                Company
                will continue to access the cost versus benefit of adding additional
                resources that would mitigate the situation. Our Chief Financial
                Officer
                will monitor our accounting policies to assure proper accounting
                for
                financial derivatives and other unusual transactions on an ongoing
                basis.




(4)
            Subsequent
                to the end of our June 30, 2007 quarter, the Company has hired specialists
                to assist us in our endeavors to comply with Section 404 of the
                Sarbanes-Oxley Act of 2002. We hope to have this projected completed
                by
                mid fourth quarter 2007.




The
      Company continues its efforts to remediate control weaknesses and further
      improve and strengthen its internal control over financial reporting under
      the
      direction of the CEO and the CFO.





23





**PART
      II - OTHER INFORMATION**





**ITEM
      1**  **.
      LEGAL PROCEEDINGS**





None





**ITEM
      2**  **.
      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
      PROCEEDS**




None.





**ITEM
      3**  **.
      DEFAULTS UPON SENIOR SECURITIES**




None.





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


None.





**ITEM
      5**  **.
      OTHER INFORMATION**




None.





**ITEM
      6. EXHIBITS AND REPORTS ON FORM 8-K**




**(A)
      Documents filed as a part of this report.**




EXHIBIT
      31.1      Officer's Certification Pursuant to Section
      302




EXHIBIT
      32.1      Certificate pursuant to 18 U.S.C. Section 1350 as
      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002




**(B)
      Current Reports filed on Form 8-K:**





Item
      7.01
      Regulation FD disclosure as filed on January 12, 2007 and incorporated herein
      by
      reference.





Item
      1.01 Entry
      Into Material Definitive Agreement, Item 3.02 Unregistered sales of equity
      securities and item 9.01 Financial Statements and Exhibits, as originally filed
      on June 6, 2007 and amended on August 13, 2007, and incorporated herein by
      reference.





24




**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the Company has caused
      this Quarterly Report on Form 10-QSB/A to be signed on its behalf by the
      undersigned, thereunto duly authorized.




Date:
                November 15, 2007
            Natural
                Nutrition, Inc.
              (Formerly
                CSI Business Finance, Inc.)(Registrant)/s/
                Timothy J ConnollyTimothy
                J. Connolly
              Chief
                Executive Officer




Date:
                November 15, 2007
            Natural
                Nutrition, Inc.
              (Formerly
                CSI Business Finance, Inc.)(Registrant)/s/
                Wm Chris MathersWm
                Chris Mathers
              Chief
                Financial Officer




25