EXHIBIT 99.1






                     BIGSTRING CORPORATION AND SUBSIDIARIES

                        CONSOLIDATED FINANCIAL STATEMENTS

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007







<page>
<table>
<caption>

                                BIGSTRING CORPORATION AND SUBSIDIARIES
                                     CONSOLIDATED BALANCE SHEETS
                                    (A DEVELOPMENT STAGE COMPANY)

                                                                        June 30, 2007  December 31, 2006
                                                                        -------------  -----------------
                                                                         (Unaudited)

                                                                             <c>              <c>
                                                ASSETS

Current assets:
         Cash and cash equivalents                                       $    479,719     $    517,074
      Accounts receivable - net of allowance of $90 and $0                      1,783            1,736
      Prepaid expenses and other current assets                                 9,500            4,625
                                                                         ------------     ------------

         Total current assets                                                 491,002          523,435

Property and equipment - net                                                  188,686          214,612

Intangible assets - net                                                     2,437,845        2,979,451

Other assets                                                                  166,218            8,872
                                                                         ------------     ------------

           TOTAL ASSETS                                                  $  3,283,751     $  3,726,370
                                                                         ============     ============


                                LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
      Accounts payable                                                   $    177,828     $     83,179
      Accrued expenses                                                         15,600          125,179
      Unearned revenue                                                         14,182            4,681
                                                                         ------------     ------------

         Total current liabilities                                            207,610          213,039

Long-term liabilities:
      Long-term debt                                                          148,808               --
                                                                         ------------     ------------

           TOTAL LIABILITIES                                                  356,418          213,039

Stockholders' equity:
      Preferred stock, $.0001 par value - authorized 1,000,000 shares;
        outstanding 400,000 and 400,000 shares, respectively                       40               40
      Common stock, $.0001 par value - authorized 249,000,000 shares;
        outstanding 47,367,125 and 46,935,125 shares, respectively              4,737            4,694
      Additional paid in capital                                           11,072,799        9,980,762
      Subscription receivable                                                      --          (16,250)
      Deficit accumulated during the development stage                     (8,150,243)      (6,455,915)
                                                                         ------------     ------------

         Total stockholders' equity                                         2,927,333        3,513,331
                                                                         ------------     ------------

           TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $  3,283,751     $  3,726,370
                                                                         ============     ============
                      See notes to unaudited consolidated financial statements.

</table>
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<table>
<caption>

                                            BIGSTRING CORPORATION AND SUBSIDIARIES
                                            CONSOLIDATED STATEMENTS OF OPERATIONS
                                                (A DEVELOPMENT STAGE COMPANY)
                                                         (Unaudited)

                                                                                                                  Period
                                                                                                              October 8, 2003
                                                                                                                 (Date of
                                                Three Months Ended June 30,     Six Months Ended June 30,        Formation)
                                               ----------------------------    ----------------------------       Through
                                                   2007            2006            2007            2006        June 30, 2007
                                               ------------    ------------    ------------    ------------    -------------

                                                 <c>             <c>             <c>             <c>           <c>
Net sales                                      $      9,412    $      2,887    $     19,187    $      6,059    $     45,982

Costs and expenses(1):
     Cost of revenues                                25,796          50,713          69,120          73,975         362,201
     Research and development                       118,290         133,629         257,387         262,803       1,366,168
     Sales and marketing                            136,793          28,070         203,739          38,882         554,125
     General and administrative                     329,110         247,408         604,357         405,807       2,472,117
    Amortization of intangibles                     270,803         250,000         541,606         490,000       2,978,222
                                               ------------    ------------    ------------    ------------    ------------
                                                    880,792         709,820       1,676,209       1,271,467       7,732,833
                                               ------------    ------------    ------------    ------------    ------------

Loss from operations                               (871,380)       (706,933)     (1,657,022)     (1,265,408)     (7,686,851)
                                               ------------

                                                    (41,462)         10,365         (37,306)         14,853          16,608
                                               ------------    ------------    ------------    ------------    ------------

Net loss                                       $   (912,842)   $   (696,568)   $ (1,694,328)   $ (1,250,555)   $ (7,670,243)
                                               ============    ============    ============    ============    ============

Loss per common share - basic
    and diluted                                $      (0.02)   $      (0.02)   $      (0.04)   $      (0.03)
                                               ============    ============    ============    ============

Weighted average common shares
    outstanding - basic and diluted              47,334,158      51,264,630      47,198,108      52,013,219
                                               ============    ============    ============    ============

 (1)Stock-based compensation by
    function included above
     Cost of revenues                          $         --    $         --    $        903    $         --    $     29,541
     Research and development                        10,770              --          21,832              --          68,681
     Sales and marketing                             23,023              --         117,159              --         157,323
     General and administrative                     138,554          32,230         254,218          32,230         723,863
                                               ------------    ------------    ------------    ------------    ------------
      Total stock-based compensation expense   $    172,347    $     32,230    $    394,112    $     32,230    $    979,408
                                               ============    ============    ============    ============    ============

                                  See notes to unaudited consolidated financial statements.

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<caption>
                                               BIGSTRING CORPORATION AND SUBSIDIARIES
                                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                                    (A DEVELOPMENT STAGE COMPANY)
                                                             (Unaudited)



                                                Preferred Stock          Common Stock        Additional
                                            ---------------------  ---------------------       Paid-In    Subscription   Retained
                                    Total   No. of Shares  Amount  No. of Shares   Amount      Capital     Receivable    Earnings
                                 ---------- ------------- -------- -------------  --------  ------------  -----------  ------------
------------------------------------------------------------------------------------------------------------------------------------

                             <c>                 <c>       <c>           <c>        <c>            <c>         <c>       <c>
Balance, October 8, 2003         $        --         --   $     --           --   $     --   $        --    $     --    $        --
------------------------------------------------------------------------------------------------------------------------------------

Issuance of common stock
   (at $.0001 per share)                  --         --         --   21,210,000      2,121        (2,121)         --             --

Contribution of capital               45,000         --         --           --         --        45,000          --             --

Sale of common stock
   (at $0.25 per share)                   --         --         --       40,000          4         9,996     (10,000)            --

Net loss                             (29,567)        --         --           --         --            --          --        (29,567)

------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2003            15,433         --         --   21,250,000      2,125        52,875     (10,000)       (29,567)
------------------------------------------------------------------------------------------------------------------------------------

Sale of common stock
   (at $0.25 per share)              227,500         --         --      870,000         87       217,413      10,000             --

Issuance of common
   stock for services
   (valued at $0.21 per share)        39,251         --         --      185,000         19        39,232          --             --

Issuance of common
   stock for acquisition
   (valued at $0.24 per share)     4,800,000         --         --   20,000,000      2,000     4,798,000          --             --

Issuance of warrants for
   services (valued at $0.07
   per share)                          3,500         --         --           --         --         3,500          --             --

Net loss                            (729,536)        --         --           --         --            --          --       (729,536)

------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2004         4,356,148         --         --   42,305,000      4,231     5,111,020          --       (759,103)
------------------------------------------------------------------------------------------------------------------------------------

Sale of common stock
   (at $0.25 per share)              230,500         --         --      922,000         92       230,408          --             --

Exercise of warrants
   (at $0.25 per share)               11,250         --         --       45,000          4        11,246          --             --

Issuance of common
   stock for services
   (valued at $0.25 per share)        12,500         --         --       50,000          5        12,495          --             --

Sale of common
   stock (at $0.16 per share)      1,511,700         --         --    9,448,125        945     1,510,755          --             --

Issuance of warrants for
   services (valued at $0.07
   per share)                        179,200         --         --           --         --       179,200          --             --

Net loss                          (2,102,587)        --         --           --         --            --          --     (2,102,587)

------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2005         4,198,711         --         --   52,770,125      5,277     7,055,124          --     (2,861,690)
------------------------------------------------------------------------------------------------------------------------------------

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<caption>

                                               BIGSTRING CORPORATION AND SUBSIDIARIES
                                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                                    (A DEVELOPMENT STAGE COMPANY)
                                                             (Continued)

                                              Preferred Stock        Common Stock            Additional
                                          ---------------------  ---------------------         Paid-In   Subscription    Retained
                                  Total   No. of Shares  Amount  No. of Shares   Amount        Capital    Receivable     Earnings
                               ---------- ------------- -------- -------------  --------    ------------  -----------  ------------
------------------------------------------------------------------------------------------------------------------------------------

                             <c>                 <c>       <c>           <c>        <c>            <c>         <c>       <c>
Redemption of shares from
   stockholders
   (at $0.05 per share)         (400,000)        --         --    (8,000,000)       (800)       (399,200)         --             --

Issuance of common stock
   for consulting services
   (valued at $0.82 per
   share)                             --         --         --     1,250,000         125            (125)         --             --

Stock-based compensation
   expense                       314,250         --         --            --          --         314,250          --             --

Issuance of warrants for
   consulting services
   (valued at $0.08,
   $0.18 and $0.42 per
   share)                         36,595         --         --            --          --          36,595          --             --

Issuance of common stock
   for website acquisition
   (valued at $0.80 per
   share)                        600,000         --         --       750,000          75         599,925          --             --

Sale of preferred stock
   (at $.0001 per share)       1,860,000    400,000         40            --          --       1,859,960          --             --

Dividends resulting from
   the allocation of
   proceeds for the
   beneficial conversion
   feature of the
   preferred stock                    --         --         --            --          --         480,000          --       (480,000)

Exercise of warrants (at
   $0.16, $0.20 and $0.25
   per share)                     18,000         --         --       165,000          17          34,233     (16,250)            --

Net loss                      (3,114,225)        --         --            --          --              --          --     (3,114,225)

------------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2006     3,513,331    400,000         40    46,935,125       4,694       9,980,762     (16,250)    (6,455,915)
------------------------------------------------------------------------------------------------------------------------------------

Exercise of warrants (at
   $0.16, $0.20 and $0.25
   per share)                     16,250         --         --            --          --              --      16,250             --

Issuance of common stock
   for consulting services
   (valued at $0.33 and
   $0.50 per share)                   --         --         --       432,000          43             (43)         --             --

Stock-based compensation
   expense                       394,112         --         --            --          --         394,112          --             --

Allocation to warrants
   from sale of
   convertible promissory
   notes and warrants             31,320         --         --            --          --          31,320          --             --

Beneficial conversion
   feature of convertible
   promissory notes              666,648         --         --            --          --         666,648          --             --

Net loss                      (1,694,328)        --         --            --          --              --          --     (1,694,328)

------------------------------------------------------------------------------------------------------------------------------------
Balance, June 30, 2007       $ 2,927,333    400,000   $     40    47,367,125    $  4,737    $ 11,072,799    $     --    $(8,150,243)
------------------------------------------------------------------------------------------------------------------------------------
                                     See notes to unaudited consolidated financial statements.

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                                      BIGSTRING CORPORATION AND SUBSIDIARIES
                                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (A DEVELOPMENT STAGE COMPANY)
                                                   (Unaudited)
                                                                                                       Period
                                                                                                   October 8, 2003
                                                                                                      (Date of
                                                                       Six Months     Six Months      Formation)
                                                                          Ended          Ended         Through
                                                                      June 30, 2007  June 30, 2006  June 30, 2007
                                                                      -------------  -------------  -------------

                                                                       <c>               <c>           <c>
Cash flows from operating activities:
    Net loss                                                           $(1,694,328)   $(1,250,555)   $(7,670,243)
Adjustments to reconcile net loss
   to net cash used in operating activities:
    Depreciation of property and equipment                                  25,926         12,062         73,603
    Amortization of intangibles                                            541,606        490,000      2,978,222
    Amortization of other assets                                            48,210             --         48,210
    Stock-based compensation                                               394,112         32,230        979,408
    Changes in operating assets and liabilities:
       (Increase) in accounts receivable, net                                  (47)        (3,157)        (1,783)
       (Increase) in prepaid expenses and other assets                      (1,843)        (3,958)       (15,340)
       Increase in accounts payable                                         94,649         70,252        177,828
       (Decrease) increase in accrued expenses and other liabilities      (101,579)         3,822         20,534
       Increase (decrease) in unearned revenue                               9,501           (375)        14,182
                                                                       -----------    -----------    -----------
    Net cash used in operating activities                                 (683,793)      (649,679)    (3,395,379)
                                                                       -----------    -----------    -----------

Cash flows from investment activities:
    Purchase of property and equipment                                          --       (164,563)      (262,290)
    Acquisitions                                                                --             --        (13,000)
                                                                       -----------    -----------    -----------
    Net cash used in investing activities                                       --       (164,563)      (275,290)
                                                                       -----------    -----------    -----------

Cash flows from financing activities:
    Proceeds from issuance of convertible notes and warrants, net          630,188             --        630,188
    Proceeds from issuance of preferred stock, net                              --      1,860,000      1,860,000
    Proceeds from exercise of common stock warrants and
       issuance of common stock                                             16,250             --      2,060,200
    Payments for redemption of common stock                                     --       (400,000)      (400,000)
                                                                       -----------    -----------    -----------
    Net cash provided by financing activities                              646,438      1,460,000      4,150,388
                                                                       -----------    -----------    -----------

Net (decrease) increase in cash                                            (37,355)       645,758        479,719

Cash - beginning of period                                                 517,074        820,857             --
                                                                       -----------    -----------    -----------

Cash - end of period                                                   $   479,719    $ 1,466,615    $   479,719
                                                                       ===========    ===========    ===========

Supplementary information:
    Details of acquisition
       Fair value of assets acquired                                   $        --    $        --    $     2,790
       Fair value of liabilities assumed                                        --             --         (5,857)
       Intangibles                                                              --        600,000      5,416,067
                                                                       -----------    -----------    -----------
       Common stock issued to effect acquisition                       $        --    $   600,000    $ 5,400,000
                                                                       ===========    ===========    ===========
       Cash paid to effect acquisition                                 $        --    $        --    $    13,000
                                                                       ===========    ===========    ===========

    Stock-based compensation:
       Common stock issued for services                                $   331,250    $    28,472    $   610,778
       Common stock options issued for services                             40,314             --        126,787
       Common stock warrants issued for services                            22,548          3,758        241,843
                                                                       -----------    -----------    -----------
                                                                       $   394,112    $    32,230    $   979,408
                                                                       ===========    ===========    ===========

                            See notes to unaudited consolidated financial statements.

</table>
<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006 AND THE PERIOD OCTOBER
--------------------------------------------------------------------------------
8, 2003 (DATE OF FORMATION) THROUGH JUNE 30, 2007
-------------------------------------------------

1.       DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION
---------------------

The  consolidated  balance  sheet  as of June  30,  2007,  and the  consolidated
statements of  operations,  stockholders'  equity and cash flows for the periods
presented  herein have been  prepared by  BigString  and are  unaudited.  In the
opinion of management,  all adjustments  (consisting  solely of normal recurring
adjustments)  necessary to present  fairly the  financial  position,  results of
operations,  changes in  stockholders'  equity  and cash  flows for all  periods
presented have been made. The information for the consolidated  balance sheet as
of December 31, 2006 was derived from audited financial statements.  The results
of  operations  for the  three  and six  months  ended  June  30,  2007  are not
necessarily  indicative  of the  results  to be  expected  for the  year  ending
December 31, 2007.

These Notes to Unaudited  Consolidated  Financial  Statements  should be read in
conjunction  with  the  consolidated  financial  statements  and  related  notes
included  in our Annual  Report on Form 10-KSB for the year ended  December  31,
2006 which was filed with the SEC on April 2, 2007.

ORGANIZATION
------------

BigString was incorporated in the State of Delaware on October 8, 2003 under the
name "Recall  Mail  Corporation."  The  company's  name was formally  changed to
"BigString Corporation" in July 2005. BigString was formed to develop technology
that  would  allow the user of email  services  to have  comprehensive  control,
security and privacy relating to the email generated by the user. In March 2004,
the BigString email service was introduced to the market.

BigString Interactive, Inc. ("BigString Interactive"), incorporated in the State
of New  Jersey,  was formed by  BigString  in early  2006 to develop  technology
relating  to  interactive  web  portals.   BigString  Interactive  is  currently
BigString's only operating subsidiary.

Email Emissary, Inc. ("Email Emissary"),  incorporated in the State of Oklahoma,
was  acquired  by  BigString  in July  2004;  in  September  2006,  all of Email
Emissary's assets, including its pending patent application, were transferred to
BigString. Email Emissary was dissolved on May 17, 2007.

BigString is considered a development  stage  enterprise as defined in Statement
of Financial  Accounting Standards ("SFAS") No. 7, "Accounting and Reporting for
Development Stage Companies," issued by the Financial Accounting Standards Board
(the "FASB").  BigString has limited revenue to date, continues to raise capital
and there is no assurance  that  ultimately  BigString will achieve a profitable
level of operations.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

PRINCIPLES OF CONSOLIDATION
---------------------------

The consolidated  financial statements include the accounts of BigString and its
subsidiaries,  all of which  are  wholly-owned  subsidiaries.  All  intercompany
transactions and balances have been eliminated.

USE OF ESTIMATES
----------------

The  preparation  of  consolidated   financial  statements  in  conformity  with
generally  accepted  accounting  principles  in the  United  States  of  America
requires management to make estimates, judgments and assumptions that affect the
reported  amounts of assets and liabilities and disclosure of contingent  assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses  during the  reporting  period.  On an on-going  basis,
BigString  evaluates  its  estimates.  Actual  results  could  differ from those
estimates.

RECLASSIFICATIONS
-----------------

Certain  reclassifications  have been made to prior period  balances in order to
conform to the current period's presentation.

CASH EQUIVALENTS
----------------

Cash equivalents include short-term  investments in United States treasury bills
and  commercial  paper with an original  maturity  of three  months or less when
purchased. At June 30, 2007 and December 31, 2006, cash equivalents approximated
$473,000 and $510,000, respectively.

CERTAIN RISKS AND CONCENTRATION
-------------------------------

Financial  instruments which potentially  subject BigString to concentrations of
credit risk consist principally of temporary cash investments.  BigString places
its temporary cash investments with established financial institutions.

Online service revenues  consist  primarily of prepaid  electronic  commerce and
subscription fees billed and paid in advance.

Accounts  receivable  are typically  unsecured  and are  primarily  derived from
advertising revenues earned from customers in the United States,  Canada, Europe
and Asia.

Advertising  revenues generated through two advertising services firms accounted
for 21% and 15% of our  revenues  for the six  months  ended June 30,  2007.  No
advertising services firm or customer generated greater than 10% of our revenues
for the six months ended June 30, 2006.

REVENUE RECOGNITION
-------------------

BigString derives revenue from online services, electronic commerce, advertising
and data  network  services.  BigString  also  derives  revenue  from  marketing
affiliations.  BigString

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

recognizes  revenue in accordance  with the guidance  contained in the SEC Staff
Accounting   Bulletin  ("SAB")  No.  104,  "Revenue   Recognition  in  Financial
Statements."

BigString  recognizes  online service  revenue over the period that services are
provided.  Other revenues,  which consist principally of electronic commerce and
advertising revenues,  as well as data network service revenues,  are recognized
as the services  are  performed.  BigString  recognizes  these  revenues as such
because the services have been provided, the fees are fixed or determinable, and
collectibility  is reasonably  assured.  Unearned revenue consists  primarily of
prepaid  electronic  commerce  and annual  prepaid  subscription  fees billed in
advance.

Consistent with the provisions of the FASB's Emerging Issues Task Force ("EITF")
Issue No.  99-19,  "Reporting  Revenue  Gross as a  Principal  Versus  Net as an
Agent," BigString  generally  recognizes revenue associated with its advertising
and  marketing  affiliation  programs  on a gross  basis  due  primarily  to the
following factors: BigString is the primary obligor; has general inventory risk;
has latitude in  establishing  prices;  has  discretion  in supplier  selection;
performs part of the service; and determines specifications.  In connection with
contracts to provide email  services to marketing  affiliates,  BigString may be
obligated to make  payments,  which may  represent a portion of revenue,  to its
marketing affiliates.

Consistent with EITF Issue No. 01-9,  "Accounting for Considerations  Given by a
Vendor  to a  Customer  (Including  the  Reseller  of  the  Vendor's  Product),"
BigString accounts for cash considerations given to customers, for which it does
not receive a separately identifiable benefit or cannot reasonably estimate fair
value,  as a  reduction  of  revenue  rather  than as an  expense.  Accordingly,
corresponding  distributions to active users and  distributions of referral fees
are recorded as a reduction of gross revenue.

BigString  records its allowance for doubtful  accounts based upon an assessment
of  various  factors,  including  historical  experience,  age of  the  accounts
receivable  balances,   the  credit  quality  of  customers,   current  economic
conditions and other factors that may affect customers' ability to pay. Reserves
at June 30, 2007 and December, 31 2006 were $90 and $0, respectively.

DEPRECIATION
------------

Property and  equipment  are stated at cost less  accumulated  depreciation  and
amortization.  Depreciation and amortization are calculated  primarily using the
straight-line method over their estimated useful lives of these assets.

STOCK-BASED COMPENSATION
------------------------

BigString  has one  stock-based  compensation  plan under  which  incentive  and
nonqualified  stock  options  or rights to  purchase  stock  may be  granted  to
employees, directors and other eligible participants. Effective January 1, 2006,
BigString   accounts  for  stock-based   compensation  under  SFAS  No.  123(R),
"Share-Based  Payment."  BigString  adopted  SFAS No.  123(R) using the modified
prospective  method.  Under this modified  prospective  method,  SFAS No. 123(R)
applies to new awards and to awards  modified,  repurchased,  or cancelled after
the required effective date of SFAS No. 123(R). Additionally, compensation costs
for the portion of the

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

awards  outstanding as of the required  effective  date of SFAS No. 123(R),  for
which the requisite  service has not been rendered,  are being recognized as the
requisite  service is rendered  after the  required  effective  date of SFAS No.
123(R).  The  compensation  cost  for the  portion  of  awards  is  based on the
grant-date  fair value of those awards as calculated  for either  recognition or
pro  forma  disclosures  under  SFAS  No.  123,   "Accounting  for  Stock  Based
Compensation."  Changes to the  grant-date  fair value of equity awards  granted
before  the  required  effective  date of SFAS No.  123(R)  are  precluded.  The
compensation cost for those earlier awards is attributed to periods beginning on
or after the required  effective  date of SFAS No. 123(R) using the  attribution
method that was used under SFAS No. 123,  except that the method of  recognizing
forfeitures only as they occur was not continued.

BigString  issues  shares  of  common  stock  to  non-employees  as  stock-based
compensation. BigString accounts for the services using the fair market value of
the  consideration  issued.  For the six months  ended  June 30,  2007 and 2006,
BigString recorded  compensation expense of $331,250 and $28,472,  respectively,
in connection with the issuance of these shares.  For the period October 8, 2003
(Date of  Formation)  through June 30,  2007,  BigString  recorded  compensation
expense of $610,778 in connection with the issuance of these shares.

BigString  issues  stock  purchase  warrants  to  non-employees  as  stock-based
compensation.  The fair values of the stock  purchase  warrants are estimated on
the date of grant  using the  Black-Scholes  option-pricing  model.  For the six
months  ended June 30, 2007 and 2006,  BigString  did not issue  stock  purchase
warrants for services and recorded  compensation expenses of $22,548 and $3,758,
respectively,  associated with prior issuances of stock purchase  warrants.  For
the period October 8, 2003 (Date of Formation) through June 30, 2007,  BigString
recorded  compensation  expense of $241,843 in  connection  with the issuance of
stock purchase warrants for services.

BigString  also issues  stock  options to purchase  common  stock to  employees,
directors and vendors as stock-based compensation.  The fair values of the stock
options  are   estimated   on  the  date  of  grant   using  the   Black-Scholes
option-pricing model. For the six months ended June 30, 2007 and 2006, BigString
recorded  compensation expense of $40,314 and $0,  respectively.  For the period
October 8, 2003 (Date of Formation)  through June 30, 2007,  BigString  recorded
compensation expense of $126,787. BigString did not grant stock options prior to
2006.

INCOME TAXES
------------

BigString  accounts for income taxes using an asset and liability approach under
which  deferred  income  taxes are  recognized  by  applying  enacted  tax rates
applicable to future years to the  differences  between the financial  statement
carrying amounts and the tax basis of reported assets and liabilities.

The principal items giving rise to deferred taxes are timing differences between
book  and  tax  amortization  of  intangible  assets  which  are  not  currently
deductible   for  income  tax  purposes  and  temporary   differences  of  other
expenditures.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

RESEARCH AND DEVELOPMENT
------------------------

BigString  accounts  for  research  and  development  costs in  accordance  with
accounting  pronouncements,  including SFAS No. 2,  "Accounting for Research and
Development  Costs,"  and SFAS No.  86,  "Accounting  for the Costs of  Computer
Software to be Sold,  Leased, or Otherwise  Marketed."  BigString has determined
that  technological  feasibility  for its software  products is reached  shortly
before the  products  are  released.  Research and  development  costs  incurred
between the establishment of technological  feasibility and product release have
not been material and have accordingly been expensed when incurred.

All research and development for the six months ended June 30, 2007 and 2006 was
performed  internally  for the benefit of BigString.  BigString does not perform
such activities for others.

EVALUATION OF LONG-LIVED ASSETS
-------------------------------

BigString reviews property and equipment and finite-lived  intangible assets for
impairment  whenever  events or changes in  circumstances  indicate the carrying
value may not be  recoverable in accordance  with the guidance  provided in SFAS
No. 144,  "Accounting  for the Impairment or Disposal of Long-Lived  Assets." If
the  carrying  value  of the  long-lived  asset  exceeds  the  estimated  future
undiscounted  cash  flows to be  generated  by such  asset,  the asset  would be
adjusted to its fair value and an impairment loss would be charged to operations
in the period identified.

EARNINGS (LOSS) PER COMMON SHARE
--------------------------------

Basic  earnings  (loss) per common  share is computed by dividing  net  earnings
(loss) by the weighted  average number of common shares  outstanding  during the
specified  period  and after  preferred  stock  dividend  requirements.  Diluted
earnings  (loss) per common share is computed by dividing net earnings (loss) by
the  weighted  average  number of common  shares  and  potential  common  shares
outstanding  during the  specified  period and after  preferred  stock  dividend
requirements.  All potentially  dilutive  securities,  which include outstanding
preferred stock,  warrants and options, have been excluded from the computation,
as their effect is antidilutive.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

BUSINESS COMBINATIONS
---------------------

Business combinations which have been accounted for under the purchase method of
accounting  include the results of operations of the acquired  business from the
date of  acquisition.  Net assets of the company  acquired are recorded at their
fair value at the date of acquisition.

INTANGIBLES
-----------

In June 2001,  the FASB  issued  SFAS No. 142,  "Goodwill  and other  Intangible
Assets."  SFAS No. 142  specifies  the  financial  accounting  and reporting for
acquired   goodwill   and   other   intangible   assets.   Goodwill   and  other
indefinite-lived intangible assets are no longer amortized, but are reviewed for
impairment at least annually.

ACCOUNTING FOR DERIVATIVES
--------------------------

BigString  evaluates  its options,  warrants or other  contracts to determine if
those contracts or embedded components of those contracts qualify as derivatives
to be separately  accounted for under SFAS No. 133,  "Accounting  for Derivative
Instruments and Hedging Activities," and related interpretations  including EITF
Issue No. 00-19,  "Accounting for Derivative  Financial  Instruments Indexed to,
and Potentially Settled in, a Company's Own Stock."

FAIR VALUE OF FINANCIAL INSTRUMENTS
-----------------------------------

For financial  instruments,  including cash  investments,  accounts  payable and
accrued expenses,  it was assumed that the carry amount  approximated fair value
because of the short maturities of such instruments.

NEW FINANCIAL ACCOUNTING STANDARDS
----------------------------------

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial Assets and Financial Liabilities," which permits entities to choose to
measure many  financial  instruments  and certain other items at fair value that
are not  currently  required to be measured at fair value.  SFAS No. 159 will be
effective  for BigString on January 1, 2008.  BigString is currently  evaluating
the impact of adopting SFAS No. 159 on its consolidated financial position, cash
flows and results of operations.

In  September  2006,  the FASB issued SFAS No. 157,  "Fair Value  Measurements,"
which enhances existing guidance for measuring assets and liabilities using fair
value. This new statement  provides a single definition of fair value,  together
with a framework for measuring it, and requires additional  disclosure about the
use of fair  value  to  measure  assets  and  liabilities.  SFAS  No.  157  also
emphasizes that fair value is a market-based measurement, not an entity-specific
measurement, and sets out a fair value hierarchy with the highest priority being
quoted prices in active markets. Under SFAS No. 157, fair value measurements are
disclosed  by level within that  hierarchy.  While SFAS No. 157 does not add any
new fair value  measurements,  it does change current practice.  SFAS No. 157 is
effective  for  financial  statements  issued for fiscal years  beginning  after
November 15, 2007, and interim periods within those fiscal years.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

BigString  does not  believe  that the  adoption  of SFAS  No.  157 will  have a
material impact on its consolidated financial position, cash flows or results of
operations.

2.       GOING CONCERN

For the six  months  ended June 30,  2007,  BigString's  consolidated  financial
statements  reflect a net loss of  $1,694,328,  net cash used in  operations  of
$683,793,  working  capital  of  $283,392,  a  deficit  accumulated  during  the
development stage of $8,150,243 and an accumulated deficit of $7,670,243.  These
matters  raise  doubt  about the  ability of  BigString  to  continue as a going
concern.  BigString's  consolidated  financial  statements  do not  include  any
adjustments to reflect the possible effects on recoverability and classification
of assets or the amounts and  classification of liabilities that may result from
the inability to continue as a going concern.

The  ability  of  BigString  to  continue  as a going  concern is  dependent  on
BigString's  ability to further  implement its business plan,  raise capital and
generate  additional  revenues.  BigString  cannot  assure that it will generate
sufficient cash flow from operations or obtain additional financing.

The time required for BigString to become  profitable is highly  uncertain,  and
BigString  cannot  assure  that it will  achieve  or  sustain  profitability  or
generate   sufficient   cash  flow  from  operations  to  meet  planned  capital
expenditures,  planned marketing  expenditures and working capital requirements.
If required,  the ability to obtain additional financing from other sources also
depends on many factors beyond BigString's  control,  including the state of the
capital  markets and the  prospects  for  BigString's  business.  The  necessary
additional  financing may not be available to BigString or may be available only
on terms that would result in further  dilution to the current  stockholders  of
BigString.

3.       ACQUISITIONS

On December  11,  2006,  BigString  completed  the  acquisition  of the website,
DailyLOL.com,  pursuant to an asset purchase agreement.  The cash purchase price
of $13,000 has been  allocated to  intangible  assets  based on  estimated  fair
value.  The  acquisition  includes  right,  title and interest in domain  names,
customer and member lists and source code.

The  results  of  operations  of the  assets  acquired  were not  material,  and
accordingly, pro forma summary results have not been included.

On May  19,  2006,  BigString  completed  the  acquisition  of  certain  assets,
including  two  websites,  from a  principal  of  Lifeline  Industries,  Inc. In
consideration  for the assets,  BigString  issued  750,000 shares of BigString's
common stock.  The market value of BigString's  common stock on May 19, 2006 was
$0.80 per share. In conjunction  with this  acquisition,  BigString  acquired an
intangible  asset for $600,000  based on estimated fair value.  The  acquisition
included  right,  title and interest in domain names,  customer and member lists
and source code.

The  results  of  operations  of the  assets  acquired  were not  material,  and
accordingly, pro forma summary results have not been included.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

On July 16,  2004,  BigString  completed  the  acquisition  of  Email  Emissary.
BigString  purchased 100% of Email  Emissary's  stock for  20,000,000  shares of
BigString's  common stock.  BigString acquired Email Emissary to consolidate its
marketing and  development  operations.  The purchase  price of  $4,800,000  was
allocated  to both  tangible  and  intangible  assets and  liabilities  based on
estimated  fair values.  Approximately  $4,803,000  of  identifiable  intangible
assets (patent application, trademark and websites) arose from this transaction.
Such intangible  assets are being  amortized on a  straight-line  basis over the
estimated economic life of five years.

This acquisition was accounted for using the purchase method of accounting,  and
accordingly,  the results of operations  of Email  Emissary has been included in
BigString's  consolidated  financial  statements from July 16, 2004, the date of
closing.

4.       PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

                                              June 30, 2007   December 31, 2006
                                              -------------   -----------------

   Computer equipment and internal software   $    253,115      $    253,115
   Furniture and fixtures                            8,600             8,600
                                              ------------      ------------
                                                   261,715           261,715
   Less accumulated depreciation                    73,029            47,103
                                              ------------      ------------
                                              $    188,686      $    214,612
                                              ============      ============

Depreciation  expense for the three  months  ended June 30,  2007 and 2006,  was
$12,963 and $7,305, respectively.

Depreciation  expense for the six months  ended June 30, 2007 and 2006,  and for
the period  October 8, 2003  (Date of  Formation)  through  June 30,  2007,  was
$25,926, $12,062 and $73,603, respectively.

5.       GOODWILL AND OTHER INTANGIBLES

Other intangibles  consist of patent and trademark fees, logos, source codes and
websites.  Amounts  assigned  to  these  intangibles  have  been  determined  by
management.  Management  considered  a number  of  factors  in  determining  the
allocations  including an independent  formal  appraisal.  Other intangibles are
being amortized over five years.  Amortization expense was $270,803 and $250,000
for the three  months ended June 30, 2007 and 2006,  respectively.  Amortization
expense was $541,607,  $490,000 and $2,978,222 for the six months ended June 30,
2007 and 2006,  and for the period  October 8, 2003 (Date of Formation)  through
June 30, 2007, respectively.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

Other intangible assets consist of the following:

                                           June 30, 2007     December 31, 2006
                                           -------------     -----------------
     Patent application, trademark,
        logos, websites and source codes   $   5,416,067      $   5,416,067
     Accumulated amortization                 (2,978,222)        (2,436,616)
                                           -------------      -------------
                                           $   2,437,845      $   2,979,451
                                           =============      =============

Should the patent  for  BigString's  Universal  Recallable,  Erasable  and Timed
Delivery Email not be issued, BigString will write-off the unamortized amount of
the patent intangible  amount.  Estimated  remaining  amortization  expenses for
intangible assets for the next five years, are as follows:

                                                 Estimated
                                                 Remaining
                  Years Ending                 Amortization
                  December 31,                   Expense
                  ------------                 ------------
                      2007                     $    541,607
                      2008                        1,083,213
                      2009                          642,933
                      2010                          122,600
                      2011                           47,492

6.       INCOME TAXES

BigString  adopted the provisions of the FASB Financial  Interpretation  No. 48,
"Accounting  for Uncertainty in Income Taxes" ("FIN 48"), on January 1, 2007. As
a result of the implementation of FIN 48, BigString  recognized no adjustment in
the net liability for unrecognized income tax benefits.

At  June  30,  2007,  BigString  has  a  net  operating  loss  carry-forward  of
approximately  $7.7  million,  which  expires in  various  years  through  2028.
Deferred  income taxes  reflect the impact of net operating  carry-forwards.  In
recognition  of the  uncertainty  regarding  the  ultimate  amount of income tax
benefits  to be derived  from  BigString's  net  operating  loss  carry-forward,
BigString  has  recorded a  valuation  allowance  for the  entire  amount of the
deferred tax asset.

7.       LONG-TERM DEBT

On May 1, 2007,  BigString  entered  into a financing  arrangement  with several
accredited financing parties,  pursuant to which it will receive an aggregate of
$1,600,000  in financing.  Proceeds  from the financing  will be used to support
ongoing  operations  and the  advancement of  BigString's  technology,  and fund
marketing and the development of its business.

Pursuant to the Subscription Agreement entered into by BigString with Whalehaven
Capital  Fund  Limited,  Alpha  Capital  Anstalt,  Chestnut  Ridge  Partners LP,
Iroquois Master Fund Ltd. and Penn Footwear  (collectively,  the "Subscribers"),
the  Subscribers  purchased  convertible   promissory  notes  in  the  aggregate
principal amount of $800,000, which promissory notes are convertible into shares
of BigString's  common stock, and warrants to purchase up to 1,777,779 shares of
BigString's  common stock,  resulting in net proceeds of approximately  $630,000
after

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

transaction  fees  of  approximately  $170,000.   BigString  accounted  for  the
convertible  promissory  notes under SFAS No. 133,  "Accounting  for  Derivative
Instruments and Hedging Activities," and related interpretations  including EITF
Issue No. 00-19,  "Accounting for Derivative Financial  Instruments Included to,
and Potentially Settled in, a Company's Own Stock." Approximately $31,300 of the
proceeds  was  allocated to the  warrants  based on fair value,  and included as
additional  paid in capital.  Due to the  beneficial  conversion  feature of the
promissory  notes,  $666,648 was included as additional paid in capital based on
the  conversion  discount.  For the three and six months  ended  June 30,  2007,
$37,036 and $1,740 were included in interest expense for the amortization of the
beneficial  conversion feature and amortization of the promissory note discount,
respectively.  An  additional  $8,000 of accrued  debt  expense was  included in
interest expense.

As provided  for in the  Subscription  Agreement,  upon the  effectiveness  of a
registration statement with respect to the common stock issuable upon conversion
of the  promissory  notes and exercise of the  warrants,  in addition to certain
other customary  closing  conditions,  the Subscribers will purchase  additional
convertible  promissory notes in the aggregate  principal amount of $800,000 and
warrants to purchase up to  1,777,779  shares of  BigString's  common stock (the
"Second Closing"), for a total subscription of $1,600,000.

Each promissory note has a term of three years and accrues interest at a rate of
six percent annually. The holder of a convertible promissory note shall have the
right from and after the  issuance  thereof  until such time as the  convertible
promissory note is fully paid, to convert any  outstanding and unpaid  principal
portion  thereof into shares of common stock at a conversion  price of $0.18 per
share.  The  conversion  price and number  and kind of shares to be issued  upon
conversion of the  convertible  promissory  note are subject to adjustment  from
time to time.

BigString  has also agreed to pay Gem Funding LLC (the  "Finder")  an  aggregate
finder's fee equal to $128,000  and to issue  warrants to the Finder to purchase
an aggregate of 426,666  shares of  BigString's  common  stock.  BigString  paid
$64,000 and issued a warrant to purchase  213,333  shares of common stock to the
Finder on May 1, 2007 and has agreed to pay an additional $64,000 and to issue a
warrant to purchase an additional  213,333 shares of common stock on the date of
the Second Closing. The Finder's warrants shall be similar to and carry the same
rights as the warrants issuable to the Subscribers.

8.       COMMON STOCK

On July 18, 2005,  BigString  amended its Certificate of Incorporation to, among
other  things,  (i) change its name from Recall Mail  Corporation  to  BigString
Corporation,  and (ii) increase the number of shares  BigString is authorized to
issue from 50,000,000  shares to 250,000,000  shares,  consisting of 249,000,000
shares of common  stock,  par value $0.0001 per share,  and 1,000,000  shares of
preferred  stock,  par value  $0.0001 per share.  The board of directors has the
authority, without action by the stockholders, to designate and issue the shares
of preferred stock in one or more series and to designate the rights, preference
and  privileges  of each  series,  any or all of which may be  greater  than the
rights of  BigString's  common  stock.  Currently,  there are 400,000  shares of
preferred stock outstanding.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

In October 2003, the month of BigString's formation, BigString issued 21,210,000
shares  of its  common  stock  to  principals  of  BigString  at no cost to such
principals.

During 2003, BigString concluded a private placement of securities,  pursuant to
which it sold 40,000 shares of BigString's  common stock at a per share purchase
price of $0.25. BigString received $10,000 in gross proceeds as a result of this
private placement.

During 2004, BigString concluded a private placement of securities,  pursuant to
which it sold 870,000 shares of BigString's common stock at a per share purchase
price of $0.25.  BigString  received  $217,500 in gross  proceeds as a result of
this private placement.

During 2004, BigString issued 185,000 shares of common stock valued at $0.21 per
share  in  consideration  for  consulting  services  provided  by two  marketing
consultants. BigString recorded consulting expense of $39,251 in connection with
the issuance of these shares.

During 2005,  BigString issued 50,000 shares of common stock valued at $0.25 per
share for business advisory services.

For the year ended  December  31,  2005,  BigString  concluded  several  private
placements pursuant to which it sold 922,000 shares of its common stock at a per
share purchase price of $0.25 and 9,448,125  shares of its common stock at a per
share  purchase  price of  $0.16.  As a  result  of  these  private  placements,
BigString received $1,742,200 in gross proceeds.

On  May  2,  2006,   BigString  issued  1,250,000  shares  of  common  stock  in
consideration  for  business  consultant  services  to be  provided  by Lifeline
Industries, Inc. The market value of BigString's common stock at May 2, 2006 was
$0.82 per share.

On May  19,  2006,  BigString  completed  the  acquisition  of  certain  assets,
including  two  websites,  from a  principal  of  Lifeline  Industries,  Inc. In
consideration  for the assets,  BigString issued 750,000 shares of common stock.
The  market  value of  BigString's  common  stock at May 19,  2006 was $0.80 per
share.

Additionally,  in May 2006,  BigString  redeemed  2,000,000 shares of its common
stock  from  each of  Charles  A.  Handshy,  Jr.  and David L.  Daniels,  former
directors of BigString,  and  2,000,000  shares of its common stock from each of
their  spouses,  June E. Handshy and Deborah K. Daniels,  at a purchase price of
$0.05 per share.

On February 26, 2007,  BigString  agreed to issue 140,000 shares of common stock
to CEOcast,  Inc. in consideration for investor relations  services.  The market
value of BigString's common stock at February 26, 2007 was $0.50 per share.

Additionally,  on February 26, 2007, BigString agreed to issue 192,000 shares of
common stock to Howard Greene in  consideration  for public  relations  services
provided by Greene Inc.  Communications.  The market value of BigString's common
stock at February 26, 2007 was $0.50 per share.

On May 1, 2007,  BigString  issued  100,000  shares of common  stock to Jonathan
Bomser in consideration for online marketing  services provided by CAC, Inc. The
market value of BigString's common stock at May 1, 2007 was $0.33 per share.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

9.       PREFERRED STOCK

On May 19 2006, BigString issued a total of 400,000 shares of Series A Preferred
Stock, par value $0.0001 per share, and warrants to purchase 1,000,000 shares of
common stock to Witches Rock Portfolio Ltd., The Tudor BVI Global Portfolio Ltd.
and Tudor  Proprietary  Trading,  L.L.C.,  for an  aggregate  purchase  price of
$2,000,000. The shares of Series A Preferred Stock are convertible under certain
circumstances  into shares of common stock.  The warrants are  convertible  into
shares of common  stock at an exercise  price per share of $1.25  (market  price
$0.80 per share).  BigString has  registered the shares of common stock issuable
upon  conversion  of the  shares of Series A  Preferred  Stock and the shares of
common stock  underlying  the warrants.  In conjunction  with this  transaction,
BigString  incurred a fee of $140,000,  which is included in additional  paid in
capital.

BigString  accounted  for the  convertible  preferred  stock under SFAS No. 133,
"Accounting  for Derivative  Instruments  and Hedging  Activities,"  and related
interpretations  including  EITF Issue No.  00-19,  "Accounting  for  Derivative
Financial  Instruments  Included to, and Potentially Settled in, a Company's Own
Stock." BigString performed calculations allocating the proceeds of the Series A
Preferred  Stock with detachable  warrants to each respective  security at their
fair  values.  The value of the warrants of $400,000 was recorded as a reduction
of the convertible  preferred stock and credited to additional  paid-in-capital.
The recorded  discount of $480,000  resulting from allocation of proceeds to the
beneficial  conversion feature is analogous to a dividend and is recognized as a
return to the preferred  stockholders at the date of issuance of the convertible
preferred stock.

10.      SHARE-BASED COMPENSATION

On January 1, 2006,  BigString adopted SFAS No. 123(R),  "Share-Based  Payment,"
requiring the recognition of compensation expense in the consolidated statements
of  operations  related  to the fair  value  of its  employee  and  non-employee
share-based  options  and  warrants.  SFAS No.  123(R)  revises  SFAS  No.  123,
"Accounting  for Stock-Based  Compensation,"  and supersedes APB Opinion No. 25,
"Accounting  for Stock Issued to Employees."  SFAS No. 123(R) is supplemented by
SAB No. 107, "Share-Based  Payment." SAB No. 107 expresses the SEC staff's views
regarding the interaction  between SFAS No. 123(R) and certain SEC positions and
regulations including the valuation of share-based payment arrangements.

Warrants:

During 2004,  BigString granted warrants as payment for advisory  services.  The
warrants provided for the purchase of 60,000 shares of BigString's  common stock
at an exercise price of $0.25. Certain of these warrants were exercised in 2005,
which  resulted in 45,000  shares of common  stock  being  issued to the holders
thereof.  As a result of these  exercises,  BigString  received $11,250 in gross
proceeds.  The remainder of these warrants was exercised in 2006, which resulted
in 15,000 shares of common stock being issued to the holder thereof. As a result
of this exercise,  BigString  recorded a subscription  receivable of $3,750.  In
connection  with the grant of these warrants,  BigString  recorded an expense of
$3,500 which is included in the  consolidated  statement of  operations  for the
year ended  December  31,  2004.  The fair  value of

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

the warrants granted was estimated on the date of grant using the  Black-Scholes
option-pricing  model with the  following  weighted  average  assumptions  used:
dividend  yield of 0%;  expected  volatility of 47%; risk free rate of return of
5%; and  expected  life of 2 years.  The  weighted  average  fair value of these
warrants was $0.07 per share.

On January 1, 2005,  BigString  granted warrants to two consultants,  as payment
for advisory  services.  Each warrant provided for the purchase of 50,000 shares
of BigString's  common stock at an exercise price of $0.25 per share. One of the
warrants was exercised in 2006,  which resulted in 50,000 shares of common stock
being  issued to the holder  thereof.  As a result of this  exercise,  BigString
recorded a subscription  receivable of $12,500.  In addition,  the other warrant
providing  for the purchase of 50,000  shares of common stock expired on January
1, 2007. In connection with the grant of these warrants,  BigString  recorded an
expense of $7,400 which is included in  BigString's  consolidated  statements of
operations  for the year ended December 31, 2005. The fair value of the warrants
granted  was   estimated   on  the  date  of  grant   using  the   Black-Scholes
option-pricing  model with the  following  weighted  average  assumptions  used:
dividend yield of 0%; expected  volatility of 47%; risk free rated return of 5%;
and expected life of 2 years.  The weighted average fair value of these warrants
was $0.07 per share.

On September 23, 2005,  BigString  granted warrants to a consultant,  as payment
for advisory services. One warrant provides for the purchase of 1,246,707 shares
of common stock with a per share exercise price of $0.16, and the second warrant
provides for the  purchase of 1,196,838  shares of common stock with a per share
exercise  price of $0.20.  Each of these  warrants is due to expire on September
23,  2010  and the  grants  are  non-forfeitable.  A  portion  of each  warrant,
representing  50,000 shares of common stock,  was assigned to a third party. The
assigned  portions of the warrants  were  exercised in 2006,  which  resulted in
100,000 shares of common stock being issued to the holder  thereof.  As a result
of these exercises,  BigString received $18,000 in gross proceeds. In connection
with the grant of these  warrants,  BigString  recorded  an expense of  $171,800
which is included in BigString's  consolidated  statements of operations for the
year ended  December  31,  2005.  The fair  value of the  warrants  granted  was
estimated on the date of grant using the Black-Scholes option-pricing model with
the following weighted average  assumptions used: dividend yield of 0%; expected
volatility  of 47%;  risk free rated return of 5%; and expected life of 2 years.
The weighted average fair value of these warrants was $0.07 per share.

On May 2, 2006, BigString granted warrants to purchase shares of common stock in
consideration  for  business  consultant  services  to be  provided  by Lifeline
Industries,  Inc. A total of $135,300 of the deferred compensation in connection
with the  warrants  will be  expensed  over a period of 36  months.  For the six
months ended June 30, 2007,  BigString expensed $22,548 in connection with these
services, and the balance of $82,687 of total unrecognized  compensation cost is
included within  paid-in-capital on BigString's  consolidated balance sheet. The
fair value of the warrants  granted was estimated on the date of grant using the
Black-Scholes   option-pricing   model  with  the  following   weighted  average
assumptions  used:  dividend yield of 0%; expected  volatility of 47%; risk free
rated return of 5%; and  expected  life of 2 years.  The  weighted  average fair
value of these warrants was $0.42 and $0.18 per share.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

On December 1, 2006,  BigString granted warrants to two consultants,  as payment
for advisory  services.  Each warrant provides for the purchase of 50,000 shares
of  BigString's  common stock at an exercise  price of $0.50 per share.  Each of
these  warrants  is due to expire on December 1, 2011.  In  connection  with the
grant of these  warrants,  BigString  recorded  an  expense  of $6,530  which is
included in BigString's consolidated statements of operations for the year ended
December 31, 2006.  The fair value of the warrants  granted was estimated on the
date of grant using the  Black-Scholes  option-pricing  model with the following
weighted average  assumptions used: dividend yield of 0%; expected volatility of
47%;  risk free  rated  return of 4.5%;  and  expected  life of 2.6  years.  The
weighted average fair value of these warrants was $0.08 per share.

As discussed in Note 7, on May 1, 2007,  BigString  granted warrants to purchase
up to 1,991,112 shares of BigString's  common stock. Each of the warrants issued
to the Subscribers and the Finder, respectively,  have a term of five years from
May 1,  2007 and was fully  vested on the date of  issuance.  The  warrants  are
exercisable  at $0.30 per  share of  common  stock.  A total of  $31,320  of the
purchase price for the convertible  promissory  notes and warrants was allocated
to the warrants based on fair value.

The number of  warrants  outstanding  as of January 1, 2007 and  changes to such
number during the six months ended June 30, 2007 is presented below:

<table>
<caption>
                                                                           Weighted
                                                            Weighted       Average
                                                            Average       Remaining
                                                            Exercise     Contractual      Aggregate
                                             Shares          Price           Term      Intrinsic Value
                                          ------------    ------------   ------------  ---------------

                                         <c>          <c>                     <c>   <c>
Warrants outstanding at January 1, 2007      3,943,545    $       0.52            5.2   $  1,501,939
                                          ============    ============   ============   ============

Warrants granted                             1,991,112            0.30
Warrants exercised                                  --              --
Warrants cancelled/forfeited/expired           (50,000)           0.25
                                          ------------    ------------
Warrants outstanding at June 30, 2007        5,884,657    $       0.45            4.8   $    282,223
                                          ============    ============   ============   ============

Warrants exercisable at June 30, 2007        5,884,657    $       0.45            4.8   $    282,223
                                          ============    ============   ============   ============
</table>

The aggregate  intrinsic  value in the table above  represents the total pre-tax
intrinsic  value (the  aggregate  difference  between the closing stock price of
BigString's   common  stock  on  June  30,  2007  and  the  exercise  price  for
in-the-money  warrants) that would have been received by the warrant  holders if
all in-the-money warrants had been exercised on June 30, 2007.

No warrants were  exercised  during the six months ended June 30, 2007 and 2006.
Cash  received  during  the six  months  ended  June 30,  2007 and 2006 from the
exercise of warrants was $16,250 and $0, respectively. For the period October 8,
2003 (Date of Formation) through June 30, 2007,

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

a total of 210,000  shares of  BigString's  common stock were purchased upon the
exercise of warrants.

Warrants  granted in the six months ended June 30, 2007 and 2006 were  1,991,112
and 1,450,000,  respectively. For the period October 8, 2003 (Date of Formation)
through  June 30,  2007,  warrants  to purchase a total of  6,144,657  shares of
BigString's common stock were granted.

During the six months  ended June 30, 2007 and the period  October 8, 2003 (Date
of  Formation)  through  June 30,  2007,  warrants to purchase a total of 50,000
shares of BigString's common stock expired with an aggregate  intrinsic value of
$26,000 at the date of  expiration.  No warrants  were  cancelled,  forfeited or
expired during the six months ended June 30, 2006.



<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

Equity Incentive Plan and Stock Options Issued to Consultant:

At the 2006 Annual  Meeting of  Stockholders,  the  BigString  Corporation  2006
Equity  Incentive Plan (the "Equity  Incentive Plan") was approved by a majority
of BigString's  stockholders.  Under the Equity  Incentive  Plan,  incentive and
nonqualified stock options and rights to purchase common stock may be granted to
eligible  participants.  Options are generally priced to be at least 100% of the
fair market value of BigString's common stock at the date of the grant.  Options
are generally granted for a term of five or ten years. Options granted under the
Equity Incentive Plan generally vest between one and five years.

On July 11, 2006,  BigString approved the grant of a non-qualified  stock option
to purchase  575,100  shares of common stock to Kieran Vogel in connection  with
his participation in OurPrisoner,  the interactive  Internet  television program
available  through  the  entertainment  portal  being  operated  by  BigString's
wholly-owned  subsidiary,  BigString  Interactive.  As of December 16, 2006, Mr.
Vogel  completed  his  obligation in connection  with his  participation  in the
OurPrisoner  program and  subsequently  entered into a contractual  relationship
with  BigString.  The  non-qualified  stock option has a term of five years from
July 11,  2006 and an  exercise  price of $0.32 per  share.  For the year  ended
December  31,  2006,  BigString  recorded  a  consulting  expense  of $47,775 in
connection with the contractual relationship between Mr. Vogel and BigString.

On July  11,  2006,  BigString  granted  incentive  stock  options  to  purchase
2,620,000  shares of common stock under its Equity  Incentive Plan to certain of
BigString's  employees.  Incentive stock options to purchase 1,450,000 shares of
common stock were  granted at an exercise  price of $0.32 per  underlying  share
with 25% vesting every three months for one year, and incentive stock options to
purchase  1,170,000  shares of common stock were granted at an exercise price of
$0.50 per underlying share with vesting over periods of three and four years. In
addition, non-qualified stock options to purchase 600,000 shares of common stock
were granted to two  non-employee  directors  at an exercise  price of $0.50 per
underlying share with vesting over a period of three years.

On September 18, 2006,  BigString  granted an incentive stock option to purchase
1,800,000  shares of common stock under its Equity Incentive Plan to BigString's
newly appointed Executive Vice President, Chief Financial Officer and Treasurer.
When vested, 400,000 shares of common stock will be eligible for purchase at the
per share price equal to $0.24;  600,000 shares of common stock will be eligible
for purchase at $0.50 per share; 400,000 shares of common stock will be eligible
for  purchase  at $.90 per share;  and  400,000  shares of common  stock will be
eligible  for  purchase at $1.25 per share.  The  incentive  stock  option vests
quarterly  over a three year period,  and the shares of common stock  subject to
the incentive stock option will vest in order of exercise price, with the shares
with the lower exercise price vesting first.

For the six months  ended June 30, 2007 and the period  October 8, 2003 (Date of
Formation) through June 30, 2007,  BigString recorded  stock-based  compensation
expense  of  $40,314  and  $126,787,  respectively.  SFAS  No.  123(R)  requires
forfeitures to be estimated at the time of grant and revised,  if necessary,  in
subsequent   periods  if  actual  forfeitures  differ  from  initial  estimates.
Stock-based compensation expense was recorded net of estimated forfeitures.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

The number of stock  options  outstanding  as of January 1, 2007 and  changes to
such number during the six months ended June 30, 2007 is presented below:

<table>
<caption>
                                                                         Weighted
                                                          Weighted        Average
                                                           Average       Remaining       Aggregate
                                                          Exercise      Contractual      Intrinsic
                                            Shares          Price           Term           Value
                                         ------------    ------------   ------------   ------------

                                       <c>          <c>                     <c>   <c>
Options outstanding at January 1, 2007      5,595,100    $       0.50            7.8   $  1,763,195
                                         ============    ============   ============   ============

Options granted                                    --              --
Options exercised                                  --              --
Options cancelled/forfeited/expired          (245,000)           0.50
                                         ------------    ------------
Options outstanding at June 30, 2007        5,350,100    $       0.50            7.2   $     24,000
                                         ============    ============   ============   ============

Options exercisable at June 30, 2007        2,112,600    $       0.31            5.1   $     24,000
                                         ============    ============   ============   ============
</table>

The aggregate  intrinsic  value in the table above  represents  the total pretax
intrinsic  value (the aggregate  difference  between the closing stock prices of
BigString's   common  stock  on  June  30,  2007  and  the  exercise  price  for
in-the-money options) that would have been received by the option holders if all
in-the-money options had been exercised on June 30, 2007.

No options  were  exercised,  and no cash  received  from option  exercises  and
purchases  of shares  for the six  months  ended  June 30,  2007 and the  period
October 8, 2003 (Date of Formation) through June 30, 2007.

No options were  granted in the six months  ended June 30, 2007.  For the period
October 8, 2003 (Date of Formation) through June 30, 2007, options to purchase a
total of 5,595,100 shares of BigString's common stock were granted.

For the six months  ended June 30, 2007 and the period  October 8, 2003 (Date of
Formation)  through June 30, 2007, options to purchase a total of 245,000 shares
of BigString's  common stock expired with an aggregate  intrinsic value of $0 at
the date of expiration.

The fair value of each option  award is estimated on the date of grant using the
Black-Scholes valuation model, consistent with the provisions of SFAS No. 123(R)
and SAB No. 107.  Because  option-pricing  models  require the use of subjective
assumptions,  changes in these  assumptions can materially affect the fair value
of the options. We have limited relevant  historical  information to support the
expected exercise behavior because our stock has been publicly traded only since
May 1, 2006.

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

11.      COMMITMENTS AND CONTINGENCIES

Consulting Agreements:

On January  27,  2004,  BigString  entered  into an  agreement  with Greene Inc.
Communications  to provide  public  relations  services.  In  consideration  for
services performed, BigString agreed to issue to Howard Greene 140,000 shares of
common  stock in April,  2005 and 192,000  shares of common  stock in  February,
2007.  Total public  relation  expenses,  including  the services of Greene Inc.
Communications,  were  $37,449 and $6,323 for the six months ended June 30, 2007
and 2006,  and  $140,953  for the period  October  8, 2003  (Date of  Formation)
through June 30, 2007, including $96,000 as share-based compensation.

On May 2, 2006,  BigString  signed a  three-year  business  consultant  services
agreement with Lifeline Industries, Inc. In consideration for the services to be
performed under the agreement, BigString issued to Lifeline Industries, Inc. (1)
1,250,000  shares of common  stock,  (2) a fully  vested,  five year  warrant to
purchase  225,000 shares of common stock at a per share purchase price of $0.48,
and (3) a fully vested,  five year warrant to purchase  225,000 shares of common
stock at a per share purchase price of $1.00.  BigString incurred  corresponding
consulting  expenses of $193,381,  $32,230 and $451,223 for the six months ended
June 30,  2007 and 2006 and the  period  October  8,  2003  (Date of  Formation)
through June 30, 2007, respectively.

On  February  26,  2007,  BigString  entered  into  a six  month  agreement  for
consulting  services  to be  provided  by  CEOcast,  Inc.  As payment  for these
consulting services, BigString agreed to issue 140,000 shares of common stock to
CEOcast,  Inc.  Total  investor  relations  expenses,  including the services of
CEOcast,  Inc., were $92,829 and $148,828 for the six months ended June 30, 2007
and the period  October  8, 2003  (Date of  Formation)  through  June 30,  2007,
including $47,917 as share-based compensation.

On April 27, 2007, BigString entered into an agreement with CAC, Inc., effective
May 1, 2007.  The minimum term of the agreement is four months.  On May 1, 2007,
BigString   issued  100,000  shares  of  common  stock  to  Jonathan  Bomser  in
consideration  for online  marketing  services  provided by CAC, Inc. The market
value of  BigString's  common  stock at May 1, 2007 was $0.33 per  share.  Total
online marketing expenses, including the services of CAC, Inc., were $78,500 for
the six  months  ended  June 30,  2007 and the  period  October 8, 2003 (Date of
Formation) through June 30, 2007, including $16,500 as share-based compensation.

Marketing Affiliate Commitments:

In connection with contracts to provide email services to marketing  affiliates,
BigString  may be obligated to make  payments,  which may represent a portion of
net advertising revenues,  to its marketing affiliates.  As of June 30, 2007 and
2006, these commitments were not material.

Other Commitments:

In the ordinary course of business,  BigString may provide  indemnifications  to
customers, vendors, lessors, marketing affiliates, directors, officers and other
parties with  respect to certain  matters.  It is not possible to determine  the
aggregate maximum potential loss under these

<page>

                     BIGSTRING CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2007

indemnification  agreements due to the limited history of prior  indemnification
claims  and  unique  circumstances  involved  in each  agreement.  Historically,
BigString has not incurred  material costs as a result of obligation under these
agreements and has not accrued any liabilities related to such agreements.

As  of  June  30,  2007,   BigString  did  not  have  any   relationships   with
unconsolidated entities or financial partnerships, such as structured finance or
special purpose  entities,  which would have been established for the purpose of
facilitating off-balance sheet arrangements or other limited purposes. BigString
is not exposed to financing,  liquidity, market or credit risks that could arise
under such relationships.

12.      SUBSEQUENT EVENTS

On  June  15,  2007,  BigString  filed a  registration  statement  on Form  SB-2
(333-143793)  with the SEC.  BigString  filed  the  registration  statement  for
purposes  of  registering  shares  beneficially  held by  certain  stockholders,
including  those  shares  beneficially  held  or  to  be  beneficially  held  by
Whalehaven Capital Fund Limited, Alpha Capital Anstalt,  Chestnut Ridge Partners
LP, Iroquois  Master Fund Ltd. and Penn Footwear.  See Note 7. On July 31, 2007,
BigString amended the registration statement in response to certain SEC comments
and to update the  information  contained  therein.  To date,  the  registration
statement has not been declared effective by the SEC.