________________________________________________________________________________

                                  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 SEPTEMBER 30, 2007

                         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 or a non-accelerated filer (as defined in Rule 12b-2
of the Exchange Act).

[_] Large accelerated file    [_] Accelerated filer    [X] Non-accelerated filer

         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 November 12, 2007 there were issued and outstanding 162,642,327
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 ....45

     Item 4.   Controls and Procedures .......................................45

PART II. OTHER INFORMATION

     Item 1.   Legal Proceedings .............................................45

     Item 1A.  Risk Factors...................................................45

     Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds....46

     Item 3.   Defaults Upon Senior Securities ...............................46

     Item 4.   Submission of Matters to a Vote of Security Holders ...........47

     Item 5.   Other Information .............................................47

     Item 6.   Exhibits ......................................................47

Signatures ...................................................................50


                                        2
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                         CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                                                September 30,   December 31,
                                                                                    2007            2006
                                                                                ------------    ------------
ASSETS                                                                           (unaudited)      (audited)
<S>                                                                             <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents .................................................   $  5,300,247    $  4,172,889
  Marketable Securities .....................................................              -         250,638
  Accounts receivable, net of reserves of $354,583 and $310,741, respectively      6,493,612       5,016,328
  Consumption taxes received ................................................        147,784               -
  Prepaid expenses ..........................................................        778,832         523,733
  Notes receivable ..........................................................        999,922         409,565
  Other current assets ......................................................        434,627         202,716
  Deferred taxes ............................................................      2,328,872               -
                                                                                ------------    ------------
    Total current assets ....................................................     16,483,896      10,575,869

EQUIPMENT, NET ..............................................................      1,059,941         408,544

OTHER ASSETS
  Intangible assets, net ....................................................      1,125,833       2,317,889
  Equity investment in Australia Secured Financial Limited ..................      7,079,785       7,146,386
  Equity investment in GPlus Media Co Ltd ...................................      1,358,921               -
  Equity investment in Slate Consulting Co Ltd ..............................      1,441,730               -
  Other assets ..............................................................      2,291,138       1,190,820
                                                                                ------------    ------------

                                                                                $ 30,841,244    $ 21,639,508
                                                                                ============    ============

LIABILITIES AND STOCKHOLDER'S EQUITY

CURRENT LIABILITIES:
  Accounts payable - trade ..................................................   $    637,727    $    104,573
  Accrued liabilities .......................................................      3,819,508       2,477,509
  Consumption taxes received ................................................              -         264,514
  Income taxes payable- foreign .............................................              -         416,724
  Note payable - current portion of long term debt ..........................     10,718,011       3,058,229
  Deferred revenue ..........................................................         78,326       1,297,046
                                                                                ------------    ------------
    Total current liabilities ...............................................     15,253,572       7,618,595
                                                                                ------------    ------------

LONG TERM  LIABILITIES:
  Long term debt ............................................................      6,750,428       1,637,076
  Convertible debentures ....................................................      2,537,500       3,125,000
                                                                                ------------    ------------
                                                                                   9,287,928       4,762,076
                                                                                ------------    ------------

STOCKHOLDER'S EQUITY:
  Series A-1 Convertible Preferred Stock, $10,000 par value, -0- and 4,375
   authorized, issued and outstanding, (liquidation value $7,000) ...........              -       7,000,000
  Preferred stock, $.01 par value, 5,000 authorized, none outstanding .......              -               -
  Common stock, $.01 par value, 300,000,000 shares authorized,
   164,767,682 and 109,165,157 issued and outstanding, respectively .........      1,647,676       1,091,651
  Additional paid in capital ................................................     43,574,255      32,835,714
  Accumulated deficit .......................................................    (38,023,706)    (31,431,914)
  Accumulated other comprehensive loss ......................................       (280,446)       (186,614)
                                                                                ------------    ------------
                                                                                   6,917,779       9,308,837
  Less common stock in treasury, at cost ....................................       (618,035)        (50,000)
                                                                                ------------    ------------
    Total stockholder's equity ..............................................      6,299,744       9,258,837
                                                                                ------------    ------------

                                                                                $ 30,841,244    $ 21,639,508
                                                                                ============    ============

                               See notes to consolidated financial statements.

                                                      3
</TABLE>
<PAGE>
<TABLE>
                                         IA GLOBAL, INC. AND SUBSIDIARIES
                                      CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
                                                       Three Months Ended              Nine Months Ended
                                                          September 30,                   September 30,
                                                ------------------------------    ------------------------------
                                                     2007             2006             2007             2006
                                                -------------    -------------    -------------    -------------
                                                 (unaudited)      (unaudited)      (unaudited)      (unaudited)
<S>                                             <C>              <C>              <C>              <C>
REVENUE .....................................   $   6,461,544    $   4,483,291    $  18,469,057    $  11,397,096

COST OF SALES ...............................       2,200,148          604,571        4,838,393        2,931,029
                                                -------------    -------------    -------------    -------------

GROSS PROFIT ................................       4,261,396        3,878,720       13,630,664        8,466,067

Selling, general and administrative expenses        8,698,610        5,029,250       21,551,576       13,556,038
                                                -------------    -------------    -------------    -------------

OPERATING LOSS ..............................      (4,437,214)      (1,150,530)      (7,920,912)      (5,089,971)
                                                -------------    -------------    -------------    -------------

OTHER INCOME (EXPENSE):
  Interest income ...........................           5,557           20,196           36,742           77,285
  Interest expense and amortization of
    beneficial conversion feature ...........        (282,579)        (229,316)        (705,849)        (620,740)
  Other income ..............................           1,287           51,106          568,724          158,991
  Loss/ ( gain) on equity investment in
    Australia Secured Financial Limited .....         (66,601)               -          (64,393)               -
  Loss on equity investment in GPlus Media
    Co Ltd ..................................          (1,079)               -           (1,079)               -
  Gain on equity investment in Slate
    Consulting Co Ltd .......................           1,730                -            1,730                -
  Conversion of debenture expense ...........        (120,046)               -         (120,046)               -
  Foreign currency transaction adjustment ...          11,381                -           11,381         (129,448)
                                                -------------    -------------    -------------    -------------
    Total other income (expense) ............        (450,350)        (158,014)        (272,790)        (513,912)
                                                -------------    -------------    -------------    -------------

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME
  TAXES .....................................      (4,887,564)      (1,308,544)      (8,193,702)      (5,603,883)

Income taxes - current benefit ..............      (1,266,565)        (129,881)      (1,601,910)      (1,079,071)
                                                -------------    -------------    -------------    -------------

NET LOSS FROM CONTINUING OPERATIONS .........      (3,620,999)      (1,178,663)      (6,591,792)      (4,524,812)

DISCONTINUED OPERATIONS
  Gain from disposal of discontinued
    operations ..............................               -                -                -          463,375
  Income from discontinued operations .......               -                -                -           76,054
                                                -------------    -------------    -------------    -------------

NET LOSS ....................................   $  (3,620,999)   $  (1,178,663)   $  (6,591,792)   $  (3,985,383)
                                                =============    =============    =============    =============

Basic and Diluted Loss Per share of Common-
  Basic and diluted loss per share from
    continuing operations ...................   $       (0.02)   $       (0.01)   $       (0.05)   $       (0.04)
  Basic and diluted loss per share from
    discontinued operations .................               -                -                -             0.01
                                                -------------    -------------    -------------    -------------
  Total basic and diluted loss per share ....   $       (0.02)   $       (0.01)   $       (0.05)   $       (0.04)
                                                =============    =============    =============    =============

  Weighted average shares of common stock
    outstanding - Basic and diluted .........     151,556,953      108,415,157      145,520,316      107,231,610
                                                =============    =============    =============    =============

                                 See notes to consolidated financial statements.

                                                        4
</TABLE>
<PAGE>
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                                                      Nine Months Ended
                                                                                         September 30,
                                                                                 ----------------------------
                                                                                     2007            2006
                                                                                 ------------    ------------
                                                                                  (unaudited)     (unaudited)
<S>                                                                              <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss ...................................................................   $ (6,591,792)   $ (3,985,383)
  Adjustments to reconcile net loss to net cash (used in)
   provided by operating activities:
    Depreciation and amortization ............................................      1,287,571       1,508,194
    Amortization of beneficial conversion feature ............................        312,500         312,500
    Stock based compensation .................................................        122,555          84,834
    Gain on equity investments ...............................................         65,950               -
    Settlement of convertible debt with equity ...............................        120,046               -
  Changes in operating assets and liabilities:
    Accounts receivable ......................................................     (1,477,284)     (3,937,194)
    Notes receivable .........................................................       (590,357)       (265,156)
    Prepaid expenses .........................................................       (255,099)        (66,986)
    Other current assets .....................................................       (231,911)        (54,083)
    Income taxes receivable - foreign ........................................     (2,328,872)       (113,283)
    Other assets .............................................................     (1,100,318)       (301,088)
    Accounts payable - trade .................................................        533,154        (413,603)
    Accrued liabilities ......................................................      1,656,047       3,537,305
    Net consumption tax payable ..............................................       (412,298)       (304,929)
    Deferred taxes ...........................................................       (416,724)       (253,120)
    Deferred revenue .........................................................     (1,218,720)     (3,393,696)
                                                                                 ------------    ------------
Net cash used in continuing operations .......................................    (10,525,552)     (7,645,688)
  (Gain) loss from discontinued operations ...................................              -        (539,429)
  Net cash used in discontinued operations ...................................              -        (854,895)
  Net decrease in assets of discontinued operations ..........................              -      12,606,044
  Net (decrease) in liabilities of discontinued operations ...................              -     (11,929,115)
                                                                                 ------------    ------------
NET CASH USED IN OPERATING ACTIVITIES ........................................    (10,525,552)     (8,363,083)
                                                                                 ------------    ------------

CASH FLOWS (USED IN) PROVIDED BY INVESTING ACTIVITIES:
  Capital expenditures .......................................................       (746,912)       (198,802)
  Sale of marketable securities ..............................................        250,638               -
  Acquisition of investment in Australian Secured Financial Limited ..........       (250,000)              -
  Repayment of loan receivable from affiliate of controlling shareholder group              -       3,394,000
  Proceeds from sale of Rex Tokyo Co, Ltd. ...................................              -       1,300,000
                                                                                 ------------    ------------
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES: .........................       (746,274)      4,495,198
                                                                                 ------------    ------------

CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES:
  Proceeds from debt .........................................................     15,490,519       4,999,000
  Repayments of debt .........................................................     (2,717,384)              -
  Proceeds from exercise of options ..........................................         87,917          80,000
  Proceeds from sale of common stock .........................................        200,000               -
  Purchase of common shares for Treasury .....................................       (568,035)              -
                                                                                 ------------    ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ....................................     12,493,017       5,079,000
                                                                                 ------------    ------------

NET DECREASE IN CASH AND CASH EQUIVALENTS ....................................      1,221,191       1,211,115

EFFECT OF EXCHANGE RATE CHANGES ON CASH ......................................        (93,832)       (408,678)

CASH AND CASH EQUIVALENTS, beginning of period ...............................      4,172,889       4,460,986
                                                                                 ------------    ------------

CASH AND CASH EQUIVALENTS, end of period .....................................   $  5,300,247    $  5,263,423
                                                                                 ============    ============

Supplemental disclosures of cash flow information:
  Interest paid ..............................................................   $    137,656    $     34,708
  Taxes paid .................................................................   $  1,022,422    $    234,506

Non-cash investing and financing activities:
  Common stock surrendered to company in payment of note receivable ..........   $          -    $    241,494
  Conversion of Series A-1 Preferred stock into common stock .................   $  7,000,000    $          -
  Conversion of Series B Preferred stock into common stock ...................   $          -    $    115,800
  Adjustment of intangible asset due to recognition of tax asset related to
    NOL carryforward from acquisition of Global Hotline, Inc. ................   $          -    $    486,870
  Equity investment in GPlus Media Co Ltd for common stock ...................   $  1,360,000    $          -
  Equity investment in Slate Consulting Co Ltd for common stock ..............   $  1,440,000    $          -
  Conversion of debentures into common stock .................................   $    964,048    $          -

                                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

         In Japan, IA Global is 100% owner of Global Hotline, Inc. ("Global
Hotline"), a Business Process Outsourcing operator 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.

HUMAN CAPITAL AND RESOURCES

         During August and October 2007, the company closed two equity
investments and one 100% owned buy-out transaction. The 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:

         On October 22, 2007, the company signed definitive agreements and
acquired 100% of the outsourcing business division ("Outsourcing Business
Division") of LINC Media, Inc. ("LINC Media"), a Tokyo, Japan-based company.

         Established in Tokyo in 1998, the Outsourcing Business Division
provides large-scale personnel outsourcing services, particularly Help Desk
Engineers, Systems Administrators, and Network Engineers on long- and short-term
project-based contracts to an extensive client base that includes a number of
large multinational companies.

         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.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.

         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; an early stage call center in Bucharest, Romania.

OTHER INVESTMENTS

         In Australia, the company has a 36% stake in Australian Secured
Financial Limited and its affiliates, Australian Secured Investments Ltd, ADJ
Services Pty Ltd. and Auslink Ltd (collectively, "ASFL") which raise funds
through the issuance of debentures within Australia and the providing of 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.

                                       6
<PAGE>

         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 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
September 30, 2007 and 2006 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, 2006 as
filed with the Securities and Exchange Commission ("SEC") on April 2, 2007.

         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. Following the filing of the Form 10-K, the company intends to file a
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. In
accordance with SFAS 144 "Accounting for the Impairment or Disposal of
Long-Lived Assets" ("SFAS 144"), the company accounted for Rex Tokyo Co, Ltd
("Rex Tokyo") as discontinued operations in its consolidated statements of
operations. 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 periods
ended September 30, 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.

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.

                                       7
<PAGE>

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 2-3 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.

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 recorded $78,326 and $1,297,046 of
deferred revenue as of September 30, 2007 and December 31, 2006, respectively.

                                       8
<PAGE>

ADVERTISING COSTS - Advertising costs are expensed as incurred. There were
minimal advertising costs incurred for the nine months ended September 30, 2007
and 2006.

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 ("SFAS") No. 123-R, Share-Based Payment, ("SFAS 123R") as
interpreted by SEC Staff Accounting Bulletin No. 107. The company 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 No. 123, Accounting for Stock-Based Compensation, ("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, 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.

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.

                                              For the Nine Months
                                                 September 30,
                                             --------------------
                                              2007          2006
                                              ----          ----
         Risk free interest rate ..........   4.65%         4.96%
         Expected life ....................   8 yrs         8 yrs
         Dividend rate ....................   0.00%         0.00%
         Expected volatility ..............    112%          117%

         The company recorded compensation expense, net of related tax effects,
relative to stock options of $48,799 and $32,320 for the three months ended
September 30, 2007 and 2006, respectively, in accordance with SFAS 123R. Net
loss per share basic and diluted for this expense was approximately ($0.00) and
($0.00) for the three months ended September 30, 2007 and 2006, respectively.

         The company recorded compensation expense, net of related tax effects,
relative to stock options of $122,555 and $84,834 for the nine months ended
September 30, 2007 and 2006, respectively, in accordance with SFAS 123R. Net
loss per share basic and diluted for this expense was approximately ($0.00) and
($0.00) for the nine months ended September 30, 2007 and 2006, respectively.

         As of September 30, 2007, 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
2.75 years.

         On February 13, 2007, the compensation committee granted to Mr. Derek
Schneideman, CEO and Chairman of the Board, stock options to purchase 500,000
shares of common stock. The options were granted at the fair market price of
$0.14 per share based on the adjusted closing price on February 13, 2007, his
date of employment. In accordance with the 2000 Stock Option Plan, the stock
options vest quarterly over three years and expire on February 13, 2017.

                                       9
<PAGE>

         On February 22, 2007, the compensation committee granted to Mr. John
Margerison, a Director, stock options to purchase 200,000 shares of common
stock. The options were granted at the fair market price of $0.15 per share
based on the adjusted closing price on February 21, 2007 and 110% of the
intraday price on February 21, 2007, the last trading day before the
compensation committee meeting. In accordance with the 2000 Stock Option Plan,
the stock options vest quarterly over three years and expire on February 21,
2017. On April 17, 2007, Mr. Margerison, a former director, forfeited the stock
options.

         On February 23, 2007, the compensation committee granted to Mr.
Christinson, Mr. Ishii and Mr. La Cara, Directors, stock options to purchase
100,000 shares of common stock. In addition, the compensation committee granted
to Mr. Mark Scott, the company's COO and CFO, stock options to purchase 250,000
shares of common stock. These options were granted at the fair market price of
$0.15 per share based on the adjusted closing price on February 22, 2007, the
last trading day before the compensation committee meeting. In accordance with
the 2000 Stock Option Plan, the stock options vest quarterly over three years
and expire on February 22, 2017.

         On February 28, 2007, the compensation committee granted to Mr. Hideki
Anan, CEO of Global Hotline and Mr. Kyo Nagae, CFO of Global Hotline, stock
options to purchase 600,000 and 400,000 shares of common stock, respectively.
The options were granted at the fair market price of $0.16 per share based on
the adjusted closing price on February 27, 2007, the last trading day before the
compensation committee meeting. In accordance with the 2000 Stock Option Plan,
the stock options vest quarterly over three years and expire on February 27,
2017.

         On March 29, 2007, the compensation committee granted to Mr. Clifford
J. Bernstein, a Director, stock options to purchase 200,000 shares of common
stock. The options were granted at the fair market price of $0.31 per share
based on the adjusted closing price on March 29, 2007, the date of his
appointment. In accordance with the 2000 Stock Option Plan, the stock options
vest quarterly over three years and expire on March 28, 2017.

         On April 27, 2007, Mr. Jun Kumamoto, a former director of the company
currently functioning as a consultant, exercised 30,000 stock options at an
average price of $0.183 per share and forfeited 520,000 stock options at $0.201
per share.

         On July 11, 2007, the compensation committee granted stock options to
purchase common stock of (i) 200,000 shares to Mr. Anan and Ms. Towada, new
Directors; (ii) 150,000 shares to Mr. Bernstein, Mr. Ishii and Mr. La Cara,
Directors; (iii) 1,000,000 shares to Mr. Schneideman, the company's CEO and
Chairman of the Board of Directors; (iv) 500,000 shares to Mr. Scott, the
Company's COO and CFO; (v) 30,000 shares to Mr. Kumamoto, a consultant; and (vi)
50,000 shares to Aim Capital, a consultant.

         These options were granted at the fair market price of $0.37 per share
based on the adjusted closing price on July 10, 2007, the last trading day
before the compensation committee meeting. In accordance with the 2007 Stock
Incentive Plan, the stock options vest quarterly over three years and expire on
July 10, 2017. The options to AIM Capital were expensed in the September 30,
2007 quarter.

         On September 22, 2007, Raymond Christinson, a former director exercised
stock options totaling 404,166 shares of common stock for $82,417 or $.204 per
share. Mr. Christinson forfeited stock options totaling 245,834 shares of common
stock.

         On October 3, 2007, the company's compensation committee granted stock
options to purchase common stock of (i) 100,000 shares to Mr. Schneideman, the
company's Chief Executive Officer and Chairman of the Board of Directors and
(ii) 275,000 shares to Mr. Scott, the company's Chief Operating and Financial
Officer.

                                       10
<PAGE>

         The options were granted at the fair market price of $0.47 per share
based on the adjusted closing price on October 3, 2007, the last trading day
before the compensation committee meeting. In accordance with the 2007 Stock
Incentive Plan, the stock options vest quarterly over three years and expire on
October 2, 2017.

         The company accounts for non-employee stock transactions in accordance
with SFAS No. 123R and EITF 96-18. There were 159,500 non-employee stock options
outstanding as of September 30, 2007 at $0.377 per share.

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 September 30, 2007 the company has a deferred tax asset
of $2,328,872, based on prior net operating losses that company management has
determined is available to offset future taxable income.

LITIGATION COSTS - The company is subject to the possibility of 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 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 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 September 30,
2007.

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 September 30, 2007, there were options outstanding for the
purchase of 7,744,500 common shares and convertible debentures convertible into
9,500,015 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.

                                       11
<PAGE>

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 2006 amounts have been
reclassified, where appropriate, to conform to the financial statement
presentation used in 2007.

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 its consolidated financial statements.

         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. The company is
currently evaluating the potential impact of FSP EITF 00-19-2 on our financial
statements, and the company does not expect the impact to be 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 the company's
consolidated financial statements.

                                       12
<PAGE>

NOTE 3.  ACQUISITIONS, EQUITY INVESTMENTS AND DIVESTITURES

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 the Global
Hotline in June 2005, this business has expanded rapidly with the signing of
significant multi-year contracts with major corporations.

         Global Hotline had a contract with KDDI Network and Solutions ("KDDI")
that initially covered the period March 16, 2005 through March 31, 2006 and
required Global Hotline to sell subscriber lines based on agreed monthly
targets. This contract was governed by the Business Outsourcing Basic Agreement
dated October 6, 2004 ("Outsourcing Agreement").

         On December 13, 2005, Global Hotline entered into an amendment to the
contract with KDDI. The amendment, among other things, modified (i) the total
payments under the contract from 2,925,000,000 Yen or approximately $25,400,000
at current exchange rates to 2,331,000,000 Yen or approximately $20,300,000 at
current exchange rates, (ii) the targets of subscriber lines for the period
October 1, 2005 to March 31, 2006, and (iii) increased the average compensation
rate for periods through September 30, 2005. As of March 31, 2006, Global
Hotline did not achieve the required target of lines to be sold under this
contract, as modified, and reclassified $3,889,000 from deferred revenue to
accrued liabilities in March 2006. The company believes KDDI implemented certain
contractual changes which reduced sales during the three months ended March 31,
2006. On December 29, 2006, the company finalized negotiations with KDDI and
repaid $1,019,000 and recognized the balance of $2,870,000 as revenue during the
year ended December 31, 2006.

         On April 25, 2006, Global Hotline entered into an additional agreement
with KDDI. Pursuant to this agreement, which is governed by the Outsourcing
Agreement, Global Hotline has agreed to sell telephone products on behalf of
KDDI, with sales commissions payable from 30-90 days. In addition, the agreement
included a volume incentive and additional service commissions if certain volume
targets were achieved during the six month agreement. The sales volume
incentives were not achieved. The agreement expired on September 30, 2006, but
the company continued to sell to KDDI.

         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 is
renewable for additional three month periods. The agreement may be cancelled
under certain conditions.

                                       13
<PAGE>

         On July 25, 2007, Global Hotline announced that it had closed an
Agreement with KDDI for the three month period ending September 30, 2007. The
Agreement results in net revenues of approximately $2.7 million for the three
month period. Global Hotline has 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 September 27, 2007, Global Hotline announced that it had closed an
Agreement with KDDI for the three month period ending December 31, 2007. The
Agreement results in net revenues of approximately $2.7 million for the three
month period. Global Hotline has 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, Global Hotline announced that it had renewed its
Agreement with KDDI Network and Solutions, which was entered into on July 25,
2007, for an additional three period from September 30, 2007 to December 31,
2007. The company expects this Agreement to result in net revenues of
approximately $2.7 million for the three month period. GHI has 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 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
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 October 1,
2007.

         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 was automatically renewed on April 14, 2007. Their were no sales under
this Agreement during the three months ended June 30, 2007 as the company
focused on other contracts. During the three months ended September 30, 2007,
the company recorded sales of $727,344.

         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 was automatically renewed on May 2,
2007 for an additional year. The Agreement is automatically renewed each year
unless it is terminated by either party upon thirty days notice before the
expiration date. 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 the three months ended March 31, 2007,
$645,940 was recognized as revenue based on achievement of the contract, and
during the three months ended September 30, 2007, no revenue was recognized.

         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 is ongoing,
but may be cancelled under certain conditions.

                                       14
<PAGE>

         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.

         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. The company expects to
incurred startup and training costs through September 30, 2007 on these
agreements.

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 ..................................................     628,749
                                                                      ----------
                                                                       6,728,489
                                                                      ----------
Net liabilities acquired (6/15/05) .................................   1,848,530
                                                                      ----------
Identifiable customer contracts and related customer relationships .  $4,946,030
                                                                      ==========

                                       15
<PAGE>

ACQUISITION OF OUTSOURCING BUSINESS DIVISION OF LINC MEDIA, Inc.

         On October 22, 2007, the company signed definitive agreements and
acquired 100% of the Outsourcing Business Division of LINC Media, Inc., a Tokyo,
Japan-based company.

         Established in Tokyo in 1998, the Outsourcing Business Division
provides large-scale personnel outsourcing services, particularly Help Desk
Engineers, Systems Administrators, and Network Engineers on long- and short-term
project-based contracts to an extensive client base that includes a number of
large multinational companies.

         The acquisition is expected to be valued at $4,250,000 and consists of
a combination of debt and equity financing. The company paid $80,000 at closing
and issued promissory notes of $720,000, which is due on November 30, 2007, and
$1,200,000 and $200,000, which are due on February 28, 2008. Failure by the
company to pay the promissory notes, after a cure period, allows LINC Media to
resume ownership of the Outsourcing Business Division and retain the $80,000
cash payment.

         In addition, the parties entered into a Performance Agreement, whereby
the company agreed to issue 5,394,736 shares of its common stock based on the
achievement of certain performance criteria, which will be evaluated by May 15,
2008. The parties agreed to value the company's common stock at $0.38 per share,
which was the average closing market price during the period of negotiations. In
addition, the company agreed to adjust the price by paying cash if the average
closing price during the six months subsequent to October 22, 2007 is 10% less
than $0.38 per share.

EQUITY INVESTMENT IN GPLUS MEDIA CO LTD

         On August 24, 2007 the company closed a 25.0% equity investment in
GPlus Media Co Ltd 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.com, 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 period August 24, 2007 to September 30, 2007, the company
recorded a loss on our investment in GPLus of $1,079 that decreased our
investment in GPlus. The investment in GPlus was $1,358,921 as of September 30,
2007.

EQUITY INVESTMENT IN SLATE CONSULTING CO LTD

         On August 24, 2007 the company closed a 20.25% equity investment in
Slate Consulting 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 period August 24, 2007 to September 30, 2007, the company
recorded a gain on our investment in Slate of $1,730 that increased our
investment in Slate. The investment in Slate was $1,441,730 as of September 30,
2007.

                                       16
<PAGE>

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 upon certain conditions discussed below 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.

         In Australia, the company has a 36% stake in Australian Secured
Financial Limited and its affiliates, Australian Secured Investments Ltd, ADJ
Services Pty Ltd. and Auslink Ltd (collectively, "ASFL") which raise funds
through the issuance of debentures within Australia and the providing of 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.

         The company received a $423,154 dividend on December 20, 2006 from ASFL
that decreased our investment in ASFL, and as of December 31, 2006 the company
recorded a gain on our investment in ASFL of $69,540 for the period October 19,
2006 through December 31, 2006. For the nine months ended September 30, 2007,
the company recorded a loss on our investment in ASFL of $64,373 that decreased
our investment in ASFL. The investment in ASFL was $7,079,765 as of September
30, 2007.

         ASFL is currently negotiating a bank line of credit to replace its
debenture financing. This bank financing is expected to provide the necessary
financing to support the growth and profitability of the business.

PRO-FORMA FINANCIAL DATA

         The pro-forma financial data for the acquisitions for the nine months
ended September 30, 2007 were as follows:

Nine Months Ended September 30, 2007 (Unaudited)
<TABLE>
<CAPTION>
                                                            Pre-          Pre-
                                                            Acquisition   Acquisition
                                                            Operations    Operations
                                                            of GPlus      of Slate
                                            As Reported     Media         Consulting    For Forma
                                            Nine Months     January 1 -   January 1 -   Nine Months Ended
                                            September 30,   August 23,    August 23,    September 30,
                                            2007            2007 *        2007 *        2007
                                            -------------   -----------   -----------   -----------------
<S>                                         <C>             <C>           <C>           <C>
Revenue ................................    $ 18,469,057       $   -       $      -       $ 18,469,057
Loss (income) before extraordinary items      (6,591,792)      $   -         11,224         (6,580,568)
Net loss (income) ......................      (6,591,792)      $ 932              -         (6,590,860)
Loss per common share ..................           (0.05)                                        (0.05)
</TABLE>
* - GPlus and Slate Consulting equity investment closed on August 24, 2007.

                                       17
<PAGE>

         The pro-forma financial data for the acquisitions for the nine months
ended September 30, 2006 were as follows:

Nine Months Ended September 30, 2006 (Unaudited)
<TABLE>
<CAPTION>
                                                            Pre-
                                                            Acquisition
                                                            Operations
                                            As Reported     of ASFL          For Forma
                                            Nine Months     Media            Nine Months Ended
                                            September 30,   September 30,    September 30,
                                            2006            2006 *           2006
                                            -------------   -------------    -----------------
<S>                                         <C>             <C>              <C>
Revenues ...............................    $ 11,397,096     $       -         $ 11,397,096
Loss before extraordinary items ........      (3,985,383)      246,042           (3,739,341)
Net loss ...............................      (3,985,383)      246,042           (3,739,341)
Loss per common share ..................           (0.04)                             (0.03)
</TABLE>
* - ASFL equity investment closed on October 19, 2006.

SUMMARY OF DISCONTINUED OPERATIONS

         On April 4, 2006, the company closed the sale of its 60.5% interest in
Rex Tokyo back to Rex Tokyo. The company received $1,302,159 in payments during
April to June 2006. The company divested Rex Tokyo due to operating losses of
approximately $1,552,000 in 2005 and projected losses in 2006 due to industry
conditions. Sales were $29,335,000 in 2005. The company recorded a gain from
disposal of $463,375 during the nine months ended September 30, 2006. This gain
resulted from the gross proceeds of $1,302,159 less the net investment in Rex
Tokyo after losses of $838,784.

         The following table sets forth the discontinued operations for the
company:

                                                        Nine Months Ended
                                                          September 30,
                                                              2006
                                                          ------------
         Revenue .......................................  $  7,651,125
         Cost of sales .................................     6,083,120
                                                          ------------
         Gross profit ..................................     1,568,005
         Operating and non-operating expenses ..........     1,427,106
         Minority interest .............................        49,655
         Income taxes ..................................        15,190
                                                          ------------
         Income from discontinued operations ...........        76,054
         Gain from disposal of discontinued operations .       463,375
                                                          ------------
         Total gain (loss) from discontinued operations   $    539,429
                                                          ============

NOTE 4.  ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION

         Accounts receivable were $6,493,612 and $5,016,328 as of September 30,
2007 and December 31, 2006, respectively. The company had the following
customers with sales in excess of 10%, and these are their respective
percentages of consolidated revenue for the periods:

                                         Nine Months Ended   Twelve Months Ended
                                           September 30,         December 31,
                                               2007                 2006
                                         -----------------   -------------------
         KDDI Network Solutions .........       35%                  29%
         Internet Service Partners ......       31%                  44%
         AFLAC ..........................       16%                  12%


                                       18
<PAGE>

         KDDI is a Global Hotline customer. Internet Service Partners and AFLAC
are IA Partner's customers. There were no other customers, other than the above,
in excess of 10% in the respective periods.

         KDDI accounted for 18% and 0% of accounts receivable as of September
30, 2007 and December 31, 2006, respectively. Internet Service Partners
accounted for 31% and 83% of total accounts receivable as of September 30, 2007
and December 31, 2006, respectively. AFLAC accounted for 5% and 4% of total
accounts receivable as of September 30, 2007 and December 31, 2006,
respectively.

         The company anticipates that significant customer concentration will
continue for the foreseeable future.

NOTE 5.  PREPAID COSTS

         Prepaid expenses were $778,832 and $523,733 as of September 30, 2007
and December 31, 2006, respectively. Such costs as of September 30, 2007 and
December 31, 2006 consisted of prepaid insurance, prepaid financing costs and
other costs incurred by the company and prepaid rent and other expenses incurred
by Global Hotline.

NOTE 6.  EQUIPMENT

         Equipment, net of accumulated depreciation, was $1,059,941 and $408,544
as of September 30, 2007 and December 31, 2006, respectively. Accumulated
depreciation was $821,602 and $655,024 as of September 30, 2007 and December 31,
2006, respectively. Total depreciation expense was $95,915 and $260,747 for the
nine months ended September 30, 2007 and 2006, 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       September 30,   December 31,
                                   Useful Lives         2007           2006
                                  --------------     -----------    -----------
Equipment and vehicles .......    12 - 24 months     $ 1,281,946    $   892,512
Leasehold Improvements .......    27 months              599,597        171,056
                                                     -----------    -----------
                                                       1,881,543      1,063,568
Less: accumulated depreciation                          (821,602)      (655,024)
                                                     -----------    -----------
                                                     $ 1,059,941    $   408,544
                                                     ===========    ===========

NOTE 7.  INTANGIBLE ASSETS

         Intangible assets as of September 30, 2007 and December 31, 2006,
respectively, consisted of the following:

                                  September 30,   December 31,
                                      2007            2006        Estimated Life
                                  -----------     -----------     --------------
Customer contracts ...........    $ 4,946,030     $ 4,946,030         3 years
Less: accumulated amortization     (3,820,197)     (2,628,141)
                                  -----------     -----------
    Intangible assets, net ...    $ 1,125,833     $ 2,317,889
                                  ===========     ===========

         Total amortization expense was $1,192,057 and $1,247,447 for the nine
months ended September 30, 2007 and 2006, 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.

                                       19
<PAGE>

NOTE 8.  OTHER ASSETS

         Other assets were $2,291,138 and $1,190,820 as of September 30, 2007
and December 31, 2006, respectively. Such assets as of September 30, 2007 and
December 31, 2006 included loans receivable from Tesco Co Ltd, employee loans
receivable and bonds related to Global Hotline's leased facilities.

NOTE 9.  ACCRUED LIABILITIES

         Accrued liabilities were $3,819,508 and $2,477,509 as of September 30,
2007 and December 31, 2006, respectively. Such liabilities included (i) accrued
salaries and payroll taxes, and trade debt not recorded in accounts payable, for
Global Hotline and (ii) accrued interest, payroll and legal for IA Global.

NOTE 10. NOTES PAYABLE/ LONG TERM DEBT

         Notes payable and long term debt as of September 30, 2007 and December
31, 2006, were as follows:

         On July 31, 2006, 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. On December 29, 2006, the parties entered into an
amendment and the loan amount was reduced to 200,000,000 Yen, or approximately
$1,683,000 at current exchange rates. No other conditions of the loan were
modified. The loan, as amended, required a one time payment of 200,000,000 Yen
on July 31, 2007, plus 6 monthly interest payments of 2.5% starting on July 31,
2006. The loan was repaid on July 27, 2007.

         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 November 27, 2006, Global Hotline received a 100,000,000 Yen, or
approximately $863,000 at current exchange rates, working capital loan from
Resona Bank Co. Ltd. The loan requires monthly payments of 10,000,000 Yen or
approximately $86,000 starting on February 28, 2007 through the maturity on
November 28, 2007, plus interest payments of 2.25% starting on February 28,
2007.

         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, 2007 with a final payment due on December 20, 2011. Interest of
2.00% plus the 3 month TIBOR is paid quarterly starting on June 20, 2007.

         On May 16, 2007, IA Partners 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 2.375% 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.

                                       20
<PAGE>

         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.

         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 requires 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 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% is paid on January 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% is payable on January 4, 2008.

                                       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.

         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.

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 nine months ended September
30, 2007 and 2006, the company expensed $313,000 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.

         Convertible debentures ......................     $ 3,750,000
         Beneficial conversion .......................      (1,250,000)
                                                           -----------
                                                             2,500,000
         Amortization of beneficial conversion .......         937,500
         Conversion of debentures ....................        (900,000)
                                                           -----------
                                                           $ 2,537,500
                                                           ===========

         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 are expected to be registered in January 2008.

         During August and September 2007, $500,000 of debentures were converted
into 1,666,669 shares of common stock at the original conversion price of $.30
per share. Total accrued interest of $81,750 was paid during October 2007. As of
September 30, 2007, the company has 9,500,015 shares of common stock to be
issued upon the conversion of the debentures on or before June 28, 2008 at the
conversion price of $.30 per share.

                                       22
<PAGE>

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

         As of September 30, 2007, 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 47.7% 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 9,500,015 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 Securities and Exchange Act
("Exchange Act"). Hiroki Isobe and Kyo Nagae control each of our Controlling
Shareholders. On March 15, 2007 and April 18, 2007, the company's Controlling
Shareholder committed to IA Global and Derek Schneideman, its CEO, the right to
vote its common stock at all 2007 shareholder meetings. Currently, Mr.
Schneideman has sole voting power and dispositive power with respect to
76,321,803 or 46.9% shares of common stock for all the company's 2007
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 September 30, 2007, 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%
                             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..........................  18.3%

PBAA Fund Ltd. owns:
                             IA Global, Inc..........................  14.8%

Terra Firma Fund Ltd. owns:
                             IA Global, Inc..........................   8.1%

Inter Asset Japan Co., Ltd. owns:
                             IA Global, Inc..........................   1.4%

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

Mr. Hiroki Isobe owns:
                             IA Global, Inc..........................   2.7%
                             Tesco Co Ltd............................  20.0%

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.

KYO NAGAE RELATIONSHIP WITH IAJ

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

                                       23
<PAGE>

INTER ASSET JAPAN RELATIONSHIP WITH TESCO CO LTD

         IAJ owns a minority ownership percentage of approximately 20% in Tesco
Co Ltd. ("Tesco"). Global Hotline has an agent agreement with Tesco to sell
their lighting products.

NOTE RECEIVABLE FROM CREDIE BEAUX CO LTD

         On September 21, 2007 Global Hotline loaned 25,000,000 Yen to
approximately $217,000 at current exchange rates to Credie Beaux Co Ltd, a party
affiliated with our majority shareholder. Global Hotline is negotiating for the
repayment of the loan.

NOTE 13. EQUITY TRANSACTIONS/ TREASURY STOCK

         During the nine months ended September 30, 2007, the following
stockholder equity events occurred:

         On January 3, 2007, the company filed an Information Statement on
Schedule 14C, whereby, the company acted by majority shareholder consent in
approving (1) the issuance of 43,750,000 of the company's common stock in
conjunction with the ASFL equity investment; and (2) the increase in the
company's number of authorized shares of common stock from 200 million to 250
million shares. This Information Statement indicated that these actions shall
not become effective until at least twenty (20) calendar days after this
Information Statement was sent to stockholders. The actions contemplated by this
Information Statement were effected on or about the close of business on January
29, 2007.

         The 4,375 shares of Series A-1 Preferred Stock were converted into
43,750,000 shares of common stock on February 7, 2007.

         On February 8, 2007, the company filed a registration statement on Form
S-3 covering 43,775,000 shares, including the 4,375 shares of Series A-1
Preferred Stock issued in conjunction with the ASFL equity investment.

         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 at market
prices in open market or private transactions. As of September 30, 2007, the
company repurchased 2,091,355 shares in public and private transactions at an
average price of $0.272 per share. The shares are valued using the cost method
of accounting for treasury stock.

         On March 26, 2007, the company announced an odd lot tender offer.
Starting on April 2, 2007, the company will repurchase odd lots from
stockholders who own fewer than 100 shares. The program is for thirty days and
maybe extended in 30 day increments. On May 2, 2007, the company extended this
odd lot program until June 15, 2007. On June 15, 2007, this program expired and
no shares were tendered under the program.

         On March 29, 2007, the company filed a Certificate of Elimination with
the Secretary of State of the State of Delaware to eliminate the Certificate of
Designation, Preferences and Rights of the Series A-1 Preferred Stock.

         On April 27, 2007, Mr. Jun Kumamoto, a former director of the company
currently functioning as a consultant, exercised 30,000 stock options at an
average price of $0.183 per share and forfeited 520,000 stock options at $0.201
per share.

         On June 7, 2007, the company issued 258,264 shares of our common stock
to Hitomi Fund Co Ltd in a private placement for $100,000 or $0.3872 per share.

         On June 27, 2007, the company issued 289,017 shares of our common stock
to Toshiyuki Saegusa on June 27, 2007 in private placement for $100,000 or
$0.346 per share.

         On June 29, 2007, the shareholders of IA Global authorized an increase
in the number of authorized shares to 300,000,000 shares.

                                       24
<PAGE>

         On August 24, 2007 the company closed a 25.0% equity investment in
GPlus Media Co Ltd 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, the day negotiations were completed.

         On August 24, 2007, the company closed a 20.25% equity investment in
Slate Consulting by agreeing and has issued 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.

         For the August 24, 2007 equity investments, the shares of common stock
will be issued to the accredited investors in a transaction that will be exempt
from registration pursuant to Section 4(2) of the Securities Act, and/or
Regulation D promulgated under the Securities Act.

         On August 31, 2007, the company filed a registration statement on Form
S-3 covering 5,059,476 shares, related to various private placements.

         On September 7, 2007, the company filed a registration statement on
Form S-3 covering 29,773,146 shares, related to a debt conversion and various
private placements.

         On September 22, 2007, Raymond Christinson, a former director exercised
stock options totaling 404,166 shares of common stock for $82,417 or $.204 per
share. Mr. Christinson forfeited stock options totaling 245,834 shares of common
stock.

         On October 12, 2007, the company filed a registration statement on Form
S-8 covering 20,000,000 shares, related to 2007 Stock Incentive Plan.

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.

                                       25
<PAGE>

         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.

         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.

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 and nine months ended September 30, 2007
and 2006:

                                       26
<PAGE>
<TABLE>
(dollars in thousands)
<CAPTION>
                                                 Global Hotline,       Equity
Company                        IA Global, Inc.        Inc.           Investments        Total
                               ---------------   ---------------     -----------       --------
<S>                            <C>               <C>                 <C>               <C>
Three Months Ended-
  September 30, 2007
  Revenue ...............         $      -          $  6,462          $      -         $  6,462

  Operating loss ........             (476)           (3,961)                -           (4,437)

  Total assets ..........              492            20,468             9,881           30,841

  September 30, 2006
  Revenue ...............         $      -          $  4,483          $      -         $  4,483

  Operating loss ........             (295)             (856)                -           (1,151)

  Total assets ..........            2,467            13,176                 -           15,643

Nine Months Ended-
  September 30, 2007
  Revenue ...............         $      -          $ 18,469          $      -         $ 18,469

  Operating income (loss)           (1,591)           (6,330)                -           (7,921)

  Total assets ..........              492            20,468             9,881           30,841

  September 30, 2006
  Revenue ...............         $      -          $ 11,397          $      -         $ 11,397

  Operating loss ........           (1,244)           (3,846)                -           (5,090)

  Total assets ..........            2,467            13,176                 -           15,643

<CAPTION>
Geographic Region                   U.S.             Japan             Total
                                  --------          --------          --------
<S>                            <C>               <C>                 <C>
Three Months Ended-
  September 30, 2007
  Revenue ...............         $      -          $  6,462          $  6,462

  Operating income (loss)             (476)           (3,961)           (4,437)

  Total assets ..........              492            30,349            30,841

  September 30, 2006
  Revenue ...............         $      -          $  4,483          $  4,483

  Operating loss ........             (295)             (856)           (1,151)

  Total assets ..........            2,467            13,176            15,643

Nine Months Ended-
  September 30, 2007
  Revenue ...............         $      -          $ 18,469          $ 18,469

  Operating loss ........           (1,591)           (6,330)           (7,921)

  Total assets ..........              492            30,349            30,841

  September 30, 2006
  Revenue ...............         $      -          $ 11,397          $ 11,397

  Operating loss ........           (1,244)           (3,846)           (5,090)

  Total assets ..........            2,467            13,176            15,643
</TABLE>

                                       27
<PAGE>

The following reconciles operating loss to net loss:
<TABLE>
<CAPTION>
(dollars in thousands)                            Three Months Ended      Nine Months Ended
                                                     September 30,          September 30,
                                                 -------------------     -------------------
                                                   2007        2006        2007        2006
                                                 -------     -------     -------     -------
<S>                                              <C>         <C>         <C>         <C>
Operating loss ..............................    $(4,437)    $(1,151)    $(7,921)    $(5,090)

Other income (expense) ......................       (451)       (158)       (273)       (514)
                                                 -------     -------     -------     -------

Loss from continuing operations
  before income taxes .......................     (4,888)     (1,309)     (8,194)     (5,604)

Income tax benefit ..........................     (1,267)       (130)     (1,602)     (1,079)
                                                 -------     -------     -------     -------

Net loss from continuing operations .........     (3,621)     (1,179)     (6,592)     (4,525)

Gain from disposal of discontinued operations          -           -           -         464
Income from discontinued operations .........          -           -           -          76
                                                 -------     -------     -------     -------

Net loss ....................................    $(3,621)    $(1,179)    $(6,592)    $(3,985)
                                                 =======     =======     =======     =======
</TABLE>

                                       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 $19.1 million, $15.7 million and $0.0 million for
the years ended December 31, 2006, 2005 and 2004, respectively. We have incurred
net losses from continuing operations of $4.0 million, $0.7 million and $1.1
million for the years ended December 31, 2006, 2005 and 2004, 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.

OUR MISSION

         We operate 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. 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.

         We take 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.

         This focused, long-term approach also allows us to develop synergies
between our various investments. Being highly selective in our acquisitions
enables us to realize the potential for collaboration among previously
standalone companies, improve returns generated by networking businesses in each
market--and across the region.

OUR STRATEGY

         We have 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.

         To realize this plan, in FY 2007/8 we are 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, we are expanding its reach to encompass Hong Kong/China, the
Philippines/Singapore, and India and the outstanding growth opportunities and
synergies these markets present.

                                       29
<PAGE>

OUR OPERATIONS

         At IA Global, the key to our operations is the unique skills and
expertise of our people, and how we support them to optimize their ability to
carry out their work. 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.

         Our operations give them the resources they need to carry this out.
Once we have made an investment, select IA Global management work in-house at
each company to accelerate and carefully optimize all operations. This enables
them to build a rapport with key personnel, creating the speed, flexibility and
hands-on support required to improve a business and generate rapid growth.

         At the same time we quickly work on strengthening relationships,
sharing knowledge and best practices, and actively pursuing mutual cost savings
between our investments, and tapping the new resources in each company for the
benefit of the IA Global network. Each investment depends on the caliber of the
management as well as the potential of the company. So each investment
organically strengthens our key expertise and resources, and ability to grow
further.

OUR COMPANY TODAY

         Our current portfolio of investments in Japan and Australia exemplify
our approach to identifying, analyzing and investing in opportunities, and the
capabilities and resources we subsequently bring to enhancing the business, and
our shareholders' returns.

BUSINESS PROCESS OUTSOURCING

         In Japan, we are the 100% owner of Global Hotline, a Business Process
Outsourcing operator 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.

HUMAN CAPITAL AND RESOURCES

         During August and October 2007, we closed two equity investments and
one 100% owned buy-out transaction. The investments provide "human capital"
services in the human resources sector, a sector which offers excellent growth
opportunities throughout the Asia Pacific region. We continue 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 our 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:

         On October 22, 2007, we signed definitive agreements to acquire 100% of
the Outsourcing Business Division of LINC Media and in so doing creating a
strategic alliance with the LINC Media group.

         Established in Tokyo in 1998, the Outsourcing Business Division
provides large-scale personnel outsourcing services, particularly Help Desk
Engineers, Systems Administrators, and Network Engineers on long- and short-term
project-based contracts to an extensive client base that includes a number of
large multinational companies.

                                       30
<PAGE>

         We have a 25% stake in GPlus Media. GPlus Media is a Japan based
corporation with offices in Tokyo, Japan, Hong Kong and Shanghai, China. GPlus
Media owns and operates several of Japan's best known English-Japanese websites,
including GaijinPot.com, and Ecentral.com, the official jobsite of the American
Chamber of Commerce in Japan. GPlus Media 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.

         We have a 20.25% equity investment in Slate Consulting. 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.

OTHER

         In Australia, we have a 36% stake in Australian Secured Financial
Limited and its affiliates, Australian Secured Investments Ltd, ADJ Services Pty
Ltd. and Auslink Ltd (collectively, "ASFL") which raise funds through the
issuance of debentures within Australia and by providing 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

         Our key market opportunities are as follows:

       - We intend to aggressively grow our existing business entities during FY
2007/8. Preliminary revenue forecasts indicate revenue of $36 to $40 million in
FY 2007/8, with particularly significant revenue growth in the December 2007 and
March 2008 quarters.

       - 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.

       - 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 controlling shareholder
groups, the sale of significant numbers of our shares, a volatile market price
for our common stock, our Global Hotline business and ASFL investment and
mergers and acquisitions, our American Stock Exchange ("AMEX") listing 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.

                                       31
<PAGE>
<TABLE>
(dollars in thousands)
<CAPTION>
                                                                                     3 Months Ended September 30,
                                                                            ---------------------------------------------
                                                                              2007        2006     $ Variance  % Variance
                                                                            --------    --------   ----------  ----------
<S>                                                                         <C>         <C>         <C>            <C>
Revenue .................................................................   $  6,462    $  4,483    $  1,979       44.1%
Cost of sales ...........................................................      2,200         605       1,595      263.6%
                                                                            --------    --------    --------    -------
Gross profit ............................................................      4,262       3,878         384        9.9%
Selling, general and administrative expenses ............................      8,699       5,029       3,670       73.0%
                                                                            --------    --------    --------    -------
Operating loss ..........................................................     (4,437)     (1,151)     (3,286)    -285.5%
                                                                            --------    --------    --------    -------
Other Income (Expense):
Interest income .........................................................          6          20         (14)     -70.0%
Interest expense and amortization of beneficial conversion feature ......       (283)       (229)        (54)     -23.6%
Other Income ............................................................          1          51         (50)     -98.0%
Loss/ ( gain) on equity investment in Australia Secured Financial Limited        (67)          -         (67)    -100.0%
Loss on equity investment in GPlus Media Co Ltd .........................         (1)          -          (1)    -100.0%
Gain on equity investment in Slate Consulting Co Ltd ....................          2           -           2      100.0%
Conversion of debenture expense .........................................       (120)          -        (120)    -100.0%
Foreign currency transaction adjustment .................................         11           -          11      100.0%
                                                                            --------    --------    --------    -------
Total other income (expense) ............................................       (451)       (158)       (293)    -185.4%
                                                                            --------    --------    --------    -------
Loss from continuing operations before income  taxes ....................     (4,888)     (1,309)     (3,579)    -273.4%
Income taxes:
Current benefit .........................................................     (1,267)       (130)     (1,137)     874.6%
                                                                            --------    --------    --------    -------
Net loss from continuing operations .....................................     (3,621)     (1,179)     (2,442)    -207.1%
                                                                            --------    --------    --------    -------
Gain from disposal of discontinued operations ...........................          -           -           -        0.0%
Income from discontinued operations .....................................          -           -           -        0.0%
                                                                            --------    --------    --------    -------
Net loss ................................................................   $ (3,621)   $ (1,179)   $ (2,442)    -207.1%
                                                                            ========    ========    ========    =======

(dollars in thousands)
<CAPTION>
                                                                                     9 Months Ended September 30,
                                                                            ---------------------------------------------
                                                                              2007        2006     $ Variance  % Variance
                                                                            --------    --------   ----------  ----------
<S>                                                                         <C>         <C>         <C>            <C>
Revenue .................................................................   $ 18,469    $ 11,397    $  7,072       62.1%
Cost of sales ...........................................................      4,838       2,931       1,907       65.1%
                                                                            --------    --------    --------    -------
Gross profit ............................................................     13,631       8,466       5,165       61.0%
Selling, general and administrative expenses ............................     21,552      13,556       7,996       59.0%
                                                                            --------    --------    --------    -------
Operating loss ..........................................................     (7,921)     (5,090)     (2,831)     -55.6%
                                                                            --------    --------    --------    -------
Other Income (Expense):
Interest income .........................................................         37          77         (40)     -51.9%
Interest expense and amortization of beneficial conversion feature ......       (707)       (621)        (86)     -13.8%
Other Income ............................................................        569         159         410      257.9%
Loss/ ( gain) on equity investment in Australia Secured Financial Limited        (64)          -         (64)    -100.0%
Loss on equity investment in GPlus Media Co Ltd .........................         (1)          -          (1)    -100.0%
Gain on equity investment in Slate Consulting Co Ltd ....................          2           -           2      100.0%
Conversion of debenture expense .........................................       (120)          -        (120)    -100.0%
Foreign currency transaction adjustment .................................         11        (129)        140      100.0%
                                                                            --------    --------    --------    -------
Total other income (expense) ............................................       (273)       (514)        241      -46.9%
                                                                            --------    --------    --------    -------
Loss from continuing operations before income  taxes ....................     (8,194)     (5,604)     (2,590)     -46.2%
Income taxes:
Current benefit .........................................................     (1,602)     (1,079)       (523)     100.0%
                                                                            --------    --------    --------    -------
Net loss from continuing operations .....................................     (6,592)     (4,525)     (2,067)     -45.7%
                                                                            --------    --------    --------    -------
Gain from disposal of discontinued operations ...........................          -         464        (464)    -100.0%
Income from discontinued operations .....................................          -          76         (76)    -100.0%
                                                                            --------    --------    --------    -------
Net loss ................................................................   $ (6,592)   $ (3,985)   $ (2,607)    -65.4%
                                                                            ========    ========    ========    =======
</TABLE>

                                       32
<PAGE>

THREE MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2006

         Net revenue for the three months ended September 30, 2007 increased
$1,979,000 or 44% to $6,462,000, as compared to the three months ended September
30, 2006. During 2006 and 2007, Global Hotline executed major contracts or
renewals with two tier 1 telecommunication companies and two major health
insurance companies in Japan.

COST OF SALES

         Cost of sales for the three months ended September 30, 2007 increased
$1,595,000 to $2,200,000 as compared to the three months ended September 30,
2006. The increase resulted from costs for outsourced call center operations for
the major contracts Global Hotline executed or renewed in 2006 and 2007 with two
tier 1 telecommunication companies and two major health insurance companies in
Japan.

EXPENSES

         Selling, general and administrative expenses for the three months ended
September 30, 2007 increased $3,670,000 to $8,699,000, as compared to the three
months ended September 30, 2006. This was due to increased operating expenses of
$49,000 related to the implementation of SFAS 123 R and $3,487,000, for
additional staff, and building infrastructure, which included items such as PCs,
workstations, and software licenses, as well as significant investment in new
staff training. These expenses were necessary to leverage Global Hotline's
growing revenues from its 2006 and 2007, executed major contracts or renewals
with two tier 1 telecommunication companies and two major health insurance
companies in Japan.

         For 2007 and 2006, 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 September 30, 2007 was
$451,000 as compared to other expense of $158,000 for the three months ended
September 30, 2006. The 2007 other expense increase was primarily related to
interest expense and amortization of beneficial conversion feature of $283,000,
conversion of debenture expense of $120,000 and a loss on equity investment of
$67,000 from ASFL. The ASFL loss was due to the payoff of certain large loans
and loan losses booked during 2007. We expect ASFL to return to profitability
during FY 2007/8 with new loans placed and a new line of credit.

NET LOSS FROM CONTINUING OPERATIONS

         Net loss from continuing operations was $3,621,000 for the three months
ended September 30, 2007 as compared to a net loss of $1,179,000 for the three
months ended September 30, 2006. This was due to increased gross margin and an
income tax benefit of $1,137,000, offset by increased operating expenses of
$3,670,000, primarily for additional staff, and building infrastructure, which
included items such as PCs, workstations, and software licenses, as well as
significant investment in new staff training. These expenses were necessary to
leverage Global Hotline's growing revenues from its 2006 and 2007 executed major
contracts or renewals with two tier 1 telecommunication companies and two major
health insurance companies in Japan.

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

                                       33
<PAGE>

NET LOSS

         Net loss was $3,621,000 for the three months ended September 30, 2007
as compared to a net loss of $1,179,000 for the three months ended September 30,
2006. The reasons for the decreased loss were more fully discussed above in "Net
Loss From Continuing Operations."

NINE MONTHS ENDED SEPTEMBER 30, 2007 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER
30, 2006

         Net revenue for the nine months ended September 30, 2007 increased
$7,072,000 or 62% to $18,469,000, as compared to the nine months ended September
30, 2006, due to Global Hotline's 2006 and 2007 executed major contracts or
renewals with two tier 1 telecommunication companies and two major health
insurance companies in Japan.

COST OF SALES

         Cost of sales for the nine months ended September 30, 2007 increased
$1,907,000 to $4,838,000 as compared to the nine months ended September 30,
2006. The increase resulted from costs for outsourced call center operations for
the major contracts Global Hotline executed or renewed in 2006 and 2007 with two
tier 1 telecommunication companies and two major health insurance companies in
Japan.

EXPENSES

         Selling, general and administrative expenses for the nine months ended
September 30, 2007 increased $7,996,000 to $21,552,000, as compared to the nine
months ended September 30, 2006. This was due to increased operating expenses of
$123,000 related to the implementation of SFAS 123R and $7,649,000, for
additional staff, and building infrastructure, which included items such as PCs,
workstations, and software licenses, as well as significant investment in new
staff training. These expenses were necessary to leverage Global Hotline's
growing revenues. During 2006 and 2007, Global Hotline executed major contracts
or renewals with two tier 1 telecommunication companies and two major health
insurance companies in Japan.

         For 2007 and 2006, 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 nine months ended September 30, 2007 was $273,000
as compared to other expense of $514,000 for the nine months ended September 30,
2006. The 2007 other expense increase was primarily related to interest expense
and amortization of beneficial conversion feature of $707,000, conversion of
debenture expense of $120,000 and a loss on equity investment of $64,000 from
ASFL. The ASFL loss was due to the payoff of certain large loans and loan losses
booked during 2007. We expect ASFL to return to profitability during FY 2007/8
with new loans placed and a new line of credit.

         The 2006 other expense was primarily related to interest expense and
amortization of beneficial conversion feature of $621,000 and a foreign currency
transaction adjustment of $129,000, offset by other income of $77,000 and
interest income of $159,000.

                                       34
<PAGE>

NET LOSS FROM CONTINUING OPERATIONS

         Net loss from continuing operations was $6,592,000 for the nine months
ended September 30, 2007 as compared to a net loss of $4,525,000 for the nine
months ended September 30, 2006. This was due to increased gross margin and
income tax benefit of $523,000, offset by increased operating expenses of
$7,996,000, for additional staff, and building infrastructure, which included
items such as PCs, workstations, and software licenses, as well as significant
investment in new staff training. These expenses were necessary to leverage
Global Hotline's growing revenues from its 2006 and 2007 executed major
contracts or renewals with two tier 1 telecommunication companies and two major
health insurance companies in Japan.

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

NET LOSS

         Net loss was $6,592,000 for the nine months ended September 30, 2007 as
compared to a net loss of $3,985,000 for the nine months ended September 30,
2006. The reasons for the decreased loss were more fully discussed above in "Net
Loss From Continuing Operations."

         In accordance with SFAS 144, we accounted for the 2006 Rex Tokyo gain
from disposal of discontinued operations of $463,000 and the income from
discontinued operations of $76,000 as total gain from discontinued operations in
our consolidated statement of operations.

LIQUIDITY AND CAPITAL RESOURCES

         We had cash approximately $5.3 million, net working capital of
approximately $1.2 million and debt of $17.5 million as of September 30, 2007.

         We expect net cash used in continuing operations to decrease as the
Global Hotline results from operations improve.

         During 2007, Global Hotline entered into loans of approximately $15.5
million and repaid loans of approximately $2.7 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.

         On March 22, 2007, we announced a stock repurchase program. Starting on
April 2, 2007, we may repurchase up to 4,000,000 shares at market prices in open
market or private transactions. As of September 30, 2007, we repurchased
2,091,355 shares in public and private transactions at an average price of
$0.272 per share. The shares are valued using the cost method of accounting for
treasury stock.

         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 and make equity investments.

         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 $19.9
million as of September 30, 2007, with approximately $8.8 million raised in the
initial public offering, $7.8 million raised in private placements, $3.6 million
raised in the conversion of debt, $0.1 million raised from a capital
contribution, $0.2 million raised from the exercise of stock options and $0.6
million used for the share repurchase program. In addition, we have issued
equity for non-cash items totaling $24.4 million, including $7.0 million from
the ASFL equity investment, $1.4 million from the GPlus and Slate equity
investments, $6.9 million issued for services, $3.4 million related to a
beneficial conversion feature, $0.1 million related to the Rex Tokyo
acquisition, and $3.1 million related to the Global Hotline acquisition.
Additional funding was obtained from notes payable and long term debt of
approximately $17.5 million and convertible debentures with approximately $2.5
million outstanding as of September 30, 2007.

                                       35
<PAGE>

OPERATING ACTIVITIES

         Net cash used in continuing operations for the nine months ended
September 30, 2007 was $10,526,000. This amount was primarily related to a net
loss from continuing operations of $6,592,000, an increase in accounts
receivable of $1,477,000, an increase in deferred taxes of $2,329,000, an
increase in other assets of $1,100,000 and a decrease in deferred revenue of
$1,219,000. This was offset by depreciation and amortization of $1,288,000 and
an increase in accrued liabilities of $1,656,000.

         As the results of Global Hotline's operations continue to improve, we
expect better utilization of net cash. Global Hotline has executed or renewed
major contracts with two tier 1 telecommunication companies and two major health
insurance companies in Japan covering the years 2006, 2007 and beyond. While we
expect to be profitable in fiscal year 2008/9, there can be no assurance that we
will achieve or maintain profitability.

INVESTING ACTIVITIES

         Net cash used in investing activities for the nine months ended
September 30, 2007 was $746,000. This amount relates to the sale of marketable
securities of $251,000, offset by capital expenditures of $747,000 and the
payment of $250,000 related to our equity investment in ASFL.

FINANCING ACTIVITIES

         Net cash provided by financing activities for the nine months ended
September 30, 2007 was $12,493,000.

         During 2007, Global Hotline entered into loans of approximately
$15,491,000 and repaid loans of approximately $2,717,000. The net loans were
used to expand the business infrastructure for current and anticipated major new
client contracts, including opening a fifth call center in Tokyo, Japan to
service these client contracts.

         On March 22, 2007, we announced a stock repurchase program. Starting on
April 2, 2007, we may repurchase up to 4,000,000 shares at market prices in open
market or private transactions. As of September 30, 2007, we repurchased
2,091,355 shares in public and private transactions at an average price of
$0.272 per share. The shares are valued using the cost method of accounting for
treasury stock.

         During the nine months ended September 30, 2007, we issued 547,281
shares of our common stock in private placements for $200,000 or approximately
$0.365 per share.

         Other Material Commitments. The company's contractual cash obligations
as of September 30, 2007 are summarized in the table below (1):
<TABLE>
<CAPTION>
Contractual                                Less Than                                      Greater Than
Cash Obligations             Total           1 Year        1-3 Years       3-5 Years         5 Years
--------------------      -----------     -----------     -----------     -----------     ------------
<S>                       <C>             <C>             <C>             <C>             <C>
Operating leases ...      $ 1,903,057     $ 1,264,331     $   408,139     $   230,587     $         0
Note payable .......      $17,468,439     $10,718,011     $ 3,807,639     $ 2,942,789     $         0
Capital expenditures      $   100,000     $   100,000     $         0     $         0     $         0
Acquisitions .......      $   100,000     $   100,000     $         0     $         0     $         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:

                                       36
<PAGE>

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.

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 recorded $78,000 and $1,297,000
of deferred revenue as of September 30, 2007 and December 31, 2006,
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.

                                       37
<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 September 30, 2007.

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
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.

                                       38
<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 are
currently evaluating the potential impact of FSP EITF 00-19-2 on our financial
statements, and we do not expect the impact to be 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 of 1933, as amended ("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, 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.

                                       39
<PAGE>

OUR CONTROLLING SHAREHOLDER GROUPS HAVE SUBSTANTIAL INFLUENCE OVER OUR COMPANY

         As of September 30, 2007, IAJ LBO Fund, PBAA, Terra Firma, Inter Asset
Japan Co Ltd ("IAJ"), IA Turkey, Hiroki Isobe, Kyo Nagae (collectively, the
"Controlling Shareholders") and Derek Schneideman collectively hold
approximately 47.7% 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, 9,500,015
shares of our Common Stock issuable upon conversion of the convertible
debentures and 2,091,355 shares of treasury stock. 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 control each of
our Controlling Shareholders. In addition, Mr. Schneideman in his capacity as
Chairman and CEO of the Company had sole voting power and dispositive power with
respect to 76,321,803 shares of Common Stock for all the Company's 2007
shareholder meetings pursuant to a proxy granted on April 18, 2007. These shares
of Common Stock in total represent approximately 46.9% of the outstanding shares
of Common Stock of the Company.

         IAJ has the ability to 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.

         As of September 30, 2007, the previous shareholders of ASFL control
approximately 26.9% 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 September 30, 2007, 162.7 million
shares of Common Stock were outstanding. Significant shares of Common Stock are
held by our principal shareholders and other Company insiders. As "affiliates"
(as defined under Rule 144 of the Securities Act ("Rule 144") of the Company,
our principal shareholders and other Company insiders may only sell their shares
of Common Stock in the public market pursuant to an effective registration
statement or in compliance with Rule 144, including the volume limitations
therein.

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

         As of September 30, 2007, we are in compliance with the AMEX continued
listing standards with stockholders' equity in excess of $6 million and our
Common Stock trades on AMEX. To maintain this listing, we must maintain
stockholders' equity of $6 million.

         We anticipate that we will be maintaining our AMEX listing. However, if
our common stock were to be de-listed by AMEX, we expect 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.

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,

                                       40
<PAGE>

       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/ 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. Factors like this 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 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;

       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.

                                       41
<PAGE>

         In addition, the Global Hotline business has a concentration of
customers with four major customers. 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 a repayment of cash paid under the contracts, which
would have a material adverse effect on our business, prospects, financial
condition and results of operations.

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 debentures 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 are
reliance on customers maintaining adequate insurance on the real property;

       o Passing of new or changes in existing legislation that may limit or
eliminate debentures;

       o Inability to successfully negotiate a bank line of credit to fund the
business;

       o Market perception of ASFL and ASFL's competitors may have a major
impact on the ability to raise funds from debentures. Any negative perception of
high defaults or inability to service debt or potential bankruptcy or
liquidation by other players in the industry can have an impact on ASFL's
reputation as well;

       o ASFL's license could be terminated;

       o ASFL may not be able to raise sufficient funds from debentures to
adequately fund the business;

       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 Decreased market demand for high interest loans;

       o Litigation risk;

       o ASFL could default on its debentures; and,

       o Loss of key personnel.

         The ASFL business is also dependent upon their ability to operate
efficiently by maintaining tight control on cash flows and raising funds from
debentures or 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.

                                       42
<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 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.

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 and June 2005
and closed an acquisition in October 2007; 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,

       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.

                                       43
<PAGE>

         From time to time, we have also engaged in discussions with candidates
regarding the potential acquisitions of our product lines, technologies and
businesses. If 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 keep,

       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 WAS EXPOSED TO LEGAL CLAIMS.

         We could be exposed to legal claims. 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.

OUR CUSTOMER BASE IS CONCENTRATED.

         Global Hotline has contracts with major Japanese telecommunications
companies and major United States insurance companies. The loss of these
contracts would have a material adverse impact on Global Hotline's ability to
produce revenue.

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.

WE ARE EXPOSED TO FOREIGN CURRENCY GAINS AND LOSSES.

         The majority of our operations are located in Japan and we have equity
investments 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 and US Dollar would have a material adverse or positive
effect on our business, financial condition and results of operations.

                                       44
<PAGE>

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 Consulting in Japan
and our equity investments in ASFL in Australia, GPlus in Hong Kong and China
and Slate Consulting 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 September
30, 2007, total debt was $17,468,439. Debt totaling $5,487,934 is exposed to
variable interest rates with current interest rates of 2.0% to 2.5%.

         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 September 30, 2007. Based
on this evaluation, our principal executive and financial officers concluded
that, as of September 30, 2007, 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.

                           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.

                                       45
<PAGE>

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

Sales of Shares of Common Stock

         On July 30, 2007, we made an Offer to our debenture holders ("Offer").
Pursuant to this Offer, the debenture holders could convert their debentures
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 additional shares of
common stock totaling 385,362 related to the discount and interest are expected
to be registered in January 2008.

         During August and September 2007, $500,000 of debentures were converted
into 1,666,669 shares of common stock. As of September 30, 2007, we have
9,500,015 shares of common stock reserved for the conversion of the debentures
on or before June 28, 2008.

         On August 24, 2007, we 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,
the day negotiations were completed.

         On August 24, 2007, we 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 $.40 per share, which was the average closing market price on
August 17, 2007, the day negotiations were completed.

         For the equity investments closed on August 24, 2007, the shares of
common stock will be issued to the accredited investors in a transaction that
will be exempt from registration pursuant to Section 4(2) of the Securities Act,
and/or Regulation D promulgated under the Securities Act.

         On September 22, 2007, Raymond Christinson, a former director exercised
stock options totaling 404,166 shares of common stock for $82,417 or $.204 per
share. Mr. Christinson forfeited stock options totaling 245,834 shares of common
stock.

Share Repurchase Program

         The following information summarizes the 2007 activity 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
                                           ---------           -------            ---------             ---------

Total ...............................      2,091,355           $ 0.272            2,091,355             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 or June 2007.


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not applicable.

                                       46
<PAGE>

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

         Not applicable.

ITEM 5.  OTHER INFORMATION

         On November 10, 2007, the Board of Directors of the Company voted to
amend Sections 5.2, 5.4 and 5.5 of the Bylaws of the Company to allow for the
issuance and transfer of uncertificated shares of the Company's stock. This
amendment was adopted to allow the Company to participate in the Direct
Registration System, which, effective January 1, 2008, will be required of all
AMEX listed companies. A copy of the Company's amended Bylaws is attached hereto
as Exhibit 3.1, and incorporated herein by reference.

ITEM 6.  EXHIBITS

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

3.1      Amended and Restated Bylaws of IA Global, Inc. dated November 10, 2007
         (1)

10.1     Business Assignment Agreement, dated July 3, 2007, by and between
         Global Hotline, Inc. and KDDI Corporation. (1)

10.2     Borrowing Conditions, dated July 6, 2007, by and between Global
         Hotline, Inc. and and Mizuho Bank Co Ltd. (1)

10.3     Administrative Service Agreement, dated July 9, 2007, by and between
         Global Hotline, Inc. and Mizuho Bank Co Ltd. (1)

10.4     Monetary Loan Certification, by Hideki Anan. (1)

10.5     Issue Conditions, dated July 17, 2007, by and between Global Hotline,
         Inc. and Mizuho Bank Co Ltd.(1)

10.6     Indications of Main Items, dated July 17, 2007, by and between Global
         Hotline, Inc. Mizuho Bank Co Ltd.(1)

10.7     Corporate Bonds Conditions, by Mizuho Bank Co Ltd (1)

10.8     Important Conditons of Corporate Bonds, by Global Hotline, Inc. (1)

10.9     Full Amount Guarantor Agreement, by Mizuho Bank Co Ltd (1)

10.10    Request For Overdraft Facility, dated July 27, 2007, by Global Hotline,
         Inc. (1)

10.11    Special Overdraft Change Facility Agreement, dated July 27, 2007, by
         and between Global Hotline, Inc. and Mitsui Sumitomo Bank Co Ltd (1)

10.12    Monetary Loan Certification, dated July 31, 2007, by and between IA
         Partners Co Ltd and Mitsubishi Tokyo UFJ Bank Co Ltd (1)

10.13    Monetary Loan Certification, dated July 31, 2007, by and between IA
         Partners Co Ltd and Mitsubishi Tokyo UFJ Bank Co Ltd (1)

10.14    Articles of Agreement, dated August 8, 2007, by Inforidge Co Ltd (2)

10.15    Agency Agreement for Offering Life Insurance, dated July 7, 2007, by
         and between Inforidge Co Ltd and American Life Insurance. (2)

10.16    Share Exchange Agreement, dated August 24, 2007, by and between IA
         Global, Inc. and GPlus Media Co Ltd (3)

10.17    Right of First Refusal, dated August 24, 2007, by and between IA
         Global, Inc. and GPlus Media Co Ltd (3)

                                       47
<PAGE>

10.18    Share Exchange Agreement, dated August 24, 2007, by and between IA
         Global, Inc. and Slate Consulting Co Ltd (4)

10.19    Right of First Refusal, dated August 24, 2007, by and between IA
         Global, Inc. and Slate Consulting Co Ltd (4)

10.20    Binding Term Sheet, dated September 4, 2007, by and between IA Global,
         Inc. and LINC Media, Inc. (5)

10.21    Employment Agreement, dated September 5, 2007, by and between IA
         Global, Inc. and Mr. Schneideman. (6)

10.21    Employment Agreement, dated September 5, 2007, by and between IA
         Global, Inc. and Mr. Scott. (7)

10.22    Agreement on Special Overdrawn Account dated September 14, 2007, by and
         between Global Hotline, Inc., IA Partners Co, Ltd, SG Telecom Co Ltd,
         Inforidge Co Ltd and Sumitomo Mitsui Banking Corporation (1)

10.23    Amendment to Binding Term Sheet, dated September 28, 2007, by and
         between IA Global, Inc. and LINC Media, Inc. (8)

10.24    Amendment to Binding Term Sheet, dated October 9, 2007, by and between
         IA Global, Inc. and LINC Media, Inc. (9)

10.25    Business Assignment Agreement, dated September 27, 2007, by and between
         Global Hotline, Inc. and KDDI Corporation. (1)

10.26    Asset Purchase Agreement, dated October 22, 2007, by and bwtween IA
         Global, Inc. and LINC Media, Inc. (10)

10.27    Promissory Note for $720,000, dated October 22, 2007, by and between IA
         Global, Inc. and LINC Media, Inc. (10)

10.28    Promissory Note for $1,200,000, dated October 22, 2007, by and between
         IA Global, Inc. and LINC Media, Inc. (10)

10.29    Promissory Note for $200,000, dated October 22, 2007, by and between IA
         Global, Inc. and LINC Media, Inc. (10)

10.30    Performance Agreement, dated October 22, 2007, by and between IA
         Global, Inc. and LINC Media, Inc. (10)

10.31    Assignment and Assumption Agreement and Bill of Sale, dated October 22,
         2007, by and between IA Global, Inc. and LINC Media, Inc.(10)

10.32    Call Center Service Agency Agreement dated May 21, 2007, by and between
         IA Partners Co Ltd and NTT Co Ltd. (1)

10.33    Attachment Agreement dated May 21, 2007, by and between IA Partners Co
         Ltd and NTT Co Ltd. (1)

10.34    Confidentiality Agreement dated May 21, 2007, by and between IA
         Partners Co Ltd and NTT Co Ltd. (1)

10.35    Covenant for Data Management dated May 21, 2007, by IA Partners Co Ltd.
         (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)


                                       48
<PAGE>

__________________

(1)   Filed herewith.

(2)   Filed as an exhibit to Registrant's Current Report on Form 8-K/A, dated
      August 8, 2007 and filed on August 30, 2007, and incorporated herein by
      reference.

(3)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      August 24, 2007 and filed on August 27, 2007, and incorporated herein by
      reference.

(4)   Filed as an exhibit to Registrant's Current Report on Form 8-K/A, dated
      August 24, 2007 and filed on August 29, 2007, and incorporated herein by
      reference.

(5)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      September 4, 2007 and filed on September 6, 2007, and incorporated herein
      by reference.

(6)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      September 5, 2007 and filed on September 10, 2007, and incorporated herein
      by reference.

(7)   Filed as an exhibit to Registrant's Current Report on Form 8-K/A, dated
      September 5, 2007 and filed on October 4, 2007, and incorporated herein by
      reference.

(8)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      September 28, 2007 and filed on October 1, 2007, and incorporated herein
      by reference.

(9)   Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      October 9, 2007 and filed on October 10, 2007, and incorporated herein by
      reference.

(10)  Filed as an exhibit to Registrant's Current Report on Form 8-K, dated
      October 22, 2007 and filed on October 23, 2007, and incorporated herein by
      reference.

                                       49
<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: November 19, 2007         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)

                                       50