United States Securities and Exchange Commission Washington, D.C.  20549  FORM 10-QSB  [X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended September 30, 2007  [  ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934  For the transition periodFromTo  Commission File No. 000-49990  IDAHO82-0475383(State or Other Jurisdiction of(I.R.S. Employer Identification No.)incorporation or organization)  345 Bobwhite Court, Suite 200 Boise, Idaho 83706 (Address of Principal Executive Offices)  Issuer's Telephone Number:  (208) 343-3110  Check whether the Registrant (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 [ ]  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [ ]  No [X]  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS  Not applicable.  Check whether the Registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.   Yes [ ]  No [ ]   APPLICABLE ONLY TO CORPORATE ISSUERS  Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date:  35,498,625  November 1, 2007  Transitional Small Business Disclosure Format (Check One):  Yes [ ]  No [X]   PAGE 1   PART I - FINANCIAL INFORMATION  Item 1.   Financial Statements.  The Financial Statements of the Registrant required to be filed with this 10-QSB Quarterly Report were prepared by management, and commence on the following page, together with Related Notes.  In the opinion of management, the Financial Statements fairly present the financial condition of the Registrant.  PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Consolidated Balance Sheets  ASSETSSeptember 30, 2007March 31, 2007(unaudited)CURRENT ASSETSCash$600,299$47,763Accounts receivable, (NET)279,884126,750Prepaid expenses3,35524,719Deferred costs50,41449,277Finished goods inventory (NET)166,231169,687Other receivable5,285236,789Total Current Assets1,105,468654,985FIXED ASSETS (NET) (Note 3)52,13571,601EDUCATIONAL SOFTWARE (NET) (Note 4)68,97277,924INTELLECTUAL PROPERTY (NET) (Note 5)151,880194,007GOODWILL (Note 6)485,238485,238OTHER ASSETSOther88-Deposits7,3717,371Total Other Assets7,4597,371TOTAL ASSETS$1,871,152$1,491,126              The accompanying notes are an integral part of these consolidated financial statements.   PAGE 2   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Consolidated Balance Sheets  LIABILITIES & STOCKHOLDERS' EQUITYSeptember 30, 2007March 31, 2007(unaudited)CURRENT LIABILITIESAccounts payable and other current liabilities$183,453$230,332Accrued compensation8,00011,629Payroll liabilities payable4,5036,606Accrued interest-13,186Accrued expenses (Note 7)12,77423,087Unearned revenue171,530122,825Notes payable - related party (Note 8)-116,423Notes payable (NET) (Note 9)36,766258,455Total Current Liabilities417,026782,543COMMITMENTS AND CONTINGENCIES (Note 10)--STOCKHOLDERS' EQUITY (Note 11)Preferred stock, no par value, 20,000,000--authorized shares, no shares issued andoutstandingCommon stock, no par value, 60,000,00029,817,15928,386,057authorized shares, 35,937,691 and 33,865,752 shares issuedand outstanding as of 9/30/07 and 3/31/07, respectivelyAccumulated comprehensive loss(4,710)(17,902)Accumulated deficit(28,358,323)(27,659,572)Total Stockholders' Equity1,454,126708,583TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,871,152$1,491,126       The accompanying notes are an integral part of these consolidated financial statements.   PAGE 3   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Consolidated Statements of Operations (unaudited)  For the Three Months EndedFor the Six Months EndedSeptember 30,September 30,2007200620072006REVENUESLab revenue$616,427$447,950$1,243,568$958,332License revenue35,77156,93663,430107,272Total Revenues652,198504,8861,306,9981,065,604COST OF SALES281,435205,319613,482449,001GROSS PROFIT370,763299,567693,516616,603OPERATING EXPENSESSalaries and wages225,434237,001440,418440,885Bad debt expense10,851-10,915-Depreciation and amortization expense (Note 12)45,734397,19787,158794,408Option/warrant expense99,35599,871258,326211,798General and administrative expenses252,845249,740470,639536,493Total Operating Expenses634,219983,8091,267,4561,983,584OPERATING LOSS(263,456)(684,242)(573,940)(1,366,981)OTHER INCOME AND EXPENSESInterest income4,1865376,4211,089Interest expense(32)(4,550)(3,815)(11,000)Other income---13,565Other expense(3,211)(3,314)(7,756)(2,285)Gain on extinguishment of debt1,000-9,417-Total Other Income and Expenses1,943(7,327)4,2671,369NET LOSS(261,513)(691,569)(569,673)(1,365,612)Foreign currency translation(5,490)1,0252,9644,368NET COMPREHENSIVE LOSS($267,003)($690,544)($566,709)($1,361,244)Basic Loss per Share($0.01)($0.02)($0.02)($0.05)Weighted Average Number of Shares Outstanding28,124,31127,725,94131,433,38528,410,297 The accompanying notes are an integral part of these consolidated financial statements.   PAGE 4   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows  For the Six Months EndedSeptember 30,20072006CASH FLOWS FROM OPERATING ACTIVITIESNet Loss($566,709)($1,365,612)Adjustments to reconcile net loss to net cash used by operating activities:Depreciation70,545704,741Amortization of debt offering and capitalized costs-89,667Common stock issued for services5,66641,909Amortization of fair value of stock options issued and vesting265,901295,082Amortization of costs related to repricing of warrants20,342-Changes in operating assets and liabilities:(Increase) decrease in accounts receivable(153,222)504,186(Increase) decrease in inventories3,456(4,840)(Increase) decrease in deferred costs(1,138)(15,066)(Decrease) in accounts payable and accrued liabilities(68,445)(268,257)Increase (decrease) in unearned revenue48,705(46,538)(Increase) decrease in other assets123,34124,193Net Cash Provided (Used) by Operating Activities(251,558)(40,535)CASH FLOWS FROM INVESTING ACTIVITIESCash payment for notes receivable-(4,638)Loss on sale of assets-3,758Net Cash Provided (Used) by Investing Activities-(880)CASH FLOWS FROM FINANCING ACTIVITIESPayments on notes payable(221,688)(89,990)Proceeds from exercise of warrants and stock options1,014,8017,400Net Cash Provided (Used) by Financing Activities793,113(82,590)Foreign currency translation10,9804,368Net Increase (Decrease) in Cash552,535(119,637)Cash at Beginning of Year47,764297,239Cash at End of Year$          600,299$          177,602  The accompanying notes are an integral part of these consolidated financial statements.  PAGE 5   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Consolidated Statements of Cash Flows  For the Six Months EndedSeptember 30,20072006NON-CASH INVESTING & FINANCING ACTIVITIES:Purchase of assets for stock-$          225,000CASH PAID FOR:Interest$3,815$5,161Income taxes--   The accompanying notes are an integral part of these consolidated financial statements.    PAGE 6   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements September 30, 2007 and September 30, 2006  NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION  The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).  The condensed consolidated financial statements include the results of PCS Edventures!.com, Inc. and its subsidiaries.  The subsidiaries include PCS School, Inc. and PCS LabMentors, LTD., which the Company acquired in October 1994 and November 2005, respectively. 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 condensed or omitted in accordance with such rules and regulations.  The information furnished in the interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements and presented on an unaudited basis.  Although management believes the disclosures and information presented are adequate not to make the information misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company's most recent audited financial statements and notes thereto included in its March 31, 2007 Annual Report on Form 10-KSB, which is on file with the SEC.  The operating results for the three-month or six-month periods ended September 30, 2007 and September 30, 2006 are not necessarily indicative of the results that may be expected for the year ending March 31, 2008.  NOTE 2 - GOING CONCERN  The Company's consolidated financial statements are prepared using Generally Accepted Accounting Principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.   However, the Company does not have an established source of revenues sufficient to cover its current operating costs.  The Company has recently increased its cash position and reduced its liabilities as compared to prior periods to assist in demonstrating its ability to continue as a going concern.  In addition, the Company has accumulated significant losses during previous operating years.  All of these items raise substantial doubt about the Company's ability to continue as a going concern, but are partially offset by the recent improved cash and liability positions. Management's plans with respect to alleviating the adverse financial conditions, which may cause some doubt about the Company's ability to continue as a going concern, are as follows:  During the fiscal quarter ending September 30, 2007, the Company continued to strengthen its strategic alliances with fischertechnik®, Lego®, KNex®, S & L Manufacturing, Flexitoys Corporation, Science Demo, and several curriculum writers throughout the United States for further product development and enhancement to existing curriculum.  To date, the Company has continued to develop marketplace strategy for the US market, as well as the international market, through exhibits at trade shows, enhanced marketing material, and cooperative marketing with several of our vendors.  Furthermore, the Company continued to discuss potential acquisitions with companies that will provide synergies to existing products, increase revenues, and provide access to many of the emerging educational markets, both domestically and internationally.  The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.    PAGE 7   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements September 30, 2007 and September 30, 2006  NOTE 3 - FIXED ASSETS  Assets and depreciation for the period are as follows:  September 30, 2007Computer/office equipment$         24,580Server equipment91,965Accumulated depreciation(64,410)Total Fixed Assets$         52,135  NOTE 4 - EDUCATIONAL SOFTWARE  Educational software was purchased by the Company as a part of the acquisition of 511092 N.B. LTD. and consists of internally developed education computer programs and exercises to be accessed on the Internet. In accordance with FAS 86, the costs associated with research and initial feasibility of the programs and exercises are expensed as incurred. Once economic feasibility has been determined, the costs to develop the programs and exercises are capitalized until they are ready for sale and access and are reported at the lower of unamortized cost or net realizable value. Capitalized program and exercise inventory are amortized on a straight-line basis over the estimated useful life of the program or exercise, generally 42 to 48 months. This educational software had a carrying value of $77,924 at March 31, 2007 with a total of $8,952 of related depreciation recognized during the six-month period ended September 30, 2007, with a resulting carrying value of $68,972 at September 30, 2007.  NOTE 5 - INTELLECTUAL PROPERTY  Intellectual property consists of capitalized costs associated with the development of the Internet software and delivery platform developed by PCS LabMentors to enable access to the various educational programs and exercises developed by the Company, as well as the PCS STEPS® program acquired during fiscal year 2007, as outlined in the section entitled "Status of any publicly announced new product or service" in the Annual Report on Form 10-KSB filed with the SEC on June 29, 2007.  In accordance with FAS 86, the initial costs associated with researching the delivery platform and methods were expensed until economic feasibility and acceptance were determined. Thereafter, costs incurred to develop the Internet online delivery platform and related environments were capitalized until ready for use and able to deliver and access the Company's educational programs and exercises. Costs incurred thereafter to maintain the delivery and access platform are expensed as incurred. These capitalized costs are being amortized on a straight-line basis over the estimated useful life of the Companys delivery and access platform, which has been determined to be 60 months. This intellectual property had a carrying value of $194,007 at March 31, 2007.  Amortization recognized for the six-month period ended September 30, 2007 was $42,127, with a carrying value of $151,880 at September 30, 2007.    PAGE 8   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements September 30, 2007 and September 30, 2006  NOTE 6 - GOODWILL  The entire goodwill balance of $485,238 at September 30, 2007, which is not deductible for tax purposes due to the purchase being completed through the exchange of stock, is related to the Company's acquisition of PCS LabMentors in December 2005. Included within this amount of goodwill is $135,658 of costs associated with the acquisition. The capitalized costs are for accounting, consulting, and legal fees associated with the transaction. With the acquisition of PCS LabMentors, the Company gained LabMentors' significant interest in the technical college market and increased the products available to educational outlets. The Company also obtained the information technology and programming expertise of LabMentors' workforce, gained additional cost optimization, and gained greater market flexibility in optimizing market information and access to collegiate level sales.  The provisions of SFAS 142 require that a two-step impairment test be performed annually or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The first step of the test for impairment compares the book value of the Company to its estimated fair value.  We undertook an impairment review at the end of the fiscal year ended March 31, 2007.  After reviewing current operating losses and future growth potential of the subsidiary, the Company determined that no impairment was created. The basis for this determination included the growth of existing clients since the end of the fiscal year, conversations with potential customers for the upcoming year, the proven record since a bank account was established for the Company to sustain operations for the foreseeable future, as well as the added economies of scale the subsidiary has added to the Company as a whole, including several technical performance enhancements supplied by LabMentors to supplement the core capabilities of PCS, such as creation of added internet service bandwidth and associated signal routing capabilities not known to the technical people at PCS; locating and managing a demonstration server on their system for a wide variety of PCS products; and assisting technical people from PCS and E2S in the creation and management of a server to host the PCS STEPS® product. In conclusion, the Company felt and still feels that LabMentors brought more than a cutting edge product to PCS, but the acquisition also brings vertical integration and technology not previously known by PCS.  NOTE 7 - ACCRUED EXPENSES  Accrued expenses are made up of credit card debt of $12,774 and stock payable of $6,048 at September 30, 2007, for a total of $18,882.  NOTE 8 - NOTES PAYABLE - RELATED PARTY  Notes payable - related party, including associated interest, was converted from debt to equity during the fiscal quarter ended June 30, 2007.  NOTE 9 - NOTES PAYABLE  Notes payable are made up of the following at September 30, 2007:  Notes payable to a Canadian governmental agency bearing no interest, with payments due the 1st of each month, unsecured$         36,766Total Notes Payable$         36,766   PAGE 9   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements September 30, 2007 and September 30, 2006  NOTE 10  COMMITMENTS AND CONTINGENCIES  a. Operating Lease Obligation  The Company leases its main office under a non-cancelable lease agreement accounted for as an operating lease. The lease expires in June 2012.  Fiscal YearMonthly Obligation2008$10,0502009$10,3502010$10,6502011$10,9502012$11,250Total$639,000  Rent expense for the corporate offices was $46,786 and $43,500 for the six-month ended September 30, 2007 and 2006, respectively, under this lease arrangement.  The Company leases warehouse space close to its headquarters. The lease expires in February 2008. The monthly rental obligation is approximately $1,500 for total lease payments remaining of $7,500.  Rent expense was approximately $9,000 and $4,500 for the six-month ended September 30, 2007 and 2006, respectively.  The Company leases office space for its subsidiary in Canada. This lease is a month-to-month lease that may be cancelled at any time. The monthly rental obligation is approximately $1,100 each month. The Company intends to continue to lease this space on a month-to-month basis.  Rent expense was approximately $6,600 for the six-month period ended September 30, 2007 and 2006.  b. Litigation  None; not applicable.  NOTE 11 - STOCKHOLDERS' EQUITY  The Stockholders' Equity Section increased during the quarter due to the following transactions:  During the quarter ended September 30, 2007, the Company issued 10,000 shares of common stock for the exercise of a stock option agreement to an employee valued at approximately $1,000.  During the quarter ended September 30, 2007, the Company issued 460,000 shares of common stock for the exercise of a warrant agreement to an investor valued at approximately $313,000.  During the quarter ended September 30, 2007, the Company issued 4,292 shares of common stock as a bonus to an employee valued at approximately $6,000.  During the quarter ended September 30, 2007, the Company issued 50,000 shares of common stock for the exercise of a stock option agreement to an employee valued at approximately $15,500.  During the quarter ended September 30, 2007, the Company issued 50,000 shares of common stock for the exercise of a stock option agreement to an employee valued at approximately $6,500.  During the quarter ended September 30, 2007, the Company issued stock option agreements for 17,856 shares of common stock as compensation to four of its five board members valued at approximately $15,000.  PAGE 10   PCS EDVENTURES!.COM, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements September 30, 2007 and September 30, 2006  NOTE 11 - STOCKHOLDERS' EQUITY (continued)  Some of the transactions listed above were a result of the Company's adoption of SFAS 123(R)(see next paragraph).  The value of the stock options granted during the current quarter was properly accounted for under the stockholders' equity section because the Company's stock has no par value.  The Company accounts for stock-based employee compensation in accordance with SFAS 123(R) (revised 2004) "Share-Based Payment."  SFAS No. 123(R) requires employee stock-based compensation to be measured based on the fair value as of the grant-date of the awards and the cost is to be recognized over the period during which an employee is required to provide services in exchange for the award.  Historically, the company used the intrinsic method of valuation as specified in APB No. 25, "Accounting for Stock Issued to Employees" and related interpretations and accordingly no compensation cost had been recognized for stock options in prior years.  This pronouncement eliminates the alternative use of Accounting Principles Board (APB) No. 25, wherein the intrinsic value method of accounting for awards is used.  As a result of adopting the fair value method for stock compensation, all future awards and current awards vesting in future periods will be expensed over the stock options' vesting period as defined in its contract award.  The Company adopted this provision during the fiscal year ended March 31, 2007.  A summary of the status of the Company's outstanding stock options and warrants as of September 30, 2007 is presented below:  Weighted AverageSharesExercise PriceOutstanding, beginning of year10,321,790$             0.98Granted354,220$             1.43Expired/Cancelled--Exercised(3,095,890)$             0.41Outstanding, end of year7,580,120$             0.73Exercisable6,516,620$             0.70  NOTE 12  DEPRECIATION AND AMORTIZATION EXPENSE  During the six-month period ended September 30, 2006, the Company had depreciation and amortization expense of $794,408.  This amount was composed of depreciation related to fixed assets, as well as the amortization of Warrant A and Warrant B expenses of $666,667.  The warrants were fully amortized as of September 30, 2006.  Thus, the decrease in depreciation and amortization expense during the period ended September 30, 2007 was due to the lack of the warrant amortization.  The full expense of $87,158 was related to depreciation of fixed assets for the six-month period ended September 30, 2007.  NOTE 13 - SUBSEQUENT EVENTS  On October 1, 2007, PCS Edventures!.com, Inc. (hereinafter PCS) entered into a Non-Interest Bearing Promissory Note and Assignment of Equity (hereinafter the Note) with Global Techniques dba PCS Middle East (PCS ME) and Mohamed Yasser Refai, jointly (hereinafter Borrowers).  The Note amount of $250,000 is payable in full on or before December 31, 2007.  An extension of 30 days may be obtained by PCS ME with documentation provided to PCS on or before the expiration of the Note.  The Note is secured by an equity position in Global Techniques.  The details pertaining to this transaction were filed by the Company on Form 8-K with the Securities and Exchange Commission on October 5, 2007.     PAGE 11   Item 2.   Management's Discussion and Analysis or Plan of Operation.  Overview.  PCS Edventures!.com, Inc. (the "Company," "PCS," "we," "our," "us" or similar words) was incorporated in 1994 in the State of Idaho. In October 1994, we acquired PCS Schools, Inc. ("PCS Schools"), which was later divested to focus our efforts on educational systems for use in classrooms instead of free standing learning centers.  In November 2005, we acquired PCS LabMentors, Ltd. based in Fredericton, New Brunswick, Canada, which is a wholly owned subsidiary of PCS Edventures!.com, Inc.  PCS LabMentors is the exclusive provider of a proprietary virtual lab technology, which is designed to provide hands-on experience to high school through college students studying a variety of technical topics. These technical topics include programming, network management, security, and operating systems. LabMentors' technology provides students with the ability to manage and configure any hardware/software platform remotely, through a proprietary client accessed remote server farm. Also embedded within the LabMentors system is a Learning Management System (LMS) that enables the delivery and tracking of curriculum and tasks to students. Using LabMentors' complete solution, any school or institution can offer advanced IT training topics in any number of areas such as Security+®, A+®, Vista®, Windows Server 3000®, Linux® system administration, and various other applications without the associated overhead of owning and managing various hardware platforms.  The Company is engaged in the business of developing and marketing educational learning labs bundled with related technologies and programs. Our products and technologies are targeted and marketed to public and private school classrooms for pre-kindergarten through college, after school market, and home school market.  Our products and technologies are delivered to each of these markets through an inventory of hardware, software, books (both developed in-house and from external sources), and Internet access. Our technologies and products are delivered to the home user through Internet access via a subscription based website.  Our products and technologies allow students ages 3 and up to explore the basic foundations of mechanical engineering, structures in architecture, robotics, mathematics, art, computer science, programming, and physical science.  The results of operations discussed herein are on a consolidated basis.  Foreign Currency Exchange Rate Risk.  The Company sells many products throughout the international market, as well as having operations in Canada as a result of the acquisition of LabMentors.  As a result, our statement of cash flows and operating results could be affected by changes in foreign currency exchange rates or weak economies of foreign countries. Working capital necessary to continue operating our foreign subsidiary are held in local, Canadian currency, with additional funds utilized through the parent company being held in U.S. dollars. Any gains or losses from the foreign currency translation are presented in our statements of operations. The LabMentors subsidiary is not a significant component of our business and as such the risk associated therewith is minimal.    PAGE 12   Results of Operations.  Operating Results - Overview.  The quarter ended September 30, 2007 resulted in a net loss of ($267,003) as compared to the net loss during the quarter ended September 30, 2006 of ($690,544).  The Company has decreased its losses from the prior fiscal year, same three-month period by $423,541, or approximately sixty-one percent (61%).  The Basic Loss per Share for the quarter ended September 30, 2007 is ($0.01), which is a $0.01 increase in value per share from the quarter ended September 30, 2006 of ($0.02) per share.  The six-month period ended September 30, 2007 resulted in a net loss of ($566,709) as compared to the net loss during the six-month period ended September 30, 2006 of ($1,361,244).  The Company has decreased its losses over the prior fiscal year, same six-month period by $794,535, or approximately sixty percent (60%).  The Basic Loss per Share for the six-month period ended September 30, 2007 is ($0.02), which is a $0.03 increase in value per share from the six-month period ended September 30, 2006 of ($0.05) per share.  Details of changes in revenues and expenses can be found below.  Three-month period ended September 30, 2007, compared to three-month period ended September 30, 2006.  Revenues for the three-month period ended September 30, 2007, increased to $652,198 or by approximately $147,300, or twenty-nine percent (29%) as compared to revenues of $504,886 for the three-month period ended September 30, 2006.  This increase was due to attendance by the sales team at additional conferences, added marketing material, and the addition of two personnel within the sales department during the first quarter resulting in increased sales.  The results of the increased effort by the sales and marketing staff will continue to be seen in the coming months.  Cost of sales for the three-month period ended September 30, 2007, increased by approximately $76,100, or approximately thirty-seven percent (37%) to $281,435 as compared to the cost of sales of $205,319 for the three-month period ended September 30, 2006.  This increase was due to an increase in sales and related commission and royalty payments, as well as an increase in costs for our subsidiary.  The increase in costs to the subsidiary was due to outsourcing of short-term labor requirements to make the projects more cost effective in the long-term.  Operating expenses for the three-month period ended September 30, 2007, decreased by approximately $349,600, or thirty-six percent (36%) to $634,219 as compared to operating expenses of $983,809 for the three-month period ended September 30, 2006.  This decrease this fiscal quarter was due to the lack of amortization of the Barron Partners, LP notes payable, which was fully amortized as of September 30, 2006.  This amount was partially offset by an increase in options and warrants expense due to FAS 123(R).  Interest expenses for the three-month period ended September 30, 2007, decreased to $32 as compared to $4,550 for the three-month period ended September 30, 2006.  This decrease was due to the ability of the Company to meet its payable obligations and thus not incur additional interest on balances due to vendors.  Furthermore, all related party notes payable and all but one liability, which is a non-interest bearing note, have been either paid in full or converted to equity.  Six-month period ended September 30, 2007, compared to six-month period ended September 30, 2006.  Revenues for the six-month period ended September 30, 2007, increased to $1,306,998, or by approximately $241,400, or twenty-three percent (23%) as compared to revenues of $1,065,604 for the six-month period ended September 30, 2006.  This increase was due to attendance by the sales team at additional conferences, added marketing material, and the addition of two personnel within the sales department.  The increase in sales as a whole was partially offset by a decrease in sales of our subsidiary, which was a result of unusually high sales in the previous year.  Cost of sales for the six-month period ended September 30, 2007, increased by approximately $164,500, or approximately thirty-seven percent (37%) to $613,482 as compared to costs of sales $449,001 for the six-month period ended September 30, 2006.  This increase was due to an increase in sales and related commissions and royalty payments, as well as a slight increase in costs of goods for materials within our learning labs.  This increase  PAGE 13   was due to an increase in sales and related commissions, as well as an increase in costs for our subsidiary.  There was also an increase in costs to our subsidiary, which was due to outsourcing of short-term labor requirements to make current projects more cost effective in the long-term.  Operating expenses for the six-month period ended September 30, 2007, decreased by approximately $716,100, or thirty-six percent (36%) to $1,267,456 as compared to operating expenses of $1,983,584 for the six-month period ended September 30, 2006.  This decrease was due to the lack of amortization of the Barron Partners, LP notes payable in the first two quarters of fiscal year 2007, which was fully amortized as of September 30, 2006.  This decrease was partially offset by an increase in options and warrants expense due to FAS 123(R).  Interest expenses for the six-month period ended September 30, 2007, decreased to $3,815 as compared to $11,000 for the three-month, period ended September 30, 2006.  This decrease was due to the ability of the Company to meet its payable obligations and thus not incur additional interest on balances due to vendors.  Furthermore, all related party notes payable and all but one liability, which is a non-interest bearing note, have been either paid in full or converted to equity.  Liquidity.  As of the quarter ended September 30, 2007, we had $600,299 in Cash, with total current assets of $1,105,468 and total current liabilities of $417,026.  We have an accumulated deficit of ($28,358,323) and shareholders equity of $1,454,126.  The Company has a current ratio of 2.65. The current ratio for the quarter ended September 30, 2006 was 0.288. The ratio indicates that we are able to meet most, if not all of our current obligations with the assets currently available to the Company.  The notes payable in the previous fiscal year that has since been paid in full or converted to equity contributed to the increase in our current ratio.  We have utilized the current ratio over a quick ratio due to the fact that most items in inventory are easily saleable should the need to liquidate arise.  The Company continues to increase its current ration through cash management, collection procedures, and investments from outside firms.  The Company has working capital of $688,442 at September 30, 2007. The working capital amount indicates that our ability to pay current debt obligations through our current assets is favorable.  The working capital for the quarter ended September 30, 2006 was ($1,158,867).  This increase was due primarily to the notes payable in the previous fiscal year that has since been paid in full or converted to equity.  Item 3A(T).   Controls and Procedures.  Management Annual Report on Internal Controls Over Financial Reporting  On June 1, 2005, the Company's Audit Committee submitted for Board approval the following policies and procedure manuals: Accounting Policies and Procedures; Internal Control Procedures; and Sarbanes-Oxley Compliance. All three manuals were reviewed and unanimously approved by the Board of Directors. In addition to formalizing the Company's already existing policies, the Accounting Policies and Procedures and the Internal Control Procedures manuals include guidelines that offer an additional level of review of financial information. Due to the small accounting staff, the Company viewed this as an area for improvement. We believe that the approval and implementation of these policies with regard to disclosure controls and procedures are effective in timely alerting the Chief Executive Officer and the Chief Financial Officer to material information required to be included in our periodic reports that are filed with the Securities and Exchange Commission. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.  As of the end of the period covered by this Quarterly Report, we carried out an evaluation, under the supervision and with the participation of our President and Audit Committee Chair, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our President and Chief Financial Officer concluded that our disclosure controls and procedures are effective, and designed to ensure that information required to be disclosed or filed by us is recorded, processed or summarized, within the time periods specified in the rules and regulations of the Securities and Exchange Commission. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there  PAGE 14   can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. In addition, we reviewed our internal controls, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of their last evaluation.  Changes in Internal Controls Over Financial Reporting  There have not been any changes over the internal controls for financial reporting during the fiscal quarter ended September 30, 2007.  PART II - OTHER INFORMATION  Item 1.   Legal Proceedings.  None; not applicable.  Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds.  Sales of Unregistered Securities During the Last Quarter.  CommonPreferredDescriptionSharesAmountSharesAmountEmployee (1)10,000$      1,000--Investor (2)460,000312,800--Employee (3)4,2925,666--Employee (1)50,00015,500--Employee (1)50,0006,500--   (1) These shares were issued to an employee(s) for exercise of stock options at various prices. (2) These shares were issued to an investing firm after exercise of Warrant Form A. (3) These shares were issued to an employee for compensation.  We issued these securities to persons who were either "accredited investors," or "sophisticated investors" who, by reason of education, business acumen, experience or other factors, were fully capable of evaluating the risks and merits of an investment in our Company; and each had prior access to all material information about us. We believe that the offer and sale of these securities was exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Sections 4(2) and 4(6) thereof, and Rule 506 of Regulation D of the Securities and Exchange Commission and from various similar state exemptions, and with respect to the foreign investors, pursuant to Regulation S of the Securities and Exchange Commission.  Item 3.   Defaults Upon Senior Securities.  None; not applicable.   PAGE 15   Item 4.   Submission of Matters to a Vote of Security Holders.  On August 21, 2007, the Company held its Annual Meeting of Shareholders at its principal location in Boise, Idaho.  A quorum was represented at the meeting in person and via proxy.  Of the 33,865,752 shares outstanding at the record date, 31,181,413 proxies had been received by the Company.  At the Annual Meeting, two proposals were brought forth for vote by the shareholders.  The first item of business was to reelect the Board of Directors until the next annual meeting.  The shareholders voted 31,003,241 shares in favor to reelect the following Board of Directors for another term, while 102,989 shares were cast against the reelection:  NamePositionAnthony A. MaherChairmanDonald J. FarleySecretaryCecil D. AndrusDirectorDehryl A. DennisDirectorMichael K. McMurrayDirector  The second item of business was to ratify the selection by the Audit Committee of the Companys auditors, HJ & Associates, LLC until the next annual meeting.  The shareholders voted 31,015,404 shares in favor of ratifying the reelection of HJ & Associates, LLC for another term, while 10,798 votes were cast against the ratification.  Item 5.   Other Information.  None; not applicable.  Item 6.   Exhibits.  (i)Where Incorporated in this Report  Registration Statement on SB-2/A filed May 2, 2001, as amended.Parts I, IIRegistration Statement on SB-2/A filed March 13, 2006, as amendedParts I, II8K filed December 9, 2005 re: LabMentorsPart I8K/A filed February 15, 2006 re: LabMentorsPart I8K filed August 22, 2006 re: Amendment to Articles of Incorporation or BylawsParts I, II8K filed August 29, 2006 re: Amendment to Articles of Incorporation or BylawsParts I, II8K filed October 12, 2006 re: Amendment to Articles of Incorporation or BylawsParts I, II8K filed October 5, 2007 re: Entry into Material Definitive AgreementPart I   PAGE 16   (ii)Other Exhibits  Exhibit No.Description21Subsidiaries of the Company31.1302 Certification of Anthony A. Maher31.2302 Certification of Shannon M. Stith32906 Certification  SIGNATURES  In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  PCS EDVENTURES!.COM, INC.  Dated:November 1, 2007By:/s/Anthony A. MaherAnthony A. MaherCEO, President and Chairman of the Board of Directors  In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.  DatedNovember 1, 2007By:/s/Shannon M. StithShannon M. StithVice President, CAO and CFODatedNovember 1, 2007By:/s/Donald J. FarleyDonald J. FarleySecretary and DirectorDatedNovember 1, 2007By:/s/Cecil D. AndrusCecil D. AndrusDirectorDatedNovember 1, 2007By:/s/Dehryl A. DennisDehryl A. DennisDirectorDateNovember 1, 2007By:/s/Michael K. McMurrayMichael K. McMurrayDirector   PAGE 17