________________________________________________________________________________

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                           ___________________________

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2008

                         COMMISSION FILE NUMBER: 1-15863

                           ___________________________

                                 IA GLOBAL, INC.
             (Exact name of Registrant as specified in its charter)
                           ___________________________


                DELAWARE                             13-4037641
     (State or other jurisdiction of      (IRS Employer Identification No.)
     incorporation or organization)


           101 CALIFORNIA STREET, SUITE 2450, SAN FRANCISCO, CA 94111
               (Address of principal executive offices) (Zip Code)


       (Registrant's telephone number, including area code) (415)-946-8828
                                                            --------------
                           ___________________________

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                 Yes [X] No [ ]

         Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer," "accelerated filer"
and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer          [ ]             Accelerated filer           [ ]
Non-accelerated filer            [ ]             Smaller reporting company   [X]

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

                                 Yes [ ] No [X]

         As of May 12, 2008 there were issued and outstanding 168,453,129 shares
of the Registrant's Common Stock.
________________________________________________________________________________

<PAGE>

                                 IA GLOBAL, INC.

                                    FORM 10-Q

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----
PART I.  FINANCIAL INFORMATION

     Item 1.   Financial Statements ...........................................3

               Consolidated Balance Sheet .....................................3

               Consolidated Statements of Operations ..........................4

               Consolidated Statement of Cash Flows ...........................5

               Notes to Consolidated Financial Statements .....................6

     Item 2.   Management's Discussion and Analysis of Financial
               Condition and Results of Operations ...........................29

     Item 3.   Quantitative and Qualitative Disclosures About Market Risk ....43

     Item 4.   Controls and Procedures .......................................43

PART II. OTHER INFORMATION

     Item 1.   Legal Proceedings .............................................44

     Item 1A.  Risk Factors...................................................44

     Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds....44

     Item 3.   Defaults Upon Senior Securities ...............................44

     Item 4.   Submission of Matters to a Vote of Security Holders ...........44

     Item 5.   Other Information .............................................44

     Item 6.   Exhibits ......................................................45

Signatures ...................................................................47


                                        2
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                          CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                                                   March 31,     December 31,
                                                                                     2008            2007
                                                                                 ------------    ------------
ASSETS                                                                            (unaudited)     (audited)
<S>                                                                              <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents ..................................................   $  1,626,862    $  2,034,130
  Accounts receivable, net of allowance of $410,355 and $634,245, respectively     12,746,290       8,106,073
  Prepaid expenses ...........................................................      1,967,164         979,436
  Notes receivable ...........................................................      1,484,519       1,070,058
  Other current assets .......................................................        462,709         274,217
  Deferred taxes - foreign ...................................................      1,477,580       2,738,624
                                                                                 ------------    ------------
    Total current assets .....................................................     19,765,124      15,202,538

EQUIPMENT, NET ...............................................................      2,431,954       1,677,287

OTHER ASSETS
  Intangible assets, net .....................................................        331,129         728,481
  Equity investment in Australia Secured Financial Limited ...................      6,930,355       7,024,616
  Equity investment in GPlus Media Co Ltd ....................................      1,380,386       1,372,804
  Equity investment in Slate Consulting Co Ltd ...............................      1,396,481       1,413,659
  Other assets ...............................................................      2,704,752       2,502,240
                                                                                 ------------    ------------

                                                                                 $ 34,940,181    $ 29,921,625
                                                                                 ============    ============

LIABILITIES AND STOCKHOLDER'S EQUITY

CURRENT LIABILITIES:
  Accounts payable - trade ...................................................   $    197,943    $    253,054
  Accrued liabilities ........................................................      7,851,636       4,911,241
  Consumption taxes received .................................................        460,067          15,085
  Note payable - current portion of long term debt ...........................     10,510,655      10,298,089
                                                                                 ------------    ------------
    Total current liabilities ................................................     19,020,301      15,477,469
                                                                                 ------------    ------------

LONG TERM  LIABILITIES:
  Long term debt .............................................................      8,593,594       7,368,193
  Convertible debentures .....................................................      2,195,833       2,191,667
                                                                                 ------------    ------------
                                                                                   10,789,427       9,559,860
                                                                                 ------------    ------------

STOCKHOLDER'S EQUITY:
  Preferred stock, $.01 par value, 5,000 authorized, none outstanding ........              -               -
  Common stock, $.01 par value, 300,000,000 shares authorized,
    165,303,543 and 164,883,751 issued and outstanding, respectively .........      1,653,035       1,648,837
  Additional paid in capital .................................................     43,882,701      43,713,399
  Accumulated deficit ........................................................    (39,330,512)    (39,690,877)
  Accumulated other comprehensive loss .......................................       (821,864)       (534,156)
                                                                                 ------------    ------------
                                                                                    5,383,360       5,137,203
  Less common stock in treasury, at cost .....................................       (252,907)       (252,907)
                                                                                 ------------    ------------
    Total stockholder's equity ...............................................      5,130,453       4,884,296
                                                                                 ------------    ------------

                                                                                 $ 34,940,181    $ 29,921,625
                                                                                 ============    ============

                                See notes to consolidated financial statements.
                                                       3
</TABLE>
<PAGE>
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
                                                                                 Three Months Ended March 31,
                                                                                 ----------------------------
                                                                                     2008            2007
                                                                                 ------------    ------------
                                                                                  (unaudited)     (unaudited)
<S>                                                                              <C>             <C>
REVENUE ......................................................................   $ 16,048,904    $  6,492,723

COST OF SALES ................................................................      2,949,833         996,120
                                                                                 ------------    ------------

GROSS PROFIT .................................................................     13,099,071       5,496,603

Selling, general and administrative expenses .................................     11,063,815       5,909,818
                                                                                 ------------    ------------

OPERATING INCOME (LOSS) ......................................................      2,035,256        (413,215)
                                                                                 ------------    ------------

OTHER INCOME (EXPENSE):
  Interest income ............................................................         39,418          20,583
  Interest expense and amortization of beneficial conversion feature .........       (337,368)       (195,738)
  Other income ...............................................................         86,375          (1,326)
  (Loss) gain on equity investment in Australia Secured Financial Limited .. .        (94,261)         13,589
  Gain on equity investment in GPlus Media Co Ltd ............................          7,582               -
  Loss on equity investment in Slate Consulting Co Ltd .......................        (17,178)              -
  Foreign currency transaction adjustment ....................................         (1,861)              -
                                                                                 ------------    ------------
    Total other expense ......................................................       (317,293)       (162,892)
                                                                                 ------------    ------------

INCOME (LOSS) BEFORE INCOME TAXES ............................................      1,717,963        (576,107)

Income taxes - provision .....................................................      1,357,598         268,043
                                                                                 ------------    ------------

NET INCOME (LOSS) ............................................................   $    360,365    $   (844,150)
                                                                                 ============    ============

Per Share of Common-

  Total basic net income (loss) per share ....................................   $       0.00    $      (0.01)
  Total diluted net income (loss) per share ..................................   $       0.00    $       0.00

  Weighted average shares of common stock outstanding ........................    164,980,626     133,470,713
  Weighted average shares of common stock and common equivalent
    shares outstanding .......................................................    167,481,049     133,470,713

                                See notes to consolidated financial statements.
                                                       4
</TABLE>
<PAGE>
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                                                 Three Months Ended March 31,
                                                                                 ----------------------------
                                                                                     2008            2007
                                                                                 ------------    ------------
                                                                                  (unaudited)     (unaudited)
<S>                                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss) ..........................................................   $    360,365    $   (844,150)
  Adjustments to reconcile net loss to net cash (used in)
   provided by operating activities:
    Depreciation and amortization ............................................        588,571         450,733
    Amortization of beneficial conversion feature ............................        104,166         104,167
    Stock based compensation .................................................         60,000          44,029
    Loss (gain) on equity investments ........................................        103,857         (13,589)
    Unrealized gain on marketable securities .................................              -          (3,129)
  Changes in operating assets and liabilities:
    Accounts receivable ......................................................     (4,640,217)       (530,479)
    Notes receivable .........................................................       (414,461)        409,565
    Prepaid expenses .........................................................       (987,728)       (134,582)
    Other current assets .....................................................       (188,492)       (174,772)
    Deferred taxes - foreign .................................................      1,261,044               -
    Other assets .............................................................       (202,512)        (16,472)
    Accounts payable - trade .................................................        (55,111)        328,977
    Accrued liabilities ......................................................      2,940,395         690,194
    Net consumption tax payable ..............................................        444,982          22,757
    Income taxes payable - foreign ...........................................              -         345,260
    Deferred revenue .........................................................              -        (777,010)
                                                                                 ------------    ------------
NET CASH USED IN OPERATING ACTIVITIES ........................................       (625,141)        (98,501)
                                                                                 ------------    ------------

CASH FLOWS USED IN INVESTING ACTIVITIES:
  Capital expenditures .......................................................       (945,886)        (37,333)
  Acquisition of investment in Australian Secured Financial Limited ..........              -        (125,000)
                                                                                 ------------    ------------
NET CASH USED IN INVESTING ACTIVITIES: .......................................       (945,886)       (162,333)
                                                                                 ------------    ------------

CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
  Proceeds from debt .........................................................      1,507,099               -
  Repayments of debt .........................................................        (69,132)        (44,489)
  Proceeds from exercise of options ..........................................         13,500               -
                                                                                 ------------    ------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ..........................      1,451,467         (44,489)
                                                                                 ------------    ------------

NET DECREASE IN CASH AND CASH EQUIVALENTS ....................................       (119,560)       (305,323)

EFFECT OF EXCHANGE RATE CHANGES ON CASH ......................................       (287,708)         40,620

CASH AND CASH EQUIVALENTS, beginning of period ...............................      2,034,130       4,172,889
                                                                                 ------------    ------------

CASH AND CASH EQUIVALENTS, end of period .....................................   $  1,626,862    $  3,908,186
                                                                                 ============    ============

Supplemental disclosures of cash flow information:
  Interest paid ..............................................................   $    228,269    $     18,340
                                                                                 ============    ============

Non-cash investing and financing activities:
  Conversion of debentures into common stock .................................   $    100,000    $          -
                                                                                 ============    ============
  Conversion of Series A-1 Preferred Stock into common stock .................   $          -    $  7,000,000
                                                                                 ============    ============

                                See notes to consolidated financial statements.
                                                       5
</TABLE>
<PAGE>

                        IA GLOBAL, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.  BASIS OF PRESENTATION:

         IA Global, Inc. ("IA Global") operates as a strategic holding company
with a dedicated focus on growth of existing business, together with expansion
through mergers and acquisitions in the Pacific Rim region.

Business Process Outsourcing ("BPO")

         In Japan, IA Global is 100% owner of Global Hotline, Inc. ("Global
Hotline") a Business Process Outsourcing organization, operating several major
call centers providing outbound telemarketing services for telecommunications
and insurance products. Since our acquisition of Global Hotline in June 2005,
this business has expanded rapidly with the signing of significant multi-year
contracts with major corporations.

         This growth trajectory is being driven by new contracts, process
improvements, infrastructure expansion, and macro economic trends such as the
ongoing gains in the Japanese economy, consistent year on year growth in
targeted industries, higher disposable incomes, and the increasingly rapid
growth of the senior citizen demographic. As of March 31, 2008, Global Hotline
employed 1,145 full and part-time personnel to support these multi-million
dollar contracts. In the Philippines, we acquired 100% of Shift Resources, Inc.
("Shift Resources"), a multi-service call center operation on April 10, 2008. In
addition, we signed a term sheet to acquire 100% of Asia Premier Executive
Suites, Inc., a multi-service call center operation which is expected to close
in May 2008, subject to the closing of financing.

Human Capital and Resources

         During August 2007, the company closed two equity investments. These
investments provide "human capital" services in the human resources sector, a
sector which offers excellent growth opportunities throughout the Asia Pacific
region. IA Global continues to seek additional companies and partnerships in the
staffing, training, employee/ organization evaluation and assessments business
throughout the region, but with a focus on Japan. Linking these investments in a
network under the IA Global umbrella will generate synergies of expertise and
resources, creating a regional value-chain of services to further drive
aggressive growth. Our investments in Human Capital and Resources are as
follows:

         IA Global has a 25% stake in GPlus Media Co Ltd ("GPlus"). GPlus is a
Japan based corporation with offices in Tokyo, Japan, Hong Kong and Shanghai,
China. GPlus owns and operates several of Japan's best known English-Japanese
websites, including GaijinPot.com, and Ecentral.jp, the official jobsite of the
American Chamber of Commerce in Japan. GPlus also operates CareerEngine.org,
which is a powerful network of jobsites with partners who include
ShanghaiExpat.com, the American Chambers of Commerce in Shanghai and Hong Kong,
as well as the Canada China Business Council.

         IA Global has a 20.25% equity investment in Slate Consulting Co Ltd
("Slate"). Slate is a Japan headquartered Executive Search firm with operations
and business entities in Tokyo, Hong Kong, Surrey, Canada; a call center in
Manila, Philippines; and an early stage call center in Bucharest, Romania.

                                        6
<PAGE>

OTHER INVESTMENTS

         In Australia, the company has a 36% stake in Australian Secured
Financial Limited and its affiliates, Ausec Finance Limited, ADJ Services Pty
Ltd. and Auslink Ltd (collectively, "ASFL"), which raises funds through the
issuance of private loans and bank debt within Australia and provide short term,
secured, real property loans to businesses and investors in Australia. Through
this group of companies, ASFL has created a strong financial services network
leveraging its knowledge and presence in local communities to cater to a sector
of the market neglected by larger financial institutions.

         IA Global was incorporated in Delaware on November 12, 1998. The
company's executive offices are located at 101 California Street, Suite 2450,
San Francisco, California, but its operations are located primarily in Japan,
China, the Philippines, Hong Kong and Australia The company's telephone number
is (415) 946-8828 and its primary Website is located at www.iaglobalinc.com. The
information on our website is not a part of this report.

         The accompanying unaudited consolidated financial statements of IA
Global and subsidiaries have been prepared in accordance with generally accepted
accounting principles ("GAAP") for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by U.S. GAAP for
complete financial statements. The financial statements for the periods ended
March 31, 2008 and 2007 are unaudited and include all adjustments necessary to a
fair statement of the results of operations for the periods then ended. All such
adjustments are of a normal recurring nature. The results of the company's
operations for any interim period are not necessarily indicative of the results
of the company's operations for a full fiscal year. For further information,
refer to the financial statements and footnotes thereto included in the
company's annual report on Form 10-K for the year ended December 31, 2007 as
filed with the Securities and Exchange Commission ("SEC") on April 15, 2008.

         In this Form 10-Q, at "current exchange rates" is defined as the
exchange rates as of the date of the transaction.

         On July 25, 2007, the Board of Directors resolved that the fiscal year
of IA Global that began on January 1, 2007 will end on December 31, 2007, and
from that date forward, the fiscal year of the company will be the period
beginning on April 1 of each year and ending on March 31 of the following year.
The company will file a Form 10-K for the calendar year ending December 31,
2007. The company is filing this transition report to reflect the three month
transition period of January 1, 2008 through March 31, 2008.

NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include the
accounts of the company and its wholly owned and majority-owned subsidiaries.
Inter-company items and transactions have been eliminated in consolidation.

CASH AND CASH EQUIVALENTS - The company classifies highly liquid temporary
investments with an original maturity of three months or less when purchased as
cash equivalents.

         The company maintains cash balances at various financial institutions.
Balances at US banks are insured by the Federal Deposit Insurance Corporation up
to $100,000. Balances in Japanese banks are generally insured by the Deposit
Insurance Corporation of Japan up to 10,000,000 Yen per depositor per bank or
approximately $81,000 at current exchange rates. At times during the year ended
December 31, 2007 and 2006, the company's cash in bank deposit accounts exceed
federally insured limits with regards to certain accounts in the United States,
and exceeded Japanese statutory limits with regards to certain accounts in
Japan. The company has not experienced any losses in such accounts and believes
it is not exposed to any significant risk for cash on deposit.

                                        7
<PAGE>

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS - Accounts receivable
consists primarily of amounts due to the company from normal business
activities. The company maintains an allowance for doubtful accounts to reflect
the expected non-collection of accounts receivable based on past collection
history and specific risks identified within the portfolio. If the financial
condition of the customers were to deteriorate resulting in an impairment of
their ability to make payments, or if payments from customers are significantly
delayed, additional allowances might be required.

EQUIPMENT - Equipment represents machinery, equipment and software, which are
stated at cost less accumulated depreciation. Depreciation of machinery and
equipment is computed by the accelerated or straight-line methods over the
estimated useful lives of the related assets, generally 2-5 years. Software
developed or obtained for internal use is depreciated using the straight-line
method over the estimated useful life of the software, generally 2-3 years.

INTANGIBLE ASSETS / INTELLECTUAL PROPERTY - The company amortizes the intangible
assets and intellectual property acquired in connection with the acquisition of
Global Hotline, over thirty six months on a straight - line basis, which was the
time frame that the management of the company was able to project forward for
future revenue, either under agreement or through expected continued business
activities with significant telecommunications companies.

LONG - LIVED ASSETS - The company reviews its long-lived assets for impairment
when changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. Long-lived assets under certain circumstances are reported
at the lower of carrying amount or fair value. Assets to be disposed of and
assets not expected to provide any future service potential to the company are
recorded at the lower of carrying amount or fair value less cost to sell. To the
extent carrying values exceed fair values, an impairment loss is recognized in
operating results.

FAIR VALUE OF FINANCIAL INSTRUMENTS - The carrying amounts reported in the
balance sheet for cash and cash equivalents, accounts receivable, accounts
payable, notes payable and accrued liabilities and current portion of long term
debt approximate fair value based on the short-term maturity of these
instruments.

DEBT AND EQUITY FINANCING OF CAPITAL TRANSACTIONS - BENEFICIAL CONVERSION
FEATURES - The company has adopted Emerging Issues Task Force ("EITF") issues
98-5, ACCOUNTING FOR CONVERTIBLES SECURITIES WITH BENEFICIAL CONVERSION FEATURES
OR CONTINGENTLY ADJUSTABLE CONVERSION RATIOS, and 00-27, APPLICATION OF ISSUE
NO. 98-5 TO CERTAIN CONVERTIBLE SECURITIES in accounting for convertible debt.
EITF 00-27 requires recognition of the intrinsic value of the conversion option
and is recognized as a reduction to the carrying amount of the convertible debt
and as an addition to paid-in capital. The intrinsic value of the conversion
feature is the difference between the conversion price and the fair value of the
stock into which the security is convertible, multiplied by the number of
shares. The conversion price used in calculating the intrinsic value is the most
favorable conversion price up to maturity, assuming there are no changes to the
current circumstances except for the passage of time. Changes to the conversion
terms that would be triggered by future events not controlled by the issuer
should be accounted for as contingent conversion options, and the intrinsic
value of such conversion options would not be recognized until and unless the
triggering event occurs. According to EITF 00-27, the issuance proceeds should
not be reduced by issuance costs when calculating the intrinsic value of the
conversion feature. The beneficial conversion feature of debt or equity
instruments, depending on the specific facts and circumstances, will determine
whether such beneficial conversion feature is to be recorded as an expense to be
amortized over a period of time, expensed immediately or recorded as a deemed
dividend.

                                        8
<PAGE>

REVENUE RECOGNITION - Global Hotline's revenue is derived from its multiple call
centers undertaking the telemarketing of telecommunications products and
services, and a range of insurance products and services in Japan. Revenue is
considered realized when the services have been provided to the customer, the
work has been accepted by the customer and collectibility is reasonably assured.
Furthermore, if an actual measurement of revenue cannot be determined, we defer
all revenue recognition until such time that an actual measurement can be
determined. If during the course of a contract management determines that losses
are expected to be incurred, such costs are charged to operations in the period
such losses are determined.

         Revenues are deferred when cash has been received from the customer but
the revenue has not been earned. The company has not recorded any deferred
revenue as of March 31, 2008 and December 31, 2007, respectively.

ADVERTISING COSTS - Advertising costs are expensed as incurred. There were
minimal advertising costs incurred for the three months ended March 31, 2008 and
2007.

FOREIGN CURRENCY TRANSLATION - Foreign entities whose functional currency is the
local currency translate net assets at the end of period rates and income and
expense accounts at average exchange rates for the three month period.
Adjustments resulting from these translations are reflected in the consolidated
balance sheet under other comprehensive income and the statement of operations
under other income (expense).

STOCK BASED COMPENSATION - Effective January 1, 2006, the company began
recording compensation expense associated with stock-based awards and other
forms of equity compensation in accordance with Statement of Financial
Accounting Standards No. 123-R, Share-Based Payment, ("SFAS 123R") as
interpreted by SEC Staff Accounting Bulletin No. 107. The company adopted the
related to stock-based awards granted subsequent to January 1, 2006 based on the
grant date fair value estimated in accordance with the provisions of 123-R. In
addition, the company records expense over the vesting period in connection with
stock options granted. The compensation expense for stock-based awards includes
an estimate for forfeitures and is recognized over the expected term of the
award on a straight line basis.

         The company received stockholder approval of the 2007 Stock Incentive
Plan ("2007 Plan") on June 29, 2007. Under this 2007 Plan, the company grants
stock options for shares of common stock to employees, directors and
consultants. In accordance with the 2007 Plan, the stock options are granted at
the fair market value of the common stock. The 2007 Plan provides that the
options will have a life of up to ten years from the date of grant. The options
granted under the 2007 Plan vest quarterly or annually over a period of three
years. Certain options granted under the 2007 Plan vest over shorter periods.
Under the 2007 Plan, the company may grant options, restricted stock or other
awards for the purchase of up to 20 million shares. A total of 10,383,334 shares
of common stock are available for future grants under the 2007 Plan as of March
31, 2008. Options for the purchase of 9,126,042 shares are outstanding as of
March 31, 2008. Shares underlying options that expire, or are cancelled without
delivery of shares, generally become available for future re-issuance under the
2007 Plan.

         When the stock options are granted, the fair value of each option grant
is estimated on the date of grant using the Black-Scholes valuation model and
the weighted assumptions noted in the following table.

                                        9
<PAGE>

                                             For the Three Months
                                                   March 31,
                                             --------------------
                                              2008          2007
                                              ----          ----
         Risk free interest rate ..........   3.73%         4.65%
         Expected life ....................   8 yrs         8 yrs
         Dividend rate ....................   0.00%         0.00%
         Expected volatility ..............   122%          112%

         The company recorded $60,000 and $44,029 of compensation expense, net
of related tax effects, relative to stock options for the three months ended
March 31, 2008 and 2007, respectively in accordance with SFAS 123R. Net loss per
share basic and diluted for this expense was approximately ($0.00).

         As of March 31, 2008, there is approximately $729,000 of total
unrecognized costs related to employee granted stock options that are not
vested. These costs are expected to be recognized over a period of approximately
three years.

         The company accounts for non-employee stock transactions in accordance
with SFAS No. 123-R and EITF 96-18. The company issued grants for 55,000 shares
of common stock at $.267 per share in the three months ended March 31, 2008. The
grants were expensed immediately. There are 227,500 stock options outstanding
for non-employees as of March 31, 2008 at an average exercise price of $.356 per
share.

         On January 3, 2008, the compensation committee granted to Mr. Brian
Nelson, a new director, stock options to purchase 200,000 shares of common
stock. The options were granted at the fair market price of $.31 per share,
which was the adjusted closing price on January 3, 2008, the day prior to the
compensation committee meeting. In accordance with the 2007 Plan, the stock
options will vest quarterly over three years and expire on January 2, 2018.

         On March 5, 2008, the compensation committee granted to Mr. Hideki
Anan, CEO of Global Hotline and Mr. Kyo Nagae, CFO of Global Hotline, stock
options to purchase 750,000 and 500,000 shares of common stock, respectively.
The options were granted at the fair market price of $0.29 per share based on
the adjusted closing price on February 4, 2008, the last trading day before the
compensation committee meeting. In accordance with the 2007 Plan, the stock
options vest quarterly over three years and expire on March 4, 2018.

COMPREHENSIVE INCOME - The company has adopted SFAS No. 130 "Reporting
Comprehensive Income." This statement establishes rules for the reporting of
comprehensive income and its components. Comprehensive income consists of net
loss to common shareholders and foreign currency transaction adjustments and is
presented in the Consolidated Statements of Operations and Stockholder's Equity.

INCOME TAXES - Income tax provision (benefit) is based on reported income (loss)
before income taxes. Deferred income taxes reflect the effect of temporary
differences between asset and liability amounts that are recognized for
financial reporting purposes and the amounts that are recognized for income tax
purposes. These deferred taxes are measured by applying currently enacted tax
laws in the countries and locations where that company operates out of. The
company recognizes deferred assets to the extent that management has determined
their realization. As of March 31, 2008 and December 31, 2007 the company has a
deferred tax asset of $1,477,580 and $2,738,624, respectively, based on prior
Japanese net operating losses that company management has determined is
available to offset future taxable income.

                                       10
<PAGE>

LITIGATION COSTS - The company is subject to possible legal actions arising in
the ordinary course of business. The company regularly reviews the status of
pending legal actions to evaluate the amount and likelihood of any potential
loss. The company accrues for these potential losses when it is probable that a
liability has been incurred and the amount of loss, or possible range of loss,
can be reasonably estimated. If actual results differ significantly from the
company's estimates, the company may be required to adjust its accruals in the
future.

EQUITY INVESTMENTS - The company accounts for equity investments using the
equity method unless its value has been determined to be other than temporarily
impaired, in which case we write the investment down to its impaired value. The
company reviews these investments periodically for impairment and makes
appropriate reductions in carrying value when an other-than-temporary decline is
evident; however, for non-marketable equity securities, the impairment analysis
requires significant judgment. During its review, the company evaluates the
financial condition of the issuer, market conditions, and other factors
providing an indication of the fair value of the investments. Adverse changes in
market conditions or operating results of the issuer that differ from
expectation, could result in additional other-than-temporary losses in future
periods. The equity investments were not considered impaired as of March 31,
2008.

MARKETABLE SECURITIES - Marketable securities that are bought and held
principally for the purpose of selling them in the near term are classified as
trading securities. Trading securities are recorded at fair value, with the
change in fair value during the period included in earnings.

NET LOSS PER SHARE - The company has adopted SFAS No. 128, "Earnings per Share."
Loss per common share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding during
the period. The common stock equivalents have not been included as they are
anti-dilutive. As of March 31, 2008, there were options outstanding for the
purchase of 9,126,042 common shares, convertible debentures convertible into
7,666,679 common shares and warrants for 62,243 shares of common stock which
could potentially dilute future earnings per share. As of March 31, 2007, there
were options outstanding for the purchase of 6,660,000 common shares and
convertible debentures convertible into 12,500,018 common shares which could
potentially dilute future earnings per share.

DIVIDEND POLICY - The company has never paid any cash dividends and intends, for
the foreseeable future, to retain any future earnings for the development of our
business. Our future dividend policy will be determined by the board of
directors on the basis of various factors, including our results of operations,
financial condition, capital requirements and investment opportunities.

USE OF ESTIMATES - 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 disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

RECLASSIFICATIONS - For comparability, certain 2007 amounts have been
reclassified, where appropriate, to conform to the financial statement
presentation used in 2008.

                                       11
<PAGE>

RECENT ACCOUNTING PRONOUNCEMENTS

         In September 2006, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 157; "Fair Value Measurements" ("SFAS 157"). This statement
defines fair value, establishes a framework for measuring fair value in GAAP,
and expands disclosures about fair value measurements. This statement applies
under other accounting pronouncements that require or permit fair value
measurements, the FASB having previously concluded in those accounting
pronouncements that fair value is a relevant measurement attribute. Accordingly,
this statement does not require any new fair value measurements. However, for
some entities, the application of this Statement will change current practices.
This Statement is effective for financial statements for fiscal years beginning
after November 15, 2007. Earlier application is permitted provided that the
reporting entity has not yet issued financial statements for that fiscal year.
The company is currently evaluating the provisions of SFAS 157 to determine the
impact on the company's consolidated financial statements.

         In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option
for Financial Assets and Financial Liabilities-including an amendment of FASB
115" ("SFAS 159"). SFAS 159 allows entities to choose, at specified election
dates, to measure eligible financial assets and liabilities at fair value that
are not otherwise required to be measured at fair value. If a company elects the
fair value option for an eligible item, changes in that item's fair value in
subsequent reporting periods must be recognized in current earnings. SFAS 159 is
effective for fiscal years beginning after November 15, 2007. The adoption of
SFAS No 159 is not expected to have a significant impact on the company's
consolidated financial statements.

         In December 2007, the FASB issued SFAS No. 141 (revised 2007),
"Business Combinations" ("SFAS 141(R)"). SFAS 141(R) will change the accounting
for business combinations. Under SFAS No. 141(R), an acquiring entity will be
required to recognize all the assets acquired and liabilities assumed in a
transaction at the acquisition-date fair value with limited exceptions. SFAS No.
141(R) will change the accounting treatment and disclosure for certain specific
items in a business combination. SFAS No. 141(R) applies prospectively to
business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after December
15, 2008. SFAS 141(R) is expected to impact the company in the event of any
future acquisitions.

         In December 2007, the FASB issued SFAS No. 160, "Non-controlling
Interests in Consolidated Financial Statements--an amendment of Accounting
Research Bulletin No. 51" ("SFAS 160"). SFAS 160 establishes new accounting and
reporting standards for the non-controlling interest in a subsidiary and for the
deconsolidation of a subsidiary. SFAS No. 160 is effective for fiscal years
beginning on or after December 15, 2008. The company is currently evaluating the
provisions of FASB 160 to determine the impact on the company's consolidated
financial statements.

         In March 2008, the FASB issued SFAS No. 161, "Disclosures about
Derivative Instruments and Hedging Activities--an amendment of FASB Statement
No. 133" ("SFAS 161"). FAS 161 changes the disclosure requirements for
derivative instruments and hedging activities. Entities are required to provide
enhanced disclosures about (a) how and why an entity uses derivative
instruments, (b) how derivative instruments and related hedged items are
accounted for under Statement 133 and its related interpretations, and (c) how
derivative instruments and related hedged items affect an entity's financial
position, financial performance, and cash flows. The guidance in SFAS 161 is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008, with early application encouraged. This
Statement encourages, but does not require, comparative disclosures for earlier
periods at initial adoption. The company is currently evaluating the provisions
of SFAS 161 to determine the impact on the company's consolidated financial
statements.

                                       12
<PAGE>

NOTE 3.  ACQUISITION, EQUITY INVESTMENT AND DIVESTITURES

Business Process Outsourcing

GLOBAL HOTLINE, INC. AND ITS SUBSIDIARIES

         The acquisition of Global Hotline, a privately held Japanese company,
closed on June 15, 2005. The transaction was structured as a share exchange in
which the company issued 15,000,000 shares of its common stock in exchange for
100% of Global Hotline's equity. The common stock of the company had a value of
$0.207 per share, which was the average close price during the twenty days prior
to the signing of the April 20, 2005 Share Exchange Agreement, or an aggregate
value of $3,097,500.

         Global Hotline was acquired because it held two significant contracts
with a major Japanese telecommunications company in a constantly growing key
industry sector, and the expected continuance of telemarketing services
subsequent to these two contracts. The size of these contracts contributed to a
purchase price which resulted in identifiable intangible assets. Global Hotline
results are included in the financial statements of IA Global for the period
June 15, 2005 to September 30, 2007. There were no contingent payments, options
or commitments in the acquisition agreement. There was no purchased research and
development assets acquired or written off with the acquisition.

         Global Hotline was established on September 7, 2004 as an operator of
major call centers providing outbound telemarketing services for
telecommunications and insurance products. Since our acquisition of Global
Hotline in June 2005, this business has expanded rapidly with the signing of
significant multi-year contracts with major corporations.

         On January 1, 2007, Global Hotline entered into a new agreement with
KDDI. Pursuant to this agreement, which is governed by the Business Outsourcing
Basic Agreement entered into in September 2004, Global Hotline agreed to sell
telephone products on behalf of KDDI. Global Hotline will be paid an hourly
rate, with payment due in 30 days after the prior month is billed. The agreement
covered the period January 1, 2007 through March 31, 2007. This agreement was
automatically renewed for the period April 1, 2007 through June 30, 2007 and was
renewable for additional three month periods. The agreement may be cancelled
under certain conditions.

         On July 25, 2007, Global Hotline announced that it had closed an
Agreement with KDDI for the three month period ending September 30, 2007. Global
Hotline agreed to sell telephone products on behalf of KDDI and will be paid an
hourly rate, with payment due in 30 days after the month billed. On October 12,
2007, January 17, 2008 and April 7, 2008, the company automatically renewed this
contract through June 30, 2008.

         On December 22, 2005, a wholly owned subsidiary of Global Hotline, IA
Partners Co Ltd ("IA Partners"), entered into an agreement (the "Partner
Contract") with Internet Service Partners, a Japanese company. Pursuant to this
agreement, IA Partners sells various internet and broadband products on behalf
of NTT and Internet Service Partners, with sales commissions payable from 30-120
days after confirmation by Internet Service Partners The Partner Contract was
automatically renewed on December 22, 2006, and continues to be automatically
renewable for an additional year unless it is terminated by either party upon
sixty days notice before the expiration date. On October 22, 2007, the parties
automatically renewed this agreement and it will expire on December 22, 2008.
The company experienced a shutdown of operations for sixty days under this
Partner Contract that resulted in a temporary reduction of revenues of
approximately $1,600,000. This issue was resolved and sales returned to normal
levels effective November 1, 2007.

                                       13
<PAGE>

         On April 14, 2006, a 100% owned subsidiary of Global Hotline
established on April 4, 2006, SG Telecom Inc. ("SG"), entered into an Agency
Contract ("Agency Contract") with Japan Telecom Invoice Co., Ltd., a Japanese
company ("Japan Telecom"). Pursuant to this agreement, SG sells various internet
and broadband products on behalf of Japan Telecom, with sales commissions
payable within 30-90 days after confirmation by Japan Telecom. The Agency
Contract is automatically renewable for an additional year unless it is
terminated by either party upon thirty days notice before the expiration date.
The Agency Contract was automatically renewed on April 14, 2007 and on April 8,
2008 through April 14, 2009. The Agency Contract maybe cancelled under certain
conditions.

         On May 10, 2006, IA Partners entered into an Agency Agreement with
AFLAC Co Ltd, a Japanese company ("AFLAC"). Pursuant to this Agency Agreement,
IA Partners agreed to sell insurance products starting on approximately June 1,
2006, on behalf of AFLAC, with sales commissions payable from 30-120 days and
ongoing commissions for up to ten years, to the extent the customer continues to
maintain the insurance. The Agency Agreement is automatically renewed each year
unless it is terminated by either party upon thirty days notice before the
expiration date. The Agency Agreement was automatically renewed on May 2, 2007
and May 1, 2008 thorough May 2, 2009. The Agency Agreement maybe cancelled under
certain conditions.

         On December 29, 2006, IA Partners entered into an Agreement with AFLAC.
Pursuant to this Agreement, Global Hotline recorded $727,524 as revenue and
deferred $727,524 into 2007. During 2007, the remaining $725,756 was recognized
as revenue under this agreement.

         On October 16, 2006, IA Partners announced an Agency Agreement with
American Home Assurance Ltd ("AHA"), a Japanese company and a division of
American Insurance Group ("AIG"). Pursuant to this Agency Agreement, IA Partners
agreed to sell health and cancer insurance products on behalf of AHA, with sales
commission's payable from 30-120 days and ongoing commissions to the extent the
customer continues to maintain the insurance. The Agency Agreement has no
expiration date, but may be cancelled under certain conditions.

         On May 21, 2007, IA Partners entered into a Call Center Business
Service Agency Agreement with NTT, a Japanese company. IA Partners sells various
internet and broadband products on behalf of NTT, with sales commissions payable
from 30 days after confirmation by NTT. The Agency Agreement expires on May 20,
2008. The Agency Agreement can be terminated by either party upon ninety days
notice. The Agency Agreement maybe cancelled under certain conditions. To
service this Agency Agreement, IA Partners opened a call center in Osaka, Japan.
Sales activities started in October 2007. This is the second contract with NTT
for Global Hotline.

         On August 15, 2007, Inforidge Co Ltd ("Inforidge"), a wholly owned
subsidiary of Global Hotline received notice of a signed Agency Agreement
("Agency Agreement") with American Life Insurance Company, ("Alico"), a Japanese
company which is a subsidiary of AIG. Pursuant to this Agency Agreement,
Inforidge agreed to sell insurance products starting on August 8, 2007 on behalf
of Alico, with sales commissions payable from 30-120 days. The Agency Agreement
expires on August 8, 2008, and is automatically renewable for an additional year
unless it is terminated by either party upon thirty days notice prior to the
expiration date. The Agency Agreement maybe cancelled under certain conditions.

         In support of this Agency Agreement, Global Hotline entered an Outbound
Promotion Sales Agreement ("Sales Agreement") with Alico. Pursuant to this Sales
Agreement, Alico agreed to pay to Global Hotline a fee of approximately
75,000,000 Yen or $632,000 during the three months ending September 30, 2007 and
to pay a percentage of annualized premiums on a quarterly basis during the term
of the Sales Agreement.

                                       14
<PAGE>

         On January 7, 2008, Inforidge entered into a second Outbound
Telemarketing Agreement, effective as of November 30, 2007, with Alico. Pursuant
to this agreement, Inforidge will receive payments for expanding telemarketing
operations related to prior agreements with Alico. The Agreement expired on
March 31, 2008. On April 9, 2008, the Agreement was renewed for the period April
1, 2008 to June 30, 2008.

         On September 20, 2007, Inforidge received notice of a signed Agency
Agreement ("Agreement") with Ace Insurance Company Co Ltd, ("Ace"), a Japanese
company. Pursuant to this Agreement, Inforidge agreed to sell medical insurance
products on behalf of Ace, with sales commissions payable from 30-120 days. The
Agreement has no expiration date. The agreement maybe cancelled under certain
conditions.

         On January 10, 2008, IA Partners and Inforidge entered into Call Center
Facility Agreements ("Facility Agreements") with OMC Card, Inc., a Japanese
company ("OMC"). Pursuant to these agreements, IA Partners and Inforidge agreed
to rent facilities and equipment to OMC, with revenues payable in thirty days
from the invoice date. The Facility Agreements expire on January 10, 2009, and
is automatically renewable for an additional year unless it is terminated by
either party upon ninety days notice prior to the expiration date. The Facility
Agreements maybe cancelled under certain conditions.

         Global Hotline opened a fifth call center in Tokyo, Japan in late
August 2007 to support these new agreements with AIG. This new call center is
expected to employ over 400 full and part-time employees. In addition, Global
Hotline opened a sixth call center in Osaka, Japan on October 1, 2007 to support
the NTT contract. This new call center is expected to employ 300 full and
part-time employees. The company incurred startup and training costs into three
months ending December 31, 2007 on these call centers.

ACQUISITION OF GLOBAL HOTLINE, INC.

         The company acquired its 100% ownership of Global Hotline from Mr.
Hideki Anan (67%), Mr. Kyo Nagae (10%) and Mr. Hiroki Isobe (23%). Mr. Anan is
the CEO of Global Hotline and is an experienced Japanese telecommunications
executive. Mr. Isobe is affiliated with our majority shareholders.

         The cost to acquire these assets has been allocated to the assets
acquired according to estimated fair values as follows:

Purchase price:
Stock ..............................................................  $3,097,500
                                                                      ----------
Net assets acquired (6/15/05):
Cash ...............................................................   1,240,037
Accounts receivable ................................................   1,782,900
Other assets .......................................................   1,370,153
Recovery of tax benefit of net operating loss acquired with
   acquisition of Global Hotline. This recovery occurred
   during the three months ended September 30, 2006 ................     486,869
                                                                      ----------
                                                                       4,879,959
                                                                      ----------
Net liabilities acquired (6/15/05):
Accrued liabilities ................................................   1,903,246
Deferred revenue ...................................................   4,196,493
Other liabilities ..................................................     628,750
                                                                      ----------
                                                                       6,728,489
                                                                      ----------
Net liabilities acquired (6/15/05) .................................   1,848,530
                                                                      ----------
Identifiable customer contracts and related customer relationships .  $4,946,030
                                                                      ==========

                                       15
<PAGE>

PROPOSED ACQUISITION OF ASIA PREMIER EXECUTIVE SUITES, INC.

         On January 30, 2008, the company signed a binding term sheet with the
owners of Asia Premier Executive Suites, Inc. ("Asia Premier"), a Philippine
Business Process Outsourcing company. Upon completion of definitive agreements,
the company will own 100% of Asia Premier. Asia Premier will be the third
investment by IA Global into the BPO industry and its second investment in the
Philippines.

         Asia Premier provides flexible in-bound and out-bound call center, lead
generation, and customer service solutions on very competitive basis to
international companies across multiple time zones. The closing of the
transaction is subject to the completion of due diligence, signing of contracts
and closing of financing.

         The acquisition is based on a combination of equity and debt financing
and is expected to close in May 2008, subject the closing of financing.

         The transaction is structured as a share exchange in which the company
will issue approximately 1.25 million shares of its common stock at $0.24 per
share, the price during negotiations, totaling $300,000 plus notes of $268,000
and provide an earn-out of approximately $5,555 per month for the nine months
following closing. The parties agreed to value the transaction at $618,000.

ACQUISITION OF SHIFT RESOURCES INC.

         On April 10, 2008, the company signed definitive agreements and closed
the 100% acquisition of Shift Resources, a Philippine Business Process
Outsourcing company.

         Shift Resources provides a range of in-bound and out-bound call
centers, lead generation and customer service solutions for international
companies across multiple time zones.

         The transaction was structured as a share exchange in which the company
issued 826,086 shares of its common stock at $.23 per share, the closing price
during the negotiations, totaling $190,000 plus a payment of $35,000 at closing.
The parties agreed to value the transaction at $225,000.

Human Capital and Resources

EQUITY INVESTMENT IN GPLUS MEDIA CO LTD

         On August 24, 2007, the company closed a 25.0% equity investment in
GPlus by agreeing to issue 3,885,713 shares of common stock with a total value
of $1,360,000 or $.35 per share, which was the closing price on August 20, 2007,
which was the day negotiations were completed. In addition, the company has the
option to increase its equity holding in GPlus to 75% based on mutually
agreeable terms.

         GPlus is a Japan based corporation with offices in Tokyo, Japan, Hong
Kong and Shanghai, China. The company owns and operates several of Japan's best
known English-Japanese websites, including GaijinPot.jp, and Ecentral.com the
official jobsite of the American Chamber of Commerce in Japan. GPlus also
operates CareerEngine.org, which is a powerful network of jobsites with partners
who include ShanghaiExpat.com, the American Chambers of Commerce in Shanghai and
Hong Kong, as well as the Canada China Business Council.

         For the three months ended March 31, 2008, the company recorded a gain
on our investment in GPlus of $7,582 that increased our investment in GPlus. The
investment in GPlus was valued at $1,380,386 as of March 31, 2008.

                                       16
<PAGE>

EQUITY INVESTMENT IN SLATE CONSULTING CO LTD

         On August 24, 2007, the company closed a 20.25% equity investment in
Slate by agreeing to issue 3,600,000 shares of common stock with a total value
of $1,440,000 or $0.40 per share, which was the average closing market price on
August 17, 2007, the day negotiations were completed. In addition, the company
has the option to increase its equity holding in Slate to 75% based on mutually
agreeable terms.

         Slate is a Japan headquartered Executive Search firm with operations
and business entities in Tokyo, Hong Kong, Surrey, Canada; a call center in
Manila, Philippines; an early stage call center in Bucharest, Romania.

         For the three months ended March 31, 2008, the company recorded a loss
on our investment in Slate of $17,178 that decreased our investment in Slate.
The investment in Slate was valued at $1,396,481 as of March 31, 2008.

Other Equity Investments

EQUITY INVESTMENT IN AUSTRALIAN SECURED FINANCIAL LIMITED

         On October 19, 2006, the company closed its 36% equity investment in
ASFL, Australian companies. The transaction was structured as a share exchange
in which the company issued 4,375 of Series A-1 Convertible Preferred Stock
("Series A-1 Preferred Stock") that was convertible into 43,750,000 shares of
common stock in exchange for 36% of ASFL's outstanding common shares. The
parties agreed to value the company's common stock at $0.16 per share, which was
the closing market price on October 2, 2006, the day before the signing of the
initial term sheet on October 3, 2006. In addition, the company paid $250,000 at
closing and $125,000 on January 19, 2007 and $125,000 in April 2007. The Series
A-1 Preferred Stock were converted into 43,750,000 shares of common stock on
February 7, 2007.

         ASFL raises funds through the issuance of private loans and bank debt
within Australia and provide short term, secured, real property loans to
businesses and investors in Australia. Through this group of companies, ASFL has
created a strong financial services network leveraging its knowledge and
presence in local communities to cater to a sector of the market neglected by
larger financial institutions.

         For the three months ended March 31, 2008, the company recorded a loss
on our investment in ASFL of $94,261 that decreased our investment in ASFL. The
investment in ASFL was valued at $6,930,355 as of March 31, 2008.

         ASFL negotiated a bank line of credit to replace its debenture
financing in the December 2007 quarter. This bank financing is expected to
provide the necessary financing to support the growth and profitability of the
business.

                                       17
<PAGE>

PRO-FORMA FINANCIAL DATA

         The pro-forma financial data for the equity investments for the three
months ended March 31, 2008 were as follows:

Three Months Ended March 31, 2007 (Unaudited)
<TABLE>
<CAPTION>
                                                                Pre-
                                              Pre-         Acquisition
                                          Acquisition     Operations of
                                         Operations of        Slate          For Forma
                         As Reported      GPlus Media      Consulting      Three Months
                         Three Months     January 1 -       January 1-         Ended
                           March 31,       March 31,         March 31,       March 31,
                             2007            2007 *           2007 *           2007
                         ------------    -------------    -------------    ------------
<S>                      <C>             <C>              <C>              <C>
Revenue ...............  $ 6,492,723     $           -    $           -    $ 6,492,723
Loss (income) before
 extraordinary items ..     (844,150)    $           -            4,324       (839,826)
Net loss (income) .....     (844,150)    $         307                -       (843,843)
Loss per common share .        (0.01)                                            (0.01)
</TABLE>

* - GPlus and Slate equity investments closed on August 24, 2007.

         There were no material, nonrecurring items included in the reported the
pro-forma results.

NOTE 4.  ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION

         Accounts receivable were $12,746,290 and $8,106,073 as of March 31,
2008 and December 31, 2007, respectively. The company had the following
customers with sales in excess of 10%, and these are their respective
percentages of consolidated revenue for the following periods:

                                           Three Months     Year Ended
                                          Ended March 31,   December 31,
                                              2008            2007
                                          ------------   ------------
         KDDI Network Solutions .......        17%            32%
         Internet Service Partners/ NTT        18%            34%
         AFLAC ........................         *             11%
         AIG ..........................        30%            12%
         Softbank                              27%             *

* Less than 10%.

         KDDI is a Global Hotline customer. Internet Service Partners/NTT is a
IA Partners customer. AFLAC is an IA Partner customer. AIG is an IA Partner and
an Inforidge customer. Softbank is a SG Telecom customer. There were no other
customers, other than the above, in excess of 10% in the respective periods.

         KDDI accounted for 11% and 15% of accounts receivable as of March 31,
2008 and December 31, 2007, respectively. Internet Service Partners/ NTT
accounted for 23% and 44% of total accounts receivable as of March 31, 2008 and
December 31, 2007, respectively. AFLAC accounted for 1% and 2% of total accounts
receivable as of March 31, 2008 and December 31, 2007, respectively. AIG
accounted for 20% and 18% of total accounts receivable as of March 31, 2008 and
December 31, 2007, respectively. Softbank accounted for 31% of total accounts
receivable as of March 31, 2008. The company anticipates that significant
customer concentration will continue for the foreseeable future.

                                       18
<PAGE>

NOTE 5.  PREPAID EXPENSES

         Prepaid expenses were $1,987,164 and $1,070,058 as of March 31, 2008
and December 31, 2007, respectively. Such assets as of March 31, 2008 and
December 31, 2007 included prepaid insurance, prepaid financing costs and other
costs incurred by the company and prepaid hiring, rent and other expenses
incurred by Global Hotline.

NOTE 6.  EQUIPMENT

         Equipment, net of accumulated depreciation, was $2,431,954 and
$1,677,287 as of March 31, 2008 and December 31, 2007, respectively. Accumulated
depreciation was $1,131,248 and $866,412 as of March 31, 2008 and December 31,
2007, respectively. Total depreciation expense was $191,219, and $53,381 and for
the three months ended March 31, 2008 and 2007, respectively. All equipment is
used for selling, general and administrative purposes and accordingly all
depreciation is classified in selling, general and administrative expenses.

         Property and equipment is comprised of the following:

                                    Estimated         March 31,     December 31,
                                   Useful Lives         2008            2007
                                  --------------    -----------     -----------
Equipment and vehicles .......    24 - 60 months    $ 2,559,954     $ 1,729,458
Leasehold Improvements .......    27 - 60 months      1,000,000         814,241
                                                    -----------     -----------
                                                      3,559,954       2,543,699
Less: accumulated depreciation                       (1,128,000)       (866,412)
                                                    -----------     -----------
                                                    $ 2,431,954     $ 1,677,287
                                                    ===========     ===========

NOTE 7.  INTANGIBLE ASSETS

         Intangible assets as of March 31, 2008 and December 31, 2007 consisted
of the following:

                                    March 31,     December 31,
                                      2008            2007        Estimated Life
                                  -----------     -----------     --------------
Customer contracts ...........    $ 4,946,030     $ 4,946,030         3 years
Less: accumulated amortization     (4,604,901)     (4,217,549)
                                  -----------     -----------
    Intangible assets, net ...    $   331,129     $   728,481
                                  ===========     ===========

         Total amortization expense was $397,352 for the three months ended
March 31, 2008 and 2007, respectively.

         The fair value of the Global Hotline intellectual property acquired was
estimated using a discounted cash flow approach based on future economic
benefits associated with agreements with significant Japanese telecommunications
companies, or through expected continued business activities with significant
telecommunications companies. In summary, the estimate was based on a projected
income approach and related discounted cash flows over three years, with
applicable risk factors assigned to assumptions in the forecasted results.

         The amortization of intangibles for 2008 is expected to be $728,481.

NOTE 8.  OTHER ASSETS

         Other assets were $2,704,752 and $2,502,240 as of March 31, 2008 and
December 31, 2007, respectively. Such assets as of March 31, 2008 and December
31, 2007 included loans receivable from Tesco Co Ltd ("Tesco"), employee loans
receivable and bonds related to Global Hotline's leased facilities.

                                       19
<PAGE>

NOTE 9.  ACCRUED LIABILITIES

         Accrued liabilities were $7,851,636 and $4,911,241 as of March 31, 2008
and December 31, 2007, respectively. Such liabilities consisted the following:

                                          March 31,   December 31,
                                            2008          2007
                                         ----------   ------------
Accrued salaries and payroll taxes ...   $2,239,185    $1,617,059

Trade debt not in accounts payable ...    4,812,988     2,304,441

Accrued interest .....................            -       521,332

Other accrued expenses ...............      799,462       468,408
                                         ----------    ----------
                                         $7,851,636    $4,911,241
                                         ==========    ==========

NOTE 10. NOTES PAYABLE/ LONG TERM DEBT

         Notes payable and long term debt as of March 31, 2008 and December 31,
2007 were as follows:

         On September 29, 2006, Global Hotline received a 30,000,000 Yen, or
approximately $255,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan requires monthly payments of 357,000 Yen
or approximately $3,000 at current exchange rates starting on October 31, 2006
with a final payment of 369,000 Yen or approximately $3,000 due on August 31,
2013. The loan provides for interest at 2.3755% payable monthly starting on
September 30, 2006.

         On December 25, 2006, Global Hotline received a 30,000,000 Yen, or
approximately $252,000 at current exchange rates, working capital loan from
Resona Bank Co. Ltd. The loan requires monthly payments of 910,000 Yen or
approximately $8,000 at current exchange rates starting on April 30, 2007 with a
final payment of 880,000 Yen or approximately $7,000 due on November 30, 2009.
The loan provides for interest at 2.4255% with interest payments starting on
April 30, 2007 and is guaranteed by Tokyo Guarantee Association.

         On December 26, 2006, IA Partners received a 200,000,000 Yen, or
approximately $1,683,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan requires a quarterly payment of principal
of 12,500,000 Yen, or approximately $105,000 at current exchange rates, starting
on March 20, 2008 with a final payment due on December 20, 2011. Interest of
2.00% plus the 3 month TIBOR was paid quarterly starting on June 20, 2007.

         On May 16, 2007, Global Hotline received a 50,000,000 Yen, or
approximately $415,400 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan requires a monthly payment of 640,000
Yen, or approximately $5,300 at current exchange rates, starting on December 31,
2007 with a final payment due on April 30, 2014. Interest of 3.25% is paid
monthly, with the first payment on May 16, 2007 and then monthly starting on
June 30, 2007. The loan is guaranteed by the Tokyo Guarantee Association for a
fee of 2,750,625 Yen or approximately $22,900 at current exchange rates.

         On June 1, 2007, IA Partners received a 50,000,000 Yen, or
approximately $406,400 at current exchange rates, working capital loan from
Mizuho Bank Co. Ltd. The loan requires a balloon payment of 50,000,000 Yen, or
approximately $406,000 at current exchange rates, on October 1, 2007. Interest
of 2.0% is paid monthly starting on July 1, 2007. The loan was repaid on October
30, 2007.

                                       20
<PAGE>

         On June 19, 2007, IA Partners received a 100,000,000 Yen, or
approximately $812,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan required a balloon payment of 100,000,000
Yen, or approximately $812,000 at current exchange rates, on January 31, 2008.
Interest of 3.0% is paid quarterly starting on June 19, 2007. On January 31,
2008, IA Partners signed an amendment extending the term to April 30, 2008. On
April 24, 2008, IA Partners signed an amendment extending the term to June 19,
2008.

         On June 19, 2007, Global Hotline received a 100,000,000 Yen, or
approximately $812,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan requires a monthly payment of 1,666,000
Yen, or approximately $14,000 at current exchange rates, starting on August 1,
2007, with a final payment of 1,707,000 Yen or approximately $14,000 on June 19,
2012. Interest of 3.0% is paid monthly starting on June 19, 2007.

         On July 6, 2007, IA Partners received a 300,000,000 Yen, or
approximately $2,435,400 at current exchange rates, working capital loan from
Mizuho Bank Co. Ltd. The loan requires a monthly payment of 25,000,000 Yen, or
approximately $203,000 at current exchange rates, starting on July 1, 2007, with
a final payment due on June 30, 2008. Interest of 2.125% is paid monthly
starting on July 1, 2007.

         On July 17, 2007, Global Hotline received a 150,000,000 Yen, or
approximately $1,217,000 at current exchange rates, bond from Mizuho Bank Co.
Ltd. The bond requires a semi-annual payment of 15,000,000 Yen, or approximately
$122,000 at current exchange rates, starting on December 19, 2007, with a final
payment due on June 29, 2012. Interest of 1.64% is paid semi-annually starting
on December 19, 2007. Global Hotline paid a bank fee of 3,388,965 Yen, or
approximately $28,000 at current exchange rates.

         On July 27, 2007, Global Hotline received a 200,000,000 Yen, or
approximately $1,623,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a balloon payment of 200,000,000
Yen, or approximately $1,623,000 at current exchange rates, on January 25, 2008.
Interest of 3.00% was to be paid on January 25, 2008. On January 22, 2008,
Global Hotline signed an amendment extending the term and interest payment to
April 30, 2008. On April 30, 2008, Global Hotline signed an amendment extending
the term and interest payment to July 25, 2008.

         On July 31, 2007, IA Partners received a 150,000,000 Yen, or
approximately $1,217,000 at current exchange rates, working capital loan from
Mitsubishi Tokyo UFJ Bank Co. Ltd. The loan requires a quarterly payment of
7,500,000 Yen, or approximately $61,000 at current exchange rates, starting on
October 31, 2007, with a final payment due on July 25, 2012. Interest of 2.81%
is paid quarterly starting on October 31, 2007.

         On July 31, 2007, Global Hotline received a 350,000,000 Yen, or
approximately $2,840,000 at current exchange rates, working capital loan from
Mitsubishi Tokyo UFJ Bank Co. Ltd. The loan requires quarterly payments of
17,500,000 Yen, or approximately $142,000 at current exchange rates, starting on
October 31, 2007, with a final payment due on July 31, 2012. Interest of 2.775%
is paid quarterly starting on October 31, 2007.

         On September 14, 2007, Global Hotline received a 300,000,000 Yen, or
approximately $2,616,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a balloon payment of 300,000,000
Yen, or approximately $2,616,000 at current exchange rates, on November 30,
2007. Interest of 3.00% was to be paid on January 4, 2008. On November 27, 2007,
the loan was amended, extending the due date to December 28, 2007. On January
31, 2008, Global Hotline signed an amendment extending the term to February 29,
2008. On February 29, 2008, Global Hotline signed an amendment requiring monthly
payments starting on March 31, 2008 of 25,000,000 Yen plus interest or
approximately $235,000 at current exchange rates, with a final payment due on
February 28, 2009.

                                       21
<PAGE>

         On September 28, 2007, IA Partners received a 30,000,000 Yen, or
approximately $260,000 at current exchange rates, working capital loan from
Resona Bank Co. Ltd. The loan requires monthly payments of 2,500,000 Yen or
approximately $22,000 at current exchange rates starting on October 31, 2007
with a final payment of 2,500,000 Yen or approximately $22,000 due on September
26, 2008. The loan provides for interest at 1.875% with interest payments
starting on October 31, 2007 and is guaranteed by a 30,000,000 Yen cash deposit.

         On December 28, 2007, Global Hotline entered into a 150,000,000 Yen, or
approximately $1,313,000 at current exchange rates, working capital loan from
Mizuho Bank Co. Ltd. The loan requires a monthly payment of 25,000,000 Yen, or
approximately $219,000 at current exchange rates, starting on January 31, 2008
with a final payment due on June 30, 2008. Interest of 2.375% is paid monthly
starting on December 31, 2007.

         On February 15, 2008, Global Hotline received a 120,000,000 Yen, or
approximately $1,109,000 at current exchange rates, bond from Mitsubishi UFJ
Bank Co Ltd. The loan requires semi-annual payments of 8,400,000 Yen, or
approximately $78,000 at current exchange rates starting on August 31, 2008 with
a final payment of 10,800,000 Yen, or approximately $100,000 at current exchange
rates on February 27, 2015. Interest of 1.36% is paid semi-annually starting on
August 31, 2008. The bond is guaranteed by Mitsubishi UFJ Bank Co Ltd and Tokyo
Credit Guarantee Association at 100% and 80% of the principal, respectively.
Global Hotline paid a bank fee of 8,066,620 Yen or approximately $79,000 at
current exchange rates.

         On February 29, 2008, Global Hotline received a 30,000,000 Yen, or
approximately $281,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires monthly payments of 358,000 Yen,
or approximately $3,400 at current exchange rates starting on March 31, 2008
with a final payment of 286,000 Yen, or approximately $2,700 at current exchange
rates on February 28, 2015. Interest of 2.53% is paid monthly starting on March
31, 2008. The loan is guaranteed by Tokyo Credit Guarantee Association.

         All of the above loans, unless otherwise indicated, are guaranteed by
Hideki Anan, the CEO of Global Hotline. There are no covenants or security
requirements related to these loans.

         On December 21, 2007, the company entered into a $500,000 Loan
Agreement and a Share Mortgage Agreement with Frontier Mortgages Pty Ltd
("Frontier"), an Australian company affiliated with a selling shareholder of
ASFL, an entity in which the company owns a 36% interest. The loan was used for
working capital, including the merger and acquisition program.

         The loan required a balloon payment of $500,000 within four months of
the loan date, with a thirty day default period, and requires interest of 30%
per annum. The loan can be prepaid with the payment of thirty days interest and
is secured by the company's 36% equity investment in ASFL. The company agreed to
repurchase $150,000 or 500,000 shares from the selling shareholders of ASFL at
$0.30 per share, the closing price on December 21, 2007. There are no other
covenants or security requirements related to this loan.

         On April 24, 2008, the company entered into a Deed of Variation
Agreement ("Variation Agreement"), amending the terms of its working capital
loan with Frontier. Pursuant to the Variation Agreement, the company paid a
$20,000 loan extension fee on April 23, 2008, $200,000 on April 25, 2008 and
$300,000 on May 9, 2008. The balance, including interest and a $5,000 extension
fee, is due on July 10, 2008.

                                       22
<PAGE>

NOTE 11. CONVERTIBLE DEBENTURES

         On June 28, 2005, the company announced that it had received
commitments totaling $3,750,000 for convertible debentures. The company used the
proceeds from this financing to continue its merger and acquisition strategy,
and for general corporate purposes. This financing included a beneficial
conversion feature, which increased the stockholders' equity by $1,250,000. The
beneficial conversion will be amortized over the life of the debentures, or
until such time that they are converted. During the three months ended March 31,
2008 and the years ended December 31, 2007, 2006 and 2005, the company expensed
$104,000, $417,000, $417,000 and $208,000, respectively, of this beneficial
conversion feature as interest expense. The company closed the sale of
$3,750,000 of convertible debentures on July 29, 2005, and realized net proceeds
of $3,483,000.

                                                 March 31,    December 31,
                                                   2008           2007
                                               -----------    -----------
      Convertible debentures ................  $ 3,750,000    $ 3,750,000
      Beneficial conversion .................   (1,250,000)    (1,250,000)
                                               -----------    -----------
                                                 2,500,000      2,500,000
      Amortization of beneficial conversion .    1,145,833      1,041,667
      Conversion of debentures ..............   (1,450,000)    (1,350,000)
                                               -----------    -----------
                                               $ 2,195,833    $ 2,191,667
                                               ===========    ===========

         In June 2005, the company received subscription agreements from
thirty-four private Japanese investors. The terms of the convertible notes
provide for a conversion price of $0.30 per share, or 12,500,018 shares, until
June 28, 2008, with an automatic conversion on June 28, 2008 at a 25% discount
based on the trailing five day price prior to June 28, 2008. The coupon rate is
7.5% per annum payable in cash at the earlier of the conversion date or June 28,
2008. The company filed a registration statement, which became effective in
August 2005, covering the shares issuable upon conversion. JPB (Switzerland)
A.G., a party affiliated with our majority shareholder, advised the company on
the transaction and was paid a $267,000 fee upon funding.

         On July 30, 2007, the company made an Offer to our debenture holders
("Offer"). Pursuant to this Offer, the debenture holders could convert their
debentures and accrued interest into common stock at a 10% discount of $0.27 per
share and would receive shares of common stock for any accrued interest at $0.27
per share. The Offer expired on August 31, 2007, and $400,000 of debentures and
$64,048 of accrued interested were converted into 1,718,696 shares of common
stock. The total cost of this early conversion was $120,046 and this was
recorded as conversion of debenture expense in the three months ended September
30, 2007. Additional shares of common stock totaling 385,362 related to the
discount and interest were registered in January 2008.

         Since August 2007, a total of $1,050,000 of debentures were converted
into 3,500,005 shares of common stock at the original conversion price of $.30
per share. As of March 31, 2008, the Company has 7,666,679 shares of common
stock reserved for the conversion of the debentures on or before June 28, 2008.

                                       23
<PAGE>

NOTE 12. RELATED PARTY RELATIONSHIPS WITH OUR CONTROLLING SHAREHOLDER GROUP AND
         CERTAIN RELATIONSHIPS

         As of March 31, 2008, Inter Asset Japan LBO Fund No. 1 ("IAJ LBO
Fund"), PBAA Fund Ltd ("PBAA"), Terra Firma Fund Ltd, Inter Asset Japan Co Ltd
("IAJ"), IA Turkey Equity Portfolio Ltd ("IA Turkey"), Hiroki Isobe, Kyo Nagae
and Derek Schneideman collectively hold approximately 47.1% of our common stock
(collectively, the "Controlling Shareholders"). The share ownership percentages
excludes 811,285 shares held by GMB Holdings Ltd, and other shareholders for
which Mr. Isobe has personal signing authority and 7,666,679 shares of our
common stock issuable upon conversion of the convertible debentures. These
entities have stated in a Schedule 13D that they may be deemed to constitute a
"group" for the purposes of Rule 13d-3 under the Exchange Act. Hiroki Isobe and
Kyo Nagae, CFO of Global Hotline, control each of our Controlling Shareholders.
On February 21, 2008, Mr. Schneideman was granted a proxy by IAJ LBO Fund; PBAA;
Terra Firma; IAJ; Mr. Isobe and Mr. Nagae, or 47.3% of the aggregate votes, to
vote these shareholders' shares of common stock at all of the company's 2008
shareholder meetings.

         The following table provides details on the affiliated parties owned or
controlled by each of the company's controlling stockholders and certain other
entities, as of March 31, 2008, that are relevant for purposes of understanding
the related party transactions that have taken place:

Ownership:

IA Global, Inc. owns:
      Global Hotline, Inc........................................... 100.0%
      IA Global Japan Co Ltd........................................ 100.0%  (2)
      GPlus Media Co Ltd............................................  25.0%  (1)
      Slate Consulting Co Ltd.......................................  20.25% (1)
      Australian Secured Financial Limited..........................  36.0%

Inter Asset Japan LBO No. 1 Fund owns:
      IA Global, Inc................................................  18.1%

PBAA Fund Ltd. owns:
      IA Global, Inc................................................  14.6%

Terra Firma Fund Ltd. owns:
      IA Global, Inc................................................   8.0%

Inter Asset Japan Co., Ltd. owns:
      IA Global, Inc................................................   1.3%

IA Turkey Equity Portfolio Ltd owns:
      IA Global, Inc................................................   1.5%

Mr. Hiroki Isobe owns:
      IA Global, Inc................................................   2.7%
      Tesco Co Ltd..................................................  23.0%

Kyo Nagae owns:
      IA Global, Inc................................................   0.9%

Global Hotline, Inc. owns:
      Inforidge Co Ltd.............................................. 100.0%
      IA Partners Co Ltd............................................ 100.0%
      SG Telecom, Inc. ............................................. 100.0%

(1) Acquired August 24, 2007.

(2) Established on August 14, 2007.

                                       24
<PAGE>

KYO NAGAE RELATIONSHIP WITH IAJ

         In January 2006, Mr. Kyo Nagae, CFO of Global Hotline, became President
of IAJ and IAJ LBO Fund.

INTER ASSET JAPAN RELATIONSHIP WITH TESCO CO LTD

         IAJ owns a 23% minority ownership percentage in Tesco. Global Hotline
has an agent agreement with Tesco to sell their lighting products. Tesco owes
Global Hotline $2,046,513 as of March 31, 2008.

NOTE RECEIVABLE FROM CREDIE BEAUX CO LTD

         On September 21, 2007, Global Hotline loaned 25,000,000 Yen or
approximately $217,000 at current exchange rates to Credie Beaux Co Ltd, a party
affiliated with our majority shareholder, IAJ. This loan was repaid on March 26,
2008.

NOTE 13. EQUITY TRANSACTIONS/ TREASURY STOCK

         During the three months ended March 31, 2008, the following stockholder
equity events occurred:

         On March 22, 2007, the company announced a stock repurchase program.
Starting on April 2, 2007, the company may repurchase up to 4,000,000 shares at
market prices in open market or private transactions. As of March 31, 2008, the
company repurchased 2,654,255 shares in public and private transactions at an
average price of $0.281 per share. The company reused 2,026,355 shares as part
of our Slate equity investment at an average cost of $.267 per share. The
company owns 627,900 shares at an average cost of $.323 per share as of March 31
31, 2008. The shares are valued using the cost method of accounting for treasury
stock.

         On January 18, 2008, the company filed a registration statement on Form
S-3 covering 7,870,355 shares, related to equity investments and convertible
Debentures, which was declared effective by the SEC on February 1, 2008.

         On March 14, 2008, Eric La Cara, a director, exercised stock options
totaling 86,458 shares of common stock for $13,500 or $.156 per share.

         On April 1, 2008, the company issued 200,000 shares of common stock to
two consultants for fundraising and other services. The shares were valued at
$.28 per share, the closing price on March 31, 2008.

         On April 10, 2008, the company signed definitive agreements and closed
the 100% acquisition of Shift Resources Inc. ("Shift Resources"), a Philippine
Business Process Outsourcing company. The transaction is structured as a share
exchange in which the company issued 826,086 shares of its common stock at $.23
per share, the close price during the negotiations, totaling $190,000 plus a
payment of $35,000. The parties agreed to value the transaction at $225,000.

         On April 16, 2008, the company agreed to issue 120,000 shares of common
stock to a consultants for investor relation services. The shares were valued at
$.25 per share, the closing price on April 7, 2008, the date the agreement was
reached.

                                       25
<PAGE>

         On April 24, 2008 and May 8, 2008, the company sold 1,000,000 and
1,500,000, shares of our common stock, respectively, to Michael Ning for
$200,000 and $300,000, respectively, or $.20 per share. In connection with the
purchase of the common stock, on May 8, 2008, the company issued warrants for a
total of 5,000,000 shares of common stock to Mr. Ning. The warrants are
exercisable at $.20 per share and expire on May 7, 2013. The company agreed to
register the shares and warrants within two months after approval by the
American Stock Exchange ("AMEX"). The shares of common stock were issued to the
accredited investors in a transaction that will be exempt from registration
pursuant to Section 4(2) of the Securities Act of 1933, as amended ("Securities
Act"), and/or Regulation D promulgated under the Securities Act.

NOTE 14. COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS

Legal Proceedings

         There are no pending legal proceedings against the company that will
have a material adverse effect on our cash flows, financial condition or results
of operations.

Employment Agreements

         On September 5, 2007, the company entered into new employment
agreements with each of Derek Schneideman, the company's Chief Executive Officer
and Chairman of the Board of Directors, and Mark Scott, the company's Chief
Operating and Financial Officer, which replace their prior employment agreements
with the company.

         Derek Schneideman's Employment Agreement ("Schneideman Agreement") has
a two year term beginning on September 5, 2007, and is renewable on an annual
basis one year prior to the termination of the prior term. The company will pay
Mr. Schneideman an annual base salary of $250,000, and will provide for
participation in the company's benefit programs available to other senior
executives (including group insurance arrangements). Also under the Schneideman
Agreement, Mr. Schneideman may be paid a bonus up to $230,000, as may be
declared by the company's compensation committee based on Mr. Schneideman
raising additional capital for the company and the company's profitability and
share price improvement. If Mr. Schneideman's employment is terminated without
cause (as defined in the Schneideman Agreement), Mr. Schneideman will be
entitled to a payment equal to one year's annual base salary, and the full
vesting of any previously granted and unexpired options. If Mr. Schneideman's
employment is terminated without cause within one year following a change of
control (as defined in the Schneideman Agreement), or if Mr. Schneideman
terminates his employment for good reason (as defined in the Schneideman
Agreement), Mr. Schneideman will be entitled to a payment equal to two times the
sum of his annual base salary plus the highest annual bonus earned by Mr.
Schneideman for any of the three fiscal years, and the full vesting of any
previously granted and unexpired options. Mr. Schneideman is required to provide
not less than twelve (12) months written notice to the company to terminate his
employment with the company at any time for any reason.

         Mark Scott's Employment Agreement ("Scott Agreement") has a two year
term beginning on September 5, 2007, and is renewable on an annual basis one
year prior to the termination of the prior term. The company will pay Mr. Scott
an annual base salary of $200,000, and will provide for participation in the
company's benefit programs available to other senior executives (including group
insurance arrangements). Also under the Scott Agreement, Mr. Scott may be paid a
bonus up to $105,000, as may be declared by the company's compensation committee
based on Mr. Scott raising additional capital for the company and the company's
profitability and share price improvement.

                                       26
<PAGE>

         If Mr. Scott's employment is terminated without cause (as defined in
the Scott Agreement), Mr. Scott will be entitled to a payment equal to one
year's annual base salary, and the full vesting of any previously granted and
unexpired options. If Mr. Scott's employment is terminated without cause within
one year following a change of control (as defined in the Scott Agreement), or
if Mr. Scott terminates his employment for good reason (as defined in the Scott
Agreement), Mr. Scott will be entitled to a payment equal to two times the sum
of his annual base salary plus the highest annual bonus earned by Mr. Scott for
any of the three fiscal years, and the full vesting of any previously granted
and unexpired options. Mr. Scott is required to provide not less than twelve
(12) months written notice to the company to terminate his employment with the
company at any time for any reason.

         On April 27, 2008, Mr. Scott was awarded 131,400 shares of common stock
under the 2007 Plan. The compensation committee awarded the shares in lieu of an
annual salary increase. The number of shares awarded was based on his $200,000
base compensation for 2007 or 17.7% and was for his 2007 performance. The
compensation committee believes the issuance of shares of common stock more
closely aligns management with its shareholders. The company and Mr. Scott
entered into a Restricted Stock Agreement for this award. A copy of the
agreement is attached as Exhibit 10.23 and incorporated herein by reference.

         The shares were valued at $.27 per share, the close price on April 25,
2008, the last day before the compensation committee meeting. The shares will
have a three month restriction under the 2007 Plan.

NOTE 15. INDUSTRY SEGMENT AND GEOGRAPHIC INFORMATION

         The company operates as a strategic holding company with a dedicated
focus on growth of existing business, together with expansion mergers and
acquisitions in the Pacific Rim region. It is organized by subsidiary or equity
investment. Each subsidiary or equity investment reported to the Chief Executive
Officer who has been designated as the Chief Operating Decision Maker ("CODM")
as defined by SFAS No. 131 "Disclosures About Segments of an Enterprise and
Related Information"("SFAS 131"). The CODM allocates resources to each of the
companies using information regarding revenues, operating income (loss) and
total assets.

         The following subsidiaries are the only reportable segments under the
criteria of SFAS 131 (i) IA Global, the parent company, operates as a strategic
holding company with a dedicated focus on growth of existing business, together
with expansion mergers and acquisitions in the Pacific Rim region, (ii) Global
Hotline, which operates exclusively in Japan, and is an operator of major call
centers providing business process outsourcing of telemarketing for
telecommunications and insurance products, (iii) GPLus and Slate, our equity
investments in the human capital and resource sector , and (iv) ASFL, our equity
investment, which raises funds through the issuance of debentures in Australia
and the providing of short term, secured, real property loans to businesses or
investors in Australia.

         The following table presents revenues, operating income (loss) and
total assets by company for the three months ended March 31, 2008 and 2007:

                                       27
<PAGE>
<TABLE>
(dollars in thousands)
<CAPTION>
                                    IA           Global
                                  Global,       Hotline,       Equity
Company                            Inc.           Inc.       Investments      Total
                                 --------       --------     -----------    --------
<S>                              <C>            <C>           <C>           <C>
Three Months Ended-
   March 31, 2008
   Revenue ................      $      -       $ 16,049      $      -      $ 16,049

   Operating (loss) income           (502)         2,537             -         2,035

   Total assets ...........           269         24,964         9,707        34,940

   March 31, 2007
   Revenue ................      $      -       $  6,493      $      -      $  6,493

   Operating (loss) inccome          (470)            57             -          (413)

   Total assets ...........           962         12,860         7,603        21,425


Geographic Region                  U.S.           Japan       Australia       Total
                                 --------       --------      ---------     --------

Three Months Ended-
   March 31, 2008
   Revenue ................      $      -       $ 16,049      $      -      $ 16,049

   Operating (loss) income           (502)         2,537             -         2,035

   Total assets ...........           132         27,877         6,930        34,940

   March 31, 2007
   Revenue ................      $      -       $  6,493      $      -      $  6,493

   Operating (loss) income           (470)            57             -          (413)

   Total assets ...........           962         12,860         7,603        21,425
</TABLE>

The following reconciles operating loss to net loss:

(dollars in thousands)              Three Months Ended,
                                         March 31,
                                    ------------------
                                      2008       2007
                                    -------    -------

Operating income (loss) .........   $ 2,035    $  (413)
Other expense ...................      (317)      (163)
                                    -------    -------
Income (loss) before income taxes     1,718       (576)

Income tax provision ............     1,358        268
                                    -------    -------
Net income (loss) ...............   $   360    $  (844)
                                    =======    =======

NOTE 16. SUBSEQUENT EVENTS

         The company's stockholder equity on a pro-forma basis with transactions
closed since March 31, 2008 and the debentures that convert into common stock by
June 28, 2008, the stockholder's equity on a pro-forma basis is approximately
$8.1 million.

                                       28
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         Forward-looking statements in this report reflect the good faith
judgment of our management and the statements are based on facts and factors as
we currently know them. Forward-looking statements are subject to risks and
uncertainties and actual results and outcomes may differ materially from the
results and outcomes discussed in the forward-looking statements. Factors that
could cause or contribute to such differences in results and outcomes include,
but are not limited to, those discussed below and in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" as well as those
discussed elsewhere in this report. Readers are urged not to place undue
reliance on these forward-looking statements which speak only as of the date of
this report. We undertake no obligation to revise or update any forward-looking
statements in order to reflect any event or circumstance that may arise after
the date of the report.

INTRODUCTION

         We had revenues of $29.1 million, $19.1 million and $15.7 million for
the years ended December 31, 2007, 2006 and 2005, respectively. We have incurred
net losses from continuing operations of $8.1 million, $4.0 million and $0.7
million for the years ended December 31, 2007, 2006 and 2005, respectively. Our
losses have been financed primarily by the sale of equity in our company, by
loans from related and unrelated parties, by the issuance of convertible
debentures and through the issuance of equity for services.

The Company and our Business

         IA Global is a strategic holding company with a dedicated focus on
growth of existing business, together with expansion through mergers and
acquisitions in the Pacific Rim region. Our mission is to identify and invest in
business opportunities, apply our skills and resources to nurture and enhance
the performance of those businesses across key business metrics, and to deliver
accelerating shareholder value.

         To realize this plan, in FY 2007/8 and 2008/9 the company is actively
expanding investments in the business process outsourcing, human capital and
resources, and B2B sectors. These sectors demonstrate long-term prospects in
which we, by applying our skills and resources, can add significant value to our
investments. Beyond Japan, the company is expanding its reach to encompass Hong
Kong/China, the Philippines/Singapore, and India and the outstanding growth
opportunities and synergies these markets present.

         IA Global takes a long-term "Buy to Hold" approach to its acquisitions
and partnerships. It is built on the belief that our people, combining pragmatic
hands-on management with extensive operations and financial experience, have the
expertise to grow the businesses we invest in, to optimize their potential and
provide increasing returns on investment over the long run. IA Global has
acquired a select portfolio of investments in Japan, Australia and the
Philippines/Singapore area, targeted and developed with a sharp eye for
producing outstanding growth and profitability. This has laid the foundation for
an aggressive medium term plan to establish a broad network of complementary
subsidiaries and majority-owned investments in the greater Pacific Rim region.

Business Process Outsourcing

         In Japan, IA Global is 100% owner of Global Hotline, a Business Process
Outsourcing organization, operating several major call centers providing
outbound telemarketing services for telecommunications and insurance products.
Since our acquisition of Global Hotline in June 2005, this business has expanded
rapidly with the signing of significant multi-year contracts with major
corporations.

                                       29
<PAGE>

         This growth trajectory is being driven by new contracts, process
improvements, infrastructure expansion, and macro economic trends such as the
ongoing gains in the Japanese economy, consistent year on year growth in
targeted industries, higher disposable incomes, and the increasingly rapid
growth of the senior citizen demographic. As of March 31, 2008, Global Hotline
employed 1,145 full and part-time personnel to support these multi-million
dollar contracts. In the Philippines, we acquired 100% of Shift Resources, LLC,
a multi-service call center operation on April 10, 2008. In addition, we signed
a term sheet to acquire 100% of Asia Premier Executive Suites, Inc., a
multi-service call center operation which is expected to close in May 2008,
subject to the closing of financing.

Human Capital and Resources

         During August 2007, the company closed two equity investments. These
investments provide "human capital" services in the human resources sector, a
sector which offers excellent growth opportunities throughout the Asia Pacific
region. IA Global continues to seek additional companies and partnerships in the
staffing, training, employee/ organization evaluation and assessments business
throughout the region, but with a focus on Japan. Linking these investments in a
network under the IA Global umbrella will generate synergies of expertise and
resources, creating a regional value-chain of services to further drive
aggressive growth. Our investments in Human Capital and Resources are as
follows:

         IA Global has a 25% stake in GPlus Media Co Ltd ("GPlus"). GPlus is a
Japan based corporation with offices in Tokyo, Japan, Hong Kong and Shanghai,
China. GPlus owns and operates several of Japan's best known English-Japanese
websites, including GaijinPot.com, and Ecentral.jp, the official jobsite of the
American Chamber of Commerce in Japan. GPlus also operates CareerEngine.org,
which is a powerful network of jobsites with partners who include
ShanghaiExpat.com, the American Chambers of Commerce in Shanghai and Hong Kong,
as well as the Canada China Business Council.

         IA Global has a 20.25% equity investment in Slate Consulting Co Ltd
("Slate"). Slate is a Japan headquartered Executive Search firm with operations
and business entities in Tokyo, Hong Kong, Surrey, Canada; a call center in
Manila, Philippines; and an early stage call center in Bucharest, Romania.

Other Equity Investments

         In Australia, the company has a 36% stake in Australian Secured
Financial Limited and its affiliates, Ausec Finance Limited, ADJ Services Pty
Ltd. and Auslink Ltd (collectively, "ASFL"), which raises funds through the
issuance of private loans and bank debt within Australia and provide short term,
secured, real property loans to businesses and investors in Australia. Through
this group of companies, ASFL has created a strong financial services network
leveraging its knowledge and presence in local communities to cater to a sector
of the market neglected by larger financial institutions.

KEY MARKET OPPORTUNITIES

         - We intend to aggressively grow our existing business entities during
FY 2007/8 and 2008/9.

         - We intend to expand our reach to encompass Hong Kong/China, the
Philippines/Singapore, and India and the outstanding growth opportunities and
synergies these markets present. Our long-term "Buy to Hold" approach to our
investments gives our management team time to comprehensively analyze,
understand and select the companies we invest in, their sectors and competition
in depth, and to accurately gauge their potential.

                                       30
<PAGE>

         - We intend to actively expand our investments in the business process
outsourcing, human capital and resources, and B2B sectors.

         - We intend to deliver greater profitability during FY 2008/9.

         - We intend to enhance the performance of those businesses across key
business metrics, and to deliver accelerating shareholder value.

         - We intend to increase investor relation activities to increase the
trading volume and share price.

PRIMARY RISKS AND UNCERTAINTIES

         We are exposed to various risks related to our need for additional
financing, our level of indebtedness, our ASFL investment, our AMEX listing, our
controlling shareholder groups, the sale of significant numbers of our shares, a
volatile market price for our common stock, our Global Hotline business and our
mergers and acquisitions and other matters. These risks and uncertainties are
discussed in Item 1A, "Factors That May Effect Future Results."

RESULTS OF OPERATIONS

         The following table presents certain consolidated statement of
operations information and presentation of that data as a percentage of change
from period-to-period.
<TABLE>
(dollars in thousands)
<CAPTION>
                                                                 3 Months Ended March 31,
                                                       ----------------------------------------------
                                                         2008        2007     $ Variance   % Variance
                                                       --------    --------   ----------   ----------
<S>                                                    <C>         <C>        <C>          <C>
Revenue ............................................   $ 16,049    $  6,493    $  9,556       147.2%
Cost of sales ......................................      2,950         996       1,954       196.2%
                                                       --------    --------   ----------   ----------
Gross profit .......................................     13,099       5,497       7,602       138.3%
                                                       --------    --------   ----------   ----------
Selling, general and administrative expenses .......     11,064       5,910       5,154        87.2%
                                                       --------    --------   ----------   ----------
Operating income ...................................      2,035        (413)      2,448       592.7%
                                                       --------    --------   ----------   ----------
Other Income (Expense):
Interest income ....................................         39          21          18        85.7%
Interest expense and amortization of beneficial
  conversion feature ...............................       (337)       (196)       (141)       71.9%
Other Income .......................................         86          (1)         87      8700.0%
Loss (gain) on equity investment in Australia
  Secured Financial Limited ........................        (94)         13        (107)      823.1%
Gain on equity investment in GPlus Media Co Ltd ....          8           -           8       100.0%
Loss on equity investment in Slate Consulting Co Ltd        (17)          -         (17)     -100.0%
Foreign currency transaction adjustment ............         (2)          -          (2)     -100.0%
                                                       --------    --------   ----------   ----------
Total other expense ................................       (317)       (163)       (154)       94.5%
                                                       --------    --------   ----------   ----------
Income (loss) before income  taxes .................      1,718        (576)      2,294       398.3%
Income taxes:
Current provision ..................................      1,358         268       1,090       406.7%
                                                       --------    --------   ----------   ----------
Net income (loss) ..................................        360        (844)      1,204       142.7%
                                                       ========    ========   ==========   ==========
</TABLE>

                                       31
<PAGE>

THREE MONTHS ENDED MARCH 31, 2008 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2007

         Net revenue for the three months ended March 31, 2008 increased
$9,556,000 to $16,049,000, as compared to the three months ended March 31, 2007.
The increase was due to the expansion of the Global Hotline business with the
signing of the following significant contracts with major corporations:

1. KDDI Network and Solutions signed on January 1, 2007 and was increased
   effective July 1, 2007.

2. NTT signed on May 21, 2007 and was effective October 1, 2007.

3. American Life Insurance Company, a Japanese company which is a subsidiary of
   AIG, signed and effective on August 8, 2007, September 20, 2007 and December
   1, 2007.

4. Increased revenues from other Global Hotline contracts.

COST OF SALES

         Cost of sales for the three months ended March 31, 2008 increased
$1,954,000 to $2,950,000 as compared to the three months ended March 31, 2007.
The increase resulted from outside agent and outsourcing and other costs related
to the expansion of the Global Hotline business with the signing of significant
contracts with major corporations discussed above.

EXPENSES

         Selling, general and administrative expenses for the three months ended
March 31, 2008 increased $5,154,000 to $11,064,000 as compared to the three
months ended March 31, 2007. This was due to increased operating expenses of
$60,000 related to the implementation of SFAS 123R and $5,124,000, for
additional staff, and building infrastructure, which included items such as PCs,
workstations, and software licenses, as well as significant investment in new
staff and training. The increase was due to the expansion of the Global Hotline
business with the signing of significant contracts with major corporations.

         Global Hotline opened a fifth call center in Tokyo, Japan in late
August 2007 to support its new agreements with AIG. This new call center employs
over 400 full and part-time employees. In addition, Global Hotline opened a
sixth call center in Osaka, Japan on October 1, 2007 to support the NTT
contract. This new call center employs 300 full and part-time employees.

         For 2008 and 2007, the selling, general and administrative expenses
consisted primarily of employee and independent contractor expenses, rent,
overhead, equipment and depreciation, amortization of identifiable intangible
assets and intellectual property, professional and consulting fees, sales and
marketing costs, investor relations, legal, stock option and other general and
administrative costs.

OTHER INCOME/EXPENSE

         Other expense for the three months ended March 31, 2008 was $317,000 as
compared to other expense of $163,000 for the three months ended March 31, 2007.
The March 31, 2008 other expense increase was primarily related to interest
expense and amortization of the beneficial conversion feature of $337,000 and a
loss on equity investment of $103,000 from our equity investments, offset by
other income of $86,000. The ASFL loss was due to the sale of the debenture loan
business in November 2007 and certain loan losses booked during 2007 and 2008.
We expect ASFL to return to profitability during FY 2008/9 with new loans placed
and a new line of credit. Slate is expected to return to profitability in the
three months ended June 30, 2008.

                                       32
<PAGE>

         Other expense for the three months ended March 31, 2007 was $163,000.
The 2007 other expense was primarily related to interest expense and
amortization of beneficial conversion feature of $196,000, offset by a gain on
equity investment of $13,000 and interest income of $21,000.

NET INCOME (LOSS)

         Net income for three months ended March 31, 2008 was $360,000 as
compared to a net loss from of $844,000 for the three months ended March 31,
2007. This was due to increased gross margin of $7,602,000, offset by increased
operating expenses of $5,154,000 and income taxes of $1,090,000. The increased
operating expenses reflect additional staff, and building infrastructure, which
included items such as PCs, workstations, and software licenses, as well as
significant investment in new staff and training. The increase resulted from
costs related to the expansion of the Global Hotline business with the signing
of significant multi-year contracts with major corporations.

         The nature of Global Hotline's business model is such that revenues lag
expenses by approximately 6-8 months.

LIQUIDITY AND CAPITAL RESOURCES

         We had cash of approximately $1.6 million, net working capital of
approximately $745,000 million and debt of $19.1 million as of March 31, 2008.

         During 2007, Global Hotline entered into loans of approximately $17.2
million and repaid loans of approximately $4.2 million. The net loans were used
to expand the business infrastructure for current and anticipated major new
client contracts, including opening two call centers in Japan to service these
client contracts. We expect to reduce debt during FY 2008/9 with the improvement
in Global Hotline operating results starting January 1, 2008.

         We will need to obtain additional financing in order to continue our
current operations, including the cash flow needs of Global Hotline and its
subsidiaries, to acquire businesses, make equity investments and maintain the $6
million in stockholder's equity required to maintain our AMEX listing. There can
be no assurance that we will be able to secure additional funding or that if
such funding is available, whether the terms or conditions would be acceptable
to us, our major shareholders or otherwise.

         Since inception, we have financed our operations primarily through
sales of our equity securities in our initial public offering and from several
private placements, loans and capital contributions, primarily from related
parties. Net cash proceeds from these items have totaled approximately $20.0
million as of March 31, 2008, with approximately $8.8 million raised in the
initial public offering, $8.0 million raised in private placements, $3.6 million
raised in the conversion of debt and $0.7 million used for the share repurchase
program. In addition, we have issued equity for non-cash items totaling $24.9
million, including $7.0 million from the ASFL equity investment, $1.4 million
each from the GPlus and Slate equity investments, $6.9 million issued for
services, $3.6 million related to a beneficial conversion feature, $1.5 million
from debenture conversions, and $3.1 million related to the Global Hotline
acquisition. Additional funding was obtained from notes payable and long term
debt of approximately $18.6 million and convertible debentures with
approximately $2.2 million outstanding as of March 31, 2008.

         As the results of Global Hotline's operations continue to improve, we
expect better utilization of net cash. Since our acquisition of Global Hotline
in June 2005, this business has expanded rapidly with the signing of significant
multi-year contracts with major corporations.

                                       33
<PAGE>

OPERATING ACTIVITIES

         Net cash used in operating operations for the three months ended March
31, 2008 was $625,000. This amount was primarily related to a net income of
$360,000, depreciation and amortization of $588,000, a decrease in deferred
taxes- foreign of $1,261,000 and an increase in accrued liabilities of
$2,940,000, offset by an increase in accounts receivable of $4,640,000 and an
increase in prepaid expenses of $988,000.

INVESTING ACTIVITIES

         Net cash used in investing activities for the three months ended March
31, 2008 was $946,000. This amount relates to capital expenditures of $946,000.

FINANCING ACTIVITIES

         Net cash provided by financing activities for the three months ended
March 31, 2008 was $1,507,000.

         During the three months ended March 31, 2008, Global Hotline entered
into loans of approximately $1,507,000. The increase was due to the expansion of
the Global Hotline business with the signing of significant contracts with major
corporations.

         Other Material Commitments. The company's contractual cash obligations
as of March 31, 2008 are summarized in the table below (1):
<TABLE>
<CAPTION>
Contractual Cash                      Less Than                              Greater Than
Obligations               Total        1 Year      1-3 Years     3-5 Years      5 Years
--------------------   -----------   -----------   ----------   ----------   ------------
<S>                    <C>           <C>           <C>          <C>          <C>
Operating leases       $ 3,437,937   $ 2,064,846   $1,084,909   $  288,182             $0
Note payable            19,104,249    10,510,655    5,154,162    3,439,432              0
Capital expenditures       250,000       250,000            0            0              0
Acquisitions               318,000       318,000            0            0              0
                       -----------   -----------   ----------   ----------   ------------
                       $23,110,186   $13,143,501   $6,239,071   $3,727,614             $0
                       ===========   ===========   ==========   ==========   ============
</TABLE>
(1) Based on the end of period exchange rate.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

         The application of GAAP involves the exercise of varying degrees of
judgment. On an ongoing basis, we evaluate our estimates and judgments based on
historical experience and various other factors that are believed to be
reasonable under the circumstances. Actual results may differ from these
estimates under different assumptions or conditions. We believe that of our
significant accounting policies (see summary of significant accounting policies
more fully described in Note 2 of notes to consolidated financial statements),
the following policies involve a higher degree of judgment and/or complexity:

INCOME TAXES

         We are subject to income taxes in both the U.S. and foreign (Japan)
jurisdictions. Significant judgment is required in determining the provision for
income taxes. We recorded a valuation for the deferred tax assets from our net
operating losses carried forward due to us not demonstrating any consistent
profitable operations. In the event that the actual results differ from these
estimates or we adjust these estimates in future periods, we may need to adjust
the recorded valuation.

                                       34
<PAGE>

STOCK-BASED COMPENSATION

         Effective January 1, 2006, we began recording compensation expense
associated with stock-based awards and other forms of equity compensation in
accordance with SFAS 123R as interpreted by SEC Staff Accounting Bulletin No.
107. We adopted the modified prospective transition method provided for under
SFAS 123R and consequently has not retroactively adjusted results from prior
periods. Under this transition method, compensation cost associated with
stock-based awards recognized in 2006 includes 1) quarterly amortization related
to the remaining unvested portion of stock-based awards granted prior to
December 15, 2005, based on the grant date fair value estimated in accordance
with the original provisions of SFAS 123; and 2) quarterly amortization related
to stock-based awards granted subsequent to January 1, 2006 based on the grant
date fair value estimated in accordance with the provisions of SFAS 123R. In
addition, we record expense over the vesting period in connection with stock
options granted. The compensation expense for stock-based awards includes an
estimate for forfeitures and is recognized over the expected term of the award
on a straight line basis.

INTANGIBLE ASSETS

         Intangible assets primarily relate to the intangible assets and
intellectual property acquired in connection with the acquisition of Global
Hotline over thirty six months on a straight-line basis, which was the time
frame that the management of the company was able to project forward for future
revenue, either under agreement or through expected continued business
activities with significant telecommunications companies.

REVENUE RECOGNITION

         Global Hotline revenue was derived from its multiple call centers
undertaking the telemarketing of telecommunications products and services, and a
range of insurance products and services in Japan. Revenue is considered
realized when the services have been provided to the customer, the work has been
accepted by the customer and collectibility is reasonably assured. Furthermore,
if an actual measurement of revenue cannot be determined, we defer all revenue
recognition until such time that an actual measurement can be determined. If
during the course of a contract management determines that losses are expected
to be incurred, such costs are charged to operations in the period such losses
are determined.

         Revenues are deferred when cash has been received from the customer but
the revenue has not been earned. The company has not recorded any deferred
revenue as of March 31, 2008 and December 31, 2007, respectively.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

         Accounts receivable consists primarily of amounts due us from our
normal business activities. We maintain reserves to reflect the expected
non-collection of accounts receivable based on past collection history and
specific risks identified within our portfolio. If the financial condition of
our customers were to deteriorate resulting in an impairment of their ability to
make payments, or if payments from customers are significantly delayed,
additional allowances might be required.

                                       35
<PAGE>

DEBT AND EQUITY FINANCING OF CAPITAL TRANSACTIONS - BENEFICIAL CONVERSION
FEATURES

         We have adopted EITF issues 98-5, ACCOUNTING FOR CONVERTIBLES
SECURITIES WITH BENEFICIAL CONVERSION FEATURES OR CONTINGENTLY ADJUSTABLE
CONVERSION RATIOS, and 00-27, APPLICATION OF ISSUE NO. 98-5 TO CERTAIN
CONVERTIBLE SECURITIES in accounting for convertible debt. EITF 00-27 requires
recognition of the intrinsic value of the conversion option and is recognized as
a reduction to the carrying amount of the convertible debt and as an addition to
paid-in capital. The intrinsic value of the conversion feature is the difference
between the conversion price and the fair value of the stock into which the
security is convertible into, multiplied by the number of shares. The conversion
price used in calculating the intrinsic value is the most favorable conversion
price up to maturity, assuming there are no changes to the current circumstances
except for the passage of time. Changes to the conversion terms that would be
triggered by future events not controlled by the issuer should be accounted for
as contingent conversion options, and the intrinsic value of such conversion
options would not be recognized until and unless the triggering event occurs.
According to EITF 00-27, the issuance proceeds should not be reduced by issuance
costs when calculating the intrinsic value of the conversion feature. The
beneficial conversion feature of debt or equity instruments, depending on the
specific facts and circumstances, will determine whether such beneficial
conversion feature is to be recorded as an expense to be amortized over a period
of time, expensed immediately or recorded as a deemed dividend.

EQUITY INVESTMENT

         We account for our investments using the equity method unless its value
has been determined to be other than temporarily impaired, in which case we
write the investment down to its impaired value. We review these investments
periodically for impairment and make appropriate reductions in carrying value
when an other-than-temporary decline is evident; however, for non-marketable
equity securities, the impairment analysis requires significant judgment. During
our review, we evaluate the financial condition of the issuer, market
conditions, and other factors providing an indication of the fair value of the
investments. Adverse changes in market conditions or operating results of the
issuer that differ from expectation, could result in additional other-than-
temporary losses in future periods. Our equity investments were not considered
impaired as of December 31, 2007.

RECENT ACCOUNTING PRONOUNCEMENTS

         In September 2006, the FASB issued SFAS No. 157; "Fair Value
Measurements" ("SFAS 157"). This statement defines fair value, establishes a
framework for measuring fair value in generally accepted accounting principles
(GAAP), and expands disclosures about fair value measurements. This statement
applies under other accounting pronouncements that require or permit fair value
measurements, the FASB having previously concluded in those accounting
pronouncements that fair value is a relevant measurement attribute. Accordingly,
this statement does not require any new fair value measurements. However, for
some entities, the application of this Statement will change current practices.
This Statement is effective for financial statements for fiscal years beginning
after November 15, 2007. Earlier application is permitted provided that the
reporting entity has not yet issued financial statements for that fiscal year.
We are currently evaluating the provisions of SFAS 157 to determine the impact
on the company's consolidated financial statements.

                                       36
<PAGE>

         In December 2006, the FASB approved FASB Staff Position ("FSP") No.
EITF 00-19-2, "Accounting for Registration Payment Arrangements" ("FSP EITF
00-19-2"), which specifies that the contingent obligation to make future
payments or otherwise transfer consideration under a registration payment
arrangement, whether issued as a separate agreement or included as a provision
of a financial instrument or other agreement, should be separately recognized
and measured in accordance with SFAS No. 5, "Accounting for Contingencies". FSP
EITF 00-19-2 also requires additional disclosure regarding the nature of any
registration payment arrangements, alternative settlement methods, the maximum
potential amount of consideration and the current carrying amount of the
liability, if any. The guidance in FSP EITF 00-19-2 amends FASB Statements No.
133, "Accounting for Derivative Instruments and Hedging Activities", and No.
150, "Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity", and FASB Interpretation No. 45, "Guarantor's Accounting
and Disclosure requirement for Guarantees, Including Indirect Guarantees of
Indebtedness of Others", to include scope exceptions for registration payment
arrangements. FSP EITF 00-19-2 is effective immediately for registration payment
arrangements and the financial instruments subject to those arrangements that
are entered into or modified subsequent to the issuance date of this FSP, or for
financial statements issued for fiscal years beginning after December 15, 2006,
and interim periods within those fiscal years, for registration payment
arrangements entered into prior to the issuance date of this FSP. We have
determined the impact of FSP EITF 00-19-2 on our financial statements was not
material.

         In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option
for Financial Assets and Financial Liabilities-including an amendment of FAS
115" ("SFAS 159"). SFAS 159 allows entities to choose, at specified election
dates, to measure eligible financial assets and liabilities at fair value that
are not otherwise required to be measured at fair value. If a company elects the
fair value option for an eligible item, changes in that item's fair value in
subsequent reporting periods must be recognized in current earnings. SFAS 159 is
effective for fiscal years beginning after November 15, 2007. The adoption of
SFAS No 159 is not expected to have a significant impact on our consolidated
financial statements.

FACTORS THAT MAY AFFECT FUTURE RESULTS

         The following factors, in addition to the other information contained
in this report, should be considered carefully in evaluating us and our
prospects. This report (including without limitation the following factors that
may affect operating results) contains forward-looking statements (within the
meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) regarding us and our business, financial condition, results of operations
and prospects. Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates" and similar expressions or variations of such
words are intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements in this report.
Additionally, statements concerning future matters such as the development of
new products, enhancements or technologies, projections of revenues and
profitability, possible changes in legislation and other statements regarding
matters that are not historical are forward-looking statements.

         Forward-looking statements in this report reflect the good faith
judgment of our management and the statements are based on facts and factors as
we currently know them. Forward-looking statements are subject to risks and
uncertainties and actual results and outcomes may differ materially from the
results and outcomes discussed in the forward-looking statements. Factors that
could cause or contribute to such differences in results and outcomes include,
but are not limited to, those discussed below and in "Management's Discussion
and Analysis of Financial Condition and Results of Operations" as well as those
discussed elsewhere in this report. Readers are urged not to place undue
reliance on these forward-looking statements which speak only as of the date of
this report. We undertake no obligation to revise or update any forward-looking
statements in order to reflect any event or circumstance that may arise after
the date of the report.

                                       37
<PAGE>

WE WILL NEED ADDITIONAL FINANCING TO SUPPORT OUR OPERATIONS AND ACQUIRE
BUSINESSES.

         We will need to obtain additional financing in order to continue our
current operations, including the cash flow needs of IA Global, Inc. Global
Hotline and its subsidiaries, to acquire businesses, make equity investments and
maintain the $6 million in stockholder's equity required to maintain our AMEX
listing. There can be no assurance that we will be able to secure additional
funding or that if such funding is available, whether the terms or conditions
would be acceptable to us, our major shareholders or otherwise. Moreover, if we
raise additional capital through borrowing or other debt financing, we will
incur substantial interest expense. Sales of additional equity securities will
dilute on a pro rata basis the percentage ownership of all holders of common
stock. When we raise more equity capital in the future, it is likely that it
will result in substantial dilution to our current stockholders.

OUR LEVEL OF INDEBTEDNESS AND THE TERMS OF OUR FINANCING ARRANGEMENTS MAY
ADVERSELY AFFECT OPERATIONS AND LIMIT OUR GROWTH.

         At March 31, 2008, we have current and long-term indebtedness of $19.1
million. However, we will need to incur additional indebtedness and amend our
debt indebtedness in order to fund a portion of current operations and acquire
businesses. In addition, we are seeking to refinance some of outstanding loans
on more favorable terms to the company, but may not be successful. See also our
risk factor "We will need additional financing to support our operations and
acquire businesses," above.

WE ARE EXPOSED TO CHANGES IN THE AUSTRALIAN FINANCE INDUSTRY

         The Australian finance industry is experiencing significant change. We
own 36% of ASFL which raises funds through the issuance of bank debt in
Australia and provides short term, secured, real property loans to businesses or
investors in Australia. ASFL may be affected by the following factors that would
impact its ability to operate as a short term lender in Australia and could
impair our investment.

         o Risks related to mortgage lending, including customers may not be
able to repay the loans, the value of the underlying security may decline, ASFL
is reliant on property valuations to ensure collectibility of the loans and we
rely on customers maintaining adequate insurance on the real property;

         o Risks related to world-wide mortgage lending;

         o Decreased market demand for high interest loans;

         o The bank line of credit used to fund the business could be
terminated;

         o Market perception of ASFL and ASFL's competitors may have a major
impact on ASFL's reputation as well;

         o General economic conditions and changes in interest rates;

         o The loan portfolio is concentrated in a small number of significant
loans;

         o New competitors;

         o Decreased pricing;

         o Litigation risk; and

         o Loss of key personnel.

                                       38
<PAGE>

         The ASFL business is also dependent upon their ability to operate
efficiently by maintaining tight control on cash flows and raising funds from
private investors or a bank line of credit. Any change in these factors could
adversely affect their ability to operate as a short term lender in Australia.
This could have a material adverse effect on ASFL's business, prospects,
financial condition and results of operations.

OUR STOCKHOLDERS' EQUITY MUST EXCEED $6 MILLION TO MAINTAIN OUR LISTING ON THE
AMERICAN STOCK EXCHANGE

         As of March 31, 2008, we were not in compliance with the AMEX continued
listing standards with stockholders' equity in excess of $6 million and our
common stock continues to trade on AMEX. To maintain this listing, we must
maintain stockholders' equity of $6 million. As of June 30, 2008, we expect to
be in compliance with this standard.

         We anticipate that we will maintain our AMEX listing. However, if our
common stock were to be de-listed by AMEX, we believe that our stock would
continue to be traded as a bulletin board stock. If we do not maintain our AMEX
listing it would materially affect the ability of our shareholders to dispose of
their shares of Common stock, reduce the liquidity of their investment and
affect our ability to obtain financing to support future operations and
acquisitions.

OUR CONTROLLING SHAREHOLDER GROUP HAS SUBSTANTIAL INFLUENCE OVER OUR COMPANY

         As of May 12, 2008, IAJ LBO Fund, PBAA Fund Limited, Terra Firma, Inter
Asset Japan Co Ltd ("IAJ"), IA Turkey, Hiroki Isobe, Kyo Nagae (collectively,
the "Controlling Shareholders") and Derek Schneideman collectively hold
approximately 46.1% of our common stock. The share ownership percentages
excludes 811,285 shares of common stock held by GMB Holdings Ltd, and other
shareholders for which Mr. Isobe has personal signing authority, 7,666,679
shares of our common stock issuable upon conversion of the convertible
debentures and 627,900 shares of treasury stock. These Controlling Shareholders
have stated in a Schedule 13D that they may be deemed to constitute a "group"
for the purposes of Rule 13d-3 under the Exchange Act. Hiroki Isobe and Kyo
Nagae control each of our Controlling Shareholders. In addition, Mr. Schneideman
in his capacity as Chairman and CEO of the company has sole voting power and
dispositive power with respect to 77,613,470 shares of common stock or
approximately 47.1% of the outstanding shares of common stock of the company for
all of the company's 2008 shareholder meetings pursuant to a proxy granted on
February 21, 2008.

         IAJ could cause a change of control of our board of directors by
electing candidates of its choice to the board at a shareholder meeting, and
approve or disapprove any matter requiring stockholder approval, regardless of
how our other shareholders may vote. Further, under Delaware law, IAJ has
significant influence over our affairs, including the power to cause, delay or
prevent a change in control or sale of the company, which in turn could
adversely affect the market price of our common stock.

THE SALE OF A SIGNIFICANT NUMBER OF OUR SHARES OF COMMON STOCK COULD DEPRESS THE
PRICE OF OUR COMMON STOCK.

         Sales or issuances of a large number of shares of common stock in the
public market or the perception that sales may occur could cause the market
price of our common stock to decline. As of May 12, 2008, 168.5 million shares
of common stock were outstanding. Significant shares of common stock are held by
our principal shareholders, other company insiders and other large shareholders.
As "affiliates" (as defined under Rule 144 of the Securities Act ("Rule 144"))
of the company, our principal shareholders, other company insiders and other
large shareholders may only sell their shares of common stock in the public
market pursuant to an effective registration statement or in compliance with
Rule 144.

                                       39
<PAGE>

THE MARKET PRICE OF OUR COMMON STOCK MAY BE VOLATILE.

         The market price of our common stock has been and is likely in the
future to be volatile. Our common stock price may fluctuate in response to
factors such as:

         o Quarterly variations in our operating results,

         o Sale of a significant number of our common stock by shareholders,

         o Announcements by us regarding significant acquisitions, equity
investments and divestitures, strategic relationships, addition or loss of
significant customers and contracts, capital expenditure commitments, liquidity,
loan and note payable defaults and impairment of assets and our AMEX listing,

         o Issuance of convertible or equity securities for general or merger
and acquisition purposes,

         o Issuance or repayment of debt or convertible debt for general or
merger and acquisition purposes,

         o Investor relation activities,

         o Announcements of technological innovations,

         o New product introductions by us or our competitors,

         o Competitive activities,

         o Additions or departures of key personnel,

         o Issuance of loans to customers or related or affiliated parties,

         o General market and economic conditions,

         o Defending significant litigation, and

         o Foreign exchange gains and losses.

         These broad market and industry factors may have a material adverse
effect on the market price of our common stock, regardless of our actual
operating performance. These factors could have a material adverse effect on our
business, financial condition and results of operations.

WE MAY INCUR LOSSES IN THE FUTURE.

         We have experienced net losses since inception. While we expect to be
profitable in FY 2008/9, there can be no assurance that we will achieve or
maintain profitability.

WE ARE EXPOSED TO CHANGES IN THE TELECOMMUNICATION AND INSURANCE INDUSTRIES.

         The Japanese telecommunications market is experiencing significant
growth due to recent regulatory changes that now permit individuals and
companies to choose their preferred telephone service provider. Global Hotline
may be affected by the following factors that would impact its ability to
operate as a telemarketer of telecommunications and insurance products in Japan.

         o The business has a concentration with five major customers;

         o Its contracts with telecommunication and insurance companies may not
be renewed;

         o The cost to hire and train staff to startup new contracts and the
related debt to fund this expansion;

                                       40
<PAGE>

         o Increased usage of wireless technology for telephone and internet
usage;

         o Passing of new or changes in existing legislation;

         o Impact of privacy laws;

         o New competitors;

         o Decreased pricing;

         o Changes in the availability of employees or wages paid to employees
to operate the call centers; and

         o Loss of key personnel.

         Our business is dependent upon our ability to operate efficiently by
maintaining tight control on cash flows. Any change in these factors could
adversely affect our ability to achieve the contract rates and to operate as a
telemarketer of telecommunications and insurance products in Japan. This could
result in inadequate cash flow for operations and debt repayments, which would
have a material adverse effect on our business, prospects, financial condition
and results of operations.

WE WILL ENGAGE IN ACQUISITIONS, MERGERS, STRATEGIC ALLIANCES, JOINT VENTURES AND
DIVESTITURES THAT COULD RESULT IN FINANCIAL RESULTS THAT ARE DIFFERENT THAN
EXPECTED.

         In the normal course of business, we engage in discussions relating to
possible acquisitions, equity investments, mergers, strategic alliances, joint
ventures and divestitures. As part of our business strategy, we completed
acquisitions during early 2004, August 2004, March 2004, June 2004, June 2005,
October 2007 and signed an acquisition agreement in October 2007 which was
subsequently terminated and April 2008; we invested in a joint venture in July
2004; we made an equity investment in October 2006 and two in August 2007; we
sold businesses in December 2004, May 2005, July 2005 and April 2006; and we
divested a joint venture interest in October 2004. Such transactions are
accompanied by a number of risks, including:

         o Use of significant amounts of cash,

         o Potentially dilutive issuances of equity securities on potentially
unfavorable terms,

         o Incurrence of debt on potentially unfavorable terms as well as
amortization expenses related to goodwill and other intangible assets, and

         o The possibility that we may pay too much cash or issue too many of
our shares as the purchase price for an acquisition relative to the economic
benefits that we ultimately derive from such acquisition.

         The process of integrating any acquisition may create unforeseen
operating difficulties and expenditures. The areas where we may face
difficulties include:

         o Diversion of management time, during the period of negotiation
through closing and after closing, from its focus on operating the businesses to
issues of integration,

         o Decline in employee morale and retention issues resulting from
changes in compensation, reporting relationships, future prospects or the
direction of the business,

                                       41
<PAGE>

         o The need to integrate each company's accounting, management
information, human resource and other administrative systems to permit effective
management, and the lack of control if such integration is delayed or not
implemented,

         o The need to implement controls, procedures and policies appropriate
for a public company that may not have been in place in private companies, prior
to acquisition,

         o The need to incorporate acquired technology, content or rights into
our products and any expenses related to such integration, and

         o The need to successfully develop any acquired in-process technology
to realize any value capitalized as intangible assets.

         From time to time, we have also engaged in discussions with candidates
regarding the potential acquisitions of our product lines, technologies and
businesses. If a divestiture such as this does occur, we cannot be certain that
our business, operating results and financial condition will not be materially
and adversely affected. A successful divestiture depends on various factors,
including our ability to:

         o Effectively transfer liabilities, contracts, facilities and employees
to any purchaser,

         o Identify and separate the intellectual property to be divested from
the intellectual property that we wish to retain,

         o Reduce fixed costs previously associated with the divested assets or
business, and

         o Collect the proceeds from any divestitures.

         In addition, if customers of the divested business do not receive the
same level of service from the new owners, this may adversely affect our other
businesses to the extent that these customers also purchase other products
offered by us. All of these efforts require varying levels of management
resources, which may divert our attention from other business operations.

         If we do not realize the expected benefits or synergies of any
divestiture transaction, our consolidated financial position, results of
operations, cash flows and stock price could be negatively impacted.

WE ARE DEPENDENT ON KEY PERSONNEL.

         Our success depends to a significant degree upon the continued
contributions of key management and other personnel, some of whom could be
difficult to replace. We do not maintain key man life insurance covering certain
of our officers. Our success will depend on the performance of our officers, our
ability to retain and motivate our officers, our ability to integrate new
officers into our operations and the ability of all personnel to work together
effectively as a team. Our failure to retain and recruit officers and other key
personnel could have a material adverse effect on our business, financial
condition and results of operations.

THE COMPANY COULD BE EXPOSED TO LEGAL CLAIMS.

         We could be exposed to legal claims. Currently, there are no pending
legal proceedings against us that will have a material adverse effect on our
cash flows, financial condition or results of operations.

WE HAVE LIMITED INSURANCE.

         We have limited director and officer insurance and commercial insurance
policies. Any significant insurance claims would have a material adverse effect
on our business, financial condition and results of operations.

                                       42
<PAGE>

WE ARE EXPOSED TO FOREIGN CURRENCY GAINS AND LOSSES.

         The majority of our operations are located in Japan and we have equity
investments and operations that operate in Australia, Hong Kong, China and the
Philippines. We do not trade in hedging instruments or "other than trading"
instruments and a significant change in the foreign currency exchange rate
between the Japanese Yen, Australian Dollar, Philippine Peso and US Dollar would
have a material adverse or positive effect on our business, financial condition
and results of operations.

WE ARE SUBJECT TO COMPETITIVE PRESSURES.

         We face competition from entities that provide competing call center
operations, including entities that resell telephone and broadband lines and
insurance products in Japan. Certain of our competitors may be able to devote
greater resources to marketing, adopt more aggressive pricing policies and
devote substantially more resources to developing their services and products.
We may be unable to compete successfully against current and future competitors,
and competitive pressures may have a material adverse effect on our business.
Further, as a strategic response to changes in the competitive environment, we
may from time to time make certain pricing, service or marketing decisions or
acquisitions that could have a material adverse or positive effect on our
business, prospects, financial condition and results of operations.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

FOREIGN CURRENCY

         We were exposed to foreign currency risks due to our ownership of
Global Hotline and our equity investments in GPlus and Slate in Japan and our
equity investments in ASFL and our loan with Frontier Mortgages in Australia,
GPlus in Hong Kong and China and Shift Resourcing and Slate in the Philippines.

         We do not trade in hedging instruments or "other than trading"
instruments and we are exposed to foreign currency exchange risks.

INTEREST RATE RISK

         We are exposed to interest rate risk at Global Hotline. As of March 31,
2008, total debt was $19,104,249. Debt totaling $4,306,456 is exposed to
variable interest rates with current interest rates of 2.0% to 3.25%.

         The company does not trade in hedging instruments or "other than
trading" instruments and is exposed to interest rate risks. We believe that the
impact of a 10% increase or decline in interest rates would not be material to
our financial condition and results of operations.

ITEM 4.  CONTROLS AND PROCEDURES

         Our principal executive and financial officers evaluated the
effectiveness of our disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2008. Based on
this evaluation, our principal executive and financial officers concluded that,
as of March 31, 2008, our disclosure controls and procedures were effective in
ensuring that (1) information to be disclosed in reports we file under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified by the rules and forms promulgated under the Exchange Act and
(2) information required to be disclosed in reports filed under the Exchange Act
is accumulated and communicated to the principal executive officer and principal
financial officer as appropriate to allow timely decisions regarding required
disclosure. There were no changes in the company's internal control over
financial reporting that occurred during the company's last fiscal quarter that
have materially affected or are reasonably likely to materially affect, the
company's internal control over financial reporting.

                                       43
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         There are no pending legal proceedings against us that will have a
material adverse effect on our cash flows, financial condition or results of
operations.

ITEM 1A. RISK FACTORS.

         For information regarding factors that could affect the company's
results of operations, financial condition and liquidity, see the risk factors
discussion provided under "Factors that May Affect Future Results" included in
Item 2 of this Quarterly Report on Form 10-Q.

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

Share Repurchase Program

         The following information summarizes the purchases through March 31,
2008 related to our share repurchase plan:
<TABLE>
<CAPTION>
                                                                                 Total No. of         Maximum No. of
                                                                               Share Purchased     Shares that can be
                                          Total No. of     Ave. Price Paid   as part of Publicly    Purchased Under
             Period (1)                 Shares Purchases      Per Share        Announced Plan           the Plan
-------------------------------------   ----------------   ---------------   -------------------   ------------------
<S>                                     <C>                <C>               <C>                   <C>
April 2, 2007- April 30, 2007                  1,866,355       $ 0.251            1,866,355
July 1, 2007-July 31, 2007                        30,000         0.398               30,000
August 1, 2007- August 31, 2007                  135,000         0.437              135,000
September 1, 2007- September 30, 2007             60,000         0.481               60,000
October 1, 2007- October 31, 2007                 15,000         0.478               15,000
November 1, 2007- November 30, 2007               31,500         0.427               31,500
December 1, 2007- December 31, 2007              516,400         0.347              516,400
                                        ----------------   ---------------   -------------------   ------------------

Total                                          2,654,255       $ 0.281            2,654,255             4,000,000
                                        ================   ===============   ===================   ==================
</TABLE>
(1) On March 22, 2007, IA Global's board of directors authorized and announced a
stock repurchase program for up to four million shares, starting on April 2,
2007. There were no purchases during May-June 2007 or January-March 2008.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not applicable.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

         Not applicable.

ITEM 5.  OTHER INFORMATION

         Not applicable.

                                       44
<PAGE>

ITEM 6.  EXHIBITS

Exhibit
No.                               Description
-------  -----------------------------------------------------------------------

10.1     Working Capital Loan Amendment, dated January 22, 2008, by and between
         Global Hotline, Inc. and Mitsui Sumitomo Co Ltd. (English translation)
         (2)

10.2     Request For Loan With Draft Loan (Change), dated January 22, 2008, by
         and between IA Partners, Inc. and Mitsui Sumitomo Co Ltd. (English
         translation) (2)

10.3     Binding Term Sheet, dated January 30, 2008, between IA Global, Inc. and
         Asia Premier Executive Business Suites, Inc. (3)

10.4     Working Capital Loan Amendment, dated January 31, 2008, by and between
         Global Hotline, Inc. and Mitsui Sumitomo Co Ltd. (English translation)
         (2)

10.5     Binding Term Sheet, dated February 11, 2008, between IA Global, Inc.
         and Paper.com LLC (5)

10.6     Unsecured Corporate Bond, dated February 15, 2008, by and between
         Global Hotline, Inc. and Mitsubishi UFJ Bank Co Ltd. (English
         translation) (2)

10.7     Amendment Agreement, dated February 22, 2008, by and between IA Global,
         Inc. and LINC Media, Inc. (5)

10.8     Amendment Agreement, dated March 12, 2008, by and between IA Global,
         Inc. and LINC Media, Inc. (6)

10.9     Working Capital Loan Amendment, dated February 29, 2008, by and between
         Global Hotline, Inc. and Mitsui Sumitomo Co Ltd. (English translation)
         (2)

10.10    Call Center Usage Facility Agreement, dated January 10, 2008, by and
         between IA Partners Co Ltd and OMC Card, Inc. (English translation) (2)

10.11    Basic Agreement, dated January 10, 2008, by and between Inforidge Co
         Ltd and OMC Card, Inc. (English translation) (2)

10.12    Share Exchange Agreement, dated April 10, 2008, by and between IA
         Global, Inc. and P. Scott Valley and John Engel. (7)

10.13    Services Agreement, dated April 10, 2008, by and between IA Global,
         Inc. and IA Global, Inc. and Paper.com LLC. (7)

10.14    Amendment to Binding Term Sheet dated April 16, 2008, by and between IA
         Global, Inc. and the sellers of Asia Premier Business Suites, Inc. (8)

10.15    Amendment Agreement, dated April 25, 2008, by and between IA Global,
         Inc. and Esprit Co Ltd. (9)

10.16    Request For Use of Overdraft Facility dated April 30, 2008, by and
         between Global Hotline, Inc. and Mitsui Sumitomo Banking Corporation
         (English translation) (9)

10.17    Deed of Variation, dated April 24, 2008, by and between IA Global, Inc.
         and Frontier Mortgages Pty Ltd. (9)

10.18    Request For Loan With Draft Loan (Change), dated April 24, 2008, by and
         between IA Partners, Inc. and Mitsui Sumitomo Co Ltd. (English
         translation) (1)

                                       45
<PAGE>

10.19    Subscription Agreement, dated April 24, 2008, by and between IA Global,
         Inc. and Michael Ning. (1)

10.20    Subscription Agreement, dated May 8, 2008, by and between IA Global,
         Inc. and Michael Ning. (1)

10.21    Form of Warrant, dated May 8, 2008, by and between IA Global, Inc. and
         Michael Ning. (1)

10.22    Form of Warrant, dated May 8, 2008, by and between IA Global, Inc. and
         Michael Ning. (1)

10.23    Restricted Stock Agreement, dated April 27, 2008, by and between IA
         Global, Inc. and Mark Scott. (1) *

31.1     Section 302 Certifications. (1)

31.2     Section 302 Certifications. (1)

32.1     Section 902 Certifications. (1)

32.2     Section 902 Certifications. (1)
__________________

*  Indicates management contract or compensatory plan.

+  Certain confidential material contained in the document has been omitted and
   filed separately with the Securities and Exchange Commission pursuant to Rule
   406 of the Securities Act of 1933, as amended or Rule 24b-2 of the Securities
   and Exchange Act of 1934, as amended.
__________________

(1)   Filed herewith.

(2)   Filed as an exhibit to Registrant's Annual Report on Form 10-K for the
      year ended December 31, 2007 and filed on April 15, 2008 and incorporated
      herein by reference.

(3)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      January 30, 2008, and filed on February 6, 2008, and incorporated herein
      by reference.

(4)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      February 11, 2008, and filed on February 14, 2008, and incorporated herein
      by reference.

(5)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      February 22, 2008, and filed on March 4, 2008, and incorporated herein by
      reference.

(6)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      March 12, 2008, and filed on March 14, 2008, and incorporated herein by
      reference.

(7)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      April 10, 2008 and filed on April 14, 2008, and incorporated herein by
      reference.

(8)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      April 16, 2008 and filed on April 18, 2008, and incorporated herein by
      reference.

(9)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      April 24, 2008 and filed on April 30, 2008, and incorporated herein by
      reference.

                                       46
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    IA Global, Inc.
                                    (Registrant)


Date: May 15, 2008              By: /s/ Derek Schneideman
                                    ---------------------
                                    Derek Schneideman,
                                    Chief Executive Officer
                                    (Principal Executive Officer)


                                By: /s/ Mark Scott
                                    --------------
                                    Mark Scott,
                                    Chief Operating and Financial Officer
                                    (Principal Financial and Accounting Officer)


                                       47