U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                  FORM 10-KSB

[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

      For the Fiscal Year Ended:  December 31, 2006

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934

      For the transition period from ___________ to ___________
      Commission File No. 1-13852

                             CET SERVICES, INC.
             (Name of Small Business Issuer in its Charter)

            California                                33-0285964
  (State or Other Jurisdiction                     (I.R.S. Employer
of Incorporation or Organization)                 Identification No.)

12503 E. Euclid Dr. #30, Centennial, Colorado            80111
(Address of Principal Executive Offices)               (Zip code)

Issuer's telephone number:  (720) 875-9115

Securities registered pursuant to Section 12(b) of the Act:

Title of single class:          Name of exchange on which registered:
----------------------          -------------------------------------
    Common Stock                        American Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:  None

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

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB. [  ]

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).  [ ] Yes [X] No

State issuer's revenues for its most recent fiscal year:  $2,980,970

State the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the price at which the common
equity was sold, of the average bid and asked price of such common equity, as
of a specified date within the past 60 days.  As of February 14, 2007, the
aggregate market value of the Company's common stock held by non-affiliates
was approximately $1,208,806.

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.  As of February 14, 2007,
5,554,489 shares of common stock were outstanding.

Transitional Small Business Disclosure Format (Check one):  YES [ ] NO [X]

Documents incorporated by reference:

The information required by Items 9, 10, 11, 12 and 14 of Part III is
incorporated by reference from the Registrant's definitive proxy statement to
be filed with the Commission pursuant to Regulation 14A not later than 120
days after the end of the fiscal year covered by this report.



                                   PART I

Item 1.  Description of Business.

The Company

     Incorporated in February 1988 pursuant to the laws of the State of
California, CET Services, Inc. (the "Company" or "CET") for more than a
decade was engaged in environmental consulting, engineering, remediation, and
related construction activities.  By 1998, revenues exceeded $66 million,
close to 50% of which was derived from work performed for the Environmental
Protection Agency ("EPA").  However, in August, 1999, the EPA issued a notice
of suspension, alleging that the Company engaged in intentional misconduct
with respect to billing for services under various contracts with the EPA.
The Company has denied all allegations of wrongdoing in its relations with
the EPA and has cooperated in full with the ongoing investigation. (See Item
3. Legal Proceedings and Note J-Legal to the Consolidated Financial
Statements.)

     An Administrative Agreement with EPA allowed the lifting of the
suspension in November, 1999.  However, EPA revenues under the then-existing
contract never recovered to prior levels.  The EPA exercised the third year
option of the contract in January 2000, and was empowered to issue delivery
orders for up to $42 million in value; actual EPA revenues for 2000 were
$13.1 million.  The fourth and final option year was exercised in January
2001, with an empowered value of $44 million; actual EPA revenues in 2001
were $12.3 million.  In addition, revenue generation from other federal
agencies also failed to recover to pre-1999 levels.

     In view of the diminished level of EPA delivery orders received and with
no assurance that delivery orders would increase even if the Company was
successful in obtaining another EPA contract, management decided to forgo
bidding on a new contract.  At the billing levels experienced in the 2001-
2002 period, the overhead costs necessary to perform EPA work made such
efforts marginally profitable, at best.

     In addition, after careful review of the potential business available
and the highly competitive bidding practices being encountered, the Company
decided to not seek additional contracts in the water/wastewater treatment
and services market.  While an ongoing contract in this area may generate
$20,000 or more per month in revenue through 2007, the Company's main focus
is property development, primarily in urban areas and preferably having an
environmental remediation requirement as an element of the project.

     On February 16, 2007, the Company entered into an Agreement and Plan of
Merger by and among the Company, Interactive Acquisition Corporation, a
Nevada corporation and wholly owned subsidiary of the Company, Zoi
Interactive Technologies, Inc. ("ZOI"), and CET Services of Nevada, Inc., a
Nevada Corporation (the "Merger Agreement").



                                    2




     Under the terms of the Merger Agreement, a newly-formed subsidiary of
CET will merge into ZOI, ZOI will become a wholly-owned subsidiary of CET,
and the shareholders of ZOI will receive shares of CET common stock in
exchange for their ZOI shares ("Merger").  The Merger Agreement further
provides that CET will issue to the shareholders of ZOI a total of 34,899,000
shares of CET common stock and will assume all of ZOI's outstanding options,
warrants and convertible debt, which convertible securities will become
exercisable for CET common stock.

     In connection with the execution of the Merger Agreement, CET entered
into a Stock Repurchase Agreement to purchase from Steven H. Davis, CET's
Chief Executive Officer, 1,000,000 outstanding shares of CET common stock
held by Mr. Davis. CET would pay for the shares by transferring certain real
estate properties to Mr. Davis.

     If the repurchase of shares from Mr. Davis is completed, CET's
shareholders will hold approximately 4.55 million shares in the combined
entity. CET and ZOI anticipate that CET will consummate a reverse stock split
in connection with the Merger, which will proportionately adjust the CET
share numbers provided herein.

     Subject to certain conditions, the Merger Agreement provides that CET
will change its jurisdiction of incorporation from California to Nevada.  In
addition, the directors and officers of the combined company will be
designated by ZOI, and the companies anticipate that these individuals will
consist of the officers and directors ZOI immediately before the Merger.  The
transaction has been approved by the Boards of both companies. The closing of
the transaction contemplated by the Merger Agreement is subject to the
satisfaction of customary conditions, including approval by the stockholders
of both companies and holders of no more than 5% of the outstanding shares of
CET common stock having exercised dissenters' right with respect to their
shares by virtue of the Merger. Absent unforeseen delays, the transaction is
expected to close during the second quarter of 2007.

     Headquartered in Nashville, Tennessee, ZOI is a development-stage
company that designs and implements interactive, web-based content, supported
by advertising and end-user revenues. ZOI's patent-pending R.E.A.C.T.
platform provides a venue for advertisers to engage active internet users
over long periods of time through various applications including interactive
games and lifestyle enhancement programs.  R.E.A.C.T. helps advertisers
offset the declining impact of traditional advertising media by developing
enhanced relationships with a wide range of potential customers in a highly-
controlled and traceable environment.  Upon completion of the merger, the
Company expects to wind-down its real estate operations and focus on ZOI's
interactive, web-based business.

Brownfields Remediation and Property Development

     Where applicable, many municipalities are actively seeking to restore
property currently idled by contamination in order to enhance the community's
tax base.  Often, these municipalities are eligible for federal aid, state
funds, and other types of special financing.  Also, towns and cities adjacent

                                    3




to or close to major metropolitan centers are encouraging gentrification of
older neighborhoods in order to revive the commercial and social activities
of the community.  The Company believes that these trends offer an
opportunity for niche property development.  Because of its past experience
in the environmental market place, the Company believes it can provide a
particular expertise and add value when remediation is required to bring the
development to fruition.

     The Company has substantially completed a redevelopment project under an
agreement with the City of Westminster, Colorado.  The project includes the
purchase of certain property, the demolition of existing structures,
environmental remediation, and construction of 50 new affordable housing
units.  Under the development agreement, the City of Westminster provided
approximately $901,000 toward the $1,601,000 purchase price of the property,
paid the Company approximately $185,000 for demolition work, and is providing
other assistance.  The Company was required to and has sold at least 10 of
the 50 housing units at a base price of $170,000, or less, to qualified
buyers; to make certain off-site improvements along street frontages; and to
provide the necessary insurance for the project.  As of December 31, 2006,
the Company had capitalized costs of $557,000 representing the remaining four
unsold units.

     The Westminster development is segmented into three sites.  Construction
at Site I, consisting of 23 housing units, is complete; and as of December
31, 2006, all units had been sold.  In developing this site, the Company
secured a $1.67 million construction loan in mid-2003 that was repaid in June
2004.  In late September 2004, the Company entered into an agreement with a
general contractor in the amount of approximately $2.75 million for the
construction of the remaining 27 housing units at Site II and III.  Shortly
thereafter, the Company secured a construction loan (see Note D -
Construction Loan to the Consolidated Financial Statements) in the amount of
approximately $2.9 million.  As of December 31, 2006, the Company has sold 23
of the units.

     In November 2004, the Company executed a second development agreement
with the City of Westminster under which the City would provide approximately
$410,000 and other assistance to the Company for the development of a
retail/office building of approximately 11,200 square feet, as well as twelve
townhomes.  The Company acquired the property necessary for this project in
May 2005, borrowing $326,000 and received $100,000 under the development
agreement (see Note E - Notes Payable to the Consolidated Financial
Statements). In October 2005, upon approval of the development plan, the
Company received the remaining $310,000 provided for under the development
agreement.

     In addition, the Company owns a five-acre residential site in Aurora,
Colorado, "the Aurora project", and during 2004, completed a major
remediation at the site, aided by a Brownfields Cleanup Revolving Loan Fund
Agreement with City of Aurora in the amount of $471,495 (see Note E- Notes
Payable to the Consolidated Financial Statements).  The Company has this
property listed for sale with a local real estate broker.

                                    4




     In January 2005, the Company entered into an operating agreement with a
newly-formed entity, Arizona Avenue, LLC, a Colorado limited liability
corporation in which the Company is a 50% owner.  The Company has been
engaged by the LLC to manage the development of a five-acre site in Aurora,
Colorado. There have been no management fees in connection therewith during
the period. Through December 31, 2006, the Company has invested approximately
$280,000 to develop this project. The Company currently has this property
listed for sale with a local real estate broker.

     In April 2006, the Company entered into a contract to purchase two
buildings, an industrial building and a retail/office building, in Wheat
Ridge, Colorado. In May 2006, the Company entered into a contract to sell the
industrial building. In June 2006, the Company borrowed $694,000 (of which
$451,000 was drawn) from a local lender (see Note E - Notes Payable to the
Consolidated Financial Statements) and completed the purchase of both
buildings and the sale of the industrial building. The Company has completed
the rehabilitation of the retail/office building and has listed the property
for sale with a local real estate broker.

     The Company believes it is subject to risks and uncertainties common to
the residential housing industry, including but not limited to (1) cyclical
markets sensitive to changes in general and local economic conditions; (2)
volatility of interest rates, which affects homebuilding demand and may
affect credit availability; (3) seasonal nature of the business due to
weather-related factors; (4) significant fluctuations in the price of
building materials; (5) demographic changes; and (6) changes in consumer
confidence and preferences.

     As described above, the Company holds real estate properties for
development.  This activity is expected to be the Company's primary focus for
the future.  The current and anticipated projects for land presently held are
for multi-family housing and retail/office properties.  The Company will seek
to find niche property sites, initially in the greater Denver area, that
offer an opportunity to upgrade value through demolition, remediation, and
construction.

     The Company's administrative functions are centralized in order to
control overhead costs and permit the direct engagement of key management
with local municipal authorities in project development.  Further, the
Company will attempt to minimize its fixed costs by contracting extensively
with third parties, such as architects, engineers, and contractors to design
and build.  The Company intends to continue using third-party realtors for
home sales.

     The pace of the Company's activity in the property development area will
be subject to a number of variables, many of which are outside its control.
These include market demand for the structures erected on the sites, interest
rates, and weather conditions, among others.  In addition, the Company has
limited financial resources, and there can be no assurance that external
financing will be available on terms acceptable to the Company.

                                    5




Government Regulation

     In connection with its Brownfields remediation activity, the Company is
regulated by a myriad of federal, state, and local environmental and
transportation regulatory agencies, including but not limited to the EPA,
which regulates the generation and disposal of hazardous waste; the U.S.
Department of Labor, which sets safety and training standards for workers;
the U.S. Department of Transportation, which regulates transportation of
hazardous materials and hazardous waste; and similar state and local
agencies.  Additionally, in the normal course of property development, the
Company is subject to local codes governing construction activity.

Potential Liability and Insurance

     In the construction of housing units, the Company requires the general
contractor to provide general liability and builders risk coverage.  However,
in providing environmental remediation services, the Company faces
substantial potential liability for environmental damage, personal injury,
property damage, economic losses, and fines and costs imposed by regulatory
agencies.  The Company's potential environmental liability arises, in part,
from the nature of the hazardous substances requiring remediation at the
development sites.

     Because there are various exclusions and retentions attendant to
insurance policies, not all liabilities that may be incurred by the Company
will necessarily be covered by insurance.  In addition, certain of the
policies are "claims made" policies that only cover claims made during the
term of the policy.  If a policy terminates and retroactive coverage is not
obtained, a claim subsequently made, even a claim based on events or acts
that occurred during the term of the policy, might not be covered by the
policy.

     The market for liability insurance has been severely constrained at
times, due in part to high losses experienced by the insurance industry from
environmental impairment liability claims, including claims associated with
hazardous materials and toxic wastes.  Consequently, the available insurance
coverage for enterprises such as the Company may be reduced, eliminated
entirely, or priced beyond the reach of many companies.  To date, the Company
has been able to obtain the necessary insurance when required.  However,
there can be no assurance that the Company will be able to maintain adequate
liability insurance in the future.

Bonding Requirements

     Commercial remediation projects, as well as federal, state, and
municipal projects, often require contractors to post both performance and
payment bonds at the execution of a contract.  Performance bonds guarantee
that the project will be completed, and payment bonds guarantee that vendors
will be paid for equipment and other purchases.  A bond typically costs
between 1% and 3% of the project costs, and contractors without adequate
bonding may be ineligible to bid or negotiate on many projects.  No pay-ments
have been made on behalf of the Company under a performance or payment bond.
However, as result of the Company's financial status, it has experienced
difficulty in obtaining bonding.

                                    6

Employees

     As of December 31, 2006, the Company had three full-time employees who
are the Company's officers.  The Company's employees are not represented by a
labor union or covered by a collective bargaining agreement, and the Company
believes it has good relations with its employees.

     The operations of the Company are substantially dependent upon its
executive officers.  The Company has no employment contracts with these
persons, and the loss of their services could have a material adverse effect
on the Company.  The Company's further success will also depend significantly
on its ability to attract and retain additional skilled personnel, including
highly trained technical personnel, project managers, and supervisors.  The
Company believes it currently has adequate qualified supervisory personnel,
but there is no assurance that experienced and qualified management level
personnel will be available to the Company in the future to fill positions as
needed.

Item 2.  Description of Property.

     The Company headquarters and administrative facilities are located at
12503 E. Euclid Dr., #30, Centennial, Colorado, in approximately 3,252 square
feet of leased office space at a monthly rental of approximately $3,100.  The
lease expires August 31, 2008.  The Company's corporate and administrative
functions are conducted from these facilities.

Item 3.  Legal Proceedings.

     Except as set forth below, the Company is not a party to any material
legal proceedings which are pending before any court, administrative agency,
or other tribunal.  Further, the Company is not aware of any material
litigation, which is threatened against it in any court, administrative
agency, or other tribunal.  Management believes the outcome on any pending
litigation that would have a material adverse effect on the Company's
financial position or results of operations is remote.

     Since early 1998, the Company has been the subject of an investigation
by the Office of the Inspector General (OIG) of the Environmental Protection
Agency (EPA).  While initially broad in scope, the investigation is now
focused on labor billing rates to the EPA beginning in the 1992-1994 period
and selected subsequent years.  The Company has cooperated fully in all OIG
inquiries and will continue to do so when and if required.  Independent
audits by the Defense Contract Audit Agency (DCAA), subsequent to initiation
of the OIG investigation, have not been adverse nor have resulted in claims
against the Company.  In an effort to resolve the dispute, the Company
requested non-binding arbitration which allows for a full discussion of the
issues before a neutral party.  The OIG rejected this proposal.
Subsequently, during the third quarter of 2002, the Company attempted to
reach a settlement agreement in order to limit further legal costs.  In
response to this initiative, OIG offered to settle the case for $8.7 million

                                    7



based on certain scenarios and imputed costs generated within its offices.
The Company strongly disputes and rejects the basis upon which the scenarios
were developed and denies any wrongdoing in dealings with the EPA (see Note -
J Legal to the Consolidated Financial Statements). No loss provision has been
made at December 31, 2006, relating to this matter, as management believes
that any material adverse effect on the Company's financial position or
results of operations is remote.

Item 4.  Submission of Matters to a Vote of Security Holders.

     No matters were submitted to a vote of the Company's security holders
during the quarter ended December 31, 2006.

                                   PART II

Item 5.  Market for Common Equity and Related Stockholder Matters.

     (a)  Principal Market or Markets.  Since July 18, 1995, the Company's
Common Stock has been listed on the American Stock Exchange ("AMEX") under
the symbol "ENV".  The following table sets forth the high and low sale
prices for the Company's Common Stock as reported on the AMEX for the periods
indicated:

              Quarter Ended           High     Low
           ------------------         ----    -----
           March 31, 2005            $0.68    $0.38
           June 30, 2005              0.50     0.36
           September 30, 2005         0.49     0.26
           December 31, 2005          0.51     0.25
           March 31, 2006             0.52     0.30
           June 30, 2006              1.20     0.26
           September 30, 2006         0.89     0.65
           December 31, 2006          0.85     0.30

     (b)  Approximate Number of Holders of Common Stock.  The number of
record holders of the Company's common stock at February 14, 2007 was 35.
This does not include approximately 740 shareholders that hold their shares
in street name.

     (c)  Dividends.  The Board of Directors does not anticipate paying cash
dividends on the Company's Common Stock in the foreseeable future as it
intends to retain future earnings to finance the growth of the business.  The
payment of future cash dividends will depend on such factors as earnings
levels, anticipated capital requirements, the operating and financial
conditions of the Company, and other factors deemed relevant by the Board of
Directors.  The California Corporations Code provides that a corporation may
not pay dividends if the corporation is, or as a result of the distribution
would likely be, unable to meet its liabilities as they mature.

     (d)  Sales of Unregistered Securities.  None

                                    8




Item 6.  Management's Discussion and Analysis or Plan of Operations.

     This Annual Report on Form 10-KSB contains forward-looking statements
(as such term is defined in the Private Securities Litigation Reform Act of
1995), and information relating to the Company that is based on beliefs of
management of the Company, as well as assumptions made by and information
currently available to management of the Company.  When used in this Report,
the words "estimate," "project," "believe," "could," "anticipate," "intend,"
"expect," and similar expressions are intended to identify forward-looking
statements.  Such statements reflect the current views of the Company with
respect to future events based on currently available information and are
subject to risks and uncertainties that could cause actual results to differ
materially from those contemplated in such forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.  The Company does not
undertake any obligation to release publicly any revisions to these forward-
looking statements to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.

General

     The Company's primary focus is property development, preferably in
conjunction with municipal authorities and where remediation is a material
consideration in the development activity.  After experiencing sharply
declining revenues as it withdrew from its historic environmental and water
services activities, the Company experienced a slower pace of sales of
residential housing units at its Westminster development project during 2006.
Ongoing water-related services continued to decline in 2006 and accounted for
approximately 11% of revenues during the year ended December 31, 2006.  The
Company's headquarters and administrative offices are in Centennial,
Colorado.

     Our financial statements have been prepared assuming that we will
continue in business as a going-concern. As discussed in our financial
statements and in this section, during the years ended December 31, 2006 and
2005, we have incurred net losses of $339,000 and $397,000, respectively and
at December 31, 2006, we had notes payable of $1,410,000 due in May and June
2007.   The report of The Independent Registered Public Accounting Firm on
the Company's financial statements as of and for the year ended December 31,
2006 includes a "going concern" explanatory paragraph which means that the
accounting firm expressed substantial doubt about the Company's ability to
continue as a going concern. Management's plans with respect to these matters
are described in this section and in our financial statements, and this
material does not include any adjustments that might result from the outcome
of this uncertainty. There is no guarantee that we will be able to raise the
funds and there are no guarantees that we will not need to raise further
capital for operations and expansion in the near future.


                                    9




     On February 23, 2007 the Company closed on the sale of two townhomes and
has a contract for the sale of a retail/office building, which sale is
scheduled to close on April 10, 2007. These closings are expected to generate
total proceeds of approximately $1,388,000.

     On February 16, 2007 the Company entered into a Merger Agreement with
Zoi Interactive Technologies, Inc. and anticipates the consummation of a
reverse merger with Zoi Interactive Technologies, Inc. on April 30, 2007 (see
Note M).

Proposed Merger with Zoi Interactive Technologies

     On February 16, 2007, the Company entered into an Agreement and Plan of
Merger by and among the Company, Interactive Acquisition Corporation, a
Nevada corporation and wholly owned subsidiary of the Company, Zoi
Interactive Technologies, Inc. ("ZOI"), and CET Services of Nevada, Inc., a
Nevada Corporation (the "Merger Agreement").

     Under the terms of the Merger Agreement, a newly-formed subsidiary of
CET will merge into ZOI, ZOI will become a wholly-owned subsidiary of CET,
and the shareholders of ZOI will receive shares of CET common stock in
exchange for their ZOI shares ("Merger"). The Merger Agreement further
provides that CET will issue to the shareholders of ZOI a total of
approximately 34,899,000 shares of CET common stock and will assume all of
ZOI's outstanding options, warrants and convertible debt, which convertible
securities will become exercisable for CET common stock.

     In connection with the execution of the Merger Agreement, CET entered
into a Stock Repurchase Agreement to purchase from Steven H. Davis, CET's
Chief Executive Officer, 1,000,000 outstanding shares of CET common stock
held by Mr. Davis. CET would pay for the shares by transferring certain real
estate properties to Mr. Davis.

     If the repurchase of shares from Mr. Davis is completed, CET's
shareholders will hold approximately 4.55 million shares in the combined
entity. CET and ZOI anticipate that CET will consummate a reverse stock split
in connection with the Merger, which will proportionately adjust the CET
share numbers provided herein.

     Subject to certain conditions, the Merger Agreement provides that CET
will change its jurisdiction of incorporation from California to Nevada. In
addition, the directors and officers of the combined company will be
designated by ZOI, and the companies anticipate that these individuals will
consist of the officers and directors of ZOI immediately before the Merger.
The transaction has been approved by the Boards of both companies. The
closing of the transaction contemplated by the Merger Agreement is subject to
the satisfaction of customary conditions, including approval by the
stockholders of both companies and holders of no more than 5% of the
outstanding shares of CET common stock having exercised dissenters' right
with respect to their shares by virtue of the Merger. Absent unforeseen
delays, the transaction is expected to close during the second quarter of
2007.

                                    10




     Headquartered in Nashville, Tennessee, ZOI is a development-stage
company that designs and implements interactive, web-based content, supported
by advertising and end-user revenues. ZOI's patent-pending R.E.A.C.T.
platform provides a venue for advertisers to engage active internet users
over long periods of time through various applications including interactive
games and lifestyle enhancement programs.  R.E.A.C.T. helps advertisers
offset the declining impact of traditional advertising media by developing
enhanced relationships with a wide range of potential customers in a highly-
controlled and traceable environment.  Upon completion of the merger, the
Company expects to wind-down its real estate operations and focus on ZOI's
interactive, web-based business.

Critical Accounting Policies & Estimates

     The Consolidated Financial Statements and Notes to the Consolidated
Financial Statements contain information that is pertinent to management's
discussion and analysis.  The preparation of financial statements in
conformity with accounting principles generally accepted in the United States
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities.  The Company believes the following critical
accounting policies involve additional management judgment due to the
sensitivity of the methods, assumptions, and estimates necessary in
determining the related asset and liability amounts.

     The Company's valuations of real estate inventories are stated at the
lower of cost or fair value.  Fair value is based on estimated sales price
less cost to sell. Estimated sales price is based on appraisals, offers or
management estimate.

     The Company's recorded net deferred tax assets are limited by the
underlying tax benefits that it expects to ultimately realize.  An adjustment
to income could be required if the Company were to determine that it could
realize tax benefits in amounts greater or less than the amounts previously
recorded.

     In the preparation of financial statements, the Company makes judgments
regarding the future outcome of contingent events and records loss
contingency amounts that are probable and reasonably estimated based on
available information. The amounts recorded may differ from the actual
amounts that occur when the uncertainty is resolved. The estimates that the
Company makes in accounting for contingencies and the gains and losses that
are recorded upon the ultimate resolution of these uncertainties may have a
significant effect on the liabilities and expenses in the financial
statements.

Revenue Recognition - Real Estate

      In accordance with SFAS No. 66, revenue from the sale of real estate
inventories is recognized when a sufficient down payment has been received;
financing has been arranged; title, possession and other attributes of
ownership have been transferred to the buyer; and the Company is not

                                    11




obligated to perform significant additional activities after sale and
delivery.  Capitalized costs are charged to direct costs upon closing.
Consideration received by the Company for real estate sales is cash.

     During development, all direct costs and those indirect costs related to
acquisition and development are capitalized.  Costs are allocated to various
units utilizing management's best estimate.  Because of the inherent
uncertainties in the estimating process, it is at least reasonably possible
that the estimates used will change in the near term.  Provisions for
estimated losses are recorded in the period in which such losses are
determined.  Changes in job performance, job conditions and estimated
profitability may result in revisions to costs and income and are recognized
in the period in which the revenues are determined; such revisions may be
material.

Results of Operations

     The following table presents, for the periods indicated, the percentage
relationship which certain items of the Company's statements of income bear
to revenue and the percentage increase or (decrease) in the dollar amount of
such items:

                               Percentage
                             Relationship to      Period to
                             Project Revenue       Period
                               Year Ended          Change
                             ----------------     ---------
                                                   2006 vs.
                               2006     2005        2005
                             -------  -------     ---------
Revenue                       100.0%   100.0%        (7.5)%
Costs:
  Direct                       91.3     93.3         (9.5)
  Indirect                      0.0      0.9       (100.0)
                             -------  -------     ---------
Gross profit (loss)             8.7      5.8         38.9

Operating expenses             21.6     19.6          1.9
                             -------  -------     ---------
Operating loss                (12.9)   (13.8)        13.7
Other income                    1.5      1.5          6.7
                             -------  -------     ---------
Net loss                      (11.4%)  (12.3%)       14.5
                             -------  -------     ---------

2006 Compared to 2005

    Revenue.  Revenues were $2,980,970 in 2006, down from $3,223,072 in 2005.
The decrease reflects fewer sales of residential housing units at the
Company's development project in Westminster, Colorado.  Ongoing water
services activity declined by approximately 33% in 2006 and accounted for
less than 11% of total revenue.

                                    12




     Cost of Revenue.  Cost of revenue for 2006 was $2,720,312, down from
$3,035,433 in the prior year.  The decrease reflects the lower sales volume
of residential housing units.

     Operating Expenses.  Selling General and Administrative costs were
$643,350 in 2006, as compared to $631,127 in 2005.  The increase reflects
severance payments and higher employee benefit costs.

     Other Income (Expense).  Other income for 2006 was $43,596 which arose
primarily from a $43,936 gain on the elimination of payables incurred in
2000. Other income for 2005 was $46,718, arising primarily from a $31,358
gain on the elimination of payables incurred in 2000 and $17,235 from the
recovery of unclaimed funds.

     Net Loss.  In 2006 a net loss of $339,096 was incurred as compared to a
net loss of $396,770 in 2005.  The decrease in the net loss is primarily the
result of a higher gross profit from the sale of two industrial buildings.

Liquidity and Capital Resources

     The Company's sources of liquidity and capital resources historically
have been net cash provided by operating activities, funds available under
its financing arrangements, and proceeds from offerings of equity securities.
In the past, these sources have been sufficient to meet its needs and finance
the Company's business.  The Company can give no assurance that the
historical sources of liquidity and capital resources will be available for
future development and acquisitions, and it may be required to seek
alternative financing sources not necessarily favorable to the Company.

     In connection with the Westminster redevelopment project discussed in
Item 1. Business, the Company, in September 2004, secured a construction loan
(see Note D - Construction Loan to the Consolidated Financial Statements) in
the amount of approximately $2.9 million, which was paid in full on April 13,
2006. Building activity began during the fourth quarter of 2004, and as of
December 31, 2006, the Company has sold 23 of the 27 units.

     In June 2006, the Company borrowed $694,000 (of which $451,000 was
drawn) from a local lender (see Note E - Notes Payable to the Consolidated
Financial Statements) to complete the purchase of a retail/office building
and the purchase and sale of an industrial building. The Company has
completed the rehabilitation of the retail/office building and has listed the
property for sale with a local real estate broker.

     In March 2004, the Company purchased a residential property site in
Westminster, Colorado, for $258,000 and financed the purchase with a $161,000
loan from a local lender (see Note E- Notes Payable to the Consolidated
Financial Statements).  The Company intends to incorporate this parcel into a
future redevelopment project.  If the Company is unsuccessful in negotiating
a redevelopment plan with the City of Westminster, then the Company has the
option to sell this property to the City of Westminster.


                                    13




     With respect to the Aurora project, the Company has completed major
remediation at the site aided by a Brownfields Cleanup Revolving Loan Fund
Agreement in the amount of $471,495 (see Note E- Notes Payable to the
Consolidated Financial Statements).  The Company has this property listed for
sale with a local real estate broker.

     Capital Commitments.  In January 2005, the Company entered into an
operating agreement with a newly formed entity, Arizona Avenue, LLC, a
Colorado limited liability corporation in which the Company is a 50% owner.
The Company has been engaged by the LLC to manage the development of a five-
acre site in Aurora, Colorado.  There were no management fees in connection
therewith during the years ended December 31, 2006 and 2005.  As of December
31, 2006, the Company has contributed $280,390 of its required $465,000
contribution.  The Company's remaining contribution, expected to be funded
from current operations, is to be paid prior to Arizona Avenue, LLC's
application for a construction loan to build 54 town homes on land
contributed by the other 50% owner.  Profits and losses, which are generally
to be allocated 50% to the Company and 50% to the other owner, were not
material for the year-ended December 31, 2006. The Company currently has this
property listed for sale with a local real estate broker.

     The Company headquarters and administrative facilities are located at
12503 E. Euclid Dr., #30, Centennial, Colorado, in approximately 3,252 square
feet of leased office space at a monthly rental of approximately $3,148.  The
lease expires August 31, 2008.  The Company's corporate and administrative
functions are conducted from these facilities.

Contractual Obligations at December 31, 2006:

                                Payments Due By Period
                     -----------------------------------------
Contractual                                         Less Than
Obligations            Total         1 Year         1-3 Years
-----------          ----------     ----------     -----------
Notes Payable        $1,409,495     $1,409,495       $   -
Operating Leases     $   65,656     $   39,384       $ 26,272
                     ----------     ----------       --------
    Total            $1,475,151     $1,448,879       $ 26,272
                     ==========     ==========       ========

     Off-Balance Sheet Transactions.  The Company has no off-balance sheet
transactions.

     Common Stock Dividend Policy.  Since the capitalization of the Company
in 1995, the Company has not paid, and does not currently intend to pay in
the foreseeable future, cash dividends on its Common Stock.  Future earnings,
if any, are expected to be retained for the development of the business of
the Company.

Item 7.  Financial Statements.

     See pages F-1 through F-20.

                                    14




Item 8.  Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure.

     None.

Item 8A.  Controls and Procedures.

     As of December 31, 2006, under the supervision and with the
participation of the Company's Chief Executive Officer and the Chief
Financial Officer, management has evaluated the effectiveness of the design
and operation of the Company's disclosure controls and procedures. Based on
that evaluation, the Chief Executive Officer and the Chief Financial Officer
concluded that the Company's disclosure controls and procedures were
effective as of December 31, 2006.  There were no changes in internal control
over financial reporting that occurred during the last fiscal quarter covered
by this report that have materially affected, or are reasonably likely to
affect, the Company's internal control over financial reporting.

Item 8B.  Other Information.

     None.

                                  PART III

Item 9, 10, 11, 12 and 14.  Directors, Executive Officers, Promoters and
Control Persons; Compliance with Section 16(a) of the Exchange Act; Executive
Compensation; Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters; Certain Relationships and Related
Transactions; and Principal Accountant Fees and Service.

     The information required by these Items is incorporated herein by
reference to the Company's definitive Proxy Statement relating to the Annual
Meeting of Shareholders to be held April 27, 2007.

Item 13.  Exhibits.

     The following exhibits are filed herewith:

Exhibit
Number    Description / Location
-------   ------------------------------------------------------------------

  2.1     Agreement and Plan Of Merger among Zoi Interactive Technologies,
          Inc., CET Services, Inc., Interactive Acquisition Corporation and
          CET Services Of Nevada, Inc. dated February 16, 2007 - Incorporated
          by reference to Exhibit 2.1 to Company's Form 8-K dated February
          16, 2007

  3.1     Amended and Restated Articles of Incorporation - Incorporated by
          reference to Exhibit 3.1 to the Company's Form SB-2 Registration
          Statement No. 33-91602

                                    15




  3.2     Bylaws - Incorporated by reference to Exhibit 3.2 to the Company's
          Form SB-2 Registration Statement No. 33-91602

  3.3     Certificate of Amendment of Articles of Incorporation -
          Incorporated by reference to Exhibit 3.3 to the Company's Annual
          Report on Form 10-K for the year ended December 31, 2003.

 10.1     Incentive Stock Option Plan - Incorporated by reference to
          Exhibit 10.1 to the Company's Form SB-2 Registration Statement
          No. 33-91602.

 10.2     Form of Incentive Stock Option Agreement - Incorporated by
          reference to Exhibit 10.2 to the Company's Form SB-2 Registration
          Statement No. 33-91602.

 10.4     Administrative Agreement between United States Environmental
          Protection Agency and the Registrant - Incorporated by reference
          to Exhibit 10.1 to Company's Form 10-Q for the nine months ended
          September 30, 1999.

 10.5     Development Agreement with the City of Westminster, CO. -
          Incorporated by reference to Exhibit 10.9 to the Company's Annual
          Report on Form 10-K for the year ended December 31, 2002.

 10.6     Stock Repurchase Agreement with Steven H. Davis dated February 16,
          2007 - Filed herewith electronically.

 21       Subsidiaries of the Registrant - Filed herewith electronically.

 23.1     Consent of GHP Horwath, P.C. - Filed herewith electronically.

 31.1     Certification of Chief Executive Officer Pursuant to Section 302
          of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically.

 31.2     Certification of Chief Financial Officer Pursuant to Section 302
          of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically.

 32.1     Certification of Chief Executive Officer Pursuant to 18 U.S.C.
          Section 1350 - Filed herewith electronically

 32.2     Certification of Chief Financial Officer Pursuant to 18 U.S.C.
          Section 1350 - Filed herewith electronically.









                                    16



                                  SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                     CET SERVICES, INC.



Dated:  March 9, 2007                By: /s/ Steven H. Davis
                                         Steven H. Davis
                                         President and Chief Executive
                                         Officer


     Pursuant to the requirement of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Company and in the capacities and on the date indicated.

       Signature                    Capacity                    Date

/s/ Steven H. Davis          President,                     March 9, 2007
Steven H. Davis              Chief Executive Officer,
                             and Director


/s/ Craig C. Barto           Director                       March 9, 2007
Craig C. Barto


/s/ John D. Hendrick         Director                       March 9, 2007
John D. Hendrick


/s/ George Pratt             Director                       March 9, 2007
George Pratt


/s/ Dale W. Bleck            Chief Financial Officer        March 9, 2007
Dale W. Bleck






                             CET SERVICES, INC.

                     FINANCIAL STATEMENTS AND REPORTS OF
                       INDEPENDENT REGISTERED PUBLIC
                             ACCOUNTING FIRMS


                       December 31, 2006 and 2005


                                                                       Page
                                                                       ----

Report of Independent Registered Public Accounting Firm .............   F-2

Consolidated Balance Sheet - December 31, 2006 ......................   F-3

Consolidated Statements of Operations - Years Ended December 31,
2005 and 2006 .......................................................   F-4

Consolidated Statements of Stockholders' Equity - Years Ended
December 31, 2005 and 2006 ..........................................   F-5

Consolidated Statements of Cash Flows - Years Ended December 31,
2005 and 2006 .......................................................   F-6

Notes to Consolidated Financial Statements ..........................   F-8
























                                  F-1


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Board of Directors and Stockholders
CET Services, Inc. and Subsidiaries

We have audited the accompanying consolidated balance sheet of CET Services,
Inc. and subsidiaries as of December 31, 2006, and the related consolidated
statements of operations, stockholders' equity, and cash flows for each of
the two years in the period ended December 31, 2006. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of CET
Services, Inc. and subsidiaries as of December 31, 2006, and the results of
their operations and their cash flows for each of the two years in the period
ended December 31, 2006, in conformity with accounting principles generally
accepted in the United States of America.

The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern.  As discussed in
Note A to the consolidated financial statements, the Company incurred net
losses of $339,000 and $397,000 during the years ended December 31, 2006 and
2005, respectively, and at December 31, 2006 has notes payable of $1,410,000
due in May and June 2007. These factors raise substantial doubt about the
Company's ability to continue as a going concern.  Management's plans in
regard to these matters are also described in Note A.  The consolidated
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.


/s/ GHP Horwath, P.C.

GHP HORWATH, P.C.

Denver, Colorado
January 26, 2007, except for Notes A and M as to which the date is
February 23, 2007

                                    F-2


                            CET SERVICES, INC.

                        CONSOLIDATED BALANCE SHEET


                                                      December 31,
                                                         2006
                                                      ------------
ASSETS
  Cash                                                $  396,362
  Accounts receivable                                     47,633
  Real estate inventories                              4,181,059
  Prepaid expenses                                        31,519
  Equipment and improvements - net                         3,034
  Deposits                                                 3,024
  Investment in LLC                                      280,390
                                                      ----------
TOTAL ASSETS                                          $4,943,021
                                                      ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Accounts payable                                    $  109,558
  Accrued expenses                                        56,881
  Notes payable                                        1,409,495
                                                      ----------
TOTAL LIABILITIES                                      1,575,934

COMMITMENTS AND CONTINGENCIES                               -

STOCKHOLDERS' EQUITY:
  Preferred stock (no par value) - authorized
   5,000,000 shares; no shares issued and
   outstanding
  Common stock (no par value) - authorized
   20,000,000 shares; 5,554,489 shares issued
   and outstanding                                     8,331,007
  Paid-in capital                                        104,786
  Accumulated deficit                                 (5,068,706)
                                                      ----------
     Total stockholders' equity                        3,367,087
                                                      ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $4,943,021
                                                      ==========

The accompanying notes are an integral part of this statement.








                                    F-3


                            CET SERVICES, INC.

                   CONSOLIDATED STATEMENTS OF OPERATIONS

                                             Years Ended December 31,
                                               2006           2005
                                            ----------     ----------

REVENUE                                     $2,980,970     $3,223,072

COST OF REVENUE:
  Direct                                     2,720,312      3,005,548
  Indirect                                        -            29,885
                                            ----------     ----------
                                             2,720,312      3,035,433
                                            ----------     ----------
     Gross profit                              260,658        187,639
                                            ----------     ----------

OPERATING EXPENSES:
  Selling, general and administrative
   expenses                                    643,350        631,127
                                            ----------     ----------
     Operating loss                           (382,692)      (443,488)
                                            ----------     ----------
OTHER INCOME (EXPENSE):
  Interest (expense) income, net                (1,276)        (2,295)
  Gain on elimination of payables               43,936         31,358
  Other income (expense), net                      936         17,655
                                            ----------     ----------
                                                43,596         46,718
                                            ----------     ----------
NET LOSS                                    $ (339,096)    $ (396,770)
                                            ==========     ==========
Basic and diluted loss per common share     $    (0.06)    $    (0.07)
                                            ==========     ==========

Weighted average number of common shares,
basic and diluted                            5,554,489      5,554,489
                                            ==========     ==========











The accompanying notes are an integral part of these statements.

                                     F-4



                               CET SERVICES, INC.
               CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                    Years Ended December 31, 2006 and 2005

<TABLE>
<CAPTION>



                          Common stock                                     Total
                     ----------------------   Paid-in    Accumulated    stockholders'
                       Shares      Amount     capital      deficit         equity
                     ---------   ----------   --------   -----------    -------------
<S>                  <C>         <C>          <C>        <C>            <C>
Balance at
 January 1, 2005     5,554,489   $8,331,007   $104,786   $(4,332,840)   $4,102,953

Net loss for the
 year                                                       (396,770)     (396,770)
                     ---------   ----------   --------   -----------    ----------
Balance at
 December 31, 2005   5,554,489   $8,331,007   $104,786   $(4,729,610)   $3,706,183

Net loss for the
 year                                                       (339,096)     (339,096)
                     ---------   ----------   --------   -----------    ----------
Balance at
 December 31, 2006   5,554,489   $8,331,007   $104,786   $(5,068,706)   $3,367,087
                     =========   ==========   ========   ===========    ==========




</TABLE>

















The accompanying notes are an integral part of these statements.

                                     F-5



                             CET SERVICES, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  Years ended December 31,
                                                    2006           2005
                                                 ----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net loss                                        $ (339,096)   $  (396,770)
 Adjustments to reconcile net loss to net cash
  provided by (used in) operating activities:
   Depreciation                                       1,432          5,526
   (Gain) loss on disposal of equipment                (425)           284
   Gain on elimination of payables                  (43,936)       (31,358)
   Changes in operating assets and liabilities:
    Decrease in accounts receivable                  22,124         21,856
    Decrease in accrued construction expense        (25,207)      (245,989)
    (Increase) decrease in prepaid expenses          (1,065)        22,035
    Decrease in deposits                               -             5,245
    Decrease (increase) in real estate inventories  835,938       (866,335)
    Increase (decrease) in accounts payable          35,023        (35,565)
    Decrease in retainage payable                    (5,356)       (23,255)
    Decrease in accrued expenses                       (156)        (7,261)
                                                 ----------    -----------
       Net cash provided by  (used in)
        operating activities                        479,276     (1,551,587)

CASH FLOWS FROM INVESTING ACTIVITIES:
 Investment in LLC                                  (17,023)      (263,367)
 Purchase of equipment                                 -            (5,064)
 Proceeds from sale of equipment                        500          5,578
                                                 ----------    -----------
       Net cash used in investing activities        (16,523)      (262,853)
                                                 ----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Decrease in restricted cash                         43,119        141,545
 Payments on notes payable                         (543,658)        (6,842)
 Proceeds from notes payable                        694,000        633,500
 (Payments on) proceeds from construction loan     (652,322)       393,813
                                                 ----------    -----------
       Net cash (used in) provided by
        financing activities                       (458,861)     1,162,016
                                                 ----------    -----------
Increase (decrease) in cash                           3,892       (652,424)
                                                 ----------    -----------
Cash at beginning of year                           392,470      1,044,894
                                                 ----------    -----------
Cash at end of year                              $  396,362    $   392,470
                                                 ==========    ===========




                                  (continued)

                                      F-6



                               CET SERVICES, INC.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (continued)


                                                  Years ended December 31,
                                                    2006           2005
                                                 ----------    -----------

Supplemental disclosures of cash flow
 information:
   Cash paid during the year
    Interest (including $70,616 in 2006
     and $23,502 in 2005 capitalized to real
     estate inventories)                         $   85,681     $ 20,559
                                                 ==========     ========

































The accompanying notes are an integral part of these statements.

                                    F-7



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - ORGANIZATION AND DESCRIPTION OF COMPANY, GOING CONCERN AND
MANAGEMENT PLANS

     Organization and description of Company

     CET Services, Inc. ("CET" or the "Company") was incorporated on February
9, 1988 under the laws of the State of California. The Company has one
wholly-owned subsidiary, Community Builders, Inc., a Colorado corporation.

     The Company is focused on property development in urban areas.  Initial
efforts in this area involve residential housing where land remediation tasks
are required. Reflecting highly competitive pricing and the consequent margin
erosion coupled with limited opportunities, the Company's water/wastewater
services business was substantially reduced in 2003.  The remaining activity
in this area will be completed in the normal course of business.

Going concern and management's plans

     The consolidated financial statements have been prepared assuming the
Company will continue as a going concern. The Company has incurred net losses
of approximately $339,000 and $397,000 during the years ended December 31,
2006 and 2005, respectively.  At December 31, 2006, the Company has notes of
approximately $1,410,000 payable in May and June 2007.  These factors raise
substantial doubt about the Company's ability to continue as a going concern.
The accompanying consolidated financial statements do not include any
adjustments relating to the recoverability of assets or the amounts of
liabilities that may result should the Company be unable to continue as a
going concern.  The following paragraph describes management's plans with
regard to these conditions.

     On February 23, 2007 the Company closed on the sale of two townhomes and
has a contract for the sale of a retail/office building, which sale is
scheduled to close on April 10, 2007. These closings are expected to generate
total proceeds of approximately $1,388,000.

     On February 16, 2007 the Company entered into a Merger Agreement with
Zoi Interactive Technologies, Inc. and anticipates the consummation of a
reverse merger with Zoi Interactive Technologies, Inc. on April 30, 2007 (see
Note M).

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                                    GENERAL

Consolidation

     The consolidated financial statements include the accounts of CET
Services, Inc., and its wholly-owned subsidiary.  All significant inter-
company transactions have been eliminated.

                                     F-8



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Cash

     For purposes of the statement of cash flows, the Company considers all
highly liquid cash investments with an original maturity of three months or
less to be cash.

Equipment and Improvements

     Equipment and improvements consist primarily of office equipment,
furniture and fixtures and are recorded at cost.  Depreciation is provided on
a straight-line method over their estimated useful lives, generally five
years.  At December 31, 2006, accumulated depreciation was approximately
$25,000.

Income Taxes

     The Company accounts for income taxes in accordance with the Statement
of Financial Accounting Standards ("SFAS") No. 109, Accounting for Income
Taxes, using the asset and liability method.  Under this method, deferred tax
assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statements carrying amount
of existing assets and liabilities and their tax bases, as well as net
operating losses.  Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled.  The
effect on deferred tax assets or liabilities of a change in tax rates is
recognized in the period in which the tax change occurs.  A valuation
allowance is provided to reduce the deferred tax assets to a level, that more
likely than not, will be realized.

Estimated Fair Value Information

     SFAS No. 107, Disclosure about Fair Value of Financial Instruments,
requires disclosure of the estimated fair value of an entity's financial
instrument assets and liabilities, as defined, regardless of whether
recognized in the financial statements of the reporting entity.  The fair
value information does not purport to represent the aggregate net fair value
of the Company.

     The fair values of cash accounts, accounts receivable and accounts
payable approximate their carrying amounts due to their short-term maturity.
The carrying value approximates fair value for notes payable, as the interest
rate is a variable market rate.

                                    F-9



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates

     In preparing financial statements in conformity with accounting
principles generally accepted in the United States of America, management is
required to make estimates and assumptions that affect the reported amounts
of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenue and expenses during the reporting period.  Actual results could
differ from those estimates.

Concentrations of Credit Risk

     The Company's cash balances, which are at times in excess of federally
insured levels, are maintained at a large regional bank, and are continually
monitored to minimize the risk of loss.  The Company grants credit to its
customers, whose balances are continually monitored to minimize the risk of
loss.

     The Company's residential housing segment has two primary projects, one
of which contributed substantially to revenues and cash flow in 2006.  Both
are expected to provide a significant portion of the Company's revenues and
cash flow in the immediate future.  If any unforeseen circumstance would
interrupt the development and completion of these projects, it would have a
material adverse effect on the Company's financial position, results of
operations, and liquidity.

Earnings per Share

     The Financial Accounting Standards Board's ("FASB") Statement of
Financial Accounting Standards No. 128, Earnings Per Share ("SFAS 128")
requires the presentation of basic earnings per share ("EPS") and, for
companies with potentially dilutive securities such as convertible debt,
options and warrants, diluted EPS.

     In 2006 and 2005, basic loss per share data was computed by dividing net
loss by the weighted average number of common shares outstanding during the
period. For the year ended December 31 2006 and 2005 diluted loss per share
is equivalent to basic loss per share since the computation does not give
effect to potentially dilutive securities including stock options and
warrants, as their effect would have been anti-dilutive.

Stock-Based Compensation

     During the first quarter of fiscal 2006, the Company adopted the
provisions of, and accounts for stock-based compensation in accordance with
FASB Statement of Financial Accounting Standards No. 123-revised 2004 ("SFAS
123R"), "Share-Based Payment" which replaced SFAS 123, "Accounting for Stock-
Based Compensation" and supersedes APB Opinion No. 25 ("APB 25"), "Accounting
for Stock Issued to Employees." Under the fair value recognition provisions

                                    F-10



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

of SFAS 123R, stock-based compensation cost is measured at the grant date
based on the fair value of the award and is recognized as expense on a
straight-line basis over the requisite service period, which is the vesting
period. The Company elected the modified-prospective method, under which
prior periods are not revised for comparative purposes. The valuation
provisions of SFAS 123R apply to new grants and to grants that were
outstanding as of the effective date and are subsequently modified. Estimated
compensation for grants that were outstanding as of the effective date will
be recognized over the remaining service period using the compensation cost
estimated for the SFAS 123 pro forma disclosures.

     At December 31, 2006, the Company had outstanding options to purchase
72,500 shares of common stock at $.20 to $1.31 per share all of which are
exercisable. Based on a Black-Scholes options pricing model utilizing the
following weighted average assumptions for grants in 2000 and 2002; no
expected dividends, expected volatility of 183%, risk-free interest rate of
5.0%, and expected lives of 5 years; the fair value and the intrinsic value
of options outstanding and vesting during the year ended  December 31, 2006
is not significant, therefore, the adoption of SFAS 123R did not have a
material impact on the consolidated financial position, results of operations
and cash flows. Proforma net loss and proforma net loss per share for the
year ended December 31, 2005 are not materially different from reported
amounts.

Recent Accounting Pronouncements

     In June 2006, the FASB issued Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes" (FIN 48). FIN 48 clarifies the accounting for
uncertainty in income taxes recognized in financial statements in accordance
with Statement of Financial Accounting Standard (SFAS) No. 109, "Accounting
for Income Taxes." This Interpretation prescribes a recognition threshold and
measurement attribute of tax positions taken or expected to be taken on a tax
return. This Interpretation is effective for the first fiscal year beginning
after December 15, 2006. We are currently evaluating the impact FIN 48 will
have on our financial statements.

                           WATER/WASTE WATER SERVICES

Accounts Receivable

     Credit is extended based on evaluation of a customer's financial
condition and, generally, collateral is not required.  Accounts receivable
are due within thirty days and are stated at amounts due from customers net
of an allowance for doubtful accounts.  Accounts outstanding longer than the
contractual payment terms are considered past due.  The Company determines
its allowance by considering a number of factors, including the length of
time trade accounts receivable are past due, the Company's previous loss
history, the customer's current ability to pay its obligation to the Company,
and the condition of the general economy and the industry as a whole.  At

                                    F-11



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2006, no allowance for doubtful accounts was determined to be
necessary.

Contracts

     As noted in previous reports, the Company has essentially withdrawn from
the Water/Waste Water Services business.  Service continues to be provided to
one customer, Centennial Water District, which accounted for less than 11% of
2006 revenues.  Basically, the services are provided under fixed-price
contracts where revenue is recorded as costs are incurred as a percentage of
estimated total costs.  Due to uncertainties in the estimation process,
actual results could differ from estimates used.  Provisions for losses on
uncompleted contracts are made in the period in which such losses are
determined.  Recoveries are recorded to revenue when received.

     In the first quarter of 2005, the Company determined that payables
incurred in 2000 in connection with the Company's former environmental
remediation services business had been legally released.  Accordingly, the
Company recorded a non-operating gain of approximately $31,358 on the
elimination of the payables.  In the first quarter of 2006, an additional
$43,936 non-operating gain on the elimination of similar payables was
recorded.

                             PROPERTY DEVELOPMENT

Real Estate Inventories

     Real estate inventories consist of land and land under development,
townhomes under construction, finished lots and a retail/office building.
All direct costs, including land, home construction costs, interest and real
estate taxes, and indirect costs related to construction or development are
capitalized during the construction and development period.  Land and
improvement costs are allocated within a project based on relative sales
value.

     Real estate inventories are stated at the lower of cost or fair value.
Fair value is based on estimated sales price less cost to sell. Estimated
sales price is based on appraisals, offers and management's estimate. Real
estate inventories are assessed for impairment when circumstances warrant
such a review. If management determines that impairment has occurred, a loss
is recognized based on the difference between assets' carrying values and
their estimated fair values. Management believes that no impairment has
occurred as of December 31, 2006.





                                    F-12



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenue Recognition

     In accordance with SFAS No. 66, revenue from the sale of real estate
inventories is recognized when a sufficient down payment has been received;
financing has been arranged; title, possession and other attributes of
ownership have been transferred to the buyer; and the Company is not
obligated to perform significant additional activities after sale and
delivery.  Capitalized costs are charged to direct costs upon closing.
Consideration received by the Company for real estate sales is cash.

NOTE C - REAL ESTATE INVENTORIES

     Real estate inventories at December 31 consist of the following:

                                                       2006

     Townhomes and finished lots                    $1,483,755
     Land and land under development                 2,697,304
                                                    ----------
                                                    $4,181,059
                                                    ==========

NOTE D - CONSTRUCTION LOAN

     In October 2004, the Company secured a $2.93 million construction loan
for Sites II and III of its initial redevelopment project in the City of
Westminster, Colorado.  The loan, which carried an interest rate of prime
plus three quarters of one percent (8% at December 31, 2005), was repaid in
full on April 13, 2006.

NOTE E - NOTES PAYABLE

     In June 2006, the Company signed a promissory note in the amount of
$694,000 (of which $451,000 was drawn) with a local lender to finance the
purchase and remodeling of a retail/office building and the purchase of an
adjacent industrial building located in Wheat Ridge, Colorado. The note is
for a term of one year bearing interest at the rate of prime plus 0.75% (9.0%
at December 31, 2006) with monthly interest-only payments. The principal is
due at maturity and the loan is collateralized by a first deed of trust on
the property. The Company has listed this property for sale with a local real
estate broker.

     In May 2005, the Company, supplemented by $100,000 available under a
November 2004 development agreement with the City of Westminster, purchased
two properties in a redevelopment area within the City.  The Company obtained
two notes, $126,000 and $200,000, from a local lender to complete the
purchase.  The notes are for a term of two years bearing interest at the rate
of prime plus 0.75%, (9% at December 31, 2006) with monthly interest-only
payments.  The principal is due at maturity, and the notes are collateralized
by a first deed of trust on the properties.

                                    F-13



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     In April 2005, the Company obtained a loan in the amount of $161,000
from a local lender to replace a $161,000 draw note which financed the
purchase of a property located in Westminster, Colorado.  The loan was repaid
on January 9, 2007, and bore interest at the rate of prime plus 0.75%, (9% at
December 31, 2006) with monthly interest-only payments.

     In June 2004, the Company signed a Brownfields Cleanup Revolving Loan
Fund Agreement with the City of Aurora, Colorado, for $471,495, to finance
the remediation of a five-acre site.  The Loan is for a period of three years
with interest at 2% per annum payable monthly.  The Loan is collateralized by
a deed of trust on the property. This property is listed for sale with a
local real estate broker.

     Total notes payable of $1,409,495 outstanding at December 31, 2006
mature in 2007.

NOTE F - INVESTMENT

     In January 2005 the Company entered into an operating agreement with a
newly-formed entity, Arizona Avenue, LLC, a Colorado limited liability
corporation in which the Company is a 50% owner.  The Company accounts for
this investment using the equity method of accounting.  The Company has been
engaged by the LLC to manage the development of a five-acre site in Aurora,
Colorado. There were no management fees in connection therewith during the
years ended December 31, 2006 and 2005. As of December 31, 2006, the Company
has invested approximately $280,000 to develop this project. Profits and
losses, which are generally to be allocated 50% to the Company and 50% to the
other owner, were not material for the year ended December 31, 2006.  This
property is currently listed for sale with a local real estate broker.

NOTE G - STOCK OPTIONS

     The Company has adopted an Incentive Stock Option Plan (the Plan) for
key personnel.  A total of 550,000 shares of the Company's common stock are
reserved for issuance pursuant to the exercise of stock options (the Options)
which may be granted to full-time employees, including officers and directors
who are also employees of the Company.  The Plan is administered by the Board
of Directors.  In addition to determining who will be granted Options, the
Board of Directors has the authority and discretion to determine when Options
will be granted and the number of Options to be granted.  The Board of
Directors may grant Options intended to qualify for special treatment under
the Internal Revenue Code of 1986, as amended (Incentive Stock Options) and
may determine when each Option becomes exercisable, the duration of the
exercise period for Options, and the form of the instruments evidencing
Options granted under the Plan. The Options generally have a term of 10 years
when issued and vest over one to five years. The Plan terminated on March 1,
2005 and no additional options may be granted under the Plan.


                                    F-14



                            CET SERVICES, INC.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     The maximum aggregate fair market value (determined as of the date of
grant) of the shares in to which the Incentive Stock Options become
exercisable for the first time during any calendar year may not exceed
$100,000.  The Plan provides that the purchase price per share for each
Incentive Stock Option on the date of grant may not be less than 100 percent
of the fair market value of the Company's common stock on the date of grant.
However, any Option granted under the Plan to a person owning more than 10
percent of the Company's common stock shall be at a price of at least 110
percent of such fair market value.

A summary of the status of the Plan follows:

                                                               Weighted
                                                           average exercise
                                              Shares        price per share
                                             ---------     -----------------

Outstanding at January 1, 2005                103,600            $1.10
  Granted                                        -                 -
  Exercised                                      -                 -
  Canceled                                    (31,100)            2.54
                                              -------            -----
Outstanding at December 31, 2005               72,500            $0.48
                                              -------            -----
Total exercisable at December 31, 2005         71,500            $0.48
                                              =======            =====

                                                               Weighted
                                                           average exercise
                                              Shares        price per share
                                             ---------     -----------------

Outstanding at January 1, 2006                 72,500            $0.48
  Granted                                        -                 -
  Exercised                                      -                 -
  Canceled                                       -                 -
                                              -------            -----
Outstanding at December 31, 2006               72,500            $0.48
                                              -------            -----
Total exercisable at December 31, 2006         72,500            $0.48
                                              =======            =====







                                    F-15



                            CET SERVICES, INC.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     The following information applies to options outstanding at December 31,
2006:



<TABLE>
<CAPTION>
                                    Options Outstanding             Options Exercisable
                           --------------------------------------  ----------------------
                                           Weighted
                                           average      Weighted                 Weighted
                                           remaining    average                  average
                             Number       contractual   exercise     Number      exercise
Range of exercise prices   outstanding   life (years)    price     exercisable    price
------------------------   -----------   ------------   --------   -----------  ---------
<S>                        <C>           <C>            <C>        <C>          <C>
Range of exercise prices
$0.20 - $0.50                65,000          3.92        $0.38       65,000       $0.38
$1.30 - $1.95                 7,500          2.44        $1.31        7,500       $1.31
                             ------                                  ------
                             72,500                                  72,500
</TABLE>




NOTE H - TAXES ON INCOME

     At December 31, 2006, the Company has net operating loss carry forwards
for regular income tax purposes of approximately $5.8 million that expire in
various amounts in years 2018 through 2026.

     Realization of the deferred tax asset depends on achieving future
taxable income.  The Company incurred losses in recent years and does not
consider it sufficiently likely that the Company will realize the benefit of
the deferred tax asset and, accordingly, has recorded a valuation allowance
equal to the deferred tax asset.

      Deferred tax assets and liabilities consist of the following at
December 31:

                                  2006         2005

     NOL carryforward          2,196,000     2,069,300
     Other                         8,500         7,100
                              ----------    ----------
                               2,204,500     2,076,400
     Valuation reserve        (2,204,500)   (2,076,400)
                              ----------    ----------
                              $     -       $     -
                              ==========    ==========


                                    F-16



                            CET SERVICES, INC.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     Reconciliation between the expected federal income tax expense computed
by applying the Federal statutory rate to income before income taxes and the
actual provision (benefit) for taxes on income for the year ended December
31, is as follows:

                                               2006            2005

     Expected income tax benefit at
      statutory rate                         $(115,300)     $(133,300)
     Change in valuation reserve               128,100        149,100
     State taxes                               (12,800)       (15,800)
     Other                                        -              -
                                             ---------      ---------
                                             $    -         $    -
                                             =========      =========

NOTE I - LEASE COMMITMENTS

     The Company is obligated under an operating lease for its facility.  The
lease expires in August 2008.  The lease also provides for payments of taxes
and certain common area costs and expenses.

     The following is a summary of the future minimum rent due under the
lease at December 31, 2006:

                            Year ending December 31,

                               2007        39,384
                               2008        26,272
                                          -------
                               Total      $65,656
                                          =======

     Total rent expense for the years ended December 31, 2006 and 2005 was
$41,606 and $57,245, respectively.

NOTE J - LEGAL

     Except as set forth below, the Company is not a party to any material
legal proceedings which are pending before any court, administrative agency,
or other tribunal.  Further, the Company is not aware of any material
litigation which is threatened against it in any court, administrative
agency, or other tribunal.  Management believes the outcome on any pending
litigation that would have a material adverse effect on the Company's
financial position or results of operations is remote.




                                    F-17



                            CET SERVICES, INC.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     Since early 1998, the Company has been the subject of an investigation
by the Office of the Inspector General (OIG) of the Environmental Protection
Agency (EPA).  While initially broad in scope, the investigation is now
focused on labor billing-rates to the EPA beginning in the 1992-1994 period
and selected subsequent years.  The Company has cooperated fully in all OIG
inquiries and will continue to do so when and if required.  Independent
audits by the Defense Contract Audit Agency (DCAA), subsequent to initiation
of the OIG investigation, have not been adverse nor have resulted in claims
against the Company.  In an effort to resolve the dispute, the Company
requested non-binding arbitration which allows for a full discussion of the
issues before a neutral party.  The OIG rejected this proposal.
Subsequently, during the third quarter of 2002, the Company attempted to
reach a settlement agreement in order to limit further legal costs.  In
response to this initiative, OIG has offered to settle the case for $8.7
million based on certain scenarios and imputed costs generated within its
offices.  The Company strongly disputes and rejects the basis upon which the
scenarios were developed and denies any wrongdoing in dealings with the EPA.
No loss provision has been made at December 31, 2006, relating to this
matter, as management believes that any material adverse effect on the
Company's financial position or results of operations is remote.

NOTE K - SEGMENT INFORMATION

     CET has determined that its reportable segments are those that are based
on the Company's method of internal reporting, which disaggregates its
business by product category.  CET's revenues and expenses are generated from
two segments, residential housing development and construction and
water/wastewater services.  Transfers and sales between reportable segments,
if any, are recorded at cost. All of the Company's operations and customers
are located in Colorado.  A summary of the Company's business segments is
shown below (in thousands).


















                                    F-18



                            CET SERVICES, INC.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




<TABLE>
<CAPTION>
                                                      Water/
                                      Residential     wastewater
December 31, 2006                     Housing         Services       Corporate     Total
-----------------                     -----------     ----------     ---------     -------
<S>                                   <C>             <C>            <C>           <C>
Revenue                                 $ 2,660        $  321          $  -        $ 2,981
Segment profit (loss)                       245            15           (599)         (339)
Interest income (expense) net              -              -               (1)           (1)
Depreciation and amortization                             -                1             1
Segment assets                            4,181           -              762          4,943
Expenditures for segment assets            -              -               -            -

December 31, 2005
-----------------
Revenue                                 $ 2,740        $  483          $  -         $ 3,223
Segment profit (loss)                       124            74           (595)          (397)
Interest income (expense) net              -              -                2              2
Depreciation                               -                1              5              6
Segment assets                            5,017           -              807          5,824
Expenditures for segment assets            -              -                5              5


</TABLE>



NOTE L - RELATED PARTY TRANSACTIONS

     The Company sells water it acquires under a water lease to the
Centennial Water & Sanitation District.  John D. Hendrick, a Director of the
Company, is the General Manager of the Centennial Water & Sanitation
District.  The Centennial Water & Sanitation District makes payments to an
escrow agent who distributes the funds primarily to the lessor and the
remainder to the Company.  During 2006 and 2005, the Company invoiced the
Centennial Water & Sanitation District $320,750 and $344,894, respectively,
and recorded a profit of $15,303 and $16,102, respectively, under this
arrangement.

NOTE M - SUBSEQUENT EVENTS

     On February 16, 2007, the Company entered into an Agreement and Plan of
Merger with Zoi Interactive Technologies, Inc. ("ZOI"), (the "Merger
Agreement") under which CET will issue to the shareholders of ZOI a total of
34,899,000 shares of CET common stock and will assume all of ZOI's
outstanding options, warrants and convertible debt, which convertible
securities will become exercisable for CET common stock.


                                    F-19



                            CET SERVICES, INC.

                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     In connection with the execution of the Merger Agreement, CET entered
into a Stock Repurchase Agreement to purchase from Steven H. Davis, CET's
Chief Executive Officer, 1,000,000 outstanding shares of CET common stock
held by Mr. Davis. CET would pay for the shares by transferring certain real
estate properties, with a carrying value of approximately $606,000, which
approximates its fair value, to Mr. Davis.  If the repurchase of shares from
Mr. Davis is completed, CET's shareholders will hold approximately 4.55
million shares, or 11.5%, in the combined entity.

     Headquartered in Nashville, Tennessee, ZOI is a development-stage
company that designs and implements interactive, web-based content, supported
by advertising and end-user revenues.  As a result of the Merger Agreement,
which is scheduled to close on April 30, 2007, the Company expects to wind-
down its real estate operations and focus on Zoi's interactive, web-based
business.

































                                   F-20