________________________________________________________________________________

                                  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, 2008

                         COMMISSION FILE NUMBER: 1-15863

                           ___________________________

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


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


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


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

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

                                 Yes [X] No [ ]

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

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

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

                                 Yes [ ] No [X]

         As of November 19, 2008 there were issued and outstanding 210,853,489
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 Sheets ....................................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 ...........................33

     Item 3.   Quantitative and Qualitative Disclosures About Market Risk ....44

     Item 4T.  Controls and Procedures .......................................51

PART II. OTHER INFORMATION

     Item 1.   Legal Proceedings .............................................51

     Item 1A.  Risk Factors...................................................51

     Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds....51

     Item 3.   Defaults Upon Senior Securities ...............................52

     Item 4.   Submission of Matters to a Vote of Security Holders ...........52

     Item 5.   Other Information .............................................53

     Item 6.   Exhibits ......................................................53

Signatures ...................................................................54


                                        2
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                          CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                                                                 September 30,     March 31,
                                                                                     2008            2008
                                                                                 ------------    ------------
ASSETS                                                                            (unaudited)      (audited)
<S>                                                                              <C>             <C>
CURRENT ASSETS:
  Cash and cash equivalents ..................................................   $  2,471,080    $  1,626,862
  Accounts receivable, net of allowance of $456,357 and $674,886, respectively      8,359,048      12,746,290
  Prepaid expenses ...........................................................        564,232       1,967,164
  Notes receivable ...........................................................      2,965,149       1,484,519
  Other current assets .......................................................        180,402         462,709
  Deferred taxes - foreign ...................................................      1,397,318       1,477,580
                                                                                 ------------    ------------
    Total current assets .....................................................     15,937,229      19,765,124

EQUIPMENT, NET ...............................................................      2,963,634       2,431,954

OTHER ASSETS
  Intangible assets, net .....................................................        623,410         331,129
  Equity Investment in Taicom Securities Co Ltd ..............................      4,979,756               -
  Equity investment in Australia Secured Financial Limited ...................      7,244,058       6,930,355
  Equity investment in GPlus Media Co Ltd ....................................      1,407,908       1,380,386
  Equity investment in Slate Consulting Co Ltd ...............................      1,409,153       1,396,481
  Other assets ...............................................................      3,392,396       2,704,752
                                                                                 ------------    ------------

                                                                                 $ 37,957,544    $ 34,940,181
                                                                                 ============    ============

LIABILITIES AND STOCKHOLDER'S EQUITY

CURRENT LIABILITIES:
  Accounts payable - trade ...................................................   $    830,999    $    197,943
  Accrued liabilities ........................................................      6,599,503       7,851,636
  Consumption taxes received .................................................        628,335         460,067
  Note payable - current portion of long term debt ...........................      8,993,634      10,510,655
                                                                                 ------------    ------------
    Total current liabilities ................................................     17,052,471      19,020,301
                                                                                 ------------    ------------

LONG TERM  LIABILITIES:
  Long term debt .............................................................      7,502,124       8,593,594
  Convertible debentures .....................................................              -       2,195,833
                                                                                 ------------    ------------
                                                                                    7,502,124      10,789,427
                                                                                 ------------    ------------
STOCKHOLDER'S EQUITY:
  Preferred stock, $.01 par value, 5,000 authorized, none outstanding ........              -               -
  Common stock, $.01 par value, 300,000,000 shares authorized,
    211,215,967 and 165,303,543, issued and outstanding, respectively ........      2,112,160       1,653,035
  Additional paid in capital .................................................     52,488,679      43,882,701
  Accumulated deficit ........................................................    (40,301,360)    (39,330,512)
  Accumulated other comprehensive loss .......................................       (643,623)       (821,864)
                                                                                 ------------    ------------
                                                                                   13,655,856       5,383,360
  Less common stock in treasury, at cost .....................................       (252,907)       (252,907)
                                                                                 ------------    ------------
    Total stockholder's equity ...............................................     13,402,949       5,130,453
                                                                                 ------------    ------------

                                                                                 $ 37,957,544    $ 34,940,181
                                                                                 ============    ============

                                See notes to consolidated financial statements.

                                                       3
</TABLE>
<PAGE>
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
                                          Three Months Ended September 30,     Six Months Ended September 30,
                                          -------------------------------     -------------------------------
                                              2008              2007              2008              2007
                                          -------------     -------------     -------------     -------------
                                           (unaudited)       (unaudited)       (unaudited)       (unaudited)
<S>                                       <C>               <C>               <C>               <C>
REVENUE ...............................   $  15,363,607     $   6,461,544     $  35,052,315     $  11,976,334

COST OF SALES .........................       3,034,679         2,200,148         6,230,503         3,842,273
                                          -------------     -------------     -------------     -------------

GROSS PROFIT ..........................      12,328,928         4,261,396        28,821,812         8,134,061

SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES ..............................      14,110,639         8,698,610        28,767,327        15,641,758
                                          -------------     -------------     -------------     -------------

OPERATING (LOSS) INCOME ...............      (1,781,711)       (4,437,214)           54,485        (7,507,697)
                                          -------------     -------------     -------------     -------------

OTHER INCOME (EXPENSE):
  Interest income .....................           1,480             5,557            16,074            16,159
  Interest expense and amortization of
    beneficial conversion feature .....        (222,195)         (282,579)         (505,643)         (510,111)
  Other income ........................           5,530             1,287            68,228           570,050
  Gain (loss) on equity investment in
    Australia Secured Financial Limited          18,492           (66,601)          274,611           (77,982)
  Gain (loss) on equity investment in
    GPlus Media Co Ltd ................          20,783            (1,079)           53,418            (1,079)
  Gain on equity investment in Slate
    Consulting Co Ltd .................             460             1,730            23,565             1,730
  Loss on equity investment in Taicom
    Securities Co Ltd .................        (113,708)                -          (220,244)                -
  Conversion of debenture expense .....               -          (120,046)                -          (120,046)
  Foreign currency transaction
    adjustment ........................         (62,819)           11,381           (65,760)           11,381
                                          -------------     -------------     -------------     -------------
    Total other income (expense) ......        (351,977)         (450,350)         (355,751)         (109,898)
                                          -------------     -------------     -------------     -------------

(LOSS) BEFORE INCOME TAXES ............      (2,133,688)       (4,887,564)         (301,266)       (7,617,595)

Income taxes - current (benefit)
  provision ...........................        (435,202)       (1,266,565)          669,582        (1,869,953)
                                          -------------     -------------     -------------     -------------

NET LOSS ..............................   $  (1,698,486)    $  (3,620,999)    $    (970,848)    $  (5,747,642)
                                          =============     =============     =============     =============

Basic and diluted loss per share of
  common stock ........................   $       (0.01)    $       (0.02)    $       (0.01)    $       (0.04)

Weighted average shares of common
  stock outstanding ...................     209,727,516       155,960,566       193,172,522       153,660,189


                                See notes to consolidated financial statements.

                                                       4
</TABLE>
<PAGE>
<TABLE>
                                       IA GLOBAL, INC. AND SUBSIDIARIES
                                     CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
                                                                               Six Months Ended September 30,
                                                                              -------------------------------
                                                                                  2008               2007
                                                                              ------------       ------------
                                                                               (unaudited)        (unaudited)
<S>                                                                           <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss) ....................................................      $   (970,848)      $ (5,747,642)
  Adjustments to reconcile net income (loss) to net cash used in
    operating activities
      Depreciation and amortization ....................................           818,617            940,466
      Amortization of beneficial conversion feature ....................           104,167            208,333
      Amortization of prepaid financing ................................            47,684                  -
      Stock based compensation .........................................           250,811             78,526
      Common stock issued for services .................................           172,584                  -
      Conversion of debenture expense ..................................                 -            120,046
      (Gain) loss on equity investments ................................          (133,653)            79,539
  Changes in operating assets and liabilities:
    Accounts receivable ................................................         4,397,996           (946,805)
    Consumption tax paid ...............................................                 -                  -
    Prepaid expenses ...................................................         1,374,445           (120,517)
    Notes receivable ...................................................        (1,480,630)          (999,922)
    Other current assets ...............................................           295,102            (57,139)
    Deferred taxes - foreign ...........................................            80,262         (2,328,872)
    Other assets .......................................................          (687,644)        (1,083,846)
    Accounts payable - trade ...........................................           673,689            204,177
    Accrued liabilities ................................................        (1,255,462)           965,853
    Consumption taxes received .........................................           168,268           (435,055)
    Income taxes payable - foreign .....................................                 -           (761,984)
    Deferred revenue ...................................................                 -           (441,710)
                                                                              ------------       ------------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ....................         3,855,388        (10,326,552)
                                                                              ------------       ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures .................................................        (1,089,196)          (709,579)
  Sale of marketable securities ........................................                 -            253,767
  Acquisition of subsidiary Shift Resources, Inc. ......................           (35,000)                 -
  Acquisition of investment in Australian Secured Financial Limited ....                 -           (125,000)
  Cash from acquisition of Shift Resources, Inc. and Asia Premier
    Executive  Suites, Inc. ............................................            12,158                  -
                                                                              ------------       ------------
NET CASH USED IN INVESTING ACTIVITIES: .................................        (1,112,038)          (580,812)
                                                                              ------------       ------------

CASH FROM FINANCING ACTIVITIES:
  Proceeds from debt ...................................................         3,962,310         15,490,519
  Repayments of debt ...................................................        (5,508,602)        (2,704,660)
  Proceeds from exercise of options ....................................            10,800             87,917
  Proceeds from sale of common stock ...................................           562,086            200,000
  Purchase of common shares for treasury ...............................                 -           (568,035)
                                                                              ------------       ------------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES ....................          (973,406)        12,505,741
                                                                              ------------       ------------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ...................         1,769,944          1,598,377

EFFECT OF EXCHANGE RATE CHANGES ON CASH ................................          (925,726)          (206,316)

CASH AND CASH EQUIVALENTS, beginning of period .........................         1,626,862          3,908,186
                                                                              ------------       ------------

CASH AND CASH EQUIVALENTS, end of period ...............................      $  2,471,080       $  5,300,247
                                                                              ============       ============

Supplemental disclosures of cash flow information:
  Interest paid ........................................................      $    260,252       $    119,316
  Taxes paid ...........................................................      $    385,180       $  1,022,422

Non-cash investing and financing activities:
  Conversion of debentures into Common Stock ...........................      $  2,300,000       $    964,048
  Conversion of interest payable on debentures into Common Stock .......      $     78,822       $          -
  Issuance of Preferred Stock for acquisition of Investment -
    Australian Secured Financial Limited ...............................      $          -       $          -
  Issuance of Common Stock for acquisition of Subsidiary -
    Asia Premier Executive Suites, Inc. ................................      $    300,000       $          -
  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
  Issuance of Common Stock for acquisition of Subsidiary -
    Shift Resources, Inc. ..............................................      $    190,000       $          -
  Issuance of Common Stock for acquisition of Investment -
    Taicom Securities Co., Ltd. ........................................      $  5,200,000       $          -
  Issuance of Note Payable for acquisition of Subsidiary -
    Asia Premier Executive Suites, Inc. ................................      $    268,000       $          -


                                See notes to consolidated financial statements.

                                                       5
</TABLE>
<PAGE>

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

NOTE 1.  BUSINESS:

THE COMPANY AND OUR BUSINESS

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

         To realize this plan, the company is actively expanding investments in
the business process outsourcing ("BPO"), this also includes human resources and
human capital elements necessary to recruit and train the very large numbers of
people necessary to transact BPO, B2B and financial services sectors. These
sectors demonstrate long-term growth prospects in which we, by applying our
skills and resources, can add significant value to our investments. Beyond
Japan, we are expanding our reach to encompass, the Philippines, Southeast Asia
and the outstanding growth opportunities and synergies these markets present.

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

         In the Philippines, IA Global is the 100% owner of Asia Premier
Executive Suites Inc. and Shift Resources Inc., companies that have now been
merged into a single company named Global Hotline Philippines Inc.

         In the Asia Pacific region, the company has equity investments of 25.0%
in GPlus Media Co Ltd, 20.25% in Slate Consulting Co Ltd, 36.0% in Australian
Secured Financial Limited and 20% in Taicom Securities Co Ltd. These
organizations provide services, value-add investor relations services, capital
raising and other income to IA Global, Inc.

CORPORATE INFORMATION

         We were incorporated in Delaware on November 12, 1998. The company's
executive offices are located at 101 California Street, Suite 2450, San
Francisco, CA 94111, with its operating units being located primarily in Japan,
China, Philippines, Hong Kong and Australia. The company's telephone number is
(415) 946-8828 and its primary website is located at www.iaglobalinc.com. The
information on our website is not a part of this Form 10-Q.

THE COMPANY'S COMMON STOCK

         Our common stock currently trades on the NYSE Alternext US market under
the symbol "IAO."

                                        6
<PAGE>

Unaudited Financial Statements

         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, 2008 and 2007 are unaudited and include all adjustments necessary
to a fair statement of the results of operations for the periods then ended. All
such adjustments are of a normal recurring nature. The results of the company's
operations for any interim period are not necessarily indicative of the results
of the company's operations for a full fiscal year. For further information,
refer to the financial statements and footnotes thereto included in the
company's transition report on Form 10-K for the three months ended March 31,
2008 as filed with the Securities and Exchange Commission ("SEC") on July 15,
2008.

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

         On July 25, 2007, the Board of Directors resolved that the fiscal year
of IA Global that began on January 1, 2007 would 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 filed a Form 10-K for the calendar year ending December 31, 2007 and
filed a Transition Report on Form 10-K to reflect the three month transition
period of January 1, 2008 through March 31, 2008.

         This Quarterly Report on Form 10-Q is the company's second quarterly
report for our newly adopted fiscal year-end of March 31, 2009. This Quarterly
Report covers the three months ended September 30, 2008.

NOTE 2.  SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

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

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

         The company maintains cash balances at various financial institutions.
Balances at US banks are insured by the Federal Deposit Insurance Corporation up
to $250,000. 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 quarter
ended September 30, 2008, 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 2-5 years. Software
developed or obtained for internal use is depreciated using the straight-line
method over the estimated useful life of the software, generally 2-3 years.

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

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

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

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

                                        8
<PAGE>

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

         Revenues are deferred when cash has been received from the customer but
the revenue has not been earned. The company has not recorded any deferred
revenue as of September 30, 2008 and March 31, 2008, respectively.

ADVERTISING COSTS - Advertising costs are expensed as incurred. There were
minimal advertising costs incurred for the three and six months ended September
30, 2008 and 2007.

FOREIGN CURRENCY TRANSLATION - Foreign entities whose functional currency is the
local currency translate net assets at the end of period rates and income and
expense accounts at average exchange rates for the three and six month periods.
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 SFAS 123R as
interpreted by SEC Staff Accounting Bulletin No. 107. The company adopted the
related to stock-based awards granted subsequent to January 1, 2006, based on
the grant date fair value estimated in accordance with the provisions of 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 Six Months Ended
                                                   September 30,
                                             ------------------------
                                                2008          2007
                                                ----          ----
         Risk free interest rate ..........     3.96%         5.87%
         Expected life ....................   8.02 yrs      8.04 yrs
         Dividend rate ....................     0.00%         0.00%
         Expected volatility ..............     112%          111%

         The company recorded $250,811 and $78,526 of compensation expense, net
of related tax effects, relative to stock options for the six months ended
September 30, 2008 and 2007, respectively in accordance with Financial
Accounting Standards No. 123-R, Share-Based Payment, ("SFAS 123R"). Net loss per
share basic and diluted for this expense was approximately ($0.00).

         As of September 30, 2008, there is approximately $884,228 of total
unrecognized costs related to employee granted stock options that are not
vested. These costs are expected to be recognized over a period of approximately
three years.

                                        9
<PAGE>

         The company accounts for non-employee stock transactions in accordance
with SFAS No. 123R and EITF 96-18. The company did not issue grants for shares
of common stock to non-employees during the six months ended September 30, 2008.
There are 273,929 stock options outstanding for non-employees as of September
30, 2008 at an average exercise price of $.342 per share.

         On April 27, 2008, the company's compensation committee granted
performance stock option grants for 135,000 shares of common stock to the
employees of GPlus Media at an average price of $.280 per share, the close price
on April 26, 2008, the last day before the compensation committee meeting. The
stock option grants vest on March 31, 2009 if GPlus achieves revenues of
$3,200,000 for the April 1, 2008-March 31, 2009 period and are being awarded to
employees of an equity investment.

         On May 16, 2008, the board of directors, upon the recommendation of the
compensation committee, granted stock options to purchase common stock of
700,000 shares to our executive officers. The options were granted at the fair
market price of $0.29 per share based on the adjusted closing price on May 9,
2008, the day the board of directors agreed on the grant. In accordance with the
2007 Stock Incentive Plan, the stock options vest quarterly over three years and
expire on May 8, 2018.

         On May 30, 2008, the company's board of directors, the company granted
stock options to purchase common stock of 656,000 shares to Global Hotline
Philippines Inc. The options were granted at the fair market price of $0.28 per
share based on the adjusted closing price on May 30, 2008, the day the board of
directors approved the grant. In accordance with the 2007 Stock Incentive Plan,
the stock options vest quarterly over three years and expire on May 29, 2018.

         On July 29, 2008, the company's compensation committee, granted stock
options to purchase common stock of 200,000 shares each to Mr. Anan, Mr. Ishii,
Mr. La Cara, Mr. Nelson, Mr. Schneideman, Mr. Scott and Ms. Towada for their
election to the board of directors. The options were granted at the fair market
price of $0.12 per share based on the adjusted closing price on July 29, 2008,
the day the directors were elected to the board of directors. In accordance with
the IA Global, Inc. 2007 Stock Incentive Plan, as amended (the "Plan") the stock
options vest quarterly over three years and expire on July 28, 2018.

         On July 29, 2008, the stockholders voted to increase the number of
shares authorized under the Plan from 20,000,000 to 27,500,000 at the company's
annual shareholder meeting.

         On July 31, 2008, Eric La Cara, a director, exercised stock options
totaling 62,958 shares of common stock for $10,800 or $.172 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, 2008 and March 31, 2008, the company has
a deferred tax asset of $1,397,318 and $1,477,580, respectively, based on prior
Japanese net operating losses that company management has determined is
available to offset future taxable income and that is expected to be realized.

                                       10
<PAGE>

LITIGATION COSTS - The company is subject to possible legal actions arising in
the ordinary course of business. The company regularly reviews the status of
pending legal actions to evaluate the amount and likelihood of any potential
loss. The company accrues for these potential losses when it is probable that a
liability has been incurred and the amount of loss, or possible range of loss,
can be reasonably estimated. If actual results differ significantly from the
company's estimates, the company may be required to adjust its accruals in the
future. The company has no pending legal proceedings against it as of September
30, 2008.

EQUITY INVESTMENTS - The company accounts for equity investments using the
equity method unless its value has been determined to be other than temporarily
impaired, in which case we write the investment down to its impaired value. The
company reviews these investments periodically for impairment and makes
appropriate reductions in carrying value when an other-than-temporary decline is
evident; however, for non-marketable equity securities, the impairment analysis
requires significant judgment. During its review, the company evaluates the
financial condition of the issuer, market conditions, and other factors
providing an indication of the fair value of the investments. Adverse changes in
market conditions or operating results of the issuer that differ from
expectation, could result in additional other-than-temporary losses in future
periods. The equity investments were not considered impaired as of September 30,
2008.

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, 2008, there were options outstanding for the
purchase of 12,000,512 common shares, warrants for 4,462,243 common shares and
shares issued as collateral for loans of 9,000,000 shares of common stock which
could potentially dilute future earnings per share.

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

USE OF ESTIMATES - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

                                       11
<PAGE>

RECENT ACCOUNTING PRONOUNCEMENTS

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

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

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

         In June 2007, the Emerging Issues Task Force of the FASB issued EITF
Issue No. 07-3, Accounting for Nonrefundable Advance Payments for Goods or
Services to be Used in Future Research and Development Activities, ("EITF 07-3")
which is effective for fiscal years beginning after December 15, 2007. EITF 07-3
requires that nonrefundable advance payments for future research and development
activities be deferred and capitalized. Such amounts will be recognized as an
expense as the goods are delivered or the related services are performed. The
adoption of EITF 07-3 did not have a material impact on the Company's results of
operations, financial position or liquidity.

                                       12
<PAGE>

         In May 2008, the Financial Accounting Standards Board ("FASB") issued
FASB Staff Position ("FSP") APB 14-1, Accounting for Convertible Debt
Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash
Settlement). FSP APB 14-1 clarifies that convertible debt instruments that may
be settled in cash upon either mandatory or optional conversion (including
partial cash settlement) are not addressed by paragraph 12 of APB Opinion No.
14, Accounting for Convertible Debt and Debt issued with Stock Purchase
Warrants. Additionally, FSP APB 14-1 specifies that issuers of such instruments
should separately account for the liability and equity components in a manner
that will reflect the entity's non-convertible debt borrowing rate when interest
cost is recognized in subsequent periods. FSP APB 14-1 is effective for
financial statements issued for fiscal years beginning after December 15, 2008,
and interim periods within those fiscal years. The Company will adopt FSP APB
14-1 beginning in the first quarter of fiscal 2009, and this standard must be
applied on a retrospective basis. The company is evaluating the impact the
adoption of FSP APB 14-1 will have on its consolidated financial position and
results of operations.

         In May 2008, the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 162, The Hierarchy of Generally Accepted Accounting
Principles. This standard is intended to improve financial reporting by
identifying a consistent framework, or hierarchy, for selecting accounting
principles to be used in preparing financial statements that are presented in
conformity with generally accepted accounting principles in the United States
for non-governmental entities. SFAS No. 162 is effective 60 days following
approval by the U.S. Securities and Exchange Commission ("SEC") of the Public
Company Accounting Oversight Board's amendments to AU Section 411, The Meaning
of Present Fairly in Conformity with Generally Accepted Accounting Principles.
The company does not expect SFAS No. 162 to have a material impact on the
preparation of its consolidated financial statements.

         On June 16, 2008, the FASB issued final Staff Position (FSP) No. EITF
03-6-1, "Determining Whether Instruments Granted in Share-Based Payment
Transactions Are Participating Securities," to address the question of whether
instruments granted in share-based payment transactions are participating
securities prior to vesting. The FSP determines that unvested share-based
payment awards that contain rights to dividend payments should be included in
earnings per share calculations. The guidance will be effective for fiscal years
beginning after December 15, 2008. The company is currently evaluating the
requirements of (FSP) No. EITF 03-6-1 as well as the impact of the adoption on
its consolidated financial statements.

NOTE 3.  ACQUISITION, EQUITY INVESTMENT AND DIVESTITURES

Business Process Outsourcing ("BPO")

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.

                                       13
<PAGE>

         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, 2008. There were no contingent payments, options
or commitments in the acquisition agreement. There was no purchased research and
development assets acquired or written off with the acquisition.

         Global Hotline was established on September 7, 2004, as an operator of
major call centers providing outbound telemarketing services for
telecommunications and insurance products. Since our acquisition of Global
Hotline in June 2005, this business has expanded rapidly with the signing of
significant multi-year contracts with major corporations. As of September 30,
2008, they operate ten call centers in Japan and employ 1,221 full time and part
time employees.

         On July 25, 2007, Global Hotline announced that it had closed an
Agreement with KDDI for the three month period ending September 30, 2007. Global
Hotline agreed to sell telephone products on behalf of KDDI and will be paid an
hourly rate, with payment due in 30 days after the month billed. Subsequently,
the company automatically renewed this contract through September 30, 2008. On
October 20, 2008, Global Hotline announced that it had signed an Agreement with
KDDI for the three month period from October 1, 2008 to December 31, 2008. GHI
has agreed to sell telephone and wireless products on behalf of KDDI and will be
paid an hourly rate for products sold with a possible bonus on wireless sales if
certain volume targets are achieved, with payments due in 30 days after the
month billed. The Agreement may be cancelled under certain conditions.

         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, 2008, the parties
automatically renewed this agreement and it will expire on December 22, 2009.
The Partner Contract may be cancelled under certain conditions.

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

                                       14
<PAGE>

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

         On October 21, 2008, IA Partners announced that a Memorandum on
Telemarketing Support and an Agency Agreement (together, the "Agreements") were
signed with AFLAC for the period June 1, 2008 through May 31, 2009. The IA
Partners has agreed to sell insurance products on behalf of AFLAC, with fees
payable based on booths operated and a percentage of the annual premium sold,
with payments due in 30 days after the month billed. The Agreements may be
cancelled under certain conditions.

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

         On May 21, 2007, IA Partners entered into a Call Center Business
Service Agency Agreement with NTT, a Japanese company. IA Partners sells various
internet and broadband products on behalf of NTT, with sales commissions payable
from 30 days after confirmation by NTT. The Agency Agreement expires on May 20,
2008. The Agency Agreement can be terminated by either party upon ninety days
notice. The Agency Agreement may be cancelled under certain conditions. To
service this Agency Agreement, IA Partners opened a call center in Osaka, Japan.
Sales activities started in October 2007. The Agency Agreement was automatically
renewed on May 19, 2008 through May 21, 2009. The Agreement may be cancelled
under certain conditions.

         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 may be cancelled under certain conditions.
The Agency Agreement was automatically renewed July 8, 2008 for the period and
August 8, 2008 through August 7, 2009.

         On January 7, 2008, Inforidge entered into an Outbound Telemarketing
Agreement, effective as of November 30, 2007, with Alico. Pursuant to this
agreement, Inforidge will receive payments for expanding telemarketing
operations related to prior agreements with Alico. The Agreement expired on
March 31, 2008, but has been extended through December 31, 2008.

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

                                       15
<PAGE>

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

         On May 9, 2008, Global Hotline entered into Sales and Promotion
Agreements with Belluna Co. Ltd., a Japanese company ("Belluna"). Global Hotline
agreed to represent Belluna in its mail order business, with sales commissions
payable in thirty days. The Agreements expire on May 8, 2009 and 2010, and are
automatically renewable for an additional year. The Agreements may be cancelled
with 90 or 120 days notice, respectively. The Agreements may be cancelled under
certain other conditions.

         On May 9, 2008, Inforidge entered into Recruiting Agreements with
Belluna. Inforidge agreed to assist Belluna in temporary hiring for its mail
order business, with commissions payable in thirty days. The Agreement expires
on May 8, 2009, and is automatically renewable for an additional year. The
Agreements may be cancelled under certain conditions.

         On May 7, 2008, Global Hotline and Inforidge entered into Agreements
with Zurich Japan Co Ltd., a Japanese company ("Zurich"). Pursuant to these
Agreements, Global Hotline and Inforidge agreed to sell insurance products on
behalf of Zurich, with sales commissions payable in thirty days. The Agreements
have no expiration date, but can be cancelled with sixty days notice by either
party. The Agreements may be cancelled under certain other conditions.

GLOBAL HOTLINES PHILIPPINES INC.

         In the Philippines, IA Global is the 100% owner of Asia Premier
Executive Suites Inc. ("Asia Premier") and Shift Resources Inc. ("Shift"),
companies who have now been merged into a single organization named Global
Hotline Philippines Inc. ("GHP").

         On May 27, 2008, the company acquired 100% of Asia Premier. Asia
Premier provides flexible in-bound and out-bound call center, lead generation,
and co-location service solutions on a very competitive basis to international
companies. Asia Premier facilities are equipped with a fully redundant,
world-class internet and network facilities, are capable of handling 300 or more
seats, has a 24-hour back-up so clients can be assured of a seamless service,
consistent high-quality bandwidth and technical support 365 days a year.

         The transaction was structured as a share exchange in which IA Global
issued 1,250,000 shares of its common stock at $.24 per share, the close price
during the negotiations, totaling $300,000; plus three Notes Payable totaling
$268,000, of which $189,000 was paid as of November 19, 2008 and the balance is
expected to paid by December 31, 2008 and an earn-out capped at $50,000 based on
profitability of the Asia Premier business through January 27, 2009. The
transaction was valued at $618,000.

         On April 10, 2008, the company acquired the 100% acquisition of Shift.
Shift provides a range of in-bound and out-bound call centers, lead generation
and customer service solutions for international companies across multiple time
zones.

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

                                       16
<PAGE>

         As of September 30, 2008, GHP operates one call center in the
Philippines and employs 77 full time and part time employees.

Human Capital and Resources

EQUITY INVESTMENT IN GPLUS MEDIA CO LTD

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

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

         For the six months ended September 30, 2008, the company recorded a
gain on our investment in GPlus of $53,418 that increased our investment in
GPlus. The investment in GPlus was valued at $1,407,908 as of September 30,
2008.

EQUITY INVESTMENT IN SLATE CONSULTING CO LTD

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

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

         For the six months ended September 30, 2008, the company recorded a
gain on our investment in Slate of $23,565 that increased our investment in
Slate. The investment in Slate was valued at $1,409,153 as of September 30,
2008.

Financial Services Equity Investments

EQUITY INVESTMENT IN AUSTRALIAN SECURED FINANCIAL LIMITED

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

                                       17
<PAGE>

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

         For the six months ended September 30, 2008, the company recorded a
profit on our investment in ASFL of $274,611 that increased our investment in
ASFL. The investment in ASFL was valued at $7,244,058 as of September 30, 2008.

EQUITY INVESTMENT IN TAICOM SECURITIES CO LTD

         On June 3, 2008, the company announced that it had closed a 20% equity
investment in Taicom Securities Co Ltd ("Taicom"), a Japanese securities firm.
This equity investment was an expansion of the financial services business of IA
Global.

         Taicom is a financial services company in Japan providing a broad range
of value-added financial services and competitive products. These services
currently include the brokerage of Japanese commodities, derivative options,
foreign currency, equities and investment trusts as well as the offering of
investment consulting services to diversified clients such as individuals and
corporations. Taicom offers creative solutions that meet the sophisticated
trading needs of its online and offline clients, who utilize Taicom's
cutting-edge proprietary trading platform called TradePro, as well as its broad
news and information gathering network.

         Taicom is a member of the Osaka Stock Exchange, the Tokyo Commodity
Exchange, the Tokyo Grain Exchange and the Chubu (Central Japan) Commodity
Exchange. Taicom is headquartered in Tokyo and in Osaka and has 3 branch offices
in Japan.

         The transaction between the Company and Taicom was structured as a
share exchange in which the Company issued 26,000,000 shares of its common stock
at $.20 per share, the close price during the negotiations in exchange for
1,389,750 Class B Preferred Shares of Taicom. The transaction was valued at
$5,200,000.

         For the six months ended September 30, 2008, the company recorded a
loss on our investment in Taicom of $220,244 that decreased our investment in
Taicom. The investment in Taicom was valued at $4,979,756 as of September 30,
2008.

                                       18
<PAGE>

PRO-FORMA FINANCIAL DATA

         The pro-forma financial data for the equity investments for the six
months ended September 30, 2008 and 2007:

Six Months Ended September 30, 2008 (Unaudited)
<TABLE>
<CAPTION>
                                               Pre-             Pre-
                                           Acquisition      Acquisition
                                          Operations of    Operations of
                                             Taicom        Global Hotline      Pro Forma
                          As Reported      Securities       Philippines        Six Months
                          Six Months        April 1 -        April 1 -           Ended
                         September 30,       June 3,          May 27,        September 30,
                              2008            2008 *           2008 *            2008
                         -------------    -------------    --------------    -------------
<S>                      <C>              <C>              <C>               <C>
Revenue .............    $ 35,052,315     $          -     $      37,525     $ 35,089,840
Income (loss) before
 extraordinary items         (970,848)        (260,807)             (679)      (1,232,335)
Net income (loss) ...        (970,848)        (260,807)             (679)      (1,232,334)
Net profit per common
 share ..............           (0.01)               -                 -            (0.01)
</TABLE>

* - Taicom Securities equity investment closed on June 3, 2008 and the Global
Hotline Philippines acquisitions closed on April 10, 2008 (Shift Resources) and
on May 24, 2008 (Asia Premier).

Six Months Ended September 30, 2007
<TABLE>
<CAPTION>
                                                                Pre-
                                               Pre-         Acquisition
                                           Acquisition     Operations of
                                          Operations of        Slate          Pro Forma
                          As Reported      GPlus Media      Consulting        Six Months
                          Six Months        April 1 -        April 1 -          Ended
                         September 30,      August 23,       August 23,      September 30,
                              2007            2007 *           2007 *            2007
                         -------------    -------------    --------------    -------------
<S>                      <C>              <C>              <C>               <C>
Revenue .............    $ 11,976,334     $          -     $           -     $ 11,976,334
Loss (income) before
 extraordinary items       (5,747,642)    $     (4,098)             6,582      (5,745,158)
Net loss (income) ...      (5,747,642)    $     (4,098)             6,582      (5,745,158)
Loss per common share           (0.04)               -                  -           (0.04)
</TABLE>

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

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

                                       19
<PAGE>

NOTE 4.  ACCOUNTS RECEIVABLE/CUSTOMER CONCENTRATION

         Accounts receivable were $8,359,048 and $12,746,290 as of September 30,
2008 and March 31, 2008, respectively. The company had the following customers
with sales in excess of 10%, and these are their respective percentages of
consolidated revenue for the following periods:

                                           Six Months Ended    Year Ended
                                             September 30,      March 31,
                                                 2008             2008
                                           ----------------    ----------
         KDDI Network Solutions .......           24%              27%
         Internet Service Partners/ NTT           17%              27%
         AIG ..........................           12%              21%
         Softbank .....................           30%              15%

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

         KDDI accounted for 18% and 11% of accounts receivable as of September
30, 2008 and March 31, 2008, respectively. Internet Service Partners/ NTT
accounted for 40% and 23% of total accounts receivable as of September 30, 2008
and March 31, 2008, respectively. AIG accounted for 3% and 20% of total accounts
receivable as of September 30, 2008 and March 31, 2008, respectively. Softbank
accounted for 3% and 31% of total accounts receivable as of September 30, 2008
and March 31, 2008. The company anticipates that significant customer
concentration will continue for the foreseeable future.

NOTE 5.  PREPAID EXPENSES

         Prepaid expenses were $564,232 and $1,987,164 as of September 30, 2008
and March 31, 2008, respectively. Such assets as of September 30, 2008 and March
31, 2008 included prepaid insurance, prepaid financing costs and other costs
incurred by the company and rent and other expenses incurred by Global Hotline.

NOTE 6.  EQUIPMENT

         Equipment, net of accumulated depreciation, was $2,963,634 and
$2,431,954 as of September 30, 2008 and March 31, 2008, respectively.
Accumulated depreciation was $1,569,201 and $1,128,000 as of September 30, 2008
and March 31, 2008, respectively. Total depreciation expense was $435,509 and
$171,943 for the six months ended September 30, 2008 and 2007, respectively. All
equipment is used for selling, general and administrative purposes and
accordingly all depreciation is classified in selling, general and
administrative expenses.

         Property and equipment is comprised of the following:

                                    Estimated       September 30,     March 31,
                                   Useful Lives         2008            2008
                                  --------------    ------------    -----------
Equipment and vehicles .......    24 - 60 months    $ 3,432,835     $ 2,559,954
Leasehold Improvements .......    27 - 60 months      1,100,000       1,000,000
                                                    -----------     -----------
                                                      4,532,835       3,559,954
Less: accumulated depreciation                       (1,569,201)     (1,128,000)
                                                    -----------     -----------
                                                    $ 2,963,634     $ 2,431,954
                                                    ===========     ===========

                                       20
<PAGE>

NOTE 7.  INTANGIBLE ASSETS

         Intangible assets as of September 30, 2008 and March 31, 2008 consisted
of the following:

                                  September 30,     March 31,
                                      2008            2008        Estimated Life
                                  ------------     -----------    --------------
Customer contracts ...........    $  5,621,400     $ 4,946,030        3 years
Less: accumulated amortization      (4,997,990)     (4,614,901)
                                  ------------     -----------
    Intangible assets, net ...    $    623,410     $   331,129
                                  ============     ===========

         Total amortization expense was $383,109 and $794,704 for the six months
ended September 30, 2008 and 2007, respectively.

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

         The fair value of the Global Hotline Philippines 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 its customers. In summary, the estimate was based on a projected income
approach and related discounted cash flows over five years, with applicable risk
factors assigned to assumptions in the forecasted results.

NOTE 8.  OTHER ASSETS

         Other assets were $3,392,396 and $2,704,752 as of September 30, 2008
and March 31, 2008, respectively. Such assets as of September 30, 2008 and March
31, 2008 included bonds related to Global Hotline's leased facilities, loans
receivable from Tesco Co Ltd ("Tesco") and employee loans receivable.

NOTE 9.  ACCRUED LIABILITIES

         Accrued liabilities were $6,599,503 and $7,851,636 as of September 30,
2008 and March 31, 2008, respectively. Such liabilities consisted the following:

                                         September 30,     March 31,
                                             2008            2008
                                         -------------    ----------
Accrued salaries and payroll taxes ...    $2,928,630      $2,239,185
Trade debt not in accounts payable ...     2,041,969       4,308,945
Accrued interest .....................       462,054         504,043
Other accrued expenses ...............     1,166,850         799,462
                                          ----------      ----------
                                          $6,599,503      $7,851,636
                                          ==========      ==========

                                       21
<PAGE>

NOTE 10. NOTES PAYABLE/ LONG TERM DEBT

         Notes payable and long term debt were $16,495,758 and $19,104,249 as of
September 30, 2008 and March 31, 2008 consisted of the following:

Global Hotline, Inc.
--------------------

Mitsui Sumitomo Bank Co Ltd.
----------------------------

         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 September 30,
2013. The loan provides for interest at 2.375% payable monthly starting on
September 30, 2006.

         On December 26, 2006, IA Partners received a 200,000,000 Yen, or
approximately $1,683,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a quarterly payment of principal
of 12,500,000 Yen, or approximately $105,000 at current exchange rates, starting
on March 20, 2008 with a final payment due on December 20, 2011. Interest of
2.00% plus the 3 month TIBOR totaling 2.703% was paid quarterly starting on June
20, 2007.

         On May 16, 2007, Global Hotline received a 50,000,000 Yen, or
approximately $415,400 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a monthly payment of 640,000 Yen,
or approximately $5,300 at current exchange rates, starting on December 31, 2007
with a final payment due on April 30, 2014. Interest of 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.

         On June 19, 2007, IA Partners received a 100,000,000 Yen, or
approximately $812,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co. Ltd. The loan required a balloon payment of 100,000,000
Yen, or approximately $812,000 at current exchange rates, on January 31, 2008.
Interest of 3.0% is paid quarterly starting on June 19, 2007. On April 24, 2008,
IA Partners signed an amendment extending the due date to June 19, 2008. On June
19, 2008, IA Partners signed an amendment extending the term to July 31, 2008.
On August 1, 2008, IA Partners signed an amendment extending the term to August
19, 2008. On September 5, 2008, IA Partners signed an amendment requiring a
monthly repayment of 2,777,000 Yen, or approximately $26,000 at current exchange
rates starting on September 30, 2008. On February 2, 2009, the monthly repayment
is reset over the remaining payment term, which expires September 30, 2009 or
repayment of 88,892,000 Yen or approximately $816,000 at current exchange rates
may be required. Interest of 3.375% is payable monthly starting on September 30,
2008.

         On June 19, 2007, Global Hotline received a 100,000,000 Yen, or
approximately $812,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a monthly payment of 1,666,000
Yen, or approximately $14,000 at current exchange rates, starting on August 1,
2007, with a final payment of 1,707,000 Yen or approximately $14,000 on June 19,
2012. Interest of 3.25% is paid monthly starting on June 19, 2007.

                                       22
<PAGE>

         On July 27, 2007, Global Hotline received a 200,000,000 Yen, or
approximately $1,623,000 at current exchange rates, working capital loan from
Mitsui Sumitomo Bank Co Ltd. The loan requires a balloon payment of 200,000,000
Yen, or approximately $1,623,000 at current exchange rates, on January 25, 2008.
Interest of 3.00% was to be paid on January 25, 2008. On April 30, 2008, Global
Hotline signed an amendment extending the term and interest payment to July 25,
2008. On August 1, 2008, Global Hotline amended the loan. The amendment requires
a monthly repayment of 5,555,000 Yen, or approximately $51,000 at current
exchange rates starting August 31, 2008. On February 2, 2009, the monthly
repayment is reset over the remaining payment term, which expires September 30,
2009 or repayment of 172,255,000 Yen or approximately $1,581,000 at current
exchange rates may be required. Interest of 3.375% is payable monthly starting
August 31, 2008.

         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 required a balloon payment of 300,000,000
Yen, or approximately $2,616,000 at current exchange rates, on November 30,
2007. Interest of 3.00% was to be paid on January 4, 2008. On November 27, 2007,
the loan was amended, extending the due date to December 28, 2007. Subsequently,
Global Hotline signed amendments requiring monthly payments starting on March
31, 2008 of 25,000,000 Yen plus interest or approximately $235,000 at current
exchange rates, with a final payment due on February 28, 2009.

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

Mitsubishi Tokyo UFJ Bank Co Ltd.
---------------------------------

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

                                       23
<PAGE>

         On June 30, 2008, Global Hotline received a 30,000,000 Yen, or
Approximately $283,000 at current exchange rates working capital loan from
Mitsubishi UFJ Bank Co Ltd. The loan requires a balloon payment of 30,000,000
Yen, or approximately $283,000 at current exchange rates on December 30, 2008.
Interest of 2.375% is to be paid on December 30, 2008.

         On June 30, 2008, IA Partners received a 20,000,000 Yen, or
approximately $189,000 at current exchange rates working capital loan from
Mitsubishi UFJ Bank Co Ltd. The loan requires a balloon payment of 20,000,000
Yen, or approximately $189,000 at current exchange rates on December 30, 2008.
Interest of 2.375% is to be paid on December 30, 2008.

Mizuho Bank Co Ltd.
-------------------

         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 June 4, 2008, Global Hotline signed a working capital loan agreement
with Mizuho Bank Co Ltd for 270,000,000 Yen, or approximately $2,607,000, at the
then current exchange rate. The loan requires principal monthly payments of
22,500,000 Yen, or approximately $217,000 at the then current exchange rate,
plus interest of 2.375%, starting on July 5, 2008, with a final payment due on
June 5, 2009.

Other Banks
-----------

         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 2.425% with interest payments starting on
April 30, 2007 and is guaranteed by Tokyo Guarantee Association.

         On August 25, 2008, Global Hotline received a 30,000,000 Yen, or
approximately $272,000 at current exchange rates working capital loan from
Yachiyo Bank Co Ltd. The loan requires a monthly payment of 5,000,000 Yen, or
approximately $45,000 at current exchange rates starting on October 6, 2008 with
a final payment on March 5, 2009. Interest of 2.50% is to be paid starting
October 6, 2008.

         On August 29, 2008, Global Hotline received a 10,000,000 Yen, or
approximately $95,000 at current exchange rates working capital loan from
Higashi-Nippon Bank Co Ltd. The loan requires a monthly payment of 833,000 Yen,
or approximately $8,000 at current exchange rates starting on September 25, 2008
with a final payment on August 25, 2009. Interest of 2.70% is to be paid
starting October 6, 2008. The loan is guaranteed by Tokyo Credit Guarantee
Association. Global Hotline paid a bank fee of 68,250 Yen or approximately
$6,000 at current exchange rates.

         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.

         Global Hotline will need to repay or refinance $9.0 million by
September 30, 2009.

                                       24
<PAGE>

IA Global, Inc.
---------------

         On December 21, 2007, IA Global entered into a $500,000 Loan Agreement
and a Share Mortgage Agreement with Frontier Mortgages Pty Ltd ("Frontier"), an
Australian company affiliated with a selling shareholder of ASFL, an entity in
which the company owns a 36% interest.

         On April 24, 2008, the company entered into a Deed of Variation
Agreement ("Variation Agreement"),amending the terms of its working capital loan
with Frontier for an extension fee of $25,000. Pursuant to the Variation
Agreement, the company repaid $20,000 of the extension fee, $200,000 of
principal and $300,000 of principal on April 28, 2008, April 29, 2008 and May
12, 2008. The balance of the extension fee and any outstanding interest was
repaid during the three months ending September 30, 2008.

         On June 19, 2008, the company entered into a three year loan agreement
with GFS Investments, Inc., pursuant to which the company received a loan in the
principal amount of approximately $330,577 at an interest rate of 11.75% per
annum. The interest is payable quarterly starting October 2008. The company
issued 6,000,000 shares of common stock as of September 30, 2008 and 6,632,500
shares as of November 19, 2008 which serve as collateral for the loan. In
addition, the company paid $59,386 in fees, which are being amortized over the
life of the loan. At the termination of the loan, the company may repay the
loan, forfeit the shares to the lender or renew the loan on a year by year
basis. The loan cannot be terminated without the sole agreement of the lender.

         On July 14, 2008 and August 11, 2008, the company entered into a three
year loan agreement with Artemis Capital Group LLC, pursuant to which the
company received loans in the principal amount of approximately $199,500 at an
interest rate of 7.0% per annum. The interest is payable quarterly starting
October 2008. The company issued 3,000,000 shares of common stock as of
September 30, 2008 and 3,554,546 total shares as of November 19, 2008 which
serve as collateral for the loans. In addition, the company paid $34,613 in
fees, which are being amortized over the life of the loan. At the termination of
the loan, the company may repay the loan, forfeit the shares to the lender or
renew the loan on a year by year basis based on mutually agreeable terms. The
loan cannot be terminated within the first eighteen months of the loan and after
this period, it can be repaid with a 10% penalty.

         All the loans were used for working capital, including the merger and
acquisition program.

NOTE 11. RELATED PARTY RELATIONSHIPS WITH OUR CONTROLLING SHAREHOLDER GROUP AND
         CERTAIN RELATIONSHIPS

         As of September 30, 2008, IAJ LBO Fund, PBAA Fund Limited, Terra Firma,
Inter Asset Japan Co Ltd ("IAJ"), IA Turkey, Hiroki Isobe, Kyo Nagae
(collectively, the "Controlling Shareholders") and Derek Schneideman
collectively hold approximately 37.0% 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 and
627,900 shares of treasury stock. These Controlling Shareholders have stated in
a Schedule 13D that they may be deemed to constitute a "group" for the purposes
of Rule 13d-3 under the Securities and Exchange Act of 1934, as amended
("Exchange Act"). Hiroki Isobe and Kyo Nagae control each of our Controlling
Shareholders. In addition, Mr. Schneideman in his capacity as Chairman and CEO
of the Company has sole voting power and dispositive power with respect to
77,613,470 shares of common stock or approximately 47.1% of the outstanding
shares of common stock of IA Global for all of the company's 2008 shareholder
meetings pursuant to a proxy granted on February 21, 2008.

                                       25
<PAGE>

         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, 2008, that are relevant for purposes of
understanding the related party transactions that have taken place:

Ownership:

IA Global, Inc. owns:
      Global Hotline, Inc. .........................................  100.0%
      Global Hotline Philippines, Inc. .............................  100.0% (1)
      IA Global Japan Co Ltd. ......................................  100.0%
      GPlus Media Co Ltd. ..........................................   25.0%
      Slate Consulting Co Ltd. .....................................   20.25%
      Australian Secured Financial Limited. ........................   36.0%
      Taicom Securities Co Ltd. ....................................   20.0% (2)

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

Inter Asset Japan LBO No. 1 Fund owns:
      IA Global, Inc. ..............................................   14.1%

PBAA Fund Ltd. owns:
      IA Global, Inc. ..............................................   11.4%

Terra Firma Fund Ltd. owns:
      IA Global, Inc. ..............................................    6.2%

Inter Asset Japan Co., Ltd. owns:
      IA Global, Inc. ..............................................    1.0%

IA Turkey Equity Portfolio Ltd owns:
      IA Global, Inc. ..............................................    1.2%

Mr. Hiroki Isobe owns:
      IA Global, Inc. ..............................................    2.1%
      Tesco Co Ltd. ................................................   23.0%

Kyo Nagae owns:
      IA Global, Inc. ..............................................    0.7%

(1) Established on July 4, 2008.

(2) Equity investment closed June 3, 2008.

KYO NAGAE RELATIONSHIP WITH IAJ

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

INTER ASSET JAPAN RELATIONSHIP WITH TESCO CO LTD

         IAJ owns a 23% minority ownership percentage in Tesco. Global Hotline
has an agent agreement with Tesco to sell their lighting products. Tesco owes
Global Hotline $3,431,033 and $2,046,513 as of September 30, 2008 and March 31,
2008, respectively.

                                       26
<PAGE>

NOTE 12. EQUITY TRANSACTIONS/ TREASURY STOCK

         During the six months ended September 30, 2008, the following
stockholder equity events occurred:

         On March 22, 2007, the company announced a stock repurchase program.
Starting on April 2, 2007, the company may repurchase up to 4,000,000 shares at
market prices in open market or private transactions. As of June 30, 2008, the
company repurchased 2,654,255 shares in public and private transactions at an
average price of $0.281 per share. The company reused 2,026,355 shares as part
of our Slate equity investment at an average cost of $.267 per share. The
company owns 627,900 shares at an average cost of $.323 per share as of
September 30, 2008. The shares are valued using the cost method of accounting
for treasury stock.

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

         On April 10, 2008, the company signed definitive agreements and closed
the 100% acquisition of Shift. The transaction was structured as a share
exchange in which the company issued 826,086 shares of its common stock at $.23
per share, the close price during the negotiations, totaling $190,000 plus a
payment of $35,000. The transaction was valued at $225,000.

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

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

         On May 27, 2008, the company acquired 100% of Asia Premier. The
transaction was structured as a share exchange in which IA Global issued
1,250,000 shares of its common stock at $.24 per share, the close price during
the negotiations, totaling $300,000; plus three Notes Payable totaling $268,000,
which become due over the next nine months, and an earn-out capped at $50,000
based on profitability of the Asia Premier business over the next nine months.
The transaction was valued at $618,000.

         On June 3, 2008, the company announced that it had closed a 20% equity
investment in Taicom. The transaction between the Company and Taicom was
structured as a share exchange in which the company issued 26,000,000 shares of
its common stock at $.20 per share, the close price during the negotiations in
exchange for 1,389,750 Class B Preferred Shares of Taicom. The transaction was
valued at $5,200,000.

                                       27
<PAGE>

         On June 28, 2008, the company converted $2,300,000 of debentures by
issuing 7,666,679 shares of common stock. In addition, the company expects to
issue an additional 5,862,734 shares during the three months ended December 31,
2008 based on the June 23-27, 2008 average closing price of $.22 per share less
25% due to the resetting of the pricing for these outstanding debentures. On
September 22, 2008, the company agreed to issue 463,658 shares of common stock
to certain debenture holders related to the conversion of $78,822 of interest at
$.17 per share.

         On July 9, 2008, the company filed a registration statement on Form S-3
covering 33,112,422 shares, related to equity investments, acquisitions and
service agreements which was declared effective by the SEC on July 23, 2008.

         On July 23, 2008, the company agreed to issue 15,000 shares at $.20 per
share or $3,000 to Anna Alioto, above the closing market price of $0.14 per
share, for investor relation services.

         On July 28, 2008, the company issued warrants for a total of 1,900,000
shares of common stock to Mr. Ning related to the common stock he purchased on
April 24, 2008 and May 8, 2008. The warrants are exercisable at $.17 per share
and expire on July 27, 2013.

         On July 31, 2008, the company filed a shelf registration statement on
Form S-3, which was declared effective by the SEC on August 7, 2008. This
registration statement allows for the issuance of preferred stock, common stock
and warrants valued up to $5 million and provides for the issuance of no more
than 33% of our public float in any twelve month period.

         Between August 21, 2008 and August 26, 2008, the company sold 582,609
shares of common stock to Mr. La Cara, Mr. Ishii, Mr. Nelson and Ms. Towada for
$64,087, or $0.11 per share, the closing market price on the day preceding the
signing of the private placement memorandum.

         On September 12, 2008, the company agreed to issue 100,000 shares at
$.10 per share to Financial West Investment Group, Inc., the closing market
price on September 11, 2008, for financing and investor relation services.

NOTE 13. 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.

                                       28
<PAGE>

         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. On September 4, 2008,
the Schneideman Agreement automatically renewed through September 4, 2009. 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.

         On May 16, 2008, the board of directors, upon the recommendation of the
compensation committee, approved the 2008/9 compensation and bonus package for
Derek Schneideman. Pursuant to this package, Mr. Schneideman may be paid a bonus
in common stock up to $255,000, as may be declared by the company's compensation
committee, based on Mr. Schneideman raising capital, certain profitability
targets and achieving share price improvement for the Company. In addition, Mr.
Schneideman was awarded an annual salary increase of $37,500 issued in common
stock and was granted stock options to purchase common stock of 500,000 shares.
The options were granted at the fair market price of $0.29 per share based on
the adjusted closing price on May 9, 2008, the day the board of directors agreed
on the grant. In accordance with the 2007 Stock Incentive Plan, the stock
options vest quarterly over three years and expire on May 8, 2018.

         On May 15, 2008, Mr. Schneideman was awarded 131,400 shares of common
stock under the 2007 Stock Incentive Plan. The board of directors, upon the
recommendation of the compensation committee, awarded the shares in lieu of an
annual salary increase. The number of shares awarded was based on his $250,000
base compensation for 2007 or 15.0% and was for his 2007 performance. The
compensation committee believes the issuance of shares of common stock more
closely aligns management with its shareholders. The company and Mr. Schneideman
entered into a Restricted Stock Agreement for this award.

         The shares were valued at $.29 per share, the close price on May 15,
2008, the last day before the compensation committee meeting. The shares will
have a three month restriction under the 2007 Stock Incentive Plan, and fully
vest on August 15, 2008.

         On October 22, 2008, Mr. Schneideman was awarded 151,670 shares of
common stock under the 2007 Stock Incentive Plan. The compensation committee
awarded the shares based on his achievement of a bonus included in his 2008
bonus program. The company and Mr. Schneideman entered into a Restricted Stock
Agreement for this award.

                                       29
<PAGE>

         The shares were valued at $.07 per share, the close price on October
21, 2008, the last day before the compensation committee meeting. The shares
will have a three month restriction under the 2007 Stock Incentive Plan, and
will fully vest on January 20, 2009.

         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. On September 4, 2008, the Scott
Agreement automatically renewed through September 4, 2009. 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.

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

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

         On October 22, 2008, Mr. Scott was awarded 113,752 shares of common
stock under the 2007 Stock Incentive Plan. The compensation committee awarded
the shares based on his achievement of a bonus included in his 2008 bonus
program. The company and Mr. Scott entered into a Restricted Stock Agreement for
this award.

         The shares were valued at $.07 per share, the close price on October
21, 2008, the last day before the compensation committee meeting. The shares
will have a three month restriction under the 2007 Stock Incentive Plan, and
will fully vest on January 20, 2009.

                                       30
<PAGE>

         On May 16, 2008, the company's board of directors, upon the
recommendation of the compensation committee, ratified the 2008/9 compensation
and bonus package for Mark Scott. Pursuant to this package, Mr. Scott may be
paid a bonus in common stock up to $155,000, as may be declared by the company's
compensation committee, based on Mr. Scott raising capital, certain
profitability targets and achieving share price improvement for the company. In
addition, Mr. Scott was awarded an annual salary increase of $35,500 issued in
common stock and was granted stock options to purchase common stock of 200,000
shares. The options were granted at the fair market price of $0.29 per share
based on the adjusted closing price on May 9, 2008, the day the board of
directors agreed on the grant. In accordance with the 2007 Stock Incentive Plan,
the stock options vest quarterly over three years and expire on May 8, 2018.

NOTE 14. 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) Global Hotline Philippines,
which provides flexible in-bound and out-bound call center, lead generation, and
co-location service solutions on a very competitive basis to international
companies, and (iv) our equity investments, including GPlus Media, Slate, ASFL
and Taicom Securities.

         The following table presents revenues, operating income (loss) and
total assets by company for the three and six months ended September 30, 2008
and 2007:

                                       31
<PAGE>
<TABLE>
(dollars in thousands)
<CAPTION>
                                                                Global
                                    IA           Global        Hotline,
                                  Global,       Hotline,     Philippines,      Equity
Company                            Inc.           Inc.            Inc.       Investments      Total
                                 --------       --------     ------------    -----------    --------
<S>                              <C>            <C>            <C>            <C>           <C>
Three Months Ended-
   September 30, 2008
   Revenue ................      $      -       $ 15,187       $   177        $      -      $ 15,364
   Operating loss .........          (711)        (1,007)          (64)              -        (1,782)
   Total assets ...........           143         21,888           886          15,041        37,958

   September 30, 2007
   Revenue ................      $      -       $  6,462       $     -        $      -      $  6,462
   Operating loss .........          (476)        (3,961)            -               -        (4,437)
   Total assets ...........           492         20,468             -           9,881        30,841

Six  Months Ended-
   September 30, 2008
   Revenue ................      $      -       $ 34,728       $   324        $      -      $ 35,052
   Operating (loss) income         (1,518)         1,650           (78)              -            54
   Total assets ...........           143         21,888           886          15,041        37,958

   September 30, 2007
   Revenue ................      $      -       $ 11,977       $     -        $      -      $ 11,977
   Operating loss .........        (1,119)        (6,389)            -               -        (7,508)
   Total assets ...........           492         20,468             -           9,881        30,841

<CAPTION>
Geographic Region                  U.S.           Japan       Philippines     Australia       Total
                                 --------       --------      -----------     ---------     --------
<S>                              <C>            <C>            <C>            <C>           <C>
Three Months Ended-
   September 30, 2008
   Revenue ................      $      -       $ 15,187       $   177        $      -      $ 15,364
   Operating loss .........          (711)        (1,007)          (64)              -        (1,782)
   Total assets ...........           113         29,715           886           7,244        37,958

   September 30, 2007
   Revenue ................      $      -       $  6,462       $     -        $      -       $ 6,462
   Operating loss .........          (476)        (3,961)            -               -        (4,437)
   Total assets ...........           492         23,269             -           7,080        30,841

Six  Months Ended-
   September 30, 2008
   Revenue ................      $      -       $ 34,728       $   324        $      -      $ 35,052
   Operating (loss) income         (1,518)         1,650           (78)              -            54
   Total assets ...........           113         29,715           886           7,244        37,958

   September 30, 2007
   Revenue ................      $      -       $ 11,977       $     -        $      -      $ 11,977
   Operating loss .........        (1,119)        (6,389)            -               -        (7,508)
   Total assets ...........           492         23,269             -           7,080        30,841
</TABLE>

The following reconciles operating loss to net loss:

(dollars in thousands)                 3 Months Ended,         6 Months Ended,
                                        September 30,           September 30,
                                      2008        2007        2008        2007
                                    -------     -------     -------     -------
Operating (loss) income ........    $(1,782)    $(4,437)    $    54     $(7,508)
Other expense ..................       (351)       (451)       (355)       (110)
                                    -------     -------     -------     -------
Loss before income taxes .......     (2,133)     (4,888)       (301)     (7,618)
Income tax (benefit) provision .       (435)     (1,267)        670      (1,870)
                                    -------     -------     -------     -------
Net loss .......................    $(1,698)    $(3,621)    $  (971)    $(5,748)
                                    =======     =======     =======     =======

                                       32
<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 $35.1 million and $12.0 million for the six months
ended September 30, 2008 and 2007, respectively. We are projecting revenues of
$65 million for the twelve months ended March 31, 2009 as compared to $38.7
million for the twelve months ended March 31, 2008. We have incurred a net loss
$1.0 million for the six months ended September 30, 2008 as compared to a net
loss of $5.7 million for the six months ended September 30, 2007.

         During 2008/9, we entered into loans of $.5 million at IA Global and
$3.4 million at Global Hotline. During 2008/9, we repaid loans of $.5 million at
IA Global and $4.1 million at Global Hotline. We expect to continue reducing
debt during FY 2008/9 with the improvement in Global Hotline operating results
starting January 1, 2008. Global Hotline will need to repay or refinance $9.0
million by September 30, 2009.

         Historically, 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.

         IA Global and each subsidiary manage their cash flow independently. IA
Global funds its operations from loans, convertible debentures, inter-company
borrowings, loans collateralized by stock, management service fees and dividends
from its equity investments. Global Hotline funds its operations from bank debt
and at times needs to refinance this bank debt. Global Hotline Philippines funds
its operations from inter-company borrowings.

         Each entity will need to obtain additional financing in order to
continue our current operations. There can be no assurance that we will be able
to secure funding for our existing operations, or that if such funding is
available, whether the terms or conditions would be acceptable to us.

THE COMPANY AND OUR BUSINESS

         IA Global, Inc. is a broad based services 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.

                                       33
<PAGE>

         To realize this plan, we are actively expanding investments in the
business process outsourcing ("BPO"), this also includes human resources and
human capital elements necessary to recruit and train the very large numbers of
people necessary to transact BPO, B2B and financial services sectors. These
sectors demonstrate long-term growth prospects in which we, by applying our
skills and resources, can add significant value to our investments. Beyond
Japan, we are expanding our reach to encompass, the Philippines, Southeast Asia
and the outstanding growth opportunities and synergies these markets present.

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

BUSINESS PROCESS OUTSOURCING

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

         This growth trajectory is being driven by new contracts, process
improvements, infrastructure expansion, and macro economic trends such as the
ongoing gains in the Japanese economy, consistent year on year growth in
targeted industries, higher disposable incomes, and the increasingly rapid
growth of the senior citizen demographic. As of September 30, 2008, Global
Hotline employed 1,221 full and part-time personnel to support these
multi-million dollar contracts. In the Philippines, we acquired 100% of Shift on
April 10, 2008 and Asia Premier on May 27, 2008, multi-service call center
operations that have now been merged into a single company named Global Hotline
Philippines Inc.

HUMAN CAPITAL AND RESOURCES

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

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

                                       34
<PAGE>

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

FINANCIAL SERVICES

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

         In Japan, we have a 20% stake in Taicom Securities Co Ltd ("Taicom"), a
Japanese securities firm. Taicom is a financial services Company in Japan
providing a broad range of value-added financial services and competitive
products. These currently include the brokerage of Japanese commodities,
derivative options, foreign currency, equities and investment trusts as well as
the offering of investment consulting services to diversified clients such as
individuals and corporations. Taicom offers creative solutions that meet the
sophisticated trading requirements of its online and offline clients, who
utilize Taicom's cutting-edge proprietary trading platform called TradePro, as
well as its broad news and information gathering network.

         Taicom is a member of the Osaka Stock Exchange, the Tokyo Commodity
Exchange, the Tokyo Grain Exchange and the Chubu (Central Japan) Commodity
Exchange. Taicom is headquartered in Tokyo and in Osaka and has three branch
offices in Japan.

KEY MARKET OPPORTUNITIES

         Our key market opportunities are as follows:

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

         - We intend to expand our reach to encompass, the Philippines,
Southeast Asia 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 in Japan and the Philippines, human capital and resources, and B2B
sectors.

         - We intend to deliver profitability during FY 2008/9 on an EBITDA
basis.

         - 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.

                                       35
<PAGE>

PRIMARY RISKS AND UNCERTAINTIES

         We are exposed to various risks related to our need for general
economic, business and industry conditions, our need for additional financing,
our level of indebtedness, our NYSE Alternext US listing a volatile market price
for our common stock, our ASFL investment and our Global Hotline business. These
risks and uncertainties are discussed in Item 1A, "Factors That May Effect
Future Results."

RESULTS OF OPERATIONS

         The following table presents certain consolidated statement of
operations information and presentation of that data as a percentage of change
from period-to-period.
<TABLE>
(dollars in thousands)
<CAPTION>
                                                               3 Months Ended September 30,
                                                  ------------------------------------------------------
                                                    2008           2007        $ Variance     % Variance
                                                  --------       --------      ----------     ----------
<S>                                               <C>            <C>            <C>              <C>

Revenue ....................................      $ 15,364       $  6,462       $  8,902         137.8%
Cost of sales ..............................         3,035          2,201            834          37.9%
                                                  --------       --------       --------       --------
Gross profit ...............................        12,329          4,261          8,068         189.3%
Selling, general and administrative expenses        14,111          8,698          5,413          62.2%
                                                  --------       --------       --------       --------
Operating loss .............................        (1,782)        (4,437)         2,655          59.8%
                                                  --------       --------       --------       --------
Other Income (Expense):
Interest income ............................             1              5             (4)        -80.0%
Interest expense and amortization of
  beneficial conversion feature ............          (222)          (283)            61          21.6%
Other Income ...............................             6              1              5         500.0%
Gain (loss) on equity investment in
  Australia Secured Financial Limited ......            18            (66)            84         127.3%
Gain on equity investment in GPlus Media Co
  Ltd ......................................            21             (1)            22        2200.0%
Gain on equity investment in Slate
  Consulting Co Ltd ........................             1              2             (1)        -50.0%
Loss on equity investment in Taicom
  Securities Co Ltd ........................          (113)             -           (113)       -100.0%
Conversion of debenture expense ............             -           (120)           120         100.0%
Foreign currency transaction adjustment ....           (63)            11            (74)       -672.7%
                                                  --------       --------       --------       --------
Total other expense ........................          (351)          (451)            54          12.0%
                                                  --------       --------       --------       --------
Loss before income  taxes ..................        (2,133)        (4,888)         2,709          55.4%
Income taxes:
Current benefit ............................          (435)        (1,267)           832         -65.7%
                                                  --------       --------       --------       --------
Net loss ...................................      $ (1,698)      $ (3,621)      $  1,877          51.8%
                                                  ========       ========       ========       ========
</TABLE>

                                       36
<PAGE>
<TABLE>
(dollars in thousands)
<CAPTION>
                                                               6 Months Ended September 30,
                                                  ------------------------------------------------------
                                                    2008           2007        $ Variance     % Variance
                                                  --------       --------      ----------     ----------
<S>                                               <C>            <C>            <C>            <C>
Revenue ....................................      $ 35,052       $ 11,977       $ 23,075         192.7%
Cost of sales ..............................         6,230          3,843          2,387          62.1%
                                                  --------       --------       --------       --------
Gross profit ...............................        28,822          8,134         20,688         254.3%
Selling, general and administrative expenses        28,768         15,642         13,126          83.9%
                                                  --------       --------       --------       --------
Operating income (loss) ....................            54         (7,508)         7,562         100.7%
                                                  --------       --------       --------       --------
Other Income (Expense):
Interest income ............................            16             16              -           0.0%
Interest expense and amortization of
  beneficial conversion feature ............          (505)          (510)             5           1.0%
Other Income ...............................            68            570           (502)        -88.1%
Gain (loss) on equity investment in
  Australia Secured Financial Limited ......           275            (78)           353         452.6%
Gain on equity investment in GPlus Media Co
  Ltd ......................................            53             (1)            54        5400.0%
Gain on equity investment in Slate
  Consulting Co Ltd ........................            24              2             22        1100.0%
Loss on equity investment in Taicom
  Securities Co Ltd ........................          (220)             -           (220)       -100.0%
Conversion of debenture expense ............             -           (120)           120         100.0%
Foreign currency transaction adjustment ....           (66)            11            (77)       -700.0%
                                                  --------       --------       --------       --------
Total other expense ........................          (355)          (110)          (288)       -261.8%
                                                  --------       --------       --------       --------
Loss before income  taxes ..................          (301)        (7,618)         7,274          95.5%
Income taxes:
Current provision (benefit) ................           670         (1,870)         2,540         135.8%
                                                  --------       --------       --------       --------
Net loss ...................................      $   (971)      $ (5,748)      $  4,734          82.4%
                                                  ========       ========       ========       ========
</TABLE>

THREE MONTHS ENDED SEPTEMBER 30, 2008 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2007

         Net revenue for the three months ended September 30, 2008 increased
$8,902,000 to $15,364,000, as compared to the three months ended September 30,
2007.

The increase was due to the expansion of the Global Hotline business with the
signing of the following significant contracts with major corporations:

1. KDDI Network and Solutions signed on January 1, 2007 and was increased
   effective July 1, 2007 and April 1, 2008.

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

3. Increased revenues from other Global Hotline contracts.

4. We experienced a decrease in AIG revenues of $2.4 million from the three
   months ended June 30, 2008 due to their financial difficulties. While these
   contracts are in effect, personnel have been allocated to other contracts at
   this time.

                                       37
<PAGE>

COST OF SALES

         Cost of sales for the three months ended September 30, 2008 increased
$834,000 to $3,035,000 as compared to the three months ended September 30, 2007.
The increase resulted from outside agent and outsourcing and other costs of
$712,000 related to the expansion of the Global Hotline business with the
signing of significant contracts with major corporations discussed above and
$122,000 related to the Global Hotline Philippines businesses acquired in April
and May, 2008.

EXPENSES

         Selling, general and administrative expenses for the three months ended
September 30, 2008 increased $5,413,000 to $14,111,000 as compared to the three
months ended September 30, 2007. This was due to increased operating expenses of
$86,000 related to the implementation of SFAS 123R at IA Global, $118,000
related to the Global Hotline Philippines businesses acquired in April and May,
2008 and $5,059,000 at Global Hotline for additional staff, hiring expenses and
training. The Global Hotline increase was due to the expansion of the Global
Hotline business with the signing of significant contracts with major
corporations.

         Global Hotline opened a fifth and sixth call center in Tokyo and Osaka,
Japan in late August and October, 2007, respectively to support its new
contracts. In addition, Global Hotline opened four smaller call centers in 2008
to support its customer contracts.

         For 2008/9 and 2007/8, 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 income/ expense for the three months ended September 30, 2008 was
$351,000 as compared to other expense of $451,000 for the three months ended
September 30, 2007. The other income/expense increase was primarily related to
interest expense and amortization of the beneficial conversion feature of
$222,000, a net loss on equity investments of $73,000 and a foreign currency
translation adjustment of $63,000.

         The 2007/8 other expense was primarily related to interest expense and
amortization of beneficial conversion feature of $283,000, a net loss on equity
investments of $65,000 and conversion of debenture expense of $120,000.

NET LOSS

         Net loss for the three months ended September 30, 2008 was $1,698,000
as compared to a net loss from of $3,621,000 for the three months ended
September 30, 2007. Increased gross margin of $8,068,000 was offset by increased
operating expenses of $5,413,000 and income taxes of $832,000. The increased
operating expenses primarily reflect additional staff, hiring costs and
training. The increase resulted from costs related to the expansion of the
Global Hotline business with the signing of significant multi-year contracts
with major corporations.

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

                                       38
<PAGE>

SIX MONTHS ENDED SEPTEMBER 30, 2008 COMPARED TO THE SIX MONTHS ENDED SEPTEMBER
30, 2007

         Net revenue for the six months ended September 30, 2008 increased
$23,075,000 to $35,052,000, as compared to the six months ended September 30,
2007.

The increase was due to the expansion of the Global Hotline business with the
signing of the following significant contracts with major corporations:

1. KDDI Network and Solutions signed on January 1, 2007 and was increased
   effective July 1, 2007 and April 1, 2008.

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

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

4. Increased revenues from other Global Hotline contracts.

5. We experienced a decrease in AIG revenues of $2.4 million from the three
   months ended June 30, 2008 due to their financial difficulties. While these
   contracts are in effect, personnel have been allocated to other contracts at
   this time.

COST OF SALES

         Cost of sales for the six months ended September 30, 2008 increased
$2,387,000 to $6,230,000 as compared to the six months ended September 30, 2007.
The increase resulted from outside agent and outsourcing and other costs of
$2,171,000 related to the expansion of the Global Hotline business with the
signing of significant contracts with major corporations discussed above and
$217,000 related to the Global Hotline Philippines businesses acquired in April
and May, 2008.

EXPENSES

         Selling, general and administrative expenses for the six months ended
September 30, 2008 increased $13,126,000 to $28,768,000 as compared to the six
months ended September 30, 2007. This was due to increased operating expenses of
$172,000 related to the implementation of SFAS 123R at IA Global, $185,000
related to the Global Hotline Philippines businesses acquired in April and May,
2008 and $12,542,000 at Global Hotline for additional staff, hiring costs and
training. The Global Hotline increase was due to the expansion of the Global
Hotline business with the signing of significant contracts with major
corporations.

         Global Hotline opened a fifth and sixth call center in Tokyo and Osaka,
Japan in late August and October, 2007, respectively to support its new
contracts. In addition, Global Hotline opened four smaller call centers in 2008
to support its customer contracts.

OTHER INCOME/EXPENSE

         Other income/ expense for the six months ended September 30, 2008 was
$355,000 as compared to other expense of $110,000 for the six months ended
September 30, 2007. The other income/expense increase was primarily related to
interest expense and amortization of the beneficial conversion feature of
$505,000, a foreign currency translation adjustment of $66,000, offset by a net
gain on equity investments of $132,000 and other income of $68,000.

                                       39
<PAGE>

         The 2007 other expense was primarily related to interest expense and
amortization of beneficial conversion feature of $510,000, net loss on equity
investments of $77,000 and conversion of debenture expense of $120,000, offset
by other income of $570,000.

NET LOSS

         Net loss for the six months ended September 30, 2008 was $971,000 as
compared to a net loss from of $5,748,000 for the six months ended September 30,
2007. Increased gross margin of $20,688,000, offset by increased operating
expenses of $13,126,000 and income taxes of $2,540,000. The increased operating
expenses primarily reflect additional staff, hiring costs and training. The
increase resulted from costs related to the expansion of the Global Hotline
business with the signing of significant multi-year contracts with major
corporations.

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

LIQUIDITY AND CAPITAL RESOURCES

         We had cash of approximately $2.5 million, net working capital of
approximately $(1.1) million and debt of $16.5 million as of September 30, 2008.
Global Hotline will need to repay or refinance $9.0 million by September 30,
2009.

         During 2008/9, we entered into loans of $.5 million at IA Global and
$3.4 million at Global Hotline. During 2008/9, we repaid loans of $.5 million at
IA Global and $4.1 million at Global Hotline. We expect to continue reducing
debt during FY 2008/9 with the improvement in Global Hotline operating results
starting January 1, 2008. Global Hotline will need to repay or refinance $9.0
million by March 31, 2009.

         IA Global and each subsidiary manage their cash flow independently. IA
Global funds its operations from loans, convertible debentures, inter-company
borrowings, loans collateralized by stock, management service fees and dividends
from its equity investments. Global Hotline funds its operations from bank debt
and at times needs to refinance this bank debt. Global Hotline Philippines funds
its operations from inter-company borrowings.

         Each entity will need to obtain additional financing in order to
continue our current operations, service our debt repayments and acquire
businesses. There can be no assurance that we will be able to secure funding, or
that if such funding is available, whether the terms or conditions would be
acceptable to us.

         Since inception, we have financed our operations primarily through
sales of our equity securities in our initial public offering and from several
private placements, loans and capital contributions, primarily from related
parties. Net cash proceeds from these items have totaled approximately $20.5
million as of September 30, 2008, with approximately $8.8 million raised in the
initial public offering, $8.5 million raised in private placements, $3.6 million
raised in the conversion of debt and $0.7 million used for the share repurchase
program. In addition, we have issued equity for non-cash items totaling $33.1
million, including $7.0 million from the ASFL equity investment, $5.2 million
from the Taicom equity investment, $1.4 million each from the GPlus and Slate
equity investments, $.3 and $.2 million related to the Asia Premier and Shift
acquisition, respectively, $7.1 million issued for services, $3.6 million
related to a beneficial conversion feature, $3.9 million from debenture
conversions, and $3.1 million related to the Global Hotline acquisition.
Additional funding was obtained from notes payable and long term debt of
approximately $16.5 million.

                                       40
<PAGE>

OPERATING ACTIVITIES

         Net cash provided by operating activities for the six months ended
September 30, 2008 was $3.9 million. This amount was primarily related to a net
loss of $1.0 million, an increase in notes receivable of $1.5 million and a
decrease in other liabilities of $1.3 million, offset by depreciation,
amortization and other non-cash expenses of $1.0 million, a decrease in accounts
receivable of $4.4 million, prepaid expenses of $1.4 million.

INVESTING ACTIVITIES

         Net cash used in investing activities for the six months ended
September 30, 2008 was $1.1 million. This amount relates to capital expenditures
of $1.1 million.

FINANCING ACTIVITIES

         Net cash used in financing activities for the six months ended
September 30, 2008 was $1.0 million.

         During the six months ended September 30, 2008, IA Global entered into
loans of approximately $.5 million and repaid loans of $.5 million and the
company sold common stock for $.6 million.

         During the six months ended September 30, 2008, Global Hotline entered
into loans of approximately $3.4 million and repaid loans of $4.1 million.

         Other Material Commitments. The company's contractual cash obligations
as of September 30, 2008 are summarized in the table below (1):
<TABLE>
<CAPTION>
Contractual Cash                      Less Than                                Greater Than
Obligations               Total        1 Year       1-3 Years     3-5 Years      5 Years
--------------------   -----------   -----------   -----------   -----------   -----------
<S>                    <C>           <C>           <C>           <C>           <C>
Operating leases ...   $ 3,237,902   $ 2,033,092   $ 1,030,876   $   173,829   $       105
Note payable .......    16,495,758     8,993,634     4,999,645     2,502,479             0
Capital expenditures       250,000       250,000             0             0             0
Acquisitions .......             0             0             0             0             0
                       -----------   -----------   -----------   -----------   -----------
                       $19,983,660   $11,276,726   $ 6,030,521   $ 2,676,308   $       105
                       ===========   ===========   ===========   ===========   ===========
</TABLE>

Global Hotline will need to repay or refinance $9.0 million by September 30,
2009.

(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:

                                       41
<PAGE>

INCOME TAXES

         We are subject to income taxes in both the U.S. and foreign (Japan and
Philippines) 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 in the US due to IA Global, Inc.
not demonstrating any consistent profitable operations. In Japan, Global Hotline
has a deferred tax asset which we expect to realize from future income. 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.

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 collectability is reasonably assured. Furthermore,
if an actual measurement of revenue cannot be determined, we defer all revenue
recognition until such time that an actual measurement can be determined. If
during the course of a contract management determines that losses are expected
to be incurred, such costs are charged to operations in the period such losses
are determined.

         Revenues are deferred when cash has been received from the customer but
the revenue has not been earned. The company has not recorded any deferred
revenue as of September 30, 2008 and March 31, 2008, respectively.

                                       42
<PAGE>

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.

DEBT AND EQUITY FINANCING OF CAPITAL TRANSACTIONS - BENEFICIAL CONVERSION
FEATURES

         We have 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 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, 2008.

                                       43
<PAGE>

FACTORS THAT MAY AFFECT FUTURE RESULTS

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

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

DECLINING GENERAL ECONOMIC, BUSINESS, OR INDUSTRY CONDITIONS MAY CAUSE REDUCED
REVENUES AND PROFITABILITY.

         Recently, concerns over inflation, energy costs, geopolitical issues,
the availability and cost of credit, the U.S. mortgage market and a declining
real estate market in the U.S. have contributed to increased volatility and
diminished expectations for the global economy and expectations of slower global
economic growth going forward. These factors, combined with volatile oil prices,
declining business and consumer confidence and increased unemployment, have
precipitated an economic slowdown and fears of a possible recession. If the
economic climate in the U.S. or abroad does not improve from its current
condition or continues to deteriorate, our customers or potential customers
could reduce or delay their purchases of our products, which would adversely
impact our revenues and our ability to manage inventory levels, collect customer
receivables and ultimately our profitability.

         Volatility and disruption of financial markets could affect access to
credit. The current difficult economic market environment is causing contraction
in the availability of credit in the marketplace. This could potentially reduce
or eliminate the sources of liquidity for the company.

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

         Each entity will need to obtain additional financing in order to
continue our current operations, service our debt repayments and acquire
businesses. There can be no assurance that we will be able to secure funding, or
that if such funding is available, whether the terms or conditions would be
acceptable to us.

                                       44
<PAGE>

         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
will result in substantial dilution to our current stockholders.

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

         At September 30, 2008, we had current and long-term indebtedness of
$16.5 million, with $9.0 million due within twelve months.

         Our high level of indebtedness could:

      o  impact our ability to obtain additional financing to support capital
         expansion plans and for working capital and other purposes on
         acceptable terms or at all;

      o  divert substantial cash flow from our operations and expansion plans in
         order to service our fixed obligations;

      o  place us at a possible competitive disadvantage compared to less
         leveraged competitors and competitors that have better access to
         capital resources.

         Our ability to make scheduled payments on our debt and other fixed
obligations will depend on our future operating performance and cash flows,
which in turn will depend on prevailing economic and political conditions and
financial, competitive, regulatory, business and other factors, many of which
are beyond our control. We are principally dependent upon our operating cash
flows to fund our operations and to make scheduled payments on debt and other
fixed obligations. We cannot assure you that we will be able to generate
sufficient cash flows from our operations to pay our debt and other fixed
obligations as they become due, and if we fail to do so our business could be
harmed. If we are unable to make payments on our indebtedness, we could be
forced to renegotiate those obligations or obtain additional equity or other
forms of additional financing. We cannot assure you that our renegotiation
efforts would be successful or timely or that we could refinance our obligations
on acceptable terms, if at all.

         See also our risk factor "We will need additional financing to support
our operations and acquire businesses," above.

WE NEED TO MAINTAIN CERTAIN NYSE ALTERNEXT US REQUIREMENTS FOR CONTINUED
LISTING.

         Pursuant to NYSE Alternext US listing rules, our common stock could be
delisted from NYSE Alternext US if we do not meet certain standards regarding
our financial condition, operating results and share price, including, among
other factors, maintaining adequate stockholders' equity and market
capitalization and minimizing losses from continuing operations over multiple
years. We anticipate that we will maintain our NYSE Alternext US listing. If our
securities are delisted from NYSE Alternext US, we believe they will be quoted
again for trading on the OTC Bulletin Board which may depress demand for our
shares and limit market liquidity due to the reluctance or inability of certain
investors to buy stocks on the OTC Bulletin Board. Consequently, an investor may
find it more difficult to trade our securities, which may adversely affect the
ability to resell securities purchased from the selling stockholders.

                                       45
<PAGE>

THE MARKET PRICE OF OUR COMMON STOCK MAY BE VOLATILE.

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

         o Alleged manipulation of our stock price,

         o General market and economic conditions,

         o Quarterly variations in our operating results,

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

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

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

         o Issuance or repayment of debt, accounts payable 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 Defending significant litigation, and

         o Foreign exchange gains and losses.

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

WE ARE EXPOSED TO CHANGES IN THE AUSTRALIAN FINANCE INDUSTRY

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

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

                                       46
<PAGE>

         o Risks related to world-wide mortgage lending;

         o Decreased market demand for high interest loans;

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

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

         o General economic conditions and changes in interest rates;

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

         o New competitors;

         o Decreased pricing;

         o Litigation risk; and

         o Loss of key personnel.

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

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

         Global Hotline may be affected by the following factors that would
impact its ability to operate as a telemarketer of telecommunications and
insurance products in Japan.

         o The business has a concentration with five major customers, including
AIG;

         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.

                                       47
<PAGE>

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

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, 2008, 210.9 million
shares of common stock were outstanding. Significant shares of common stock are
held by our principal shareholders, other Company insiders and other large
shareholders. As "affiliates" (as defined under Rule 144 of the Securities Act
("Rule 144")) of the Company, our principal shareholders, other Company insiders
and other large shareholders may only sell their shares of common stock in the
public market pursuant to an effective registration statement or in compliance
with Rule 144.

OUR CONTROLLING SHAREHOLDER GROUP HAS SUBSTANTIAL INFLUENCE OVER OUR COMPANY

         As of September 30, 2008, IAJ LBO Fund, PBAA Fund Limited, Terra Firma,
Inter Asset Japan Co Ltd ("IAJ"), IA Turkey, Hiroki Isobe, Kyo Nagae
(collectively, the "Controlling Shareholders") and Derek Schneideman
collectively hold approximately 37.0% 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 and
627,900 shares of treasury stock. These Controlling Shareholders have stated in
a Schedule 13D that they may be deemed to constitute a "group" for the purposes
of Rule 13d-3 under the Securities and Exchange Act of 1934, as amended
("Exchange Act"). Hiroki Isobe and Kyo Nagae control each of our Controlling
Shareholders. In addition, Mr. Schneideman in his capacity as Chairman and CEO
of the Company has sole voting power and dispositive power with respect to
77,613,470 shares of common stock or approximately 47.1% of the outstanding
shares of common stock of the Company for all of the Company's 2008 shareholder
meetings pursuant to a proxy granted on February 21, 2008.

         IAJ could cause a change of control of our board of directors if in
combination with another large shareholder blocks 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 could have a significant influence
over our affairs, if in combination with another large shareholder, 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.

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 MAY 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. Such transactions are accompanied by a number of
risks, including:

                                       48
<PAGE>

         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.

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

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

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

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

         o Collect the proceeds from any divestitures.

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

                                       49
<PAGE>

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

WE ARE DEPENDENT ON KEY PERSONNEL.

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

THE COMPANY COULD BE EXPOSED TO LEGAL CLAIMS.

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

WE HAVE LIMITED INSURANCE.

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

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, Philippine Peso and US Dollar would have a material
adverse or positive effect on our business, financial condition and results of
operations.

WE ARE SUBJECT TO COMPETITIVE PRESSURES.

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

INTEREST RATE RISK

         We are exposed to interest rate risk at Global Hotline. As of September
30, 2008, total debt was $16,495,758. Debt totaling $2,299,138 is exposed to
variable interest rates with current interest rates of 2.0% to 2.70%.

         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.

                                       50
<PAGE>

ITEM 4T. 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, 2008. Based
on this evaluation, our principal executive and financial officers concluded
that, as of September 30, 2008, our disclosure controls and procedures were
effective in ensuring that (1) information to be disclosed in reports we file
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified by the rules and forms promulgated under the Exchange
Act and (2) information required to be disclosed in reports filed under the
Exchange Act is accumulated and communicated to the principal executive officer
and principal financial officer as appropriate to allow timely decisions
regarding required disclosure. There were no changes in the company's internal
control over financial reporting that occurred during the company's last fiscal
quarter that have materially affected or are reasonably likely to materially
affect, the company's internal control over financial reporting.

                           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 our results of
operations, financial condition and liquidity, see the risk factors discussion
provided under "Factors that May Affect Future Results" included in Item 2 of
this Quarterly Report on Form 10-Q.

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

         During the three months ended September 30, 2008, the following
unregistered sales of equity securities occurred:

         On June 28, 2008, the company converted $2,300,000 of debentures by
issuing 7,666,679 shares of common stock. In addition, we expect to issue an
additional 5,862,734 shares during the three months ended December 31, 2008
based on the June 23-27, 2008 average closing price of $.22 per share less 25%
due to the resetting of the pricing for these outstanding debentures. On
September 22, 2008, we agreed to issue 463,658 shares of common stock to certain
debenture holders related to the conversion of $78,822 of interest at $.17 per
share.

         On July 23, 2008, we agreed to issue 15,000 shares at $.20 per share or
$3,000 to Anna Alioto, above the closing market price of $0.14 per share, for
investor relation services.

         Between August 21, 2008 and August 26, 2008, we agreed to issue 582,609
shares of common stock to Mr. La Cara, Mr. Ishii, Mr. Nelson and Ms. Towada for
$64,087, or $0.11 per share, the closing market price on the day preceding the
signing of the private placement memorandum.

         On September 12, 2008, the company agreed to issue 100,000 shares at
$.10 per share to Financial West Investment Group, Inc., the closing market
price on September 11, 2008, for financing and investor relation services.

                                       51
<PAGE>

Share Repurchase Program

         The following information summarizes the purchases through September
30, 2008 related to our share repurchase plan:
<TABLE>
<CAPTION>
                                                                                  Total No. of         Maximum No. of
                                                                                Share Purchased     Shares that can be
                                           Total No. of     Ave. Price Paid   as part of Publicly    Purchased Under
             Period (1)                  Shares Purchases      Per Share        Announced Plan           the Plan
--------------------------------------   ----------------   ---------------   -------------------   ------------------
<S>                                      <C>                <C>               <C>                   <C>
April 2, 2007 - April 30, 2007 .......          1,866,355       $ 0.251            1,866,355
July 1, 2007 - July 31, 2007 .........             30,000         0.398               30,000
August 1, 2007 - August 31, 2007 .....            135,000         0.437              135,000
September 1, 2007 - September 30, 2007             60,000         0.481               60,000
October 1, 2007 - October 31, 2007 ...             15,000         0.478               15,000
November 1, 2007 - November 30, 2007 .             31,500         0.427               31,500
December 1, 2007 - December 31, 2007 .            516,400         0.347              516,400
                                         ----------------   ---------------   -------------------   ------------------
Total ................................          2,654,255       $ 0.281            2,654,255             4,000,000
                                         ================   ===============   ===================   ==================
</TABLE>

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not applicable.

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

On July 29, 2008, the company held its 2008 Annual Meeting of Stockholders. Of
the 169,834,530 shares of common stock outstanding as of record date of July 8,
2008, 124,803,314 shares, or 73.5% of the company's common stock, were present
or represented by proxy at the meeting, constituting a quorum. The results of
the matters submitted to the stockholders were as follows:

(2) The following nominees were duly elected as Directors of the Company to
serve until the 2009 Annual Meeting of Stockholders or until their successors
have been elected with the indicated vote:

         Mr. Derek Schneideman   124,395,509 For     407,805 Withheld
         Mr. Mark Scott          124,165,609 For     637,705 Withheld
         Mr. Hideki Anan         123,613,599 For   1,189,715 Withheld
         Mr. Masazumi Ishii      123,969,009 For     834,305 Withheld
         Mr. Eric La Cara        123,622,879 For   1,180,435 Withheld
         Mr. Brian Nelson        124,395,599 For     407,715 Withheld
         Ms. Mae Towada          124,170,899 For     632,415 Withheld

The following motions were approved with the indicated vote:

(1) To amend the Company's Amended and Restated By-Laws to fix the maximum
number of directors at seven.

For 122,250,286 Against 1,877,733 Abstain 675,294 NonVotes 0

(3) To ratify the Issuance of Share of Common Stock in Connection with Certain
Transactions. For 93,687,444 Against 681,179 Abstain 713,067 NonVotes 29,721,624

(4) To ratify the appointment of Sherb and Co LLP as the Company's Independent
Registered Public Accounting Firm for the year ended March 31, 2009.

For 124,027,120 Against 44,239 Abstain 731,955 NonVotes 0

(5) To increase the number of authorized shares under the 2007 Stock Incentive
Plan from 20,000,000 to 27,500,000 shares.

For 120,890,303 Against 2,931,877 Abstain 981,134 NonVotes 0

                                       52
<PAGE>

ITEM 5.  OTHER INFORMATION

         Not applicable.

ITEM 6.  EXHIBITS

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

10.1     Loan Agreement dated August 1, 2008 by and between Global Hotline, Inc.
         and Mitsui Sumitomo Banking Corporation (1)

10.2     Amended and Restated Bylaws of IA Global, Inc. dated July 29, 2008 (1)

10.3     Contract on Sales by and between Global Hotline, Inc. and KDDI
         Corporation. (1) +

10.4     Business Consignment Agreement by and between Global Hotline, Inc. and
         KDDI Corporation. (1) +

10.5     Amendment to Monetary Loan Agreement dated September 5, 2008 by and
         between IA Partners, Inc. and Mitsui Sumitomo Bank Co Ltd. (1)

10.6     IA Global, Inc. 2007 Incentive Plan, as amended. (2)

10.7     Amendment to Monetary Loan Agreement dated September 5, 2008 by and
         between IA Partners, Inc. and Mitsui Sumitomo Bank 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)
__________________

*  Indicates management contract or compensatory plan.

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

(1) Filed herewith.

(2) Filed as Exhibit 4.1 to the Company's Form S-8 filed on September 5, 2008,
    and incorporated herein by reference.

                                       53
<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, 2008             By: /s/ Derek Schneideman
                                        ---------------------
                                    Derek Schneideman,
                                    Chief Executive Officer
                                    (Principal Executive Officer)


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

                                       54