----

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

| o | TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------------|

| Nevada                                                       | 76-0621102                        |
|--------------------------------------------------------------|-----------------------------------|
| State or other jurisdiction of incorporation or organization | (IRS Employer Identification No.) |

| Large accelerated filero                                                         | Accelerated filer o         |
|----------------------------------------------------------------------------------|-----------------------------|
|                                                                             |                        |
| Non - accelerated filer x  (Do not check if smaller reporting company) | Smaller reporting company o |

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AB

| PART I - FINANCIAL INFORMATION |                                                            |
|--------------------------------|-----------------------------------------------------------------|
|                           |                                                            |   |
| ITEM 1.                        | FINANCIAL STATEMENTS                                            | 1 |
|                           |                                                            |   |
| ITEM 2.                        | MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION | 23 |
|                           |                                                            |   |
| ITEM 3.                        | CONTROLS AND PROCEDURES                                         | 27 |
|                           |                                                            |   |
|                           |                                                            |   |
|                           |                                                            |   |
| PART II - OTHER INFORMATION    |                                                            |
|                           |                                                            |   |
| ITEM 6.                        | EXHIBITS AND REPORTS ON FORM 8-K                                | 28 |
|                           |                                                            |   |
| SIGNATURES                     | 29                                                              |

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| ITEM 1. | FINANCIAL STATEMENTS                                                                                                                                                |   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|    |                                                                                                                                                                |   |
|    | Consolidated Balance Sheets as of June 30, 2008 (unaudited) and December 31, 2007( audited).                                                                        | 2      |
|    |                                                                                                                                                                |   |
|    | Consolidated Statements of Operations for the three months ended June 30, 2008 and 2007 (unaudited) and for the six months ended June 30, 2008 and 2007 (unaudited) | 3      |
|    |                                                                                                                                                                |   |
|    | Consolidated Statements of Deficiency in Assets for the six months ended June 30, 2008 (unaudited)                                                                  | 4      |
|    |                                                                                                                                                                |   |
|    | Consolidated Statements of Cash Flows for the six months ended June 30, 2008 and 2007 (unaudited)                                                                   | 5      |
|    |                                                                                                                                                                |   |
|    | Notes to the Consolidated Financial Statements                                                                                                                      | 6-22   |

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RN

|                                                                                                                                                                              |   | June 30,                                 |       |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|--------|--------------|--------|
|                                                                                                                                                                              |   | 2008                                     |       |   | 2007         |   |
|                                                                                                                                                                              |   | (As restated – Note 10)(unaudited) |       |   | (audited)    |   |
| ASSETS                                                                                                                                                                            |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |
| CURRENT ASSETS:                                                                                                                                                                   |   |                                     |       |   |         |   |
| Cash                                                                                                                                                                              |   | $                                        | 1,932,860  |   |         | $      | 3,788,944 |   |
| Accounts receivable, less allowance for returns and bad debts of $169,196 and $123,607                                                                                            |   |                                     | 1,358,162  |   |         |   | 620,254 |   |
| Inventories                                                                                                                                                                       |   |                                     | 1,479,968  |   |         |   | 648,246 |   |
| Prepaid expenses and deposits                                                                                                                                                     |   |                                     | 641,948    |   |         |   | 247,842 |   |
| Deferred tax assets less valuation allowance of $3,447,000                                                                                                                        |   |                                     | -          |   |         |   | - |   |
| Total current assets                                                                                                                                                              |   |                                     | 5,412,938  |   |         |   | 5,305,326 |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| FURNITURE AND EQUIPMENT:                                                                                                                                                          |   |                                     |       |   |         |   |   |   |
| Furniture and equipment                                                                                                                                                           |   |                                     | 179,387    |   |         |   | 120,169 |   |
| Less accumulated depreciation                                                                                                                                                     |   |                                     | 114,905    |   |         |   | 110,330 |   |
| Furniture and equipment, net                                                                                                                                                      |   |                                     | 64,482     |   |         |   | 9,839 |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| Total assets                                                                                                                                                                      |   | $                                        | 5,477,420  |   |         | $      | 5,315,165 |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                        |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                          |   | $                                        | 1,993,026  |   |         | $      | 1,113,457 |   |
| Accounts payable – related parties                                                                                                                                          |   |                                     | 48,770     |   |         |   | 70,490 |   |
| Due to related parties                                                                                                                                                            |   |                                     | 32,834     |   |         |   | 56,983 |   |
| Total current liabilities                                                                                                                                                         |   |                                     | 2,074,630  |   |         |   | 1,240,930 |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| NOTE PAYABLE TO SHAREHOLDER                                                                                                                                                       |   |                                     | 590,723    |   |         |   | 590,723 |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 4 and 10)                                                                                                                                     |   |                                     |       |   |         |   |   |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| SHAREHOLDERS’ EQUITY:                                                                                                                                                       |   |                                     |       |   |         |   |   |   |
| Common stock, $0.001 par value, 100,000,000 shares authorized, 14,465,912 and 14,274,287 issued and outstanding as of June 30, 2008 and December 31, 2007, respectively |   |                                     | 4,367      |   |         |   | 4,181 |   |
| Additional paid-in-capital                                                                                                                                                        |   |                                     | 5,077,636  |   |         |   | 4,823,073 |   |
| Subscriptions received in advance                                                                                                                                                 |   |                                     | -          |   |         |   | 100,750 |   |
| Accumulated deficit                                                                                                                                                               |   |                                     | (2,269,936 | )      |         |   | (1,444,492 | ) |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| Total shareholders’ equity                                                                                                                                                  |   |                                     | 2,812,067  |   |         |   | 3,483,512 |   |
|                                                                                                                                                                              |   |                                     |       |   |         |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                  |   | $                                        | 5,477,420  |   |         | $      | 5,315,165 |   |

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|                                  |   | For the three months ended    |      |   | For the six months ended |   |
|---------------------------------------|--------|-------------------------------|-----------|--------|--------------------------|--------|
|                                  |   | June 30, 2008                 |      |   | June 30, 2007            |   |   | June 30, 2008 |   |   | June 30, 2007 |   |
|                                  |   | (As restated – Note 10) |      |   |                     |   |   | (As restated – Note 10) |   |   |   |   |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |
| NET SALES                             |   | $                             | 3,529,244 |   |                     | $      | 2,355,486 |   |   | $ | 7,235,774 |   |   | $ | 4,038,531 |   |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| COST OF SALES                         |   | $                             | 1,080,559 |   |                     | $      | 778,315 |   |   | $ | 2,262,091 |   |   | $ | 1,234,984 |   |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                          |   |                          | 2,448,685 |   |                     |   | 1,577,171 |   |   |   | 4,973,683 |   |   |   | 2,803,547 |   |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES:                   |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                          |   |                          | 2,915     |   |                     |   | 1,589 |   |   |   | 4,574 |   |   |   | 3,179 |   |
| General and administrative            |   |                          | 978,083   |   |                     |   | 228,624 |   |   |   | 1,682,742 |   |   |   | 395,326 |   |
| Selling and marketing                 |   |                          | 2,099,153 |   |                     |   | 1,632,436 |   |   |   | 4,116,591 |   |   |   | 2,473,353 |   |
| Rent                                  |   |                          | 18,265    |   |                     |   | 7,849 |   |   |   | 27,366 |   |   |   | 15,728 |   |
| Total operating expenses              |   |                          | 3,098,416 |   |                     |   | 1,870,498 |   |   |   | 5,831,273 |   |   |   | 2,887,586 |   |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING LOSS                        |   |                          | (649,731  | )      |                     |   | (293,327 | ) |   |   | (857,590 | ) |   |   | (84,039 | ) |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST INCOME  (EXPENSE)  |   |                          | (11,413   | )      |                     |   | (5,509 | ) |   |   | (32,146 | ) |   |   | (3,210 | ) |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                              |   | $                             | (638,318  | )      |                     | $      | (287,818 | ) |   | $ | (825,444 | ) |   | $ | (80,829 | ) |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| BASIC NET (LOSS)  PER SHARE |   | $                             | (0.04     | )      |                     | $      | (0.04 | ) |   | $ | (0.06 | ) |   | $ | (0.01 | ) |
|                                  |   |                          |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED NET(LOSS) PER SHARE           |   | $                             | (0.04     | )      |                     | $      | (0.04 | ) |   | $ | (0.06 | ) |   | $ | (0.01 | ) |

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|                                                |   | Common Stock     |       |   | Additional |   |   |        |   |   | Subscriptions                 |   |   |    |        |
|-----------------------------------------------------|--------|------------------|------------|--------|------------|--------|--------|-------------|--------|--------|-------------------------------|--------|--------|---------|-------------|
|                                                |   | $0.001 par value |       |   | Paid-In    |   |   | Accumulated |   |   | Received in                   |   |   |    |        |
|                                                |   | Shares           |       |   | Amount     |   |   | Capital     |   |   | Deficit                       |   |   | Advance |        |   | Totals |   |
|                                                |   |             |       |   |       |   |   |        |   |   | (As restated – Note 10) |   |   |    |        |   | (As restated – Note 10) |   |
| Balances, January 1, 2007                           |   |             | 10,693,188 |   |       | $      | 594    |        |   | $      | 464,728                       |   |   | $       | (942,578    | ) |   | $ | - |   |   | $ | (477,256 | ) |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Issuance of common stock                            |   |             | 3,581,099  |   |       |   | 3,587  |        |   |   | 4,687,614                     |   |   |    | -           |   |   |   | - |   |   |   | 4,691,201 |   |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Subscriptions received in advance of stock issuance |   |             | -          |   |       |   | -      |        |   |   | -                             |   |   |    | -           |   |   |   | 100,750 |   |   |   | 100,750 |   |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Stock issuance costs                                |   |             | -          |   |       |   | -      |        |   |   | (329,269                      | )      |   |    | -           |   |   |   | - |   |   |   | (329,269 | ) |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Net loss                                            |   |             | -          |   |       |   | -      |        |   |   | -                             |   |   |    | (501,914    | ) |   |   | - |   |   |   | (501,914 | ) |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Balances, December 31, 2007                         |   |             | 14,274,287 |   |       |   | 4,181  |        |   |   | 4,823,073                     |   |   |    | (1,444,492  | ) |   |   | 100,750 |   |   | $ | 3,483,512 |   |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Issuance of common stock                            |   |             | 191,625    |   |       |   | 186    |        |   |   | 417,638                       |   |   |    | -           |   |   |   | - |   |   |   | 417,824 |   |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Subscriptions received in advance                   |   |             | -          |   |       |   | -      |        |   |   | -                             |   |   |    | -           |   |   |   | (100,750 | ) |   |   | (100,750 | ) |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Stock issuance costs                                |   |             | -          |   |       |   | -      |        |   |   | (163,075                      | )      |   |    | -           |   |   |   | - |   |   |   | (163,075 | ) |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Net income                                          |   |             | -          |   |       |   | -      |        |   |   | -                             |   |   |    | (825,444    | ) |   |   | - |   |   |   | (825,444 | ) |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
|                                                |   |             |       |   |       |   |   |        |   |   |                          |   |   |    |        |   |   |   |   |   |   |   |   |   |
| Balances, June 30, 2008                             |   |             | 14,465,912 |   |       | $      | 4,367  |        |   | $      | 5,077,636                     |   |   | $       | ( 2,269,936 | ) |   |   | - |   |   | $ | 2,812,067 |   |

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|                                                                              |   | June 30,2008                  |       |   | June 30,2007 |   |
|-----------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|--------------|--------|
|                                                                              |   | (As restated – Note 10) |       |   |         |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |                          |       |   |         |   |
| Net income                                                                        |   | $                             | (825,444   | )      |         | $      | (80,829 | ) |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                          |       |   |         |   |   |   |
| Depreciation                                                                      |   |                          | 4,574      |   |         |   | 3,179 |   |
| Increase in accounts receivable                                                   |   |                          | (737,908   | )      |         |   | (398,663 | ) |
| Increase in inventory                                                             |   |                          | (831,680   | )      |         |   | (92,486 | ) |
| Decrease (increase) in prepaid expenses                                           |   |                          | (394,106   | )      |         |   | 7,007 |   |
| (Decrease) increase in accounts payable and accrued liabilities                   |   |                          | 857,847    |   |         |   | (84,518 | ) |
| Net cash used in operating activities                                             |   |                          | (1,926,717 | )      |         |   | (646,310 | ) |
|                                                                              |   |                          |       |   |         |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |                          |       |   |         |   |   |   |
| Purchase of property and equipment                                                |   |                          | (59,218    | )      |         |   | - |   |
| Net cash used in financing activities                                             |   |                          | (59,218    | )      |         |   | - |   |
|                                                                              |   |                          |       |   |         |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |                          |       |   |         |   |   |   |
| Proceeds from the issuance of common stock                                        |   |                          | 154,000    |   |         |   | 1,078,514 |   |
| Advances from related parties                                                     |   |                          | 145,592    |   |         |   | 161,020 |   |
| Payments to related parties                                                       |   |                          | (169,741   | )      |         |   | (317,694 | ) |
| Net cash provided by financing activities                                         |   |                          | 129,851    |   |         |   | 921,840 |   |
|                                                                              |   |                          |       |   |         |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                                   |   |                          | (1,856,084 | )      |         |   | 275,530 |   |
|                                                                              |   |                          |       |   |         |   |   |   |
| CASH, beginning of the period                                                     |   |                          | 3,788,944  |   |         |   | 385,474 |   |
|                                                                              |   |                          |       |   |         |   |   |   |
| CASH, end of period                                                               |   | $                             | 1,932,860  |   |         | $      | 661,004 |   |
|                                                                              |   |                          |       |   |         |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:                               |   |                          |       |   |         |   |   |   |
| Interest paid                                                                     |   | $                             | 583        |   |         | $      | 3,857 |   |
| Income taxes paid                                                                 |   | $                             | -          |   |         | $      | - |   |

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|                        |   | Number of Shares |   |   | WeightedAverage |   |
|-----------------------------|--------|------------------|--------|--------|-----------------|--------|
|                        |   | Employee         |   |   | Non-Employee    |   |   | Totals |   |   | ExercisePrice |   |
|                        |   |             |   |   |            |   |   |   |   |   |   |   |
| Balance, January 1, 2007    |   |             | -      |   |            |   | 1,161,000 |   |   |   | 1,161,000 |   |   | $ | 0.43 |   |
| Granted during 2007         |   |             | -      |   |            |   | - |   |   |   | - |   |   | $ | 0.00 |   |
| Exercised during the year   |   |             | -      |   |            |   | - |   |   |   | - |   |   | $ | 0.00 |   |
| Cancelled during the year   |   |             | -      |   |            |   | (4,000 | ) |   |   | (4,000 | ) |   | $ | 0.50 |   |
|                        |   |             |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007  |   |             | -      |   |            |   | 1,157,000 |   |   |   | 1,157,000 |   |   | $ | 0.43 |   |
|                        |   |             |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Cancelled during the period |   |             | -      |   |            |   | - |   |   |   | - |   |   | $ | 0.50 |   |
| Exercised during the period |   |             | -      |   |            |   | - |   |   |   | - |   |   | $ | 0.00 |   |
|                        |   |             |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2008      |   |             | -      |   |            |   | 1,157,000 |   |   |   | 1,157,000 |   |   | $ | 0.42 |   |

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|                                                                                                                  |   | 2008   |     |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                                  |   |   |     |   |   |   |
| Net loss  as reported                                                                                       |   | $      | (825,444 | )      |   | $      | (80,829 | ) |
| Deduct:                                                                                                               |   |   |     |   |   |   |   |   |
| Total stock based employee compensation determined under fair value method for all awards, net of related tax effects |   |   | -        |   |   |   | - |   |
|                                                                                                                  |   |   |     |   |   |   |   |   |
| Pro forma net income                                                                                                  |   | $      | (825,144 | )      |   | $      | (80,829 | ) |
|                                                                                                                  |   |   |     |   |   |   |   |   |
| Earnings  per share:                                                                                        |   |   |     |   |   |   |   |   |
| Basic - as reported                                                                                                   |   | $      | (0.06    | )      |   | $      | (0.01 | ) |
| Basic – pro forma                                                                                               |   | $      | (0.06    | )      |   | $      | (0.01 | ) |
|                                                                                                                  |   |   |     |   |   |   |   |   |
| Diluted - as reported                                                                                                 |   | $      | (0.05    | )      |   | $      | (0.01 | ) |
| Diluted – pro forma                                                                                             |   | $      | (0.05    | )      |   | $      | (0.01 | ) |

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|                                                                                                                  |   | 2008   |     |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                                  |   |   |     |   |   |   |
| Net income  as reported                                                                                     |   | $      | (638,318 | )      |   | $      | (287,818 | ) |
| Deduct:                                                                                                               |   |   |     |   |   |   |   |   |
| Total stock based employee compensation determined under fair value method for all awards, net of related tax effects |   |   | -        |   |   |   | - |   |
|                                                                                                                  |   |   |     |   |   |   |   |   |
| Pro forma net income                                                                                                  |   | $      | (638,318 | )      |   | $      | (287,818 | ) |
|                                                                                                                  |   |   |     |   |   |   |   |   |
| Earnings  per share:                                                                                        |   |   |     |   |   |   |   |   |
| Basic - as reported                                                                                                   |   | $      | (0.04    | )      |   | $      | (0.02 | ) |
| Basic – pro forma                                                                                               |   | $      | (0.04    | )      |   | $      | (0.02 | ) |
|                                                                                                                  |   |   |     |   |   |   |   |   |
| Diluted - as reported                                                                                                 |   | $      | (0.04    | )      |   | $      | (0.02 | ) |
| Diluted – pro forma                                                                                             |   | $      | (0.04    | )      |   | $      | (0.02 | ) |

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| For the six months ended June 30, 2008: |   | Income (Numerator) |     |   | Shares (Denominator) |   |       | Per ShareAmount |   |
|-----------------------------------------|--------|--------------------|----------|--------|----------------------|--------|------------|-----------------|--------|
|                                    |   |               |     |   |                 |   |       |            |   |
| Basic earnings per share                |   |               |     |   |                 |   |       |            |   |
|                                    |   |               |     |   |                 |   |       |            |   |
| Income available to common shareholders |   | $                  | (825,444 | )      |                 |   | 14,328,344 |            |   | $ | (0.06 | ) |
|                                    |   |               |     |   |                 |   |       |            |   |   |   |   |
| Diluted earnings per share              |   |               |     |   |                 |   |       |            |   |   |   |   |
|                                    |   |               |     |   |                 |   |       |            |   |   |   |   |
| Income available to common shareholders |   | $                  | (825,444 | )      |                 |   | 16,159,388 |            |   | $ | (0.05 | ) |

| For the six months ended June 30, 2007: |   | Income (Numerator) |    |   | Shares (Denominator) |   |       | Per ShareAmount |   |
|-----------------------------------------|--------|--------------------|---------|--------|----------------------|--------|------------|-----------------|--------|
|                                    |   |               |    |   |                 |   |       |            |   |
| Basic earnings per share                |   |               |    |   |                 |   |       |            |   |
|                                    |   |               |    |   |                 |   |       |            |   |
| Income available to common shareholders |   | $                  | (80,829 | )      |                 |   | 11,332,788 |            |   | $ | (0.01 | ) |
|                                    |   |               |    |   |                 |   |       |            |   |   |   |   |
| Diluted earnings per share              |   |               |    |   |                 |   |       |            |   |   |   |   |
|                                    |   |               |    |   |                 |   |       |            |   |   |   |   |
| Income available to common shareholders |   | $                  | (80,829 | )      |                 |   | 11,716,253 |            |   | $ | (0.01 | ) |

| For the three months ended June 30, 2008: |   | Income (Numerator) |     |   | Shares (Denominator) |   |       | Per ShareAmount |   |
|-------------------------------------------|--------|--------------------|----------|--------|----------------------|--------|------------|-----------------|--------|
|                                      |   |               |     |   |                 |   |       |            |   |
| Basic earnings per share                  |   |               |     |   |                 |   |       |            |   |
|                                      |   |               |     |   |                 |   |       |            |   |
| Income available to common shareholders   |   | $                  | (638,318 | )      |                 |   | 14,382,401 |            |   | $ | (0.04 | ) |
|                                      |   |               |     |   |                 |   |       |            |   |   |   |   |
| Diluted earnings per share                |   |               |     |   |                 |   |       |            |   |   |   |   |
|                                      |   |               |     |   |                 |   |       |            |   |   |   |   |
| Income available to common shareholders   |   | $                  | (638,318 | )      |                 |   | 16,188,261 |            |   | $ | (0.04 | ) |

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| For the three months ended June 30, 2007: |   | Income (Numerator) |     |   | Shares (Denominator) |   |       | Per ShareAmount |   |
|-------------------------------------------|--------|--------------------|----------|--------|----------------------|--------|------------|-----------------|--------|
|                                      |   |               |     |   |                 |   |       |            |   |
| Basic earnings per share                  |   |               |     |   |                 |   |       |            |   |
|                                      |   |               |     |   |                 |   |       |            |   |
| Income available to common shareholders   |   | $                  | (287,818 | )      |                 |   | 11,972,387 |            |   | $ | (0.02 | ) |
|                                      |   |               |     |   |                 |   |       |            |   |   |   |   |
| Diluted earnings per share                |   |               |     |   |                 |   |       |            |   |   |   |   |
|                                      |   |               |     |   |                 |   |       |            |   |   |   |   |
| Income available to common shareholders   |   | $                  | (287,818 | )      |                 |   | 12,483,934 |            |   | $ | (0.02 | ) |

|                       |   | For the six months ended June 30, 2008 |       |   | For the six months ended June 30, 2007 |   |
|----------------------------|--------|----------------------------------------|------------|--------|----------------------------------------|--------|
|                       |   | Domestic                               |       |   | International                          |   |   | Totals |   |   | Domestic |   |   | International |   |   | Totals |   |
|                       |   |                                   |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                   |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET SALES                  |   | $                                      | 6,766,407  |   |                                   | $      | 469,367 |   |   | $ | 7,235,774 |   |   | $ | 3,436,713 |   |   | $ | 601,818 |   |   | $ | 4,038,531 |   |
|                       |   |                                   |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST OF SALES              |   | $                                      | 2,095,576  |   |                                   | $      | 166,515 |   |   | $ | 2,262,091 |   |   | $ | 989,616 |   |   | $ | 245,368 |   |   | $ | 1,234,984 |   |
| Gross profit               |   |                                   | 4,670,831  |   |                                   |   | 302,852 |   |   |   | 4,973,683 |   |   |   | 2,447,097 |   |   |   | 356,450 |   |   |   | 2,803,547 |   |
|                       |   |                                   |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:        |   |                                   |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation               |   |                                   | 4,304      |   |                                   |   | 270 |   |   |   | 4,574 |   |   |   | 2,783 |   |   |   | 396 |   |   |   | 3,179 |   |
| General and administrative |   |                                   | 1,637,585  |   |                                   |   | 45,157 |   |   |   | 1,682,742 |   |   |   | 352,890 |   |   |   | 42,437 |   |   |   | 395,327 |   |
| Selling and marketing      |   |                                   | 4,111,789  |   |                                   |   | 4,802 |   |   |   | 4,116,591 |   |   |   | 2,465,378 |   |   |   | 7,975 |   |   |   | 2,473,353 |   |
| Rent                       |   |                                   | 25,750     |   |                                   |   | 1,616 |   |   |   | 27,366 |   |   |   | 13,770 |   |   |   | 1,958 |   |   |   | 15,728 |   |
| Total operating expense    |   |                                   | 5,779,428  |   |                                   |   | 51,845 |   |   |   | 5,831,273 |   |   |   | 2,834,821 |   |   |   | 52,766 |   |   |   | 2,887,587 |   |
|                       |   |                                   |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)    |   | $                                      | (1,108,597 | )      |                                   | $      | 251,007 |   |   | $ | (857,590 | ) |   | $ | (387,724 | ) |   | $ | 303,684 |   |   | $ | (84,039 | ) |

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|                       |   | For the three months ended June 30, 2008 |      |   | For the three months ended June 30, 2007 |   |
|----------------------------|--------|------------------------------------------|-----------|--------|------------------------------------------|--------|
|                       |   | Domestic                                 |      |   | International                            |   |   | Totals |   |   | Domestic |   |   | International |   |   | Totals |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET SALES                  |   | $                                        | 3,167,328 |   |                                     | $      | 361,916 |   |   | $ | 3,529,244 |   |   | $ | 2,136,145 |   |   | $ | 219,341 |   |   | $ | 2,355,486 |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COST OF SALES              |   | $                                        | 958,730   |   |                                     | $      | 121,829 |   |   | $ | 1,080,559 |   |   | $ | 668,830 |   |   | $ | 109,485 |   |   | $ | 778,315 |   |
| Gross profit               |   |                                     | 2,208,598 |   |                                     |   | 240,087 |   |   |   | 2,448,685 |   |   |   | 1,467,315 |   |   |   | 109,856 |   |   |   | 1,577,171 |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:        |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation               |   |                                     | 2,694     |   |                                     |   | 221 |   |   |   | 2,915 |   |   |   | 1,478 |   |   |   | 111 |   |   |   | 1,589 |   |
| General and administrative |   |                                     | 942,982   |   |                                     |   | 35,101 |   |   |   | 978,083 |   |   |   | 214,148 |   |   |   | 14,477 |   |   |   | 228,625 |   |
| Selling and marketing      |   |                                     | 2,096,865 |   |                                     |   | 2,288 |   |   |   | 2,099,153 |   |   |   | 1,620,134 |   |   |   | 12,302 |   |   |   | 1,632,436 |   |
| Rent                       |   |                                     | 16,916    |   |                                     |   | 1,349 |   |   |   | 18,265 |   |   |   | 7,300 |   |   |   | 549 |   |   |   | 7,849 |   |
| Total operating expense    |   |                                     | 3,059,457 |   |                                     |   | 38,959 |   |   |   | 3,098,416 |   |   |   | 1,843,059 |   |   |   | 27,439 |   |   |   | 1,870,498 |   |
|                       |   |                                     |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)    |   | $                                        | (850,859  | )      |                                     | $      | 201,128 |   |   | $ | (649,731 | ) |   | $ | (375,744 | ) |   | $ | 82,417 |   |   | $ | (293,327 | ) |

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|                                      |   | For the three months ended June 30, 2008 |       |   | For the six months ended June 30, 2008 |   |
|-------------------------------------------|--------|------------------------------------------|------------|--------|----------------------------------------|--------|
|                                      |   |                                     |       |   |                                   |   |
|                                      |   |                                     |       |   |                                   |   |
| Accounts receivable:                      |   |                                     |       |   |                                   |   |
| As previously reported                    |   | $                                        | 4,375,143  |   |                                   | $      | 4,375,143 |   |
| Adjustment                                |   | $                                        | (3,016,981 | )      |                                   | $      | (3,016,981 | ) |
| As restated                               |   | $                                        | 1,358,162  |   |                                   | $      | 1,358,162 |   |
|                                      |   |                                     |       |   |                                   |   |   |   |
| Inventories:                              |   |                                     |       |   |                                   |   |   |   |
| As previously reported                    |   | $                                        | 1,274,879  |   |                                   | $      | 1,274,879 |   |
| Adjustment                                |   | $                                        | 205,089    |   |                                   | $      | 205,089 |   |
| As restated                               |   | $                                        | 1,479,968  |   |                                   | $      | 1,479,968 |   |
|                                      |   |                                     |       |   |                                   |   |   |   |
| Prepaid expenses and deposits:            |   |                                     |       |   |                                   |   |   |   |
| As previously reported                    |   | $                                        | 1,029,123  |   |                                   | $      | 1,029,123 |   |
| Adjustment                                |   | $                                        | (387,175   | )      |                                   | $      | (387,175 | ) |
| As restated                               |   | $                                        | 641,948    |   |                                   | $      | 641,948 |   |
|                                      |   |                                     |       |   |                                   |   |   |   |
| Accounts payable and accrued liabilities: |   |                                     |       |   |                                   |   |   |   |
| As previously reported                    |   | $                                        | 2,048,681  |   |                                   | $      | 2,048,681 |   |
| Adjustment                                |   | $                                        | (55,655    | )      |                                   | $      | (55,655 | ) |
| As restated                               |   | $                                        | 1,993,026  |   |                                   | $      | 1,993,026 |   |
|                                      |   |                                     |       |   |                                   |   |   |   |
| Net sales:                                |   |                                     |       |   |                                   |   |   |   |
| As previously reported                    |   | $                                        | 4,281,949  |   |                                   | $      | 7,950,707 |   |
| Adjustment                                |   | $                                        | (752,705   | )      |                                   | $      | (714,933 | ) |
| As restated                               |   | $                                        | 3,529,244  |   |                                   | $      | 7,235,774 |   |
|                                      |   |                                     |       |   |                                   |   |   |   |
| Cost of sales:                            |   |                                     |       |   |                                   |   |   |   |
| As previously reported                    |   | $                                        | 1,166,874  |   |                                   | $      | 2,188,441 |   |
| Adjustment                                |   | $                                        | (86,315    | )      |                                   | $      | 73,650 |   |
| As restated                               |   | $                                        | 1,080,559  |   |                                   | $      | 2,262,091 |   |
|                                      |   |                                     |       |   |                                   |   |   |   |
| Operating expenses:                       |   |                                     |       |   |                                   |   |   |   |
| As previously reported                    |   | $                                        | 2,866,190  |   |                                   | $      | 5,424,133 |   |
| Adjustment                                |   | $                                        | 232,226    |   |                                   | $      | 407,140 |   |
| As restated                               |   | $                                        | 3,098,416  |   |                                   | $      | 5,831,273 |   |

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| ITEM 2. | MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION |
|---------|---------------------------------------------------------|

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| ITEM 3. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

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

| Number | Description |
|--------|-------------|

| *31.1 | Rule 13a-14(a)/15d-14(a) Certification – Chief Executive Officer |
|-------|------------------------------------------------------------------------|

| *31.2 | Rule 13a-14(a)/15d-14(a) Certification – Chief Financial Officer |
|-------|------------------------------------------------------------------------|

| *32 | Section 1350 Certifications |
|-----|-----------------------------|

| 1.   | Current report on Form 8-K dated May 30, 2008 regarding: |
|----------------|----------------------------------------------------------|

| a)   | Appointment of Richard Scheiner as Chief Operating Officer |
|----------------|------------------------------------------------------------|

| b)   | Relocation of executive offices to 299 Madison Avenue North, Suite C, Bainbridge Island WA 98110 |
|----------------|--------------------------------------------------------------------------------------------------|

| 2. | Form 8-K reported on October 31, 2008 |
|----|---------------------------------------|

| 3. | Form 8-K reported on November 7, 2008 |
|----|---------------------------------------|

| 4. | Form 8-K/A reported on December 17, 2008 |
|----|------------------------------------------|

| 5. | Form 8-K/A reported on March 2, 2009 |
|----|--------------------------------------|

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GN

|                  | INTERNATIONAL COMMERCIAL TELEVISION INC. |
|-----------------------|------------------------------------------|
|                  | Registrant                               |   |
|                  |                                     |   |   |
|                  |                                     |   |   |
| Date: August 14, 2008 | By:                                      | /s/ Kelvin Claney |   |
|                  | Name:  Kelvin Claney           |   |
|                  | Title: Chief Executive Officer           |   |
|                  |                                     |   |   |
|                  |                                     |   |   |
| Date: August 14, 2008 | By:                                      | /s/ Richard Ransom |   |
|                  | Name:  Richard Ransom          |   |
|                  | Title: Chief Financial Officer           |   |

----